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10.1 Since change is always with us, what should I understand about it?
It is important to understand that some change is reactive and some is proactive.
10.2 What are three types of change, and how are Lewin’s and Kotter’s
approaches designed to handle change?
Three types of change are adaptive, innovative, and radically innovative.
10.3 What are the uses of OD, and how effective is it?
Organizational development (OD) is a set of techniques for implementing
10.4 What do I need to know to encourage innovation?
Ways to encourage innovation are by providing the organizational culture, the
10.5 How are employees threatened by change, and how can I help them adjust?
Resistance to change is an emotional/behavioral response to real or imagined
CHALLENGE: MAJOR QUESTIONS
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1. Which of the supertrends are driving H-P to change?
Supertrends, such as the rise of new technologies, knowledge and skills are
2. Which of the forces for change are causing H-P to undertake major
organizational change? Explain.
HP is reacting to a host of acquisitions and the fact that is may actually be
running in reverse. This is why it is focusing on important tasks and areas, in
3. How might Meg Whitman have used Lewin’s and Kotter’s models of change to
increase the probability of achieving positive organizational change? Provide
specific recommendations.
Whitman could unfreeze the current way things are done. For example, she can
create a more team-oriented environment. She started this by combining parking
4. To what extent is H-P following the four steps for fostering innovation? Explain.
First, Whitman has recognized problems and is devising solutions. For example,
she is laying off employees to make the company leaner (though laying off is not
MANAGEMENT IN ACTION: Hewlett-Packard Is Counting on Organizational
Change to Boost Revenue Growth
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5. What advice would you give Whitman based on what you learned in this chapter?
Be specific.
Whitman is doing a good job at trying to make changes, and has had to make
Chapter 10 – Organizational Change & Innovation: Lifelong Challenges for the Exceptional Manager
Should CEOs Fire Employees Based on the Opinions of U.S. Senators?
This case involves the controversy surrounding General Motors and its response, or
lack of response, to the need to recall 1.6 million vehicles that could have faulty ignition
switches.
According to The Wall Street Journal, an internal report commissioned by GM found
that members of Millikin’s staff were warned repeatedly starting in 2010 that GM could
face costly, punitive damage awards over its failure to address safety problems related
to the ignition defect. Millikin claims that he did not know about these cases because
company lawyers settled the cases for amounts that did not require review by Millikin
himself.
The congressional committee is not buying this explanation and some members want
Barra to fire Millikin. For example, Senator Claire McCaskill (D., Missouri) said, “How in
SOLVING THE CHALLENGE
What would you do about firing Michael Millikin if you were Mary Barra?
1. Nothing. Congress does not have the power to force Barra to fire an employee
and it does not know what it takes to run a large company. Termination
decisions should be left to the company.
The government should not interfere in the personnel decisions of a private
LEGAL/ETHICAL CHALLENGE
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2. Continue to investigate the situation and do not fire him if you believe he is
exonerated by the internal report.
Reviewing the report and continuing the investigation is Barra’s prerogative as
3. Terminate him even though the internal report suggests that Millikin did not know
about the issue. He should have known, and his lack of oversight is one cause
of this terrible problem.
“Coulda, Shoulda, Woulda” are assumptions. If the report is legitimate, then she
4. Invent other options.
Students can come up with other options. Having Millikin speak to Congress
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.
Group Exercise #1: Creating Personal Change through Force-Field
Analysis
Objectives
• To apply force-field analysis to a behavior or situation you would like to change.
• To receive feedback on your strategies for bringing about change.
Introduction
The theory of force-field analysis is based on the premise that people resist change
Force-field analysis is a technique used to facilitate change by first identifying the
thrusters and resistors that exist in a specific situation. To minimize resistance to
change, it is generally recommended to first reduce or remove the negative forces to
change. Removing counterthrusters should create increased pressure for an individual
to change in the desired direction.
Instructions
Have the students break into pairs, these two people will serve as a team that evaluates
the completeness of the other’s force-field analysis and recommendations. Once the
1. Are there any additional thrusters and counterthrusters that should be listed? Add
them to the list.
GROUP EXERCISES
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4. What is your overall evaluation of your partner’s intervention strategy?
Force-Field Analysis Form
STEP 1
In the space provided, please identify a number of personal problems you would
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STEP 2
Review in your mind the problems or aspects listed in Step 1. Now select one
STEP 3
On the form shown below, indicate existing forces that are pushing you in the
direction of change. They are called thrusters, and they may be forces internal
THRUSTERS STRENGTH
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COUNTERTHRUSTERS STRENGTH
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STEP 4
Analyze your thrusters and counterthrusters, and develop a strategy for bringing
about the desired change. Remember that it is possible to produce the desired
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Questions for Discussion
1. What was your reaction to doing a force-field analysis? Was it insightful and
helpful?
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Group Exercise #2: Overcoming Resistance to Change
Objectives
• To evaluate the causes of employees’ resistance to change.
Introduction
The goal of this exercise is to investigate why people resist change in the workplace
Instructions
1. Give a brief lecture on resistance to change and overcoming resistance to change.
2. Distribute a copy of the Resistance to Change Matrix found below.
3. Break students into groups of 3 and distribute “The Merger” scenario below.
The Case
The Merger
You are a recently promoted manager at TechFarm. TechFarm is a company which
outsources customer service employees to organizations in many different industries.
The company’s main focus is tech companies. Recently, Synergy Outsourcing, a larger
Chapter 10 – Organizational Change & Innovation: Lifelong Challenges for the Exceptional Manager
TechFarm knew about the merger six months before it occurred and has had the time to
adjust. As a manager, you have the basic information about the merger and try to help
The change has gone more smoothly than expected but three of your employees are
having trouble adjusting. Janet, a TechFarm employee of five years has begun skipping
work at least once a week and you caught her with the employment classifieds at her
Phil is another employee having difficulty adjusting. Recently, three of Phil’s colleagues
barged into your office and asked: is it true that Synergy is going to lay off everyone but
management? As far as you know, Synergy plans on keeping the TechFarm workforce
You face a unique issue with Roberto. Roberto has worked at TechFarm for three
years. After learning about the merger, Roberto began taking only the Spanish-
speaking calls. Since these calls make up a small percentage of TechFarm’s call
volume he has a lot of time to browse the internet and takes more breaks than any of
Questions for Discussion
1. Why are Janet, Phil, and Roberto resisting change? Explain.
2. What would you do at this point to overcome resistance from these three
employees?
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3. To what extent has TechFarm used both Lewin and Kotter’s models of
Source: A Johnson and A Kinicki, Group and Video Resource Manual: An Instructor’s
Guide to an Active Classroom, 2006, McGraw-Hill/Irwin, New York, NY, pp. 320-24.
Resistance to Change Matrix
Employee
Employee’s Reason(s) for
Resisting Change
Approach to Overcoming
Resistance to Change
Janet
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Employer-Subsidized Commuting
Teaching Objective: Show students how forces of change can impact an organization,
and how adapting to these forces can give a firm an advantage over competitors.
Summary: As the daily commute to work has become a growing problem in the United
States, with a round trip averaging 50 minutes but taking much longer in metropolitan
Questions
1. What forces of change have led to employer-subsidized commuting?
Answer: Forces that have led to employer-subsidized commuting include the
2. How does subsidized commuting give Safeco and other companies an
advantage in recruiting and retaining top employees?
Answer: Subsidizing the commute to work is an excellent employee benefit. It
3. In what ways is employee-subsidized commuting socially responsible?
Answer: Employee-subsidized commuting gives workers an incentive to take
Additional videos directly related to the textbook can be found in the Connect
Instructor’s Manual.
VIDEO CASE
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Students may complete the “Change: More Pain than Gain?” Manager’s Hot Seat
exercises in Connect for this chapter.
I. Introduction
The scenario depicts the difficulties that arise when two companies merge and
II. Learning Objectives
1. To assess students’ understanding of change concepts and the challenges of
change management.
III. Scenario Description:
Overview: A national media communications company acquires a regional
communications company. As a result of the merger the regional marketing
department is re-organized, combining the staff of the two organizations. Our
Profile:
• Carlos Alarcon is the Vice President of Marketing at MediaWorld and
manages a team of 120 people. MediaWorld recently acquired
Franklin/Warner a regional company where Carlos has worked for 14
MANAGER’S HOT SEAT
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References: The references included in the DVD are:
• Concepts in Change (PPT 6–3)
Back History: Alarcon, Rayes and Finch have been working together at
MediaWorld for over eight years and have a very amicable working relationship.
Since the merger, Finch and Rayes are now sharing their roles with two
Scene Set-up: Alarcon is having check-in meetings with all of the employees in
his department, to assess the progress of the reorganization since the merger
took place.
Scene Location: Alarcon’s Office, MediaWorld; 3:00pm Friday
The Meeting – Summary: Carlos apologizes for the delay in meeting and asks
them to share their feelings. Rita and Juan complain that their new counterparts
are difficult to work with and they are very dissatisfied with their roles and their
Afterthoughts – Summary: Carlos is concerned about Rita’s and Juan’s
actions before they leave. He wants to protect company property and clients
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merger plan accounted for some turnover to occur.
Dossier: The specific artifacts included in the DVD are:
1. New Hierarchy/ Department Structure
2. Rayes’ notes on Jackson’s daily schedule over the course of two
IV. Discussion Questions:
The References and related Discussion Questions may be found in PowerPoint slides
6-1 to 6-9.
Learning Objective #1: To assess students’ understanding of change concepts and the
challenges of change management.
1. Refer to “Concepts in Change” (PPT 6-3). What stage of change is this
organization in? How do you know?
At this point the merger has already occurred and employees are
2. Which strategy would be the most effective in merging these company’s
organizational cultures (see PPT 6-4)? Provide justification for your answer
based on information from the scenario.
The separation strategy would be the least appropriate because we know
that the employee’s from Franklin/Warner and MediaWorld have the same
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1. Why does Rita mention feeling alone?
A. Assert control
B. Win sympathy
C. Reprimand him
Learning Objective #2: To identify ways to decrease resistance to change.
1. Refer to “Forces Resisting Change” (PPT 6-6). Which of these factors are most
strongly affecting Rita and Juan? Support your answer with examples from the
scenario.
Clearly, incongruent team dynamics are seriously affecting Juan and
Rita’s job satisfaction. They feel that their counterparts from the other
2. Why does Carlos share his perspective?
A. Create camaraderie
B. Persuade them
C. Assert power
Learning Objective #3: To analyze and evaluate change leadership behaviors.
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1. How effective is Carlos in decreasing Juan and Rita’s resistance to change? (see
PPT 6-8)
It’s not clear what he has done prior to their meeting. Presently, he seems
to not have been available for his employees and is apologetic for that.
3. What is Carlos’ goal?
A. Calm them
B. Get clarification
C. Redirect responsibility
4. Carlos’ response demonstrates:
A. Complacency
B. Empathy
C. Attempt to intimidate
5. How should Carlos respond?
A. Win them back
B. Fire the other two
C. Say goodbye
6. Carlos’ response to their proposal is:
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A. Appropriate
B. Short sighted
C. Premature