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COMMERCE 2BA3 ORGANIZATIONAL BEHAVIOUR

Class 12 (last class  ) Change, development, and innovation Dr. Christa Wilkin

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Brain Teasers

ENTURY ECNALG working time I right I

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Last Class

 One type of organizational structure is not better than the other  Depends on internal and external environment  Structure may change over time  Organizations are open systems that are affected by and affect their environments

THIS CLASS

 Change, development, and innovation  Pre-Exam Review

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Agenda

 What organizations can change  Change process  Organizational development  Innovation  Pre-exam review

CH 16: CHANGE, DEVELOPMENT, AND INNOVATION

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Some Quotes

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 He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery. ~Harold Wilson  Change is inevitable - except from a vending machine. ~Robert C. Gallagher  All change is not growth, as all movement is not forward. ~Ellen Glasgow

What Organizations Can Change

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 Goals and strategies  Technology  Job design  Structure  Processes  Culture  People

What Organizations Can Change

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 Three important points about the areas that organizations can change:  Change in one area very often calls for changes in other areas.

 E.g., change policy affects how things are done elsewhere  Change in most areas require serious attention be given to people.

 E.g., often resist change  Change requires employees to learn new skills and change their attitudes.

 E.g., learn new computer software

Lewin’s Three-Step Model

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1. Unfreeze  The recognition that some current state of affairs is unsatisfactory  Employee attitude surveys, customer surveys, and accounting data are often used to anticipate problems and initiate change before crises are reached

Lewin’s Three-Step Model

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2. Change  The implementation of a program or plan to move the organization or its members to a more satisfactory state.

 Change efforts can range from minor to major.

Lewin’s Three-Step Model

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3. Refreeze  The condition that exists when newly developed behaviours, attitudes, or structures become an enduring part of the organization.

 The effectiveness of the change is examined and the desirability of extending change further can be considered.

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Issues in Change Process

Issues in the Change Process

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 There are several important issues that organizations must confront during the change process.

 These issues represent problems that must be overcome if the process is to be effective, and include:  Diagnosis  Resistance  Evaluation and institutionalization

Diagnosis

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 The systematic collection of information relevant to impending organizational change.

 Proper diagnosis clarifies the problem and suggests what should be changed and the proper strategy for implementing change without resistance.

 The intended targets of the change should be involved in the diagnostic process.

Resistance

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 Change is frequently resisted by those at whom it is targeted.

 People may resist both unfreezing and change.

 Resistance to change occurs when people either overtly or covertly fail to support the change effort.

 Transformational leaders.

Evaluation and Institutionalization

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 When the change is institutionalized, it becomes a permanent part of the organizational system.

 A number of factors can inhibit institutionalization, especially for complex change programs.

 Lack of extrinsic rewards.

 Higher expectations that cannot be fulfilled.

 New hires are not carefully socialized.

Quiz Question

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The Stinky Cheese Company has realized that its market share of cheese has recently dropped and it may need to create a new kind of stinky cheese. Which stage of the change process are they in?

A) refreezing B) unfreezing C) perceived threat D) conflict E) resistance

Organizational Development

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 Organizational development (OD) is a planned, ongoing effort to change organizations to be more effective and more human.

 E.g., team building, TQM, survey feedback

Team Building

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 An effort to increase the effectiveness of work teams by improving interpersonal processes, goal clarification, and role clarification.

 It can facilitate communication and coordination.

 Team building usually begins with a diagnostic session that results in a list of needed changes to improve team functioning.

Survey Feedback

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 The collection of data from organizational members and the provision of feedback about the results.

 Meetings are held to explore and discuss the data and to suggest changes.

 The data usually consist of interviews or questionnaires completed by organizational members.

Total Quality Management (TQM)

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 A systematic attempt to achieve continuous improvement in the quality of an organization’s products and/or services.

 Continuous improvement can come from small gains over time or from more radical innovation.

 The goal is long-term improvement.

Total Quality Management (TQM)

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 TQM involves specialized training in tools that empower ee’s to diagnose and solve quality problems on an ongoing basis.

 Some tools include:  Flowcharts of work processes: illustrate graphically the operations and steps in accomplishing some task  Pareto analysis: frequency data on the causes of errors and problems ; helps identify top 20% of causes that needs to be addressed to resolve 80% of the problems

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Total Quality Management (TQM)

 Fishbone diagrams: illustrate graphically the root factors that could contribute to a particular quality problem  Statistical process control: gives ee’s hard data about quality of own output that enables to correct deviations

Reengineering

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 The radical redesign of organizational processes to achieve major improvements in factors such as time, cost, quality, or service.

 It asks basic questions, such as:  “What business are we really in?”  “If we were creating this organization today, what would it look like?”  Jobs, structure, technology, and policy are redesigned around the answers to these questions.

Does Org Development Work?

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 Most OD techniques have a positive impact on productivity, job satisfaction, or other work attitudes.

 OD seems to work better for supervisors or managers than for blue-collar workers.

 Changes that use more than one technique seem to have more impact.

The Innovation Process

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 Innovation is the process of developing and implementing new ideas in an organization.

 Innovation requires:  Creative ideas and creative people.

 People who will fight for new ideas.

 Good communication.

 The proper application of resources and rewards.

 Creativity refers to the production of novel but potentially useful ideas.

Idea Champions

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 Idea champions are people who see the kernel of an innovative idea and help guide it through to implementation.

 The role of idea champion is often an informal and emergent role.

 It involves sponsorship and support.

Communication

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 Effective communication with the external environment and within the organization are vital for successful innovation.

 Innovative firms recognize the relevance of new, external information, importing and assimilating it, and then applying it.

 Gatekeepers are people who span the boundary between the organization and the environment.

 They import new information, translate it for local use, and disseminate it to project members.

The Knowing-Doing Gap

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 Many managers know what to do, but have considerable trouble implementing this knowledge in the form of action.

 Why does the knowing-doing gap happen?

The Knowing-Doing Gap

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 The tendency for some organizational cultures to reward short-term talk rather than longer-term action.

 Many organizations foster internal competition that is not conducive to the cooperation between units that many changes require.

 When managers do manage to make changes, they sometimes fail because techniques are adopted without understanding their underlying philosophy.

Exercise: Infomercial

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 Form groups of 5 to 6 people  Each group will get a prop and it is your job to come up with an one-minute infomercial  Be prepared to act out your infomercial to the class

QUESTIONS?

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Summary

 It is important to manage the change process: Too much change may not be good and too little change can be bad

Pre-Exam Review

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 Ch 10: Communication  Ch 11: Decision Making  Ch 12: Power, Politics and Ethics  Ch 13: Conflict & Stress  Ch 14: Organizational Structure  Ch 15: Environment, Strategy, Technology  Ch 16: Change, Development, Innovation

For Next Class

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 Make an appointment if you need more help for the final exam