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MPO699 MANAGING PEOPLE IN ORGANIZATIONTOPIC 07 – LEADING CHANGE

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Learning ObjectivesLearning Objectives• List what managers can change• Learn why employees resist change• Discuss the eight steps for leading change• Analyze five organizational development

techniques• Learn how to overcome interpersonal,

individual, and organizational conflicts

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Organizational

Change

Employees

Technology

Tasks

Structure

Culture

Strategy

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Sources of Sources of Resistance to ChangeResistance to Change

Level OneLevel One Level TwoLevel Two

HonestHonestDisagreementDisagreement

Lack ofLack ofInformationInformation

EmotionalEmotionalIssuesIssues

PersonalPersonalReasonsReasons

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EducationEducation ParticipationParticipation

Overcoming ResistanceOvercoming Resistance

FacilitationFacilitation NegotiationNegotiation

ManipulationManipulation CoercionCoercion

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Unfreezing Moving Refreezing

Lewin’s Three-Step Process of Change

©Prentice Hall, 2000 7

Eight-Step Change Eight-Step Change ProcessProcess

1. A sense of urgency

2. Coalition and commitment

3. A shared vision

4. Empowerment

5. Short-term wins

6. Consolidated gains

7. New ways of doing things

8. Monitoring and adjustment

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Change in ActionChange in Action

Becoming an E-BusinessBecoming an E-Business

CultureCulture StructureStructureStrategyStrategy

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Leading Strategic Leading Strategic ChangeChange

Charismatic

InstrumentalMissionary

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Embedding and Reinforcing Embedding and Reinforcing Organizational CultureOrganizational Culture

• What leaders notice, measure, and control• Leader reactions to critical incidents and

organizational crises• Deliberate role modeling, teaching, and coaching• Criteria for allocation of rewards and status• Criteria for recruiting, selecting, promoting, retiring,

and firing

Primary Embedding Mechanisms

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Embedding and Reinforcing Embedding and Reinforcing Organizational CultureOrganizational Culture

• Organization design and structure• Organizational systems and procedures• Design of physical space, facades, and buildings• Stories about important events and people• Formal statements of organizational philosophy,

creeds, and charters

Secondary Reinforcement Mechanisms

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Organizational Organizational DevelopmentDevelopmentApplicationsApplications

Human Process Human Process

HR ManagementHR Management

TechnostructuralTechnostructural

StrategicStrategic

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Organizational ConflictOrganizational Conflict

• Individual

• Interpersonal

• Intergroup

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ManagingIntergroup

Conflict

Structure-Based

Approaches

Common orSuperordinate

Goals

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Conflict-Resolution StylesConflict-Resolution Styles

AvoidanceAvoidance AccommodationAccommodation CompetitionCompetition

CompromiseCompromise CollaborationCollaboration ForcingForcing

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Conflict-Resolution Modes

•Forcing

•Confronting

•Process Controlling

•Problem Solving

•Compromising

•Accommodating

•Avoiding

•Contending; doing what you say directly

•Demanding attention to the conflict issue

•Dominating the conflict-resolution process

•Reconciling the parties’ basic interests

•Settling through mutual concessions

•Giving in to the opponent

•Moving away from the conflict issue

Component Definition