Organizational Change

Adoption of a new idea or hehavoir by an organization to

To facilitate change: Intiation and Implimentation

Learning Organization

An organization that has continuous organizational learning and change

Incremental Change

Organizational efforts to gradually improve basic operational work processes in different parts of the company.

Transformational Change

Reseisgn of the entire organization

Change sequence

1. internal and external forces for change exsist

2. Organizational managers monitor forces and realize the need for change

3. Percieved need triggers the intiation of change

4. Change is implimented

Force of Change : Environmental

Environmental sectors, customers, competitors, technology, economic forces, international arena

Force for Change: Internal

Change arises from internal activities and decisions.

Ex. To meet rapid internal growth --> new departments must be made

Performance gap

Disparity between exsisting and desired performance levels.

Search

Process of learning about current developments inside or outside the organization that can be used to meet a perceived need for change

Creativity

Generation of novel ideas that may meet preceived need or respond to opportunities for the organization.

Idea Champion

Person who see th neeed for champions productive change within the organization,

believes in the idea

• visualize the benifits
• confronts organizational realities of cost benefits
• overcomes obstacles

Inventor

Develops/understands technical aspects of the idea

Doesnt know how to develop for it

Sponsor

High level manager who removes organizational barriers

Approves and protects the idea within the organization

New venture team

Unit seperate from the mainstream of the organization that is responsible for developing and intiating innovations.

Skunkworks

Seperate small, informal, highly autonomous (can be secretive) group that focuses on breakthrough ideas for the business.

New venture fund

Provides resources from which individuals and groups can draw to develop new ideas, products or businesses

Idea incubator

Run entirely in house but provides a safe habor where ideas from employees throughout the organization can be devleoped w/o the interference from company bureaucracy or politics.

Resistance to change

• Self interest - employees resist because they believe it will take something away
• lack of trust/understanding- emplyees dont understand the intended purpose of change or distruct the intentions behind it
• Uncertainity - Lack of information about future events
• differnt assessments and goals - legit disagreements over the benifits.

Force Field Analysis

Grew from Kirt Lewin's work process of determining which forces drive and which resist a proposed change

Driving Resisting

---> <----

---> <----

Tactics for Overcoming Change:

Communication/Education

• Change is technical
• Users need accurate information and analysis to understand change

Implimentation tactics:

Participation

• users need to feel involved
• Design requires information from others
• users have power to resist

Implimentation Tactic:

Negotiation

Group has power over implimentation

Group will loose out in the change

Implimentation Tactic:

Coercion

• Crisis exsits
• Intiators clearly have power
• Implementation technically have failed

Implimentation Tactic:

Top Management Support

• Change involves multiple departments or reallocating of resources
• Users doubt legitimacy of change

Technology Change

A change that pertains to the organizations's production process should be: bottom up

Example: US Postal Service --> using automatic mail sorting machines.

Product change

• Change in the organizations product or service output
• They have major implications for an organization because they often are an outcome of a new strategy and may define market

Horozontal linkage Model

An approach to prouduct change that emphasizes shared development of innovations among several departments.

Research, manufacturing, marketing together develop new products.

Time based competition

Strategy of competiton based on the ability to deliver products and services faster than competitors.

Example: Moen makes new kitchen/bath faucets from drawing board to store in 16 months, for todays fashion conscious customers

They moved from 3rd to tie for 1st in the market

Structural change

Any change in the way in which the organization is designed and managed

Ex. Decentralizing IT staff

Culture/People Change

A change in employees' values, norms, attitudes, beliefs and bahavior

People change - Just a few employees, some middle managers sent to leadersip training

Culture change the organization as a whole

Organizational Development

Application of behavioral science techniques to improve an organizational health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem solving capabilities.

OD can help with...

• Mergers and acquistions
• Organizational decline/revitilization
• Conflict management

Organizational Development activities include:

• team building
• survey feedback
• large group interventions

Unfreezing - Changing - Refreezing

• Unfreezing - People are made aware of problems and the need for change
• Changing- Occurs when indivduals experiment with new behavior and learn skills
• Refreezing - Indivduals acquire a desired skill/attitudes and are rewarded for it