mgmt920 autumn2013 lectures lecture 7b
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10-Copyright 2007 Prentice Hall 1
Chapter 10
Types and Forms of Organizational
Change
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Learning Objectives1. Understand the relationship
among organizational change, redesign, an organizational effectiveness
2. Distinguish among the major forms or types of evolutionary and revolutionary change organizations must manage
3. Recognize the problems inherent in managing change and the obstacles that must be overcome
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What is Organizational Change? Organizational change:
process by which organizations move from their present state (structure, system, culture, etc.) to some desired future state to increase their effectiveness
Goal is to find improved ways of using resources and capabilities in order to increase an organization’s ability to create value
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Organizational Change Areas Targets of change include improving
effectiveness at four different levels Human resources e.g. new skill
development Functional resources e.g. process
redesign Technological capabilities e.g.
computerisation IBM- IT consulting Organizational capabilities e.g. Total
Quality Management
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Organizational Change Areas What is required to be done ? Human resources include:
1. Investment in training and development
2. Socializing employees into the organizational culture
3. Changing organizational norms and values to motivate a multicultural and diverse work force
4. Promotion and reward systems5. Changing the composition of the top
management team
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Organizational Change Areas Functional resources - transferring
resources to the functions where the most value can be created in response to environmental change
Organizational capabilities - alter organizational culture and structure, thereby permitting the organization to harness its human and functional resources to exploit technological opportunities.
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Forces for and Resistances to Change
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Levin's Force-Field Theory of Change
Theory of change which argues that two sets of opposing forces within an organization determine how change will take place
Forces for change and forces making organizations resistant to change
When forces for and against change are equal, the organization is in a state or inertia
To change an organization, managers must increase forces for change and decrease forces resisting change
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Levin's Force-Field Theory of Change
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Levin's Three-Step Change Process
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Evolutionary and Revolutionary Change in Organizations Evolutionary change: change
that is gradual, incremental, and narrowly focused
Revolutionary change: change that is sudden, drastic, and broadly focused
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Developments in Evolutionary Change Sociotechnical systems theory: a
theory that proposes the importance of changing role and task or technical relationships to increase organizational effectiveness Managers must fit or “jointly optimize”
the workings of an organization’s technical and social systems
Managers need to be sensitive to the fact that the way they structure the work process affects the way people and groups behave
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Types of Evolutionary Change
Total quality management (TQM): Quality circles: groups of workers who
meet regularly to discuss the way work is performed in order to find new ways to increase performance
Changing cross-functional relationships is very important to TQM
Flexible workers: employees who have acquired and developed the skills to perform any of the tasks necessary for assembling a range of finished goods
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Types of Evolutionary ChangeFlexible work teams: a group of
workers who assume responsibility for performing all the operations necessary for completing a specified stage in the manufacturing process Team members jointly assign tasks and
transfer workers from one task to another
Manager’s role is to facilitate the team’s activities
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Developments in Revolutionary Change
Reengineering: involves rethinking and redesigning business processes to increase organizational effectiveness
Instead of focusing on an organization’s functions, the managers of a reengineered organization focus on business processes
Deliberately ignores the existing arrangement of tasks, roles, and work activities
Organize around outcomes, not tasks
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Types of Revolutionary Change
E-engineering: refers to companies’ attempts to use information systems to improve their performance
Restructuring: changing task and authority relationships and redesigning organizational structure and culture to improve organizational effectiveness
Downsizing: the process of streamlining the organizational hierarchy and laying off managers and workers to reduce bureaucratic costs
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Types of Revolutionary ChangeInnovation: the process by which
organizations use their skills and resources to: Create new technologies Develop new goods and services Better respond to the needs of their
customers
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Managing Change: Action Research Action research: a strategy for
generating and acquiring knowledge that managers can use to define an organization’s desired future state
Used to plan a change program that allows the organization to reach that state
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Action Research
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Organizational Development (OD)Organizational development
(OD): a series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization
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Organizational Development (cont.)
OD techniques to deal with resistance to change Education and communication: inform
workers about change and how they will be affected. WALMART- VIDEO CONFERENCE
Participation and empowerment: involve workers in change
Facilitation: help employees with change Bargaining and negotiation Manipulation: change the situation to
facilitate change Coercion: force workers to accept change
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Organizational Development (cont.)OD techniques to promote change
Counseling: help people understand how their perception of the situation may not be right
May learn how to manage their interactions with other people more effectively
Sensitivity training: intense counseling in which group members, aided by a facilitator, learn how others perceive them and may learn how to deal more sensitively with others
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Organizational Development (cont.)Techniques to promote change
(cont.) Process consultation: a trained
consultant works closely with a manager on the job to help the manager improve his or her interactions with other group members
Consultant acts as a sounding board Team building: an OD technique in
which a facilitator first observes the interactions of group members and then helps them become aware of ways to improve their work interactions
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Organizational Development (cont.)Techniques to promote change
(cont.) Organizational mirroring: a
facilitator helps two interdependent groups explore their perceptions of each other and their relations in order to improve their work interactions
Each group takes turns describing the other group
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Organizational Development (cont.) Total organizational
interventions Organizational confrontation
meeting: brings together all of the managers of an organization to meet to confront the issue of whether the organization is effectively meeting its goals
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