Chapter 10: Organizational Change and Managing Resistance to Change

Speed-to-market

The ability of a company to bring new products or services to the market quickly.

Tolerance for ambiguity

The ability to tolerate and navigate through uncertain or ambiguous situations, which can help individuals adapt to change.

Growth mindset

The belief that abilities and intelligence can be developed through dedication and hard work, which can help individuals embrace and learn from change.

Marketplace segmentation

The division of the market into distinct groups based on their specific needs and preferences.

1. What are the recent fundamental change trends?

The marketplace is becoming more segmented and moving toward more niche products

Human Resource Management

Unmet needs, job dissatisfaction, absenteeism and turn over, productivity, participations suggestions

Knowledge work

Work that involves processing and analyzing information to generate new ideas or processes.

demographic characteristics

age, education, skill level, gender, immigration

Outside forces for change

- Demographic characteristics - Technological advancements - Shareholder, customer, and broader stakeholder concerns - Social and political pressures

Inside forces for change

- Human Resource Concerns - Managers' Behavior

Inputs (System Approach to change)

- Mission Statement - Vision Statement - Strategic Plan - Analysis of org. readiness to change

Resistance can be considered to be the interaction of three causes

1. Employee characteristics 2. Change agent characteristics 3. The change agent - employee relationship

Ten Reasons Employees Resist Change

1. Individual's Predisposition Toward Change 2. Surprise and Fear of the Unknown 3. Climate of Mistrust 4. Fear of Failure 5. Loss of Status or Job Security 6. Peer Pressure 7. Disruption of Cultural Traditions or Group Relationships 8. Personality Conflicts 9. Lack of Tact or Poor Timing 10. Nonreinforcing Reward Systems

Systems approach to change

1. Inputs 2. Target Elements of Change 3. Outputs 4. Feedback

What are the four levers of target elements of change?

1. People 2. Organizational arrangements 3. Methods 4. Social factors

Just-in-time supply system

A system where goods or services are delivered to a company exactly when they are needed, minimizing inventory and storage costs.

Lewin's change model

A three-step model that describes the process of change: unfreezing, changing, and refreezing.

Proactive change

Planned change; making carefully thought-out changes in anticipation of possible or expected problems or opportunities; opposite of reactive change

What type of change is the least threatening?

Adaptive change

When implementing change, what do you need to focus on prior to starting the change?

All 3 aspects of Lewin's change model, unfreezing, change, refreezing

Resistance to change

An emotional/behavioral response to real or imagined threats to an established work routine

Offshore suppliers

Suppliers located in other countries that provide goods or services to a company.

Reactive change

Change made in response to problems or opportunities as they arise; compare proactive change

Radically innovative change

Change that is completely new and different, and can have a significant impact on the organization's future.

Adaptive change

Change that is familiar and has been implemented before, making it easier for individuals or groups to adapt to.

Innovative change

Change that is new to a particular company but has been implemented by other companies in the industry.

Feedback (Systems Model of Change)

Comparing the status of an output such as employee or customer satisfaction before the change to the same measurable output sometime after the change has been implemented

Manager's behavior

Conflict, leadership, reward systems, structural reorganization

Traditional companies

Established companies that have been operating for a long time and may be resistant to change.

Outside forces

External factors or influences that drive or necessitate change in an organization, such as competition or social and political pressures.

Forces for change

Factors or influences that drive or necessitate change in an organization, such as technological advancements or changing customer preferences.

Causes of resistance to change

Factors or reasons that contribute to individuals or groups resisting change, such as fear of the unknown or loss of job security.

Target Elements of Change (Systems Model of Change)

Four levers that managers may use to diagnose problems and identify solutions

employee characteristics

Individual differences in actions, and inactions, and perceptions of change.

What type of change is somewhat threatening?

Innovative change

Inside forces

Internal factors or influences that drive or necessitate change in an organization, such as employee dissatisfaction or structural reorganization.

5. What are the recent fundamental change trends?

Knowledge, not information, is becoming the new competitive advantage

Change Stage

Learn new ways of doing things, help the employees learn new criterias and help train them in ways that will better themselves and the company

2. What are the recent fundamental change trends?

More competitors are offering targeted products, requiring faster speed-to-market

4. What are the recent fundamental change trends?

Offshore suppliers are changing the way we work

Targeted products

Products that are designed to meet the specific needs and preferences of a particular group of people.

Niche products

Products that are tailored to meet the specific needs and preferences of a small, specialized group of people.

Customizable products

Products that can be personalized or modified according to individual preferences, such as social media platforms.

What type of change is very threatening?

Radically Innovative change

Change Agent-Employee Relationship

Resistance to change is reduced when change agents and employees have a trusting relationship

Radical change

Significant and transformative change that can disrupt the existing business models and practices of companies.

3. What are the recent fundamental change trends?

Some traditional companies may not survive radical change

Innovative identity

The perception of oneself as someone who is open to and embraces change, which can make change less shocking or disruptive.

Continual sense of gratitude

The practice of being grateful for one's current situation and opportunities, which can help individuals maintain a positive mindset during change.

Self-compassion

The practice of being kind and understanding towards oneself, which can help individuals navigate through change and learn from mistakes.

Refreeze Stage

The stage where the focus is on stabilizing the change to make it as long-lasting as needed, make the new change normal as fast as possible

Self-affirmation theory

The theory that individuals can affirm their self-worth in areas unrelated to their work, which can help them cope with and adapt to change.

How many forms of change are there?

Three, at least threatening to most threatening

Shareholder, Customer, and Broader Stakeholder Concerns

changing customer preferences, domestic and international competition, mergers and acquisitions

Unfreezing Stage

managers try to instill in employees the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to innovation

technological advancements

manufacturing automation, information technology

What are the two types of change?

reactive and proactive

Resistance to change is normal and not...

some conspiracy to undermine you

Outputs (Systems Model of Change)

the desired end results or goals of a change

change agent characteristics

the individual who is a catalyst in helping organizations change, also consist of his or her individual differences, experiences, actins and inactions, and perceptions of change

Change is inevitable...

the more open you are to it the less disruptive it is to you

Social and political pressures

war, values, leadership