Chapter 6 Overcoming Resistance to Change An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 1 Learning Objectives • Identify forces that cause resistance to change. • Recognize strategies that can increase motivation to change. • Diagnose forces driving and resisting organization change. • Experience reactions to a change situation. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 2 Change and Reinvent (part 1 of 2) • Many organizations being forced to change radically. • Organizations face major challenge in managing change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 3 Change and Reinvent (part 2 of 2) • Organizations need capacity to adapt quickly. • People focus of most serious challenges. • Large scale changes incur significant problems and challenges. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 4 Changes on Personal Level • Set patterns of behavior. • Defined relationships with others. • Work procedures and job skills. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 5 Changes on Organizational Level • • • • • Policies. Procedures. Organization structures. Manufacturing processes. Work flows. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 6 Life Cycle of Resistance to Change (part 1 of 5) Response to change tends to move through 5 phases: • Phase 1: Change Introduced. – Only few people who see need for change. – Resistance appears massive. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 7 Life Cycle of Resistance to Change (part 2 of 5) • Phase 2: Forces Identified. – Forces for and against change identified. – Change more thoroughly understood. – Novelty of change tends to disappear. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 8 Life Cycle of Resistance to Change (part 3 of 5) • Phase 3: Direct Conflict. – Direct conflict and showdown between forces. – This phase probably means life or death to change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 9 Life Cycle of Resistance to Change (part 4 of 5) • Phase 4. – Remaining resistance seen as stubborn. – Possibility resisters will mobilize to shift balance of power. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 10 Life Cycle of Resistance to Change (part 5 of 5) • Phase 5. • Resisters to change are as few and as alienated as were advocates in first phase. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 11 Leading Change: Major Factors Affecting Success of Change • Advocates of change. • Degree of change. • Time frame. • Impact on culture. • Evaluation of change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 12 Figure 6.1 Change Factors An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 13 Advocates of Change • Person leading change often most important force for change. • OD practitioners may be brought in to assist. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 14 Degree of Change • Is change minor or major? • The greater the change, the more difficult to implement. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 15 Time Frame • Greater chance of success if: – Change is gradual. – Longer time frame. • Some organizations only chance for survival depends on: – Radical change. – Introduced swiftly. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 16 Impact on Culture • The greater the impact on existing culture: – The greater the resistance and – The more difficult it is to implement change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 17 Evaluation on Culture • Standards of performance developed. • Designed to measure: – Degree of change and – Impact on organization. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 18 A Change Model (part 1 of 5) • Two major considerations in organizational change are: – Degree of change. – Impact on organization’s culture. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 19 Figure 6.2 Change Model An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 20 Change Model (part 2 of 5) Quadrant 1 • Minor change, low impact on culture. • Resistance at lowest level. • Success most probable. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 21 Change Model (part 3 of 5) Quadrant 2 • Minor change, high impact on culture. • Some resistance can be expected. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 22 Change Model (part 4 of 5) Quadrant 3 • Major change, high impact on culture. • Some resistance likely. • Good management can probably overcome resistance. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 23 Change Model (part 5 of 5) Quadrant 4 • Major change, high impact on culture. • Greatest resistance can be predicted. • Probability of success low. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 24 Driving Forces Toward Acceptance of Change • Driving forces: – Anything that increases organization to implement change. – Vary in intensity depending on situation. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 25 Driving Forces for Change (part 1 of 5) • • • • Dissatisfaction with present situation. External pressures toward change. Momentum toward change. Motivation by management. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 26 Driving Forces for Change (part 2 of 5) • Dissatisfaction with present situation. – Intense dissatisfaction with present situation provides motivation. – Some members are aware of need for improvement. – Being average not good enough. – Stockholder demands for change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 27 Driving Forces for Change (part 3 of 5) • External pressures toward change. – Forces outside of organization (example: market conditions). – New technologies and methods implemented to remain competitive. – New legal requirements. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 28 Driving Forces for Change (part 4 of 5) • Momentum toward change. – Once change underway, forces push it along. – Those involved tend to become committed. – Money previously already spent on change provides motivation. – Change in one part of organization may set off chain reaction. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 29 Driving Forces for Change (part 5 of 5) • Motivation by management. – Manager or advocate of change becomes motivating force. – Top management’s encouragement can motivate change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 30 Restraining Forces Blocking Change (part 1 of 2) • • • • • Uncertainty regarding change. Fear of unknown. Disruption of routine. Loss of benefits. Threat to security. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 31 Restraining Forces Blocking Change (part 2 of 2) • • • • Threat to position power. Redistribution of power. Disturb existing social networks. Conformity to norms and culture. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 32 Driving Forces & Restraining Forces Act in Tandem • Effective change programs: – Increase driving forces. – Decrease restraining forces. • Force-field analysis model useful to view driving and restraining forces. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 33 Strategies to Increase Motivation (part 1 of 2) • • • • Climate conducive to change. Clearly articulated vision. Effective communications. Leadership of managers. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 34 Strategies to Increase Motivation (part 2 of 2) • • • • Participation of members. Reward systems. Negotiation, agreement, and politics. Power strategies. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 35 OD Application Five Phases of Resistance to Change • Change tends to move through a life cycle. • Environmental movement over 40 years illustrates phases. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 36 • PHASE 1 – Change Introduced. – Environmental movement began to grow in 1970s. – The forces for change were small. • PHASE 2 – Forces Identified. – By 1980s forces for and against change became organized. • PHASE 3 – Direct Conflict. – Clean Air Act of 1990 brought opposing groups into direct confrontation. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 37 • PHASE 4 – Residual Resistance. – Opposing groups continued to have conflicts. – Resistance became less intense through first decade of 2000s. • PHASE 5 – Change Established. – World generally sees environmental responsibility as a necessity. – Disagreements persist in how to implement changes. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 38 OD Application The World of Business • Globalization has occurred for hundreds of years. • Recently experienced exponential growth. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 39 • Reasons for increase include: – Improvements in communications and transportation. – More efficient global banking systems. – Surpluses in capital for some countries. – Worldwide lowering of trade barriers. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 40 • Multinational companies (MNCs) based all over the world. – MNCs emerging in larger numbers in developing countries. • MNCs help create markets by employing workers worldwide. • Trend for MNCs to blend into countries and adapt local culture. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 41 Table 6.1 Fortune Top Global 500 Companies An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 42 Keywords and Concepts • Driving forces. – Increases client system to implement proposed change. • Employee stock ownership plan. – Grant stock or stock options to broad section of employees. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 43 • Gain sharing. – Reward system that recognizes value of specific group. • Knowledge-based pay. – Reward system based on the knowledge or skills of workers. • Open-book management. – Employees use financial records to analyze problems. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 44 • Profit-sharing. – Uses the performance of business to calculate employee pay. • Restraining forces. – Forces that block implementation of change program. • Vision. – Describes desired future state for organization. – Can provide members with mental image of future. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 45 OD Skill Simulation 6.1 Downsizing in Enigma Co. • Purpose. – Examine how you attempt to influence others. – Understand relationship between acceptance and rejection of change. – Consider how change situations are influenced. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 46 OD Skill Simulation 6.2 Driving and Restraining Forces • Purpose. – Help you further understand the diagnosis process. – Experience overcoming resistance to change. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 47 OD Skill Simulation 6.3 Strategies for Change • Purpose. – Experience a change situation where you attempt to change another person. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 48 Preparations for Next Chapter • Read Chapter 7. • Prepare for OD Skill Simulation 7.1. – Complete Step 1. – Prior to class, form teams of eight members and select roles. • Read and analyze Case: The Farm Bank. An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 49 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6 Slide 50
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