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Organizational Behavior 8th edition

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www.downloadslide.com should be viewed as a resource, not an inherent obstacle to change. Change agents need to view resistance as task conflict rather than relationship conflict. Resistance is a signal that the change agent has not sufficiently strengthened employee readiness for change. It is also a form of voice, so discussion potentially improves procedural justice. 15-3 Outline six strategies for minimizing resistance to change, and debate ways to effectively create an urgency to change. Organizational change requires employees to have an urgency for change. This typically occurs by informing them about driving forces in the external environment. Urgency to change also develops by putting employees in direct contact with customers. Leaders often need to create an urgency to change before the external pressures are felt, and this can occur through a vision of a more appealing future. Resistance to change may be minimized by keeping employees informed about what to expect from the change effort (communicating); teaching employees valuable skills for the desired future (learning); involving them in the change process; helping employees cope with the stress of change; negotiating tradeoffs with those who will clearly lose from the change effort; and using coercion (sparingly and as a last resort). 15-4 Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change. Every successful change requires transformational leaders with a clear, well-articulated vision of the desired future state. They also need the assistance of several people (a guiding coalition) who are located throughout the organization. In addition, change occurs more informally through social networks. Viral change operates through social networks using influencers. Many organizational change initiatives begin with a pilot project. The success of the pilot project is then diffused to other parts of the organization. This occurs by motivating employees to adopt the pilot project’s methods, training people to know how to adopt these practices, helping clarify how the pilot can be applied to different areas, and providing time and resources to support this diffusion. 15-5 Describe and compare action research, appreciative inquiry, large group interventions, and parallel learning structures as formal approaches to organizational change. Action research is a highly participative, open systems approach to change management that combines an action orientation (changing attitudes and behavior) with research orientation (testing theory). It is a data-based, problem-oriented process that diagnoses the need for change, introduces the intervention, and then evaluates and stabilizes the desired changes. Appreciative inquiry embraces the positive organizational behavior principle by focusing participants on the positive and possible. This approach to change also applies the constructionist, simultaneity, poetic, and anticipatory principles. The four stages of appreciative inquiry include discovery, dreaming, designing, and delivering. Large group interventions are highly participative events that view organizations as open systems (i.e., involve as many employees and other stakeholders as possible) and adopt a future and positive focus of change. Parallel learning structures rely on social structures developed alongside the formal hierarchy with the purpose of increasing the organization’s learning. They are highly participative arrangements, composed of people from most levels of the organization who follow the action research model to produce meaningful organizational change. 15-6 Discuss two cross-cultural and three ethical issues in organizational change. One significant concern is that organizational change theories developed with a Western cultural orientation potentially conflict with cultural values in some other countries. Also, organizational change practices can raise one or more ethical concerns, including increasing management’s power over employees, threatening individual privacy rights, and undermining individual self-esteem. key terms action research, p. 430 appreciative inquiry, p. 432 design thinking, p. 428 force field analysis, p. 417 parallel learning structure, p. 435 positive organizational behavior, p. 432 refreezing, p. 417 unfreezing, p. 417 critical thinking questions 1. Chances are that the school you are attending is currently undergoing some sort of change to adapt more closely to its environment. Discuss the external forces that are driving the change. What internal drivers for change also exist? 2. Use Lewin’s force field analysis to describe the dynamics of organizational change at Zenefits. The case study at the beginning of this chapter provides some information, but think about other forces for and against change beyond the information provided in this vignette. 3. Employee resistance is a symptom, not a problem, in the change process. What are some of the real problems that may underlie employee resistance? 4. Senior management of a large multinational corporation is planning to restructure the organization. Currently, the organization is decentralized around geographic areas so that the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities. Describe two types of resistance senior management might encounter from this organizational change. 437

www.downloadslide.com 5. Discuss the role of reward systems in organizational change. Specifically, identify where reward systems relate to Lewin’s force field model and where they undermine the organizational change process. 6. Web Circuits is a Malaysian-based custom manufacturer for high-technology companies. Senior management wants to introduce lean management practices to reduce production costs and remain competitive. A consultant has recommended that the company start with a pilot project in one department and, when successful, diffuse these practices to other areas of the organization. Discuss the advantages of this recommendation, and identify three ways (other than the pilot project’s success) to make diffusion of the change effort more successful. 7. What is the role of formal and informal networks in organizations interested in undergoing change? 8. Suppose that you are vice president of branch services at the Bank of East Lansing. You notice that several branches have consistently low customer service ratings, even though there are no apparent differences in resources or staff characteristics. Describe an appreciative inquiry process in one of these branches that might help overcome this problem. CASE STUDY: TRANSACT INSURANCE CORPORATION TransAct Insurance Corporation (TIC) provides automobile insurance throughout the southeastern United States. Last year, a new president was hired by TIC’s board of directors to improve the company’s competitiveness and customer service. After spending several months assessing the situation, the new president introduced a strategic plan to strengthen TIC’s competitive position. He also replaced three vice presidents. Jim Leon was hired as vice president of claims, TIC’s largest division with 1,500 employees, 50 claims center managers, and 5 regional directors. Jim immediately met with all claims managers and directors and visited employees at TIC’s 50 claims centers. As an outsider, this was a formidable task, but his strong interpersonal skills and uncanny ability to remember names and ideas helped him through the process. Through these visits and discussions, Jim discovered that the claims division had been managed in a relatively authoritarian, top-down manner. He could also see that morale was very low and employee–management relations were guarded. High workloads and isolation (adjusters work in tiny cubicles) were two other common complaints. Several managers acknowledged that the high turnover among claims adjusters was partly due to these conditions. Following discussions with TIC’s president, Jim decided to make morale and supervisory leadership his top priority. He initiated a divisional newsletter with a tear-off feedback form for employees to register their comments. He announced an open-door policy in which any claims division employee could speak to him directly and confidentially without going first to the immediate supervisor. Jim also fought organizational barriers to initiate a flex-time program so that employees could design work schedules around their needs. This program later became a model for other areas of TIC. One of Jim’s most pronounced symbols of change was the “Claims Management Credo” outlining the philosophy that every claims manager would follow. At his first meeting with the complete claims management team, Jim presented a list of what he thought were important philosophies and actions of effective managers. The management group was asked to select and prioritize items from this list. They were told that the resulting list would be the division’s management philosophy and all managers would be held accountable for abiding by its principles. 438 Most claims managers were uneasy about this process, but they also understood that the organization was under competitive pressure and that Jim was using this exercise to demonstrate his leadership. The claims managers developed a list of 10 items, such as encouraging teamwork, fostering a trusting work environment, setting clear and reasonable goals, and so on. The list was circulated to senior management in the organization for their comment and approval, and sent back to all claims managers for their endorsement. Once this was done, a copy of the final document was sent to every claims division employee. Jim also announced plans to follow up with an annual survey to evaluate each claims manager’s performance. This concerned the managers, but most of them believed that the credo exercise was a result of Jim’s initial enthusiasm and that he would be too busy to introduce a survey after settling into the job. One year after the credo had been distributed, Jim announced that the first annual survey would be conducted. All claims employees would complete the survey and return it confidentially to the human resources department, where the survey results would be compiled for each claims center manager. The survey asked about the extent to which the manager had lived up to each of the 10 items in the credo. Each form also provided space for comments. Claims center managers were surprised that a survey would be conducted, but they were even more worried about Jim’s statement that the results would be shared with employees. What “results” would employees see? Who would distribute these results? What happens if a manager gets poor ratings from his or her subordinates? “We’ll work out the details later,” said Jim in response to these questions. “Even if the survey results aren’t great, the information will give us a good baseline for next year’s survey.” The claims division survey had a high response rate. In some centers, every employee completed and returned a form. Each report showed the claim center manager’s average score for each of the 10 items as well as how many employees rated the manager at each level of the five-point scale. The reports also included every comment made by employees at that center. No one was prepared for the results of the first survey. Most managers received moderate or poor ratings on the

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