CHAPTER 17 MANAGING ORGANISATIONS THROUGH CHANGE AND CONFLICT © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Lecture outline • • • • Managing change Managing resistance to change Managing conflict Relationship between conflict & change © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing change competition economy technology External change factors politics culture Internal change factors The jobs organisation regulations employees structure imports technical development © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing change The change cycle Evaluation against desired outcomes Performance gap Identify a desired future 3, Recognise need for change Implementation Selection of appropriate alternatives Development of alternatives Problem diagnosis © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing resistance to change Individual resistance to change: • Self-interest • Misunderstanding • Lack of trust • Differential assessment • Ability to adjust © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing resistance to change THREE-STEP PROCESS: UNFREEZE UNFREEZE CHANGE REFREEZE © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing resistance to change Overcoming resistance to change Force Field Analysis (Kurt Lewin) ‘a method involving analysing the two types of forces, driving forces and restraining forces, that influence any proposed change then assessing how best to overcome resistance.’ Driving forces Factors pressuring for a particular change Restraining forces Factors pressuring against a change © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing resistance to change Overcoming resistance Education & communication Participation & involvement Facilitation & support METHODS (Kotter & Schlesinger) Explicit & implicit coercion Manipulation & co-optation Negotiation & agreement © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing conflict • • • Between individuals & organisation Causes of conflict Benefits and losses from conflict © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Managing conflict CONFLICT between individuals/ organisations: ‘Perceived difference between two or more parties resulting in mutual opposition’ ‘Many job structures conflict with a healthy personality’s basic growth needs.’ © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 10 Managing conflict Conflict between individuals/organisations: Very mature employees Highly structured organisations Conflict is strongest with Fragmented and mechanised jobs Formalised rules and procedures © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 11 Managing conflict Conflict between individuals/organisations: Conflict occurs: Employees must choose to Leave Defend Disassociate Find distraction Form alliances © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Managing conflict Causes of conflict • • • • • • • Communication factors Structural factors Size Participation Line staff distinctions Reward systems Resource interdependence • Task interdependence • Power • Personal behaviour factors • Communication styles • Workforce diversity • Differences in goals • Reward structures • Differences in perceptions • Increased demand for specialists © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Managing conflict Benefits & losses from conflict Benefits Productive task focus Losses Cohesion & satisfaction Power & feedback Goal attainment Energy diversion Distorted judgement Loser affects Poor co-ordination © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Managing conflict Reducing/resolving conflict: • Change situational factors • Appeal to superordinate goals • Interpersonal conflict handling techniques – – – – – Avoidance Accommodation Competition Compromise Collaboration © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 Relationship: conflict & change Managing inter-group conflict Problem solving Intergroup training Confrontation & negotiation Intergroup conflict resolution Limited communication Expansion of resources Smoothing Bureaucratic authority © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Relationship: conflict & change • Types of inter-group conflict – – Functional Dysfunctional • Changing views on conflict – – – Traditional view—conflict is destructive & unnecessary Modern view—conflict is inevitable, & may produce better organisational performance • Stimulating conflict Build group diversity, communicate to provoke change, encourage competition © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 17 Lecture summary • Managing change – – Diagnosing need Change cycle • Managing resistance to change – – – Introducing change Resistance to change Managing resistance • Managing conflict – – Individual-organisational conflict Causes • Relationship between conflict & change © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 Lecture summary • Managing conflict – – Individual-organisational conflict Causes • Relationship between conflict & change – – – Types of inter-group conflict Changing views on conflict Stimulating conflict © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 19 [...]... to provoke change, encourage competition © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 17 Lecture summary • Managing change – – Diagnosing need Change cycle • Managing resistance to change – – – Introducing change Resistance to change Managing resistance • Managing conflict – – Individual-organisational conflict Causes • Relationship between conflict & change © 2003 McGraw-Hill Australia Pty Ltd PowerPoint.. .Managing conflict Conflict between individuals /organisations: Very mature employees Highly structured organisations Conflict is strongest with Fragmented and mechanised jobs Formalised rules and procedures © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 11 Managing conflict Conflict between individuals /organisations: Conflict occurs: Employees must choose to Leave Defend Disassociate Find distraction... situational factors • Appeal to superordinate goals • Interpersonal conflict handling techniques – – – – – Avoidance Accommodation Competition Compromise Collaboration © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 Relationship: conflict & change Managing inter-group conflict Problem solving Intergroup training Confrontation & negotiation Intergroup conflict resolution Limited communication Expansion... Increased demand for specialists © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Managing conflict Benefits & losses from conflict Benefits Productive task focus Losses Cohesion & satisfaction Power & feedback Goal attainment Energy diversion Distorted judgement Loser affects Poor co-ordination © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Managing conflict Reducing/resolving conflict: • Change. .. Smoothing Bureaucratic authority © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Relationship: conflict & change • Types of inter-group conflict – – Functional Dysfunctional • Changing views on conflict – – – Traditional view conflict is destructive & unnecessary Modern view conflict is inevitable, & may produce better organisational performance • Stimulating conflict Build group diversity, communicate to... distraction Form alliances © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Managing conflict Causes of conflict • • • • • • • Communication factors Structural factors Size Participation Line staff distinctions Reward systems Resource interdependence • Task interdependence • Power • Personal behaviour factors • Communication styles • Workforce diversity • Differences in goals • Reward structures •... Relationship between conflict & change © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 Lecture summary • Managing conflict – – Individual-organisational conflict Causes • Relationship between conflict & change – – – Types of inter-group conflict Changing views on conflict Stimulating conflict © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 19