• Globalization
• Technology
• Social Networks
• Generational Differences

represents a deliberate attempt by leaders and employees to improve the functioning of teams, departments, divisions, or an entire organization ins ome important way

Two different approaches used:

Economic Approach

Organizational Development Approach

Economic Approach

refers to initiating change for the purpose of creating shareholder value

• change is driven by top management
• financial incentives used to motivate employees to change behaviors
• change is planned and focused
• leaders set goals based on expectations of the financial markets
• leaders do not involve their management team or employees in discussing ways to reach financial goals
• focus on decisions that affect the stragey, structure, and sstems of their organization
• approach mainly used by turnaround artists, and not by people who want to build an organization

refers to developing employees' competencies to solve problems by enabling them to identify and become emotionally committed to improving the performance of the firm

• emphasizes building of partnerships, trust, and employee commitment
• requires leaders to engage people emotionally in examining why the existing structure and systems are not meeting the new challenges facing the organization

Initiatives Contributing to Effective Change management

(Figure 17.1)

MOTIVATING CHANGE

• Creating readines for change
• overcoming resistance to change

CREATING A VISION

• energizing commitment describing a desired future state

DEVELOPING POLITICAL SUPPORT

• assessing change-agent power
• identifying key stakeholders
• influencing stakeholders

MANAGING THE TRANSITION

• activity planning
• commitment planning
• management structures

SUSTAINING MOMENTUM

• providing resources for change
• building a support system for change agents
• eveloping new competencies and skills
• reinforcing new behaviors

1. Perceptions
2. Personality
3. Habit
4. Threats to Power and Influence
5. Fear of the Unknown
6. Economic Reasons

Organization Design

Organizational Culture

Resource Limitations

Interorganizational Agreements

suggests that any situation can be considered to be in a stage of equilibrium resulting from a balance of forces constantly pushing against each other

• developed by Kurt Lewin, a social psychologist
• certain forces in the situation-various types of resistance to change- tend to maintain the status quo

1. leaders and employees are required to analyze the current situation
2. analysis highlights the factors that can be changed and those that cannot be changed

1. Unfreezing: step involves reducing those forces that are maintaining the organization's behavior at it's present level
2. Moving: step shifts the organization's behavior to a new level
3. Refreezing: step stabilizes the organization's behavior at a new state of equilibrium

process of assessing the functioning of the organization, department, team, or job to discover the sources of problems and areas for improvement

• involves collecting data about current operations, analyzing those data, and drawing conclusions for potential change and improvement

1. Interpersonal Methods
2. Team Methods
3. Organizational Methods

• change programs tend to rely on active involvement and participation by many employees
• survey feedback: popular approach
• usually include the following components:

1. empathy and support
2. communication
3. participation and involvement

information is:

1. collected from members of an organization, department, or team;
2. organized into an understandable nd useful form
3. feedback to the employees who provided

• purpose is to get a handle on team performance problems
• influenced by the competencies of its members, organizational structure, the organization's reward system, organizational culture, and other factors
• Team Building

team members diagnose how they work together and plan changes to improve their effectiveness

• begins when members recognize a problem
• goal is to change the culture of the organization- challenging

Team Performance Curve

(figure 17.6)

1. Working Group (low team effectiveness and low performance impact)
2. Potential Team (medium team effectiveness, medium performance impact)
3. Real team (higher team effectiveness, hither performance impact)
4. High-Performing team (high team effectiveness, high performance impact)

1. Capitalize on dramatic opportunities
2. Combine caution with optimism
3. Understand resitance to cultural change
4. Change many elements but maintain some continuity
5. Recognize the importance of implementation
6. Modif socialization tactics
7. Find and cultivate innovative leadership