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2006 Thomson-Wadsworth

Learning Objectives
Discuss why change is considered inevitable. Identify the factors that influence the rate of change in todays workplace. Describe the reasons why employees resist change. List the types of change that usually occur in organizations.
2006 Thomson-Wadsworth

Learning Objectives
Describe how change should be managed. Differentiate between managing change and management, in general. Discuss ways to minimize the stress associated with change.
2006 Thomson-Wadsworth

The Inevitability of Change


People generally hold to the status quo and resist change Once change has been accepted, people resist turning back Internal and external changes are inevitable

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The Acceleration of Change


External changes...
Technology, speed in movement of people/things, increased information and access to it

...lead to internal changes


People need more education, and must continue education throughout life; lives are longer because of advances in medicine
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The Acceleration of Change


Impact of change on businesses
Global changes: social, political, economic Must be flexible Must review documents and procedures frequently Flexibility for organization = instability, disruption for employees
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Resistance to Change
20-50-30 rule:
20% of the people in an organization will embrace change and welcome it 50% are ambivalent 30% are resistant and may sabotage or undermine the change process

Nearly 80% of an organizations staff will need to be convinced that the change is a good one and worth the stress involved in making it.
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Resistance to Change

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Resistance to Change
Lack of understanding of the need for change
Workers' jobs do not include conceptual thinking about the organization May fail to perceive connection between their observations of the work environment and the organization's financial health Only upper-level management may have access to information indicating the need for change, such as financial or productivity records
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Resistance to Change
Lack of understanding of, or a different sense of, the context or environment
Employee's viewpoint and manager's may greatly differ ex: WIC clinic during recession Dietitian thinks program should be expanded in response to more eligible clients with increased needs Manager thinks program must reduce expenses in response to cuts in funding

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Resistance to Change
Belief that proposed change violates the core values of the organization
Organization's mission is subject to interpretation ex: Do patients have the right to all nutrition services? Typically, patients are billed for complex services like expensive enteral feedings Some dietitians have administered these even without being paid Today, most agree this devalues the services, and consider reimbursement vital for the profession
2006 Thomson-Wadsworth

Resistance to Change
Misunderstanding of the change and its implications
Workers perceive change as pointless extra work because they don't understand its purpose ex: implementation of HACCP during breakfast, when 8 dozen eggs are used Manager thinks bringing eggs out by the dozen prevents holding them at unsafe temperatures too long Cook thinks he is being asked to make 8 trips to the refrigerator instead of 1 for no reason
2006 Thomson-Wadsworth

Resistance to Change
Belief that the change is not in the best interests of the organization
ex: purchase of new uniforms after layoffs
Manager thinks one-time expense of uniforms will serve to unify staff Workers think money should be used to re-hire former staff (a long-term expense)
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Resistance to Change
Lack of trust in those introducing the change
Workers who distrust management may not believe in the stated reasons for change Workers may resist because of what they consider the true motivation

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Resistance to Change
Lack of belief that the leadership is serious about making changes
If manager's words and actions are inconsistent, workers question sincerity of order to change Managers who seldom follow through are expected to repeat this pattern

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Resistance to Change
Lack of belief that the leadership is capable of making the change happen
Failure of previous attempts at change Perceived weakness of manager Change extends beyond manager's authority/span of control

Perception that change is unfairly selective


ex: layoffs among certain classes of workers but not others
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Kinds of Organizational Change


Change in structure
Organizational structure - those characteristics of the organization that are reflected in the organizational chart. ex: hierarchy, line/staff relationships, span of control, centralization, departmentalization
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Kinds of Organizational Change


Change in structure
Downsizing or rightsizing reducing organization's size; usually accompanied by flattening of structure.
Usually necessitates reduction in force

Restructuring through growth Acquisitions and mergers


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Kinds of Organizational Change


Change in work process
A.K.A. reengineering Possible reasons:
Economic Changes in technology, equipment, personnel To improve quality or performance

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Kinds of Organizational Change


Change in work process examples:
Technology-driven: paperless office communications, bulk mailings, debit cards, bioelectrical impedance
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Kinds of Organizational Change


Change in work process examples:
Economically-driven: self-service delis/salad bars Equipment-driven: faster ovens, new dishwasher Personnel-driven: new employee suggests more efficient procedure

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Kinds of Organizational Change


Change in organizational culture
Most basic and far-reaching type of change Result from:
Change in leadership Change in mission Change in management style Evolution

Occur most rapidly during mergers, acquisitions, divestitures

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Kinds of Organizational Change


In health care, two common, differing cultures are "high tech" and "high touch"

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Managing Change
Decision making
Identify a problem to solve Establish criteria Weight criteria List and analyze alternatives Make and implement decision Evaluate results

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Managing Change
Timing
Employees need time to pass through 5 stages of change:
Become aware of the change Understand it Support it Become actively involved Become committed to the change

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Managing Change

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Managing Change
Timing
Introduce staff to problem as soon as it is identified If possible, allow group participation in planning change An adjustment period is necessary, either before or after change

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Managing Change
Communication
"Package" messages about change in a positive manner Recruit supportive staff members to inform others Distribute clear, correct information
Avoid sharing information prematurely, before decisions are finalized

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Minimizing Stress during Change


Trust
Distrust of management = more uncertainty

Communication
More factual information = less uncertainty Two-way communication helps

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Minimizing Stress during Change


Transition time
Introduction of multiple changes at once Generates intense stress for a brief period May work better with autocratic leadership style Series of sequential changes Less severe stress for a long period May work better with participative leadership
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Minimizing Stress during Change


Employee assistance programs
Outplacement programs to help laidoff workers find jobs Stress management courses Training programs to assist with changing job functions

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Conclusion
Change is inevitable and is taking place more rapidly than ever before. People resist change for a variety of reasons, many of which have to do with miscommunication or misunderstanding. Organizations undergo three basic types of changes: in structure, in work process, and in organizational culture.
2006 Thomson-Wadsworth

Conclusion
Change is managed by establishing trust, using leadership effectively, making good decisions, and maintaining positive communication. Employees should be given support and assistance to cope with the stress of change in the workplace.

2006 Thomson-Wadsworth

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