MAN 337 Chapter Notes - Chapter 16: Radical Change, Organization Development, Learning Organization

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4 Jan 2017
Chapter 16: Organizational Change
Forces for change:
o Nature of the workforce (i.e. demographic, scale, etc)
o Technology
o Economic Shocks
o Competition (i.e. global competition)
o Social trends
o World politics
Why people resist change:
o Habit- ingrained schemas
o Security
o Economic factors
o Fear of the unknown
o Selective information processing
o Employees lack information about change
o Employees fail to see need for change
o Change agent seen as enemy - We/They
o Change threatens prestige and security
o Rigid ways of thinking
Why organizations resist change:
o Structural inertia, habits, routines
o Limited focus of change
o Threat to expertise
o Threat to established power relationships
o Threat to established resource allocations
Tactics to overcome resistance:
o Educate and communicate
Employees need to understand the logic for change
It helps to sell the eed for hage & fights isiforatio
o Seek participation
It is hard to resist change when you are part of the solution
o Build emotional commitment
Fire up employees to help them embrace the need for change
o Implement changes fairly
It is critical for leaders to bend over backwards to demonstrate procedural fairness
o Cooptation/ Manipulation
“eek to uy off leaders of resistae group y giig hi or her a key role i the hage
o Coercion
Approaches to managing change:
o Lewin’s Three Step Model
Unfreezing Changing Refreezing
To unfreeze: increasing driving forces and decrease restraining forces
Change has to happen quickly to be effective
The objective of refreezing is to stabilize the new situation by balancing driving and
restraining forces
o Kotter’s 8-Step Plan
1. Create urgey: U-freeze
2. Form a powerful coalition to lead the change
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