McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Managing Organizational
Change and Learning
Organizations: Behavior, Structure, Processes
Chapter 17
 Learning Objectives
Describe the seven-step model of
organizational change
Describe sources of change and
alternative change management
Discuss the ethical issues that arise
in organizational development practices
Compare alternative interventions that can
improve performance
Identify major reasons people resist
change

17-3
Managing Change

A Proactive Behavior

17-4
 Learning Principles and Change
Principles of learning
Unfreezing old learning
Movement to new learning
Refreezing the learned behavior

17-5
 Change Agents
An intervener who
Brings a different perspective to a situation
Challenges the status quo

The success of a change program

rests heavily on
The relationship between the change
agent and key decision makers

17-6
 Types of Change Agents

Internal External-Internal External

17-7
 Why People Resist Change
Rational or irrational reaction to
Uncertainty
Actual, perceived, or imaged threats

Parochial self-interest
Misunderstanding
Lack of trust
Different assessments
Low tolerance for change

17-8
 Reducing Resistance to Change
Employee resistance can be reduced
by utilizing:
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and cooptation
Explicit and implicit coercion

17-9
 Model for Managing Change

Forces for change Performance Diagnosis of Selection of

appropriate
Environmental outcomes the problem intervention
Market
Technology Organizational Information Leads
Affect Group Encourage to
Structural
Resources Participation Skill/attitude
Internal Individual Change agent Behavioral
Behavior
Processes 1 2 3 4

Limiting Conditions Implementation Evaluation

Followed Provision of method
Leadership climate by Timing for Feedback
Formal organization Scope Adjustment
Organization culture Experimentation Revision
5 6 Reinforcement 7
Feedback
Feedback

17-10
 Forces for Change
Environmental Forces
Economic
Technological
Social/political

Internal Forces
Process problems
Behavioral problems

17-11
 Diagnosis of a Problem
Change agents facilitate a diagnosis
Gathering, interpreting, and presenting data
There is no formula for accurate diagnosis
Questions that can point to the right
direction:
What is the problem, as distinct from the
symptoms of the problem?
What must be changed to resolve the problem?
What outcomes (objectives) are expected
from the change?
How will those outcomes be measured?

17-12
Data Collection Process & Techniques
Processes and techniques
Questionnaire
Direct observation
Interviews
Workshops
Examination of
documents and records

17-13
 Intervention

Intervention
A specific action or program
undertaken to focus the change
process on particular targets.

17-14
 Depth & Approach of Change
Depth of intended change
Scope and intensity of organizational
change efforts
Approaches to achieving change
Structural
Behavioral
Technological

17-15
 Alternative Change Techniques
Structural Change
Change the nature of jobs
Change the bases for departmentalization
Change line-staff relationships
Behavioral Change
Team building
Diversity training
Technological Change
New ways of transforming resources
into products or services

17-16
Technological Change Techniques

Flexible
manufacturing Automation
systems

Robotics Wireless
Connectivity

17-17
 High-Tech Disappointments
High-tech changes often disappoint
Structural changes not implemented
Behavioral changes lacking
Employeetraining
Compensation
Management style

17-18
 Anticipated Outcomes of Change

Structural Work simplification Satisfaction

changes Job enrichment Morale
Job description Performance
Departmentalization
Initiator of
change: internal Team building Communications
Behavioral
and/or external Cross-cultural understanding Attitudes
changes
change agent Managing diversity Self-awareness
Problem solving

Technological Robotics Efficiency

changes Automation Output
Wireless connectivity Quality

17-19
 Appreciative Inquiry
A method of focusing on and bringing
about positive change
Uses metaphors and narratives to
strengthen an individual or organizations
ability to anticipate, seize, or initiate
positive potential
A positive approach to change that
completely lets go of problem-based
management
Individual engagement to bring about
creative solutions
17-20
Framework for Appreciative Inquiry

1 2 3 4
Discovery Dreaming Designing Delivery
Phase Phase Phase Phase
Identifying Thinking Discussing Creating
everything about what and clear
that is the the analyzing objectives
best of possibilities what of what is
what is are should be going to be

17-21
Trends in Organizational Change

Downsizing Empowerment

Flextime Virtual Jobs

17-22
 Limiting Conditions
Selection of a change technique
Based on diagnosis of the problem
Tempered by the conditions at the
time an intervention is to occur
Conditions to consider
Leadership climate
The formal organization
The organizational culture
Resistance to change

17-23
Implementing & Evaluating Change
The implementation of proposed
change has two dimensions:
Timing when to make the change
Scope how much change to make

Feedback should be solicited during

the monitoring phase
It helps determine the success of the
change

17-24
 Ethical Issues of Change
Change itself is not unethical
It creates opportunities for unethical
behavior
Ethical choices are always guided by
the underlying values of management
Employ and empower managers
who create and foster a culture that
encourages ethical behavior

17-25
 Guidelines for Managing Change
Everyone involved must have
High and visible commitment to the effort
Advance information that lets them know
what is to happen and why they are being
asked to do what they are to do
The change effort
Must connect to other parts of the
organization, especially evaluation and
reward systems
Should be directed by line managers and
assisted by a change agent, if necessary
17-26
 Guidelines for Managing Change
For a change to be effective
The effort must be based on good diagnosis and
consistent with the conditions in the organization
Management must remain committed to the effort
through all its steps
Evaluation is essential and must consist of more
than asking people how they felt about the effort
People must see the connection between the
effort and the organizations mission and goals
Change agents, if used, must be competent and
perceived as such

17-27
 The Learning Organization
Learning is a key ingredient in
Growing
Becoming more effective
Becoming more socially responsible
Sustaining the businesss value
proposition

17-28
 A Learning Perspective
Scanning the environment
Performance issues
Metrics
Experimental philosophy
Transparency
Education
Operational variety
Multiple advocates
Engaged leaders and role models

17-29
Managers Role in Learning Organizations

Managers who also lead can create or

contribute to the learning environment
Build a commitment
to learning
Work to generate
ideas with impact
Work to generalize
ideas with impact

17-30
Managers Role in Learning Organizations
Sustaining a learning organization requires
A commitment to learning
Generation & implementation of creative ideas
Building cohesive teams
Fostering collaboration and support

What is learned must be implemented

in order to execute a change
Managers must be decisive and action oriented

17-31
Converting a Traditional Organization
Change the way information and
experienced are used
Change the way information is sought,
used, stored and reviewed
Information must be shared, available,
and transparent
Actively work to make information, new
ideas, and creativity part of the culture

17-32