Managing Change

Topics: Change management, Management, Organization Pages: 30 (7045 words) Published: June 14, 2013

Chapter Scan

Organizations have to keep pace with current issues related to quality, technology, diversity, globalization, and ethics. This requires managing both change and resistance to change. All organizations experience external and internal forces for change. There are numerous organization development interventions available to managers. Diagnosis and needs analysis are essential first steps in any change management effort.


After reading this chapter, you should be able to do the following:

1.Identify the major external and internal forces for change in organizations.
2.Define the terms incremental change, strategic change, transformational change, and change agent.
3.Describe the major reasons individuals resist change, and discuss methods organizations can use to manage resistance.
4.Apply force field analysis to a problem.
5.Explain Lewin's organizational change model.
6.Describe the use of organizational diagnosis and needs analysis as a first step in organizational development. 7. Discuss the major organization development interventions.
8.Identify the ethical issues that must be considered in organization development efforts.

key terms

Chapter 18 introduces the following key terms:

planned change
unplanned change
incremental change
strategic change
transformational change
change agent
organization development (OD)
survey feedback
management by objectives (MBO)
quality program
team building
process consultation
skills training
sensitivity training
management development
role negotiation
job redesign


I.THINKING AHEAD: Changing with the Times


The forces for change are everywhere in today’s highly competitive environment. Adaptiveness, flexibility, and responsiveness are terms used to describe the organizations that will succeed in meeting the competitive challenges faced by businesses. Planned change results from deliberate decisions to alter an organization. Unplanned change is imposed on the organization and is often unforeseen.

A.External Forces

The four themes of this text (i.e., globalization, workforce diversity, technological change, and managing ethical behavior) are the major external drivers of change in organizations. Two examples of planned change are the European Union (EU) and the North American Free Trade Agreement (NAFTA). Regardless of the degree of planning involved in these ventures, numerous unplanned circumstances still arise.


Multinational and transnational organizations are heavily involved in global changes. Many of these organizations are pursuing joint ventures with firms from other countries.

2.Workforce Diversity

The workforce continues to see increased participation of females, persons with physical challenges, and persons from many different cultures, as well as a rise in the mean age of workers. All of these trends are expected to continue well into the next decade.

3.Technological Change

Technological changes alter the way in which we perform work, structure work and organizations, and interact with each other. Examples include advances in communication technology and information systems that allow for virtual teams, and radio frequency identification tags that are significantly faster, more flexible, reusable, and carry more information than bar codes.

4.Managing Ethical Behavior

Society expects organizations to behave in an ethical manner in all of their activities, both internal and external. Ethical dilemmas are sometimes highly visible, public...
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