Change A Constant in an Inconstant World Chapter 16 Objectives Identify who usually recommends and implements organizational changes Describe significant forces that are driving change in todays workplace ID: 315366
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Slide1
Chapter 16
Change:
A Constant in an
Inconstant WorldSlide2
Chapter 16 Objectives
Identify who usually recommends and implements organizational changes.
Describe significant forces that are driving change in today’s workplace.
Explain several effective methods of planning and implementing change.
Chapter 16 Change: A Constant in an Inconstant World
2Slide3
Chapter 16 Objectives
(cont.)
Understand common reasons for resistance to change.
Describe the leader’s role in the change process. Cite methods of helping employees cope with change.
Chapter 16 Change: A Constant in an Inconstant World
3Slide4
The Imperative for Change
Imperative for change comes from both external and internal forces:
External forces include consumer demand, the economy, globalization, technology, and demographics.
Internal forces include need for reorganization and new procedures such as telecommuting or flexible work time.
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The Imperative for Change
(cont.)
For organizational change to succeed, it must be carefully planned and implemented.
A planned change is a method of helping people develop appropriate behaviors for adapting to new methods while remaining effective and creative.
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The Imperative for Change
(cont.)
Recommendations for change originate from:
Professional plannersOutside consultants
Special task forces or teams of representatives from within the organization
CEOs and other top
executives
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The Imperative for Change
(cont.)
Mid-level and first-line managers carry out change using these methods:
Unilateral method
—supervisors dictate the change; employees have little or no inputParticipative
method
—employee
groups are used in the decision-making process before the change, and then work with supervisors to
implement
Delegated
method
—employees
are given the responsibility and authority to diagnose, analyze, and implement the
change
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Forces Prompting Change
External and internal forces that are prompting change include:
The economy
GlobalizationScience and technologyTransportation
The workforceThe work itself
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Forces Prompting Change
(cont.)
Economy
The economic crisis that began in 2007 has led to a lengthy recession around the world. Problems began with risky
mortgages issued in response to a rising housing market.With rising foreclosures, large investment companies began to fail.
Bailouts and stimulus packages followed.
Signs of recovery were evident in the fall of 2009.
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Forces Prompting Change
(cont.)
Economy (cont.)
The economic downturn led to the loss of almost 5 percent of all U.S. jobs.Other sobering statistics:
Forecasts suggest that by 2011, about half of U.S. homeowners would owe more for their homes than the home was worth.Personal bankruptcies rose 34 percent.
Some economists predicted that one in four businesses would eventually close.
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Forces Prompting Change
(cont.)
Economy (cont.)
Job forecasts are uncertain during the recession.Job loss was greatest in manufacturing, construction, and retail.
Jobs in health care, government, and education remain strong. Jobs in clean energy and environmental sectors are growing as a result of stimulus money.
The recession emphasized the importance of flexibility for both organizations and employees.
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11Slide12
Forces Prompting Change
(cont.)
Globalization
Opening of eastern and western European markets in the 1990s has resulted in a global marketplace.NAFTA (1994)
opened trade and employment opportunities among the United States, Mexico, and Canada.
In
recent years, small, mid-sized, and startup companies have begun selling and buying products and offering and receiving services globally.
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Forces Prompting Change
(cont.)
Globalization (cont.)
Outsourcing:Outsourcing is a major part of the global trade revolution.
U.S. companies now outsource:ManufacturingServices such as call centers
Tax return preparation
Office functions such as billing
Architectural designs and blueprints
Basic legal work
Software coding and development
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Forces Prompting Change
(cont.)
Globalization (cont.)
Globalization affects organizations by:Driving them to produce goods and services more
cheaply Prompting them to be flexible and move more quickly
Requiring them to know their market and build diverse
workforces
Requiring them to develop effective systems for working collaboratively across
cultures
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Forces Prompting Change
(cont.)
Globalization (cont.)
Globalization affects employees by:Requiring employees to compete in a much broader
field Requiring employees to develop good human relations skills:Flexibility
Tolerance and openness
Sensitivity to people from other cultures
Ability to collaborate easily
Ability to listen actively
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Forces Prompting Change
(cont.)
Science and Technology
Organizations introduce new technologies to improve productivity and efficiency.New technology may make tasks easier, but it may also make them more complicated and challenging.
Getting the most out of new technology may require new management styles, new office processes, and new structures.
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Forces Prompting Change
(cont.)
Science and Technology (cont.)
Communications media such as social networks, wikis, blogs, and cell phones can lead to gains in productivity, connection, and collaboration.
These media can also result in wasted time, privacy, and security issues.
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Forces Prompting Change
(cont.)
Transportation
Transportation trends:As a result of the recent recession, Americans are driving less.
Ridership on public transportation is increasing.The number of Americans telecommuting is increasing.Business travel is decreasing.
Videoconferences and web conferences are increasing.
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Forces Prompting Change
(cont.)
Workforce
As employers draw from a diverse labor pool, workplaces are becoming more diverse.Organizations are also intentionally diversifying their workforces.
The recession increased a trend away from traditional full-time jobs to contract and part-time work.
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Forces Prompting Change
(cont.)
Workforce (cont.)
Workers now feel less strongly about long-term employment security than in the past. The changing demographics of the workforce require human relations skills such as getting along well with others, active listening, and tolerance.
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Forces Prompting Change
(cont.)
Work Itself
Work in the United States:Is continuing to shift from manufacturing and production to information and knowledge-based goods and
servicesIs trending toward jobs that require education and a higher level of skills
Can be done almost anywhere and at almost any
time
In many organizations, decisions are being pushed to the lowest level possible, giving employees more responsibility and authority.
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How Change Is Planned
Methods of planning for change include:
Strategic planning
Organizational developmentJob redesignReengineering
Force field analysis
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How Change Is Planned
(cont.)
Strategic Planning
Strategic planning is:
Setting organizational goalsDefining strategies and policies to achieve themDeveloping detailed plans to ensure that the strategies are implemented
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How Change Is Planned
(cont.)
Strategic Planning (cont.)
The strategic planning process:
Consider external and internal interests and how they will be affected by a change.Design a master strategy.Clearly define goals, purposes, policies.
Set short-, mid-, and long-range plans.
Implement the change.
Review and evaluate each phase for maximum efficiency.
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How Change Is Planned
(cont.)
Organizational Development
Organizational development (OD) is a planned change process for meeting organizational needs through a high degree of employee participation and management involvement.
OD involves the entire organization—people, structures, culture, policies, procedures, purpose.
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How Change Is Planned
(cont.)
Organizational Development (cont.)
OD involves methods to identify degrees of concern for people as well as tasks.
Methods may include:Sensitivity trainingTeam-building exercisesGoal-setting activities
Survey and feedback techniques
Confrontation meetings
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How Change Is Planned
(cont.)
Organizational Development (cont.)
Total quality management (TQM) and
benchmarking are still used to deal with changing business environments.TQM involves employees in continuous process improvements to keep the organization on the cutting edge.
Benchmarking involves comparing the company’s practices to determine which are the best.
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How Change Is Planned
(cont.)
Organizational Development (cont.)
The
change agent is instrumental in bringing about any of these change processes. The change agent:
Diagnoses problems
Provides feedback
Helps
develop
strategies
Recommends
interventions to benefit the organization as a
whole
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How Change Is Planned
(cont.)
Organizational Development (cont.)
Actions of a change agent:
Be open and honest about why the change is happening.Encourage participation and solicit feelings.Allow negative comments but not negative actions.
Explain benefits
of
change.
Involve others in initiation/implementation phases.
Acknowledge loss of the old method.
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How Change Is Planned
(cont.)
Job Redesign
Job redesign brings about gradual, low-risk changes in an organization by changing tasks to make them more interesting and challenging.
Common methods of job redesign are:Job enrichmentJob enlargement
Job rotation
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How Change Is Planned
(cont.)
Job Redesign (cont.)
Job enrichment builds greater responsibility and interest into task assignments and adds tasks that encourage and motivate employees.
Job enlargement increases the complexity of a job by adding tasks that are similar to those already being performed.
Job rotation
shifts employees from one job to another to reduce boredom and stimulate renewed interest in job performance.
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How Change Is Planned
(cont.)
Reengineering
Reengineering is the rethinking and redesign of business processes to improve in measures of performance such as cost, quality, service, and speed.
When reengineering, the organization retools whole divisions or corporations instead of simply redefining jobs.
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How Change Is Planned
(cont.)
Force Field Analysis
Force field analysis is a technique used to analyze the complexities of a change and identify the forces that must be altered.
This technique views any situation in which change is to be made as a dynamic balance of forces working in opposite directions.
Forces may include people, tasks, technology, or organizational structure.
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Resistance to Change
Common reasons
for resistance to change:
Fear of the unknownFear of power lossFear of economic loss
Conflict of interest
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Resistance to Change
(cont.)
Suggestions for dealing with change:
Remember that change is inevitable and fear of change is normal.Analyze the reasons for resisting change.
Search for positives.Seek assistance if you have difficulty adjusting.Learn how to learn.
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The Leader’s Role
Leaders are often called upon to act as change agents to make change happen.
Open communication about the change process is essential.
To improve commitment and ensure change is embraced, keep people informed about each step and tell
them how it will affect them.
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Figure 16.2
The Change Process
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The Leader’s Role
(cont.)
Guidelines to minimize resistance and smooth the change process:
Discuss the change.Invite participation.
Be open and honest.Accent the positives.Do not insult past methods.
Follow up on the process.
Allow time for adjustments.
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The Leader’s Role
(cont.)
Stages in accepting change:
Recognition—recognize the need for the change
Choice—decide the change is beneficial and act to make it happenPlan—think through the change process to develop a specific
approach
Support—seek the understanding and assistance of others to help implement the
plan
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Helping Employees with Change
Ways to deal with problems and concerns brought on by change include:
Coaching
CounselingOpen communication
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Helping Employees with Change
(cont.)
Coaching
Coaching is a technique in which a skilled and experienced employee develops or trains a junior employee with lesser skills and abilities.
A coach: Helps identify career
paths
Helps define career goals and
objectives
Explains the organization’s culture and
norms
Shares expertise for skills
development
Gives immediate and ongoing
feedback
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Helping Employees with Change
(cont.)
Coaching (cont.)
Mentoring is a popular form of coaching.In
reverse mentoring, a junior-level employee mentors a senior employee in areas such as technology, new information in the field, diversity, and risk taking.
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Helping Employees with Change
(cont.)
Counseling
Counseling is used to assist employees with problems affecting performance on the job.
Employee problems can result in: Unacceptable quality and quantity of work
Absenteeism
Low morale
A counselor may be a supervisor or a trained professional capable of dealing with a wide variety
of
employee problems.
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Helping Employees with Change
(cont.)
Basic Types of Counseling Methods
Directive counseling
Counselor listens to the individual’s problem and advises what needs to be done.
Nondirective counseling
Counselor uses reflective listening and requires more participation from the individual.
Cooperative counseling
A mutual problem-solving effort in which counselor and individual work together to explore and solve issues.
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Helping Employees with Change
(cont.)
Employee Assistance Programs
Employee assistance programs (EAPs) are designed to aid employees with personal problems that affect job performance and/or disrupt their lives.
Problems may include:Substance abuse
Serious depression or overwhelming stress
Family tensions
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Key Terms
Planned change
Unilateral method
Participative methodDelegated method Strategic planningOrganizational development
Total quality managementBenchmarking
Change agent
Job redesign
Job enrichment
Job enlargement
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Key Terms
(cont.)
Job rotation
ReengineeringForce field analysisCoachingReverse mentoring
Counseling
Directive counseling
Nondirective counseling
Cooperative counseling
Employee assistance program
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