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Chapter 18 - Creating and Leading Change
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5. Review the methods for dealing with resistance to change. Generate specific examples of each
that you have seen, and analyze the reasons why they worked or failed to work.
General reasons for resistance:
➢ Inertia – the old ways of doing things are comfortable and easy, so people don’t want to try
something new.
Change specific reasons for resistance:
➢ Self-interest – people will resist change if they think it will cause them to lose something of
Specific approaches to enlist cooperation:
➢ Education and communication
6. Choose some specific types of changes you would like to see happen in groups or organizations
with which you are familiar. Imagine that you were trying to bring about these changes. What
sources of resistance should you anticipate? How would you manage the resistance?
One way of approaching this question would be to have students each make a list of the organizations
to which they belong ... and then identify those with which they experience the most frustration. The
Chapter 18 - Creating and Leading Change
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7. Develop a specific plan for being a “continuous learner.”
Some students may indicate that, when they have completed the current degree, they will take an ad-
vanced degree followed by another and so on. While this meets the criteria of continuous learning, it
8. In your own words, what does the idea of "creating the future" mean to you? How can you put
this concept to good use? Again, generate some specific ideas that you can really use?
The text suggests that "creating the future" means "getting ahead of the pack." This may be translated
as "putting yourself outside the current envelope" or "thinking outside the current boundaries."
9. In what ways do you think the manager’s job will be different in 20 years than it is today? How
can you prepare for that future?
Managers of the future will be faced with a number of changes to their jobs. They will continue to
have to do more with less, and to supervise large and larger numbers of people as organizations be-
Chapter 18 - Creating and Leading Change
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Chapter 18 - Creating and Leading Change
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EXERCISE 18.1 – OVERCOMING RESISTANCE TO CHANGE
Objectives
To learn how to overcome resistance to change.
Instructions
Refer back to Exhibit 18.6 on page ______ and the different ways to manage resistance to change. Next,
Resistance to Change Worksheet
Describe a new idea you tried to introduce at work, school, or some other organization:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Which (if any) of the following approach(es) to overcoming resistance to change did you use? (Please
check all that apply)
What was the outcome? To what degree were you successful in overcoming the resistance to change? Ex-
plain.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
EXERCISE 18.2 - NETWORKING SCENARIOS
EXPERIENTIAL EXERCISES
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Resources/Set-up: Scenarios worksheet and questions (in chapter).
Activity Instructions: Follow the instructions in the chapter. You can assign Step 1 as homework.
Discussion/Debrief: See questions in text; facilitate discussion with these, plus:
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EatWell Technologies
Case Summary:
EatWell Technologies is an example of social entrepreneurship: a business the founders created as a way
to drive social change for the better. The two entrepreneurs, Cristina Muñoz and Pete Prakash, applied
Chapter Topics Related to the Case:
• Discuss the concept of change
• Identify methodologies to successfully implement changes in an organization such as EatWell
Case Discussion Questions:
1. Review the first section of the chapter, about becoming world class. How can EatWell Technologies
fulfill its social mission and be profitable?
Suggested Response:
It can identify problems that its technology can solve profitably, with skillful management and the proper
2. In this case, where do you see resistance to change? How can leaders overcome the resistance? How
should they?
Suggested Response:
The two founders of EatWell Technologies are open to growth, but they resist Bill Jensen’s idea to refor-
mulate their basic vision of the company’s purpose. For Pete and Cristina, the purpose is about better
CONCLUDING CASE
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3. Suppose you are coaching Pete and Cristina. What advice would you give them about shaping their
future?
Suggested Response:
Answers will vary. Encourage students to apply the general advice in the last part of the chapter to this
specific situation. A coach using that information would encourage Pete and Cristina to continue thinking
about the future and taking an active role in shaping what they will do. As owners of a business, they can
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Technology Helps Dollar General Remain Competitive
Case Overview:
In a tight economy, more consumers are determined to save money and they often end up shopping at
deep-discount stores such as Dollar General, Family Dollar, or Dollar Tree. In an effort to compete with
Teaching Objectives
• Review the importance of identifying problem areas in operations
Purpose and Relationship to the Part
One of the few “constants” in our world is change. As managers in today’s global economy, it is crit-
ical to learn how to motivate people to change, to identify effective solutions and technologies that
will produce change, to reduce worker stress and redundant worker actions, and to provide resources
that simplify the management process.
Case Discussion Questions
1. What types of control are important at Dollar General? Why are these important?
Suggested Response
PART V SUPPORTING CASE
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Controls at Dollar General focus on efficiency. Feedforward controls include security cameras to
prevent theft, job design to increase efficiency, and employee selection software to standardize
2. What technological innovations did Kathleen Guion introduce at Dollar General? How did these
innovations support the company’s strategy?
Suggested Response
The technological innovations were “rolltainers” (important to note that not all technology is
computer technology), inventory management system with scanners, screening software for job
candidates, computers for online communication, computer-based training, personal computers
3. What challenged would you have expected Guion to face in introducting these changes? What
principles of managing change would you have suggested she apply?
Suggested Response
Specific recommendations will vary, but resistance to change is the norm. Not all employ-
ees/managers will be enthusiastic about learning and using new technology and work procedures.
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General, and she should refreeze the changes with control systems and rewards. Together, these
ideas can be summed up in terms of the actions listed in Table 18.2: education and communica-
tion, participation and involvement, facilitation and support, and negotiation and rewards. The
last two categories (manipulation and cooptation, explicit and implicit coercion) do not seem to
be suited to Dollar General’s situation as described in the case.
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Example 18.1 – Being world class: One of the signs of a great company is that it can transmit its
values to all employees. Alex Frankel, a journalist, spent two years “undercover” in front line re-
Example 18.2 – Managing Change: Even business schools go through the change process on a
regular basis. Yale has recently completely retooled its business program. Now, instead of tak-
ing courses in marketing, finance, accounting, and human resources, students are sent through
Example 18.3 – Continuous learning: Jim Bolt of Fast Company identifies three “best practic-
es” in executive education. He says that continuous learning can’t be something that’s preached -
if it is to work, the CEO and his or her executive team have to be the first people in any new
EXAMPLES
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Please see the following additional materials in Connect.
• Hollywood Labor Unions
The kinds of issues faced by performers are very similar to the issues faced by Americans from all walks
of life. The union offers some protections that even in the best of times the studios don’t offer.
What changes led to the evolution of performers’ unions?
Like many industries, the entertainment industry was once dominated by flamboyant moguls who con-
trolled production with an iron fist. As emerging media like motion pictures, radio, and television began
Change: More Pain than Gain?
I. Introduction
The scenario depicts the difficulties that arise when two companies merge and highlights the role
II. Learning Objectives
1. To assess students’ understanding of change concepts and the challenges of change management.
III. Scenario Description:
CHAPTER VIDEO
SUPPLEMENTAL FEATURES
MANAGER’S HOT SEAT (MHS)
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Overview: A national media communications company acquires a regional communications
company. As a result of the merger the regional marketing department is re-organized, combin-
ing the staff of the two organizations. Our Manager is overseeing the restructuring process and is
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 years. Carlos was a key player in organizing and man-
aging this merger.
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 employees from the merger company, Jackson and Peters.
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
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Afterthoughts – Summary: Carlos is concerned about Rita’s and Juan’s actions before they
leave. He wants to protect company property and clients because he is sure that they will leave
Dossier: The specific artifacts included in the DVD are:
1. New Hierarchy/ Department Structure
their accounts managed by a new company instead of continuing with MediaWorld.
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?
2. Which strategy would be the most effective in merging these company’s organizational cul-
tures (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 employ-
ee’s from Franklin/Warner and MediaWorld have the same positions and job titles. This
indicates that the companies provided the same services. Keeping their cultures separate
1. Why does Rita mention feeling alone?
A. Assert control
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1. Refer to “Forces Resisting Change” (PPT 6-6). Which of these factors are most strongly affect-
ing Rita and Juan? Support your answer with examples from the scenario.
Clearly, incongruent team dynamics are seriously affecting Juan and Rita’s job satisfac-
tion. They feel that their counterparts from the other company do not treat them with re-
Having to share responsibilities with someone else also creates resistance because the
employees want to “save face”. They may feel belittled and denigrated by now having to
share the jobs they used to do alone.
2. Why does Carlos share his perspective?
A. Create camaraderie
Learning Objective #3: To analyze and evaluate change leadership behaviors.
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
During the conversation, he does not attempt to negotiate with them to make up for some-
thing they’ve lost. He places the responsibility of making the merger successful back on
them. He suggests that they need to work out their personal differences on their own.
These actions do not indicate that he is too concerned with losing these employees.
3. What is Carlos’ goal?
A. Calm them
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4. Carlos’ response demonstrates:
A. Complacency
5. How should Carlos respond?
A. Win them back
6. Carlos’ response to their proposal is:
A. Appropriate
B. Short sighted
• Assessing Your Flexibility
• Self-Directed Learning Assessment
SELF-ASSESSMENT
