Organizational Change

Why do organizations change?

Organizations change due to external pressures like competition, technology, and regulation, and internal pressures like conflict, low productivity, turnover, and people problems

What is the difference between external and internal sources of pressure for change?

External pressures come from outside the organization such as markets and technology, while internal pressures come from inside such as conflict and performance issues

What kinds of things can organizations change?

Goals and strategy, technology, job design, structure, processes, culture, and people practices

Why is the domino effect important in organizational change?

A change in one part of the organization forces changes in other parts because systems are interconnected

Why do people matter so much in organizational change?

Change fails unless people accept it, learn new skills, and adjust behaviours even if systems or structure change

What is organizational change?

A variation or alteration from one state to another that disrupts expectations and requires adjustment

Why is change often described as a disruption of expectations?

Because it forces people away from what they expected or were comfortable with, creating uncertainty

What is the difference between change and transition?

Change is external and immediate while transition is internal, psychological, and takes time to adjust

Why is transition often harder than change itself?

Because the biggest challenge is how people psychologically adjust rather than the technical change itself

What are the five psychological dynamics of change?

Sense of loss, lack of clarity, self-preservation, emotional reaction, and performance drop

What is meant by a sense of loss during change?

People feel they are losing something familiar, valuable, or secure such as routines or status

What is meant by lack of clarity during change?

People become uncertain about why change is happening and what their future will look like

What is self-preservation during change?

People focus on how change affects them personally and how to protect themselves

What does it mean that change is personal, in the gut then to the head?

People react emotionally first and only later move into rational understanding and adjustment

What is the J-curve in change?

Performance drops initially during change and improves later as people adapt

What is Lewin’s three-step model of change?

Change occurs through unfreeze, change, and refreeze stages

What is unfreezing in Lewin’s model?

Recognizing that the current way is not working and that change is needed

What usually causes unfreezing in real organizations?

Often reactive due to crisis or threat, but can also be proactive through forecasting

What is the change stage in Lewin’s model?

The organization implements new systems, behaviours, or structures

What is refreezing in Lewin’s model?

New behaviours become stable and part of the organization’s normal operations

How do you know refreezing has been successful?

The organization does not revert to old behaviours and the change becomes sustained

What are the main issues in the change process?

Diagnosis, resistance, evaluation, and institutionalization

What is diagnosis in the change process?

Collecting information to identify problems and recommend appropriate changes

What is a change agent?

An expert who diagnoses and changes organizations using behavioural science knowledge

What is resistance to change?

Overt or covert failure to support change that slows or blocks it

What are the main causes of resistance to change?

Self-interest, low tolerance for change, lack of trust, different assessments, emotions, culture, and strong identity

How do politics and self-interest cause resistance?

People resist when change threatens their power, status, or job security

How does low tolerance for change cause resistance?

Some individuals are uncomfortable with uncertainty and resist even beneficial change

How does lack of trust cause resistance?

People resist when they do not trust leadership intentions

How do different assessments cause resistance?

People believe the change is unnecessary or misdiagnosed

How do strong emotions cause resistance?

Fear and anxiety cause people to cling to familiar routines

How can culture and identification cause resistance?

People resist changes that threaten organizational values or identity

What are the four ways people react to change over time?

Champions, doubters, converts, and defectors

What is a champion in organizational change?

A person who supports change consistently over time

What is a doubter in organizational change?

A person who resists change consistently over time

What is a convert in organizational change?

A person who initially resists but later supports change

What is a defector in organizational change?

A person who initially supports but later resists change

Why is it important to explain why change is happening?

Understanding the reason increases acceptance and reduces resistance

What is organizational development?

A planned effort to improve effectiveness and human outcomes using behavioural science knowledge

What are the main organizational development strategies?

Team building, survey feedback, Total Quality Management, and reengineering

What is team building as an OD strategy?

A structured effort to improve relationships, communication, and group effectiveness

What is survey feedback as an OD strategy?

Collecting employee data and using it to guide improvements

Who should feed back survey results to employees?

Local managers because they understand the work context and must act on the results

What is Total Quality Management?

A slow and continuous process of improving quality in products and processes

What is reengineering?

The redesign of organizational processes to improve efficiency and performance

What problem often prompts reengineering?

Creeping bureaucracy and inefficiency requiring major redesign

Does organizational development work?

Yes, it improves productivity, satisfaction, and attitudes especially when multiple techniques are used

Why do multiple OD techniques work better?

They address multiple organizational issues at once rather than relying on one method

What is innovation?

The development and implementation of new ideas in an organization

What is creativity?

The generation of new and useful ideas

What does innovation require?

Creativity, communication, resources, and people willing to support ideas

What is an idea champion?

A person who supports and drives new ideas toward implementation

Why are idea champions important?

They ensure ideas survive resistance and get implemented

Why is idea championing often informal?

It emerges naturally rather than being assigned as a formal role

How do extrinsic rewards relate to innovation?

They do not strongly drive creativity but can support implementation of ideas

What is a gatekeeper in innovation?

A person who brings in and shares important external or technical information

What is the knowing-doing gap?

The gap where managers know what to do but fail to implement it

What are the main causes of the knowing-doing gap?

Lack of skill, fear, and lack of trust

What broader lessons explain the knowing-doing gap?

Organizations reward talk over action, promote internal competition, and misunderstand implementation philosophy

Why can internal competition worsen the knowing-doing gap?

It discourages cooperation needed for implementation

Why does misunderstanding philosophy cause failure?

Managers copy methods without understanding why they work

What is institutionalization in change?

Making change permanent and part of normal operations

What is diffusion in organizational change?

The spread of successful change from one part of the organization to others

What problem exists when change succeeds in one unit but not others?

A diffusion problem

What is the main reason change programs fail?

Failure to change organizational culture

How can perceived threat affect change?

It can motivate change or cause inertia and resistance

What is inertia in organizational change?

Resistance to movement where routines and habits prevent adaptation