Incongruent organizational systems

Organizational Change

McGraw-Hill/Irwin

McShane/Von Glinow OB 5e

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

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Umpqua Bank’s

Umpqua Bank has become the largest regional community bank in the Pacific Northwest by applying effective organizational change practices

OrganizationalChange

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Lewin’s Force Field Analysis Model

Developed by Kurt Lewin
Driving forces
Push organizations toward change
External forces or leader’s vision
Restraining forces
Resistance to change -- employee behaviors that block the change process
Driving

Forces

Restraining

Forces

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Desired

Conditions

Current

Conditions

Before
Change

After
Change

Force Field Analysis Model

During
Change

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Not Hoppy About Change

Mina Ishiwatari(front) wanted to improve Hoppy drink’s brand image, but most staff didn’t want to change. “I tried to take a new marketing approach to change the image of Hoppy . . . but no one would listen to me.” She improved Hoppy’s popularity with limited support or budget. Most employees who opposed Ishiwatari’s changes have since left the company.

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Restraining Forces (Resistance to Change)

Many forms of resistance

e.g., complaints, absenteeism, passive noncompliance
View resistance as a resource

Symptoms of deeper problems in the change process

A form of constructive conflict -- may improve decisions in the change process

A form of voice – helps procedural justice

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Why People Resist Change
Direct costs

Losing something of value due to change
Saving face

Accepting change acknowledges own imperfection, past wrongdoing
Fear of the unknown

Risk of personal loss
Concern about being unable to adjust
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Why People Resist Change
(con’t)

Breaking routines

Organizational unlearning is part of change process
But past practices/habits are valued by employees due to comfort, low cognitive effort
Incongruent organizational systems

Systems/structures reinforce status quo
Career, reward, power, communication systems
Incongruent team dynamics

Norms contrary to desired change
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Creating an Urgency for Change

Inform employees about driving forces
Most difficult when organization is doing well
Customer-driven change
Adverse consequences for firm
Human element energizes employees
Sometimes need to create urgency to change without external drivers
Requires persuasive influence
Use positive vision rather than threats
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Minimizing Resistance to Change

Highest priority and first strategy for change

Improves urgency to change

Reduces uncertainty (fear of unknown)

Problems -- time consuming and costly

Communication

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Minimizing Resistance to Change

Provides new knowledge/skills

Includes coaching and other forms of learning

Helps break old routines and adopt new roles

Problems -- potentially time consuming and costly

Communication

Involvement

Stress Mgt

Coercion

Negotiation

Learning

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Minimizing Resistance to Change

Employees participate in change process
Helps saving face and reducing fear of unknown
Includes task forces, future search events
Problems -- time-consuming, potential conflict
Learning

Involvement

Stress Mgt

Coercion

Negotiation

Involvement

Communication

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Minimizing Resistance to Change

When communication, learning, and involvement are not enough to minimize stress

Potential benefits

More motivation to change
Less fear of unknown
Fewer direct costs
Problems -- time-consuming, expensive, doesn’t help everyone