Organizational Change

Organizational Change - ORGANIZATIONAL CHANGE No company...

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ORGANIZATIONAL CHANGE No company today is in a stable environment. There are six environmental factors that act as forces for change. Technology Economic Shocks Competition Social Trends World Politics Globalization One of the most well documented findings from studies of individuals and organizational behavior is that organizations and their members resist change. Change is often seen as a threat. Sources of Resistance to Change: Individuals Sources o Habit o Security o Economic Factors o Fear of the Unknown o Selective Information Processing Organizational Sources o Structural Inertia o Limited Focus of Change o Group Inertia o Threat to Expertise o Threat to Established Power Relationships o Threat to Established Resource Allocations Change Agents are responsible for managing change activities, they can be managers or non-managers, current employees of the organization, newly hired employees, or outside consultants. For major change efforts, internal management will hire the services of outside consultants to provide advice and assistance with major change efforts. Because they are from the outside, these individuals can offer an objective perspective often unavailable to insiders. Outside consultants, however, are disadvantaged because usually they have an inadequate understanding of the organization’s history, culture, operating procedures and personnel. Also, they don’t have to live with the repercussions of the change. Overcoming Resistance to Change Education and Communication communicate with employees to help them see the logic of a change and give them the full facts Participation bring participants into the decision process and allow them to make a meaningful contribution Building Emotional Commitment
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Implementing Changes Fairly make sure employees understand that you are doing everything to make the changes procedurally fair Cooptation Cooptation “buy off” the leaders of the resistance group by giving them a key role in the change decision. Also known as manipulation Selecting People Who Accept Change some people simply have more positive attitudes about change than others, they are often more flexible and willing to take risks Coercion The application of direct threats or force on the resisters. Approaches to Managing Organizational Change Lewin’s Three-Step Model o Unfreezing the status quo The status quo can be considered an equilibrium state. Driving forces—which direct behavior away from the status quo—can be increased. The restraining forces, which hinder movements from the existing equilibrium can decrease. o
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This note was uploaded on 02/04/2011 for the course BADM 066 taught by Professor Bailey during the Fall '07 term at GWU.

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Organizational Change - ORGANIZATIONAL CHANGE No company...

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