Chapter 7 Change Management

Five Stages of Organizational Decline
1. Blinded
2. Inaction
3. Faulty Action
4. Crisis
5. Dissolution
Change Forces
Bringing about the change
Resistance Forces
People who don’t want to change
– Caused by people out self-interest
Organizational Decline
Occurs when companies don’t anticipate the internal or external pressures that threaten their survival.
– Decline occurs when organizations dont recognize the need for change
Change Forces/ Resistance Forces
Res Strong Change Weak: No Change
Res Strong Change Strong: Discontinuous Change
Res Weak Change Weak: Sporadic Change
Res Weak Change Strong: Continuous Change
8 Reasons for Resisting Change
1. Fear of Unknown
2. Lack of good information
3. Fear for loss of security
4. No reasons to change
5. Fear for loss of power
6. Lack of resources
7. Bad Timing
8. Habit
Managing Resistance to Change
– Education and Communication
– Participation
– Negotiation
– Managerial Support
– Coercion
Kurt Lewin Managing Resistance To Change
– Managing organizational change is a basic process of unfreezing, change intervention, and refreezing
Unfreezing
is getting the people affected by change to believe that change is needed
Change Intervention
– Workers and managers change their behavior and work practices
ReFreezing
– Is supporting and reinforcing the new changes so they stick
Errors Made in Unfreezing stage
1. Not establishing a great enough sense of urgency
2. Not Creating a powerful enough guiding coalition
Errors made in Change Stage
1. lacking a vision
2. Undercommunicating the vision
3. Not removing obstacles to the new vision
4. Not systematically planning for and creating short-term wins
Errors made in Refreezing stage
1 Declaring victory too soon**
2. Not anchoring changes in the corporations culture