Management Fundamentals

Concepts, Applications, Skills Development

Managing Change:
Culture, Innovation, and Diversity

7A
 Technology

Strategy
4
Types
of
Change
Structure People

7-1
 Types of Organizational Change
STRATEGY STRUCTURE TECHNOLOGY PEOPLE
Corporate Principles Machines Skills
(growth, stability and (unity of command and Systems Process Performance
turnaround and direction, chain of Information Process Attitudes
retrenchment) command, span of Automation Behavior
management, division of
Business Level labor, coordination,
(prospecting, defending, balanced responsibility and
and analyzing) authority, delegation, and
flexibility)
Functional
(marketing, operations, Authority
finance and human (formal and informal, levels
resources. of, line and staff, and
centralized and
decentralized)

Organizational Design
(departmentalization)

Job Design
(job simplification, rotation,
enlargement, enrichment,
and work teams) 7-2
 MIS
Management Information Systems

• Formal systems
for collecting,
processing, and
disseminating
information that
aids managers in
decision making.

7-3
Change Process Stages
Denial

Resistance

Exploration

Commitment
7-4
 Resistance to Change and
Ways to Overcome It
Resistance to Change Overcoming Resistance

Uncertainty Trust climate for change

Inconvenience Plan

Self-interest State why change is needed

and how it will affect
Loss employees

Control Create a win-win situation

Involve employees

Provide support

7-5
 3
Major Sources
of Resistance

Facts Values
Beliefs

7-6
 Others
Work
Self Environment

3
Major Focuses
of Resistance

7-7
 Resistance Matrix
Sources of Resistance (fact
1. Facts about self
•I never did the task before.
•I failed the last time I tried.
self)
2.. Facts about others
•She has the best performance
other
record in the department.
•Other employees told me it’s
hard to do.
Focus of Resistance (work
3. Facts about the work
environment
•Why don’t you pay me more
to do it?
•It’s over 100 degrees. Can’t
we wait?
Intensity (high, medium, or low for each box)
belief
4. Beliefs about self
•I’m too busy to learn it.
•I’ll do it, but don’t blame me
if it’s wrong.
5. Beliefs about others
•He just pretends to be busy
to avoid extra work.
•She’s better at it than I am;
let her do it.
6. Beliefs about the work
environment
•This is a lousy job.
•The pay here is too low.
value)
7. Values to self
•I like the way I do my job now.
•Why change?
•I like working in a group.
8 .Values to others
•Let someone else do it; I do not
want to work with her.
•I like working with him.
•Don’t cut him from our
department.
9. Values to work
environment
•I don’t care if we meet the
goal or not.
•The new task will make me
work inside. I’d rather be
outside.
7-8
3 Levels of Culture
Level 1
Behavior

Level 2
Values &
Beliefs

Level 3
Assumptions
7-9
 1. Encourage Risk Taking

2. Intrapreneurship

3. Open Systems

6 4. Focus on Objectives

5. Acceptance of Ambiguity
Innovative and Impractical Ideas

Culture 6. Tolerance of Conflict

Characteristics
7-10
 TQM Core Values
• To focus everyone
in the organization
on delivering
customer value
• Continuously
improve the system
and processes.
7-11
 Diversity
•The degree of
differences
among
members of a
group or
organization.

7-12
 Valuing Diversity
• Emphasizes
training employees
of different races
and ethnicity,
religions, genders,
ages, and abilities
and with other
differences to
function effectively
together.
7-13
 Managing Diversity
• Emphasizes fully utilizing resources
through organizational actions that
meet all employees’ needs.
• Can only be successful with a change
in culture.

7-14
 Change Models
Lewin’s Change Model A Comprehensive Change Model

Step 1. Unfreezing Step 1. Recognize the need

for change.
Step 2. Moving. Step 2. Identify possible
resistance to change and
Step 3. Refreezing. plan how to overcome it.
Step 3. Plan the change
interventions.
Step 4. Implement the change
interventions.
Step 5. Control the change.
7-15
 OD Interventions
Training/Development

Forcefield Analysis

Survey Feedback

Grid OD

OD Sensitivity Training

Interventions Team-Building

Process Consultation

Job Design

Direct Feedback
7-16