Organizational behavior: Lecture 38 - Dr. Mukhtar Ahmed

Organizational
Behavior
(MGT-502)

Lecture-38


Summary
of
Lecture-37


Organizational
Change


Change or

Disappear


Forces For Change
External Forces
• Economic Forces
• Technology
• Social and
Political Change

• Process
• Behavioral

Internal
Forces


Types of Change
Planned

Unplanned

Evolutionary

Revolutionary


Today’s Topics


Rate of Technological Change

2,500,000 B.C.

1,000,000 B.C.

2,000 A.D.


Resistance To Change
Individuals
Habit
Fear of unknown

Economic threat
New social relationships
Dislike of change agent
Dislike of implied criticism

Organizations
Threats to power
Resource limitations
Fixed investments


Driving Forces
Changing technology
Knowledge explosion

Rapid product obsolescence
Changing nature of workforce
Changing values


Overcoming Resistance

Coercion

Resist

Manipulation
Negotiation

Tolerate

Education

Participation
Facilitation
& Support

Accept

Support


Minimizing Resistance to
Change
Communication

Coercion

Negotiation

Training

Minimizing
Resistance
to Change
Stress
Management

Employee
Involvement

Managing Organizational
Change


The Three C’s of Change
• Customers take charge

• Competition intensifies
• Change becomes constant


A continuous challenge as
customer expectations
change and can sometimes
change faster than
organizations can respond


The New World of Work
• Peoples’ roles change - from controlled to
empowered
• Job preparation changes - from training to
education
• Focus of performance measures and
compensation shifts - from activities to results
• Advancement criteria change - from protective to
productive
• Managers change - from supervisors to coaches

• Organization structures change - from
hierarchical to flat
• Executives change - from scorekeepers to
leaders


Change Can Be….
•
•
•
•
•

Huge, catastrophic
Predictable
Positive
Productive
A small modification
to your life
• Taken in stride, managed

•
•
•
•
•

Small, incremental
Unpredictable
Negative

Unproductive
A devastating collapse
of your world
• Continuously stressful


Some External Forces for
Change
Information
Technology
Globalization
& Competition

Demography

• Easier information transfer
• Facilitates global structures
• Requires new competencies
and expectations
• Facilitates telecommuting;
new employment
relationships

• More emphasis on
knowledge management


Some External Forces for
Change
Information

Technology
Globalization
& Competition

Demography

• Global competition
• Technology makes it easier
to compete quickly

• Results in restructuring,
outsourcing, mergers
– produces many employment
changes


Some External Forces for
Change
Information
Technology
Globalization
& Competition

Demography

• More educated workforce
– want involvement; interesting work

• Younger generation
– less intimidated by status

– want a more balanced work life

• Cultural changes
– more individualism in traditionally
collectivist countries


Areas Where Change Can
Occur
• Change Technology
• Change the Organization’s Structure
or Design
• Change Job Responsibilities or tasks
performed
• Change People


Change Management Concept Model
Strategy
Organizational Structure
Business Models/Systems
Business Processes
People


Change Management Success
Factors
People
Business Processes

Business Models/Systems
Organizational Structure

Strategy


Change Management Risk Alignment
People
Business Processes

Business Models/Systems
Organizational Structure

Strategy


The Change Agent’s Role
Change agent - the individual
or group who undertakes the
task of introducing and
managing a change in an
organization
The change agent can be internal or external