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Chapter 14

Organizational Change

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Forces for Change
Types of Organizational Change
Managing Organizational Change
Resistance to Change
Caveats on Undergoing Change

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Forces for Change
Nature of the work force

Technology

Economic shocks

Competition

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Exhibit 14-1
Change Options

What are
the change
options?

Physical
Culture Structure Technology People
setting

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
What Do Organizations
Change?
Culture
changing the underlying values and goals of the
organization
Structure
altering authority relations, coordination
mechanisms, job redesign, or similar structural
variables
Technology
modifying how work is processed and methods and
equipment used

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
What Do Organizations
Change?
Physical Settings
altering the space and layout arrangements
in the workplace
People
changes in employee skills, expectations
and/or behaviour

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Total Quality Management
Philosophy of management thats driven
by the constant attainment of customer
satisfaction through the continuous
improvement of all organizational
processes
seeks to reduce variability in output,
resulting in lower costs and higher quality

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Exhibit 14-2 What Is Total
Quality Management?
Intense focus on the customer
Concern for continuous improvement
Improvement in the quality of everything
the organization does
Accurate measurement
Empowerment of employees

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Why TQM Fails
Some firms were not performing TQM, just
calling it that
Some managers have unrealistic expectations,
and effect results too quickly
Some programs did not assure employees job
security
Some firms did not provide adequate training
Some firms did not appreciate the complexity of
changes involved

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Elements of Re-engineering
Identifying an organizations distinctive
competencies
Assessing core processes
Reorganizing horizontally by process

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Re-engineering versus TQM
TQM Re-engineering
Incremental Quantum leaps in
improvements performance
Bottom-up Driven by top
participative management
decision-making

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Exhibit 14-4 Lewins Three-
Step Change Model

Unfreezing Moving Refreezing

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Implementing Change
Unfreezing: getting ready for change
Minimizing resistance
Moving: making the change
Changing people (individuals and groups);
Tasks; Structure; Technology
Refreezing: stabilizing the change
Reinforcing outcomes, evaluating results,
making constructive modifications

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Exhibit 14-7 Sources of
Individual Resistance to
Change
Selective
information Habit
processing

Individual
Resistance
Security
Fear of
the unknown

Economic
factors

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Cynicism About Change
Feeling uninformed about what was
happening
Lack of communication and respect from
ones supervisor
Lack of communication and respect from
ones union representative
Lack of opportunity for meaningful
participation in decision-making

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Exhibit 14-9 Sources of
Organizational Resistance to
Change
Threat to established Structural
resource allocations inertia

Threat to established Organizational Limited focus


power relationships Resistance of change

Threat to Group
expertise inertia

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Overcoming Resistance to
Change
Education and Communication
This tactic assumes that the source of resistance lies
in misinformation or poor communication.
Participation
Prior to making a change, those opposed can be
brought into the decision process.
Facilitation and Support
The provision of various efforts to facilitate
adjustment.

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.
Overcoming Resistance to
Change
Negotiation
Exchange something of value for a lessening of
resistance.
Manipulation and Cooperation
Twisting and distorting facts to make them appear
more attractive.
Coercion
The application of direct threats or force upon
resisters.

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed.
Copyright 2004 by Pearson Education Canada Inc.