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2. Objectives
1. A working definition of changing an organization
2. An understanding of the relative importance of change and stability to
an organization
3. Some ability to recognize what kinds of changes should be made
within an organization
4. An appreciation for why the people affected by a change should be
considered when the change is being made
5. Some facility at evaluating change
6. An understanding of how organizational change and stress are related
7. Knowledge about virtuality as a vehicle for organizational change
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3. Fundamentals of Changing an Organization
Defining Changing an Organization
The Importance of Change
Think list:
1. Can a machine be used to do a better or faster job?
2. Can the fixture now in use be improved?
3. Can handling of materials for the machine be improved?
4. Can a special tool be used to combine the operations?
5. Can the quality of the part being produced be improved
by changing the sequence of the operation?
6. Can the material used be cut or trimmed differently
for greater economy or efficiency?
7. Can the operation be made safer?
8. Can paperwork regarding this job be eliminated?
9. Can established procedures be simplified?
Change Versus Stability
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4. Fundamentals of Changing an Organization
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5. Factors to Consider When Changing an Organization
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6. Factors to Consider When Changing an Organization
The Change Agent
Determining What Should Be Changed
People factors:
Attitudes
Leadership skills
Communication skills
All other characteristics of human resources
Structural factors:
Organizational controls
Technological factors:
Equipment or processes that assist in performance of members’ jobs
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7. Factors to Consider When Changing an Organization
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8. Factors to Consider When Changing an Organization
The Kind of Change to Make
Technological change
Structural Change
 Describing Structural Change
1. Clarifying and defining jobs
2. Modifying organizational structure to fit organization’s communication needs
3. Decentralizing organization to:
Reduce the cost of coordination
Increase the controllability of subunits
Increase motivation
Gain greater flexibility
 Matrix Organizations
 Making the Change to Matrix: An Example
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9. Factors to Consider When Changing an Organization
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10. Factors to Consider When Changing an Organization
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11. Factors to Consider When Changing an Organization
The Kind of Change to Make (continued)
People Change
 Describing People Change: Organization Development (OD)
 Grid OD
 The Ideal Style
 Main Training Phases
 The Status of Organization Development
Weaknesses:
1. The effectiveness of an OD program is difficult to evaluate
2. OD programs are generally too time consuming
3. OD objectives are commonly too vague
4. Total costs of OD program are difficult to gauge when the program starts
5. OD programs are generally too expensive
Improve quality of OD efforts:
1. Systematically tailor OD programs to meet organization’s specific needs
2. Continually demonstrate exactly how people should change their behavior
3. Conscientiously change organizational reward systems
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12. Factors to Consider When Changing an Organization
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13. Factors to Consider When Changing an Organization
Individuals Affected by the Change
Resistance to Change
Reducing Resistance to Change
1. Avoid surprises
2. Promote real understanding
 Will I lose my job?
 Will my old skills become obsolete?
 Am I capable of producing effectively under the new system?
 Will my power and prestige decline?
 Will I be given more responsibility than I care to assume?
 Will I have to work longer hours?
 Will it force me to betray or desert my good friends?
3. Set the stage for change
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14. Factors to Consider When Changing an Organization
Reducing Resistance to Change (continued)
4. Make tentative change
 Test reactions to the new situation
 Acquire more facts to base attitudes and behavior toward the change
 Review and modify some preconceptions
 Less likely to regard the change as a threat
 Evaluate method of change and make any necessary modifications
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15. Factors to Consider When Changing an Organization
Evaluation of the Change
Additional change is justified if it will accomplish:
1. Further improve the means for satisfying someone’s economic wants
2. Increase profitability
3. Promote human work for human beings
4. Contribute to individual satisfaction and social well-being
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16. Change and Stress
Defining Stress
The Importance of Studying Stress
 Damaging psychological and physiological effects
 Major cause of employee absenteeism and turnover
 Can affect the safety of other workers or even the public
A very significant cost to organizations
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17. Change and Stress
Managing Stress in Organizations
Understanding How Stress Influences Worker Performance
Identifying Unhealthy Stress in Organizations
Observable symptoms of undesirably high stress levels:
 Constant fatigue
 Low energy
 Moodiness
 Increased aggression
 Excessive use of alcohol
 Temper outbursts
 Compulsive eating
 High levels of anxiety
 Chronic worrying
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18. Change and Stress
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19. Change and Stress
Managing Stress in Organizations (continued)
Helping Employees Handle Stress
Prevent initial development of unwanted stressors:
1. Create an organizational climate that is supportive of individuals
2. Make jobs interesting
3. Design and operate career counseling programs
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20. Virtuality
Defining a Virtual Organization
Degrees of Virtuality
The Virtual Office
Defining a Virtual Office
 Occasional Telecommuting
 Hoteling
 Tethered in Office
 Home-Based, Some Mobility
 Fully Mobile
Reasons for Establishing a Virtual Office
Challenges to Managing a Virtual Office
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21. Virtuality
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22. Questions
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