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Organizational Change
Def: The adoption of a new idea or behavior by an organization.
• Change is common aspect of current business environment
• Adaptation to change is central point of learning organization
• For success, adaptation to change must exist in current workforce
• Change includes redefining of roles, processes, values and removal of barriers
Model for Planned Change
1. Both internal and external forces contribute to change
2. Organizations must monitor the forces of change and determine when there is a
need for change.
3. Initiate search for response to the change
4. Implement the response to the change
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Forces of Change
Environmental (External) Forces
• Customers
• Competitors
• Technology
• Economic
• International arena
What are examples of these forces?
Internal Forces
• Goals
• Employees
• Labor Unions
• Production efficiencies
• Company performance
What are examples of these forces?
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Need For Change
Management’s responsibility is to:
a. Monitor threats and opportunities in the external environment
b. Identify strengths and weaknesses in the organization.
How does a manager determine a need for change?
• Disparity between existing and desired performance levels ( Performance Gap).
Is this gap due solely to non-performance?
How does the sense of urgency enter into the identification of the need for change?
Why is it important to have sensitive sensors to determine the need for change?
• Resources
• Impact
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Initiating Change
Def: To search for or create ideas that solve perceived needs are developed.
Search: process of learning about current developments inside or outside the
organization that can meet the perceived need.
Creativity: Generating novel ideas that have the potential of meeting the perceived
need or opportunity.
Characteristics of a Creative individual
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Conceptual Fluency
Originality
Open mindedness
Less authority, Independence
Playfulness, Curiosity, Undisciplined exploration
Persistence, commitment, focused approach
Idea Champion: Passionate , committed to the idea despite rejection by others.
Inventor: Develops the idea but does not have the ability or interest to promote.
Sponsor: High-level manager who approves, protects and removes major barriers.
Critic: Challenges the concept and provides reality checks.
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Development of a Creative Organization
1. Open channels of communication
2. Contact with outside sources
3. Overlapping territories
4. Brainstorming, suggestion systems
5. Assignment of non-specialist to problem
6. Eccentricity allowed
7. Use of teams
8. Decentralization, loosely defined positions
9. Acceptance of mistakes, risk taking
10. Freedom to pursue and choose problems
11. Playful culture
12. Freedom to discuss ideas, long time horizon
13. Resources allocated to creative personnel and projects without
immediate payoff
14. Reward system that encourages innovation
15. Absolution of peripheral responsibilities
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Implementing Change
Why do we resist change?
• Self Interest: Perceived loss of power, prestige, pay, or company benefits.
• Lack of Understanding and Trust: purpose unknown.
• Uncertainty: Lack of information.
• Different Assessments of goals: Goals conflict, differ in perceived outcome.
Force Field Analysis
To implement a change requires an analysis of the driving forces and the restraining
forces. Removal of restraining forces allows driving forces to implement change.
What is meant by this statement?
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Implementation Tactics
Communication and Education
• Change is technical
• Users need accurate information and analysis to understand change.
Participation
• Users need to feel involved
• Design requires information from others
• Users have power to resist
Negotiation
• Group has power over implementation
• Group will lose out in the change
Examples?
Coercion
• A crisis exists
• Initiators clearly have power
• Other implementation techniques have failed
Top Management support
• Change involves multiple departments or reallocation of resources
• Users doubt legitimacy of change
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Types of Planned Change
Technology changes
Related to the organization’s production process. (efficiency)
Technology change is from the bottom up.
Lower level techs act as idea champions.
Why
What type of Implementation tactic would you use and Why?
Structural Changes
Involves the hierarchy of authority, goals, structural characteristics, administrative
procedures and management systems.
Accomplished thru a Top - Down approach.
Why?
Champions are Top level and Middle management
Why would the Preferred Implementation Tactics be
Education, Negotiation & Participation?
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New Product Changes
• Change in the organization’s product or service output
• Primary way that organizations adapt to changes in markets,
technologies and competition.
• Implemented more along a Horizontal line
• Horizontal Linkage Model shows that a new product must be
developed simultaneously by marketing, research & manufacturing.
What roles do these depts play in a successful development of new product?
(Marketing, Technical specialists, research, manufacturing)
How does time play into the new product strategy?
(Time Based Competition)
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Cultural / People Changes
Refers to a change in values, norms, attitudes, beliefs and behaviors of employees.
Way people think, Mindset rather than technology, structure or products
Training is the most frequently used tool.
Organizational Development: promotes improvement of internal relationships and
increased problem solving capabilities to improve an organization’s effectiveness.
OD methods:
Team building
Survey feedback activities
Large group intervention
OP Steps:
1. Unfreezing: participants become aware of problems and then increase willingness
to change (Change Agent)
2. Changing: Experiment with new behavior and learn new skills.
3. Refreezing: New behaviors are evaluated and reinforced by individuals who have
newly acquired attitudes or values and are rewarded for them by the organization.
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