Week 8 - Chapter 15 Flashcards
What is Organizational Change
Alternation of structure, technology processes or people within an organization Change: planned or unplanned transformation
Organizational change
Organizational change can
have a profound impact on
customers and organizational
members.
The way that changes are
implemented and managed is
crucial to both customers and
organizational members.
Why organizations must change
All organizations face two basic sources of pressure to
change:
• External sources
• Internal sources
Environmental changes must be matched by organizational
changes if the organization is to remain effective.
Change can also be provoked by forces in the internal
environment of the organization.
Change entails some investment of resources and almost
always requires some modification of routines and processes.
The internal and external environments of various
organizations will be more or less dynamic.
As a result, organizations will differ in the amount of change
they display.
What do organizations change?
Goals and strategies
Technology
Job Design
Structure
Processes
Culture
People
Kurt Lewin’s 3 steps of change
- Unfreezing
- Recognizing need for change
- Crises are especially likely to stimulate unfreezing. - Changing
- Implementing planned change - Refreezing
- Accepting newly changed state
- The effectiveness of the change is examined and the desirability of
extending change further can be considered.
- Refreezing is a relative and temporary state of affairs.
Unfreezing
Prepare for change
Need to: - Generate dissatisfaction with status quo - Involve people - Reward change
Change
Implementing change
Need to:
- Establish goals
- Communicate
- Develop management structures
Refreezing
Stabilizing change
Need to:
- Succeed
- Reward
- Institutionalize
- Evaluate
Organizational learning
refers to the process through which ___
an organization acquires, develops, and transfers knowledge
throughout the organization.
Two Primary methods of organizational learning
Knowledge acquisition
Knowledge development
Four Key Dimensions of Learning Organization
Vision/support
Culture
Learning systems/dynamics
Knowledge management/infrastructure
Issues in the change process
Problems that occur during the change process:
Diagnosis
Resistance
Evaluation and institutionalization
Causes of Resistance
o Politics and self interest
o Low individual tolerance for
change
o Lack of trust
o Different assessments of the
situation
o Strong emotions
o Strong organizational
identification
o A resistant organizational culture
Why resist change?
The perceived
gap (need for change) is
either too large or very
small.
Sources of individual resistance
Economic insecurity
Fear of the
unknown
Threats to social
relationships
Habit
Sources of Organizational Resistance
Structural inertia
Previously
unsuccessful change
efforts
Work
group
inertia
Threats to
existing
balance of
power
Overcoming resistance to change
Gain leadership support
Identify and neutralize change resisters
Educate the workforce
“Sell” the need for change
Involve employees in the change efforts
Create a “learning organization”
Kotter’s 8 step model for leading change focus on leadership
1 “Establishing a sense of urgency”
2 “Forming a powerful guiding coalition”
3 “Creating a vision”
4 “Communicating the vision”
5 “Empowering others to act on the vision”
6 “Planning for and creating short-term wins”
7 “Consolidating improvements and producing still more change”
8 “Institutionalizing new approaches”
Organizational Development Techniques
OD practitioners individuals, usually from outside the
organization, who coordinate and facilitate an
organization’s change efforts
OD interventions planned organizational change
Examples
- Team Building
- Survey Feedback Approach
- Total Quality Management
- Re engineering
Negotiation Basics
Prepare
Acknowledge
Plan
Negotiate
Prepare
• Research • Avoid naming your price first
Acklowledge
• Convey gratitude • Convey Interest • Buy time
Plan
• ZOPA • Expand the Pie • BATNA • Strategies
Negotiate
• Positions
• Integrative
approach
• Success
Preparation: Price
Previous salary
Current salary
Expected salary
Preparation: Negotiation Basics
• Positions
• Integrative
approach
• Success
Plan: Negotiate Outcomes
Interdependent goals are an important aspect of negotiation
– Win lose VS Win win
Processes and outcomes
- Distributive: Zero sum one winner
- Integrative: Non zero sum mutual gains situation
Acknowledge: Gratitude
After receiving offer
- Vital to convey interest
- Express gratitude for being selected
- Advise that you will take time to review and respond
DO NOT IMMEDIATELY NEGOTIATE
BUY TIME!! WHY: - Moods & Emotions - Attention to detail in offer - Other offers - Awareness of own position - Planning
Plan: ZOPA
The bargaining zone (or zone of potential agreement
ZOPA) is defined as the space between the two parties reservation points
Target point, aspiration point
– This is your goal. Be optimistic but realistic
Resistance point
– A price or outcome below which you will not go
Asking price, initial offer
Benefits & Other items
Plan Expanding the Pie
Salary Bonus (bonus: singing, yearly..) Retirement/Pension plan Vacation Relocation Education/ Tuition Professional expenses/Memberships
Cell phone/Car/ etc Office location Technology or special equipment (e.g. computers) Family: - Child care - Spousal support
Plan: BATNA
Best Alternatives to a Negotiated Agreement
Power to walk away from the negotiation
- If alternatives are attractive, negotiators can:
- Set their goals higher
- Make fewer concessions
- If there are no attractive alternatives:
- Negotiators have much less bargaining power
Plan Strategies
Discovering and influencing resistance points:
• Push for settlement near opponent s resistance point
• Get the other party to change their resistance point
• If settlement range is negative, someone needs to change their resistance point
• Convince the other party that the settlement is the best possible
Tactics
• Assess possible outcomes for both sides: Indirectly & Directly
• Impression management
• Perception alteration
Plan Sources of Power
- Informational sources of power
- Power based on position in an organization (Legitimate)
- Relationship
based sources of power - Contextual (situation or environment) sources of power
Coercive Expert Legitimate Reward Referent
Plan: Tactics
Lowball/Highball
Bogey (playing up a little issue)
The Nibble (small concessions)
Intimidation/ Aggressive Behavior
Snow Job (overwhelm)
Plan: Tactics - respond
Four main options:
Ignore
Discuss
Respond in kind
befriend
Negotiate: Positions
Opening offer
Opening stance
Concessions
Final offer/Closing the deal
- Provide alternatives
- Assume the close
- Split the difference
- Exploding offers
- Deal sweeteners
Negotiate: Integratice Approach
Create a free flow of information
- Get to real needs and objectives
- Share information
- Emphasize what you have in common
- Search for common solutions
Integrative situations
- More than one issue at hand, with more than one way to resolve
- Time can be a factor
- Creating value & Claiming value
Practice questions
Define power and review the bases of individual power.
Explain how people obtain power in organizations.
Discuss the concept of empowerment.
Define organizational politics and discuss its various forms.
Define ethics and review the ethical dilemmas that managers face.
Define sexual harassment and discuss what organizations can do to prevent it and how they
should respond to allegations.
