MGMT 424 Exam 1 Review

Change facilitator

the person who assists initiators, implementers, and recipients with the change-management process. Identifies process and content change issues and helps resolve these, fosters support, alleviates resistance, and provides other participants with guidance and counsel

Change implementer

the person responsible for making certain the change happens, charting the path forward, nurturing support, and alleviating resistance

Change initiator

the person who identifies the need and vision for change and champions the change

Change leader or change agent

the person providing leadership and direction for the change by engaging, at different points, in the roles of change initiator, implementer, facilitator, and even change recipient

Change management

is based in a broad set of underlying disciplines (from the social sciences to information technology) and tends to be strategy driven, with attention directed to whatever factors are assessed as necessary to the successful design and implementation of change

Change recipient

the person who is affected by the change. Often the person who has to change their behavior and/or work habits to ensure the change is effective

Discontinuous/radical changes

changes that are broad in scope and impact and that may involve strategic repositioning. They usually occur in anticipation of or reaction to major environmental changes and are discontinuous in that they involve changes that are not incremental in nature and are disruptive to the status quo

Incremental/continuous changes

organizational changes that are relatively small in scope and incremental in nature. They may stem from the fine-tuning of existing practices or represent an incremental adaptation to environmental changes. Depending on the perspective of the change recipient, ___ change can be perceived as discontinuous/ radical change

Leading and managing change

includes necessary skills that allow individuals to operate effectively in today’s fluctuating, shifting organizations. It is up to managers and employees to shift the organization in a way that accomplishes goals and objectives

Macro changes

large-scale environmental changes that are affecting organizations and what they do

Organizational change

a planned alteration of organizational components to improve the effectiveness of the organization

PESTEL factors

the political, economic, social, technological, and ecological/ environmental, and legal factors that describe the environment or context in which the organization functions

Types of Organizational Change

• tuning

• adapting

• redirecting or reorienting

• overhauling or re-creation

Tuning

small, relatively minor changes made on an ongoing basis in a deliberate attempt to improve the efficiency or effectiveness of the organization

Adapting

viewed as relatively minor changes made in response to external stimuli—a reaction to things observed in the environment such as competitors’ moves or customer shifts

Redirecting or reorienting

major, strategic change resulting from planned programs. These frame-bending shifts are designed to provide new perspectives and directions in a significant way

Overhauling or re-creation

the dramatic shift that occurs in reaction to major external events. Often, there is a crisis situation that forces change

Effectiveness

how well you are able to achieve the intended results, while efficiency relates to minimizing the resources needed to produce the intended results

Organizational Components

• organizational mission

• vision

• values

• culture

• strategy

• goals

• formal (and informal) structures

• processes and systems

• technology

• people in orgs

• its leadership

When organizations enhance their effectiveness…

they increase their ability to generate value for those they serve and consequently increase their competitive advantage

Drivers/reasons for change can be

• external (ex. COVID-19)

• internal

It is essential for managers to be sensitive to what is happening both inside and outside their organizations and learn how to help their organizations proactively and reactively adapt to new realities, influences, and events

Change can be either

definable/concrete/tangible (ex. reordered assembly lines, creating new jobs)

• end results can be documented

• easiest to plan for

• they have can intangible atttributes (ex. norms, attitudes, values) that can influence how the proposed change is responded to and the outcomes achieved

intangible/deeply embedded (ex. shift in company culture)

• these magnify the change challenge

• sustained behavioral change occurs when people in the organization understand, accept, and act. Through their actions, the new vision or strategy becomes real

Target of Changes

Needs to be considered carefully

• use a diagnostic approach; find the root cause

• choosing the wrong solution can worsen the problem

What kind of perspective do the authors of the textbook take?

One that encourages change leaders to take a holistic perspective on change and to be widely inclusive in letting employees know what changes are needed and why they are happening

Age Matters

Demographic changes in the Western world and parts of Asia mean that aging populations will gray the faces of Europe, Canada, China, and Japan.

• fertility rates are falling

• fewer working age people in the future

• Consumer spending in developing countries is expected to grow to $44.8 trillion by 2030

• public pushback on pension reductions

• people increasingly extending their working life past 65

• again population provides new market opportunities

• organizations can expect pressures to manage age prejudice more effectively. Subtle discrimination based on age will not be accepted

Diversity Matters

Major demographic shifts across the world

• latinos are a growing population in the US

• significant shifts in Europe and parts of Asia as people move from disadvantaged areas (economic, social, and political) in search of greater opportunities, security, and social justice

• For countries like France, Germany, and Austria, they help to moderate the effects of an aging population by providing new entrants to the workforce and new customers

• also represent integration challenges in terms of needed services and there has been a backlash from some groups

• diversity, inclusiveness, and equity issues will challenge organizations with unpredictable results

• When employee postings go over the line on matters of race, gender, diversity, and equity, firms need to act and be seen to be acting quickly and appropriately in order to control damage

The Physical Environment and Social Factors Matter

Concerns over global warming, the degradation of the environment, sustainability, and social responsibility have escalated societal pressure for change at the intergovernmental, governmental, multinational and national corporate, and community levels

New Technologies

In addition to responding to environmental and demographic changes in the workplace and marketplace, organizations and their leaders must embrace the trite but true statements about the impact of technological change

Technology has created new opportunities and woven our world together, but it has also created stress points in society. It has disrupted existing markets and employment patterns due to our adoption of new classes of goods and services. It has lowered costs, accelerated innovation, and created new ways of working and collaborating with people located virtually anywhere.

Political Changes

The external political landscape of an organization is another reality that change agents need to pay attention to. Even the largest of multinationals has minimal impact on shaping the worldwide geopolitical landscape and the focus of governing bodies. However, if they are attentive and nimble, their interests will be better served

World politics is not the everyday focus for all managers, but change leaders need to understand its influence on market development and attractiveness, competitiveness, supply chains, and the resulting pressures on boards and executives

The Economy

The organizational lessons of the 2007–2022 economic period center on the importance of the ability to access and leverage resources, manage risk, promote innovativeness, and respond with flexibility, adaptiveness, resilience, and focus.

They point to the importance of the exercise of skilled principled leadership, ethical behavior, attention to building organizational capacity in a focused manner, and the capacity to inspire loyalty and commitment through actions and the shared vision

in many situations, anticipatory mechanisms will not have been accessed in a timely manner or were not available, and change agents will need to rely on their ability to adapt and change as the environment shifts