Managing Organizational Change Chapter 16 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-1 Learning Objectives Characterize the prevalence of the change process in organizations Understand what, exactly, is changed when organizational change comes about, and the forces responsible for unplanned organizational change Describe what is meant by strategic planning and the types of strategic changes that organizations make Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-2 Learning Objectives Identify the ten steps in the strategic planning process Explain why people are resistant to organizational change and how this resistance may be overcome Identify and describe the major organizational development techniques that are used today Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-3 Change Targets Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-4 Changing People Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-5 Change Magnitude Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-6 Unplanned Change Forces Shifting employee demographics Performance gaps Government regulation Global competition Fluctuating economic conditions Advances in technology Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-7 Strategic Planning The process of formulating, implementing, and evaluating decisions that enable an organization to achieve its objectives Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-8 Strategic Planning Is deliberate Occurs when current objectives can no longer be met New organizational objectives require new strategic plans Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-9 Strategic Planning Targets Products and services Organizational structure Downsizing Rightsizing Outsourcing Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-10 Strategic Planning Process Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-11 Various Competitive Strategies Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-12 Individual Barriers to Change Economic insecurity Fear of the unknown Threats to social relationships Habit Failure to recognize need for change Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-13 Organizational Barriers to Change Structural inertia Work group inertia Threats to existing balance of power Previously unsuccessful change efforts Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-14 Resistance to Change Factors Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-15 Overcoming Organizational Change Resistance Shape political dynamics Identify and neutralize change resisters Educate the workforce Involve employees in the change efforts Reward constructive behaviors Take the situation into account Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-16 Sell the Need for Change Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-17 Create a Learning Organization Establish commitment to change Adopt an informal organizational structure Develop an open organizational culture Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-18 Organizational Development Management by Objective Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-19 Organizational Development Survey Feedback Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-20 Organizational Development Appreciative Inquiry Discovery Dreaming Designing Delivering Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-21 Organizational Development Action labs Quality of work life programs Work restructuring Quality circles Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-22 Organizational Development Effectiveness More effective among blue-collar workers Enhanced by using technique combination Depends on degree of top management support Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-23 National Values and Organizational Development Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-24 This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely All rights reserved No part of this publication may be reproduced, stored in a on these materials retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-25 ... Education, Inc Publishing as Prentice Hall 16-20 Organizational Development Appreciative Inquiry Discovery Dreaming Designing Delivering Copyright © 2011 Pearson Education, Inc Publishing as... conditions Advances in technology Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-7 Strategic Planning The process of formulating, implementing, and evaluating decisions that... Education, Inc Publishing as Prentice Hall 16-3 Change Targets Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 16-4 Changing People Copyright © 2011 Pearson Education, Inc Publishing