MGMT Ch. 8

Need for Change

A disparity between existing and desired performance levels.

Three Types of Current Problems

1. Mergers/acquisitions - the disappointing financial results of many mergers and acquisitions are caused by the failure of executives to determine whether the administrative style and corporate culture of the two companies fit. Cultural differences should be evaluated during the acquisition process, and OD experts can be used to smooth the integration of two firms. 2. Organizational decline/revitalization - organizations undergoing decline and revitalization experience low levels of trust, lack of innovation, high turnover, and high levels of stress/conflict. OD can contribute to cultural revitalization by managing conflicts, fostering commitment, and facilitating communication. 3. Conflict management - Conflict can occur at any time. OD can help resolve personal conflicts as well as conflicts related to growing diversity and the global nature of today's organizations.

Resistance to Change (reasons)

1. Self-interest - the fear of personal loss is perhaps the biggest obstacle to organizational change. 2. Lack of understanding and trust 3. Uncertainty - lack of information about future events. 4. Different assessments and goals - people who will be affected by an innovation may assess the situation differently from an idea champion or new-venture group.

OD Activities

1. Team-building activities - enhances the success and cohesiveness organizational groups and teams. 2. Survey-feedback activities - begins with a questionnaire, then an OD consultant meets with employees to provide feedback. 3. Large-group interventions - brings together participants from all parts of the organization to discuss problems and plan for change.

OD Steps

1. Unfreezing - makes people throughout the organization aware of problems and the need for change (change agent - an OD specialist who performs a systematic diagnosis of the organization and identifies problems). 2. Changing - occurs when individuals experiment with new behavior and learn new skills to be used in the workplace. 3. Refreezing - occurs when individuals acquire new attitudes or values and are rewarded for them by the organization.

Organizational Development (OD)

A planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization's health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities. OD can help managers address at least three types of current problems (see next card).

People Change

Changes in mind-set concerning only a few employees.

Culture Change

Changes in mind-set concerning the organization as a whole.

Training and Development

One of the two tools that can smooth the process of changing people and culture. The other tool is organizational development.