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org change
movement of an org away from its present state and toward some desired future state to increase its efficiency and effectiveness
must alter policies, structures, behaviours, and beliefs in order to move forward
implementing change is often met with resistance
change agents
people who take responsibility for managing change initiatives
induced change
planned new institutional arrangements and policies made in response to changes in the task specific or general environment to gain a comp advantage
ex: mergers and acquisitions
imposed change
new institutional arrangements made in response to changes in legislation, law or shareholder activism
ex: response to legal challenges
aspects of org change
cultural changes
strategic changes
tech changes
structural changes
structural changes
any change in design and management of an org
tech changes
operational processes and methods are redesigned to be more efficient
strategic changes
new ideas are developed, and innovation occurs
change in products and services
cultural changes
shifts in shared set of beliefs, expectations, values, norms and work routines
steps in managing org change
Assess the need for change
recognize there is a problem
identify the source of problem
Decide on the change to make
decide what org’s ideal future state would be
identify obstacles to change
Implement the change
decide whether change will occur from top down or bottom up
introduce and manage change
Evaluate the change
compare prechange performance with postchange
use benchmarking
assessing the need for change
assessing the need for change calls for 2 activities
recognizing problem
identifying its source
performance gap: disparity between desired and actual performance signals there is a problem
new goals: may require changes
enviornmental, social, and governance (ESG) goals
diversity, equity, and inclusion (DEI) goals
introducing the change
top down change
implemented quickly
top managers identify the need for change, decide what to do, and then introduce changes throughout org
emphasis on making changes quickly and dealing with problems as they arise
bottom up change
more gradual
involves consultation with managers and employees at all levels of an org
reduces uncertainty and resistance to change
evaluating the change
using measures
market share, profits, ability to meet goals, compare performance before and after
benchmarking: comparing performance on specific dimensions with the performance of other high performing orgs to determine success of change effort
organizational control and change
managers must balance between need to improve operations and need to respond to new events
Lewin’s Three Stage Model of Chang
A framework for understanding change
Stage 1: Unfreeze the status quo - create motivation for change
Stage 2: Change / move to a new state - implement new practices
Stage 3: Refreeze - solidify new practices as the norm
resistance to change
people resist change for two reasons
fear
doubt
how can managers break down resistance
clearly communicate future state and seek input
increase the driving forces
remove some of the restraining forces
when resistant extremely high, use both driving and restraining forces for unfreezing
use formal power to withhold rewards (last resort)
Kotter’s Eight step Model
create a sense of urgency
build a guiding coalition
form a strategic vision
enlist a volunteer army
enable action by removing barriers
generate short term wins
sustain acceleration
institute change
4 Ds of appreciative inquiry
discovery
determining the “best of what is”
dreaming
visualizing “what might be”
design
developing “what should be”
destiny
implementing “what will be”
discovery
identify what is good about their jobs, the strengths of the org and the positive aspects of their work group
deraming
envision possible futures for the org over time
design
develop common vision of what qualities the org will have and how it will be structured
destiny
discuss how to implement the dream and design
write and implementation plans
complexity theory
orgs respond best to fundamental change if they are on the “edge of chaos”
to achieve this state:
increase channels of comms
not dictate agendas
rotate people regularly
avoid overreliance on an incumbent management team
tolerate parallel developments
avoid excessive “fit”
try to reduce anxiety
innovative vs conservative cultures
innovative (adaptive) culture:
encourages positive attitudes and behaviours
fosters creativity and innovation
values and norms help org to grow and change
Conservative (inert) culture:
leads to values and norms that fail to motivate or inspire employees
leads to stagnation and often failure over time
inspires higher resistance to change
innovation
implementation of creative ideas in an org
entreprenuers
notice opportunities and take responsibility for mobilizing resources to produce new goods and services
social innovation
finding new ways to solve social problems
intrapreneurs
employees who notice opportunities for improvements and mange the development process
process of innovation
product champion + skunkworks = innovation
product champion
manager who takes “ownership” of a project and provides the leadership to take product from idea stage to final customer
skunkworks
group of intrapreneurs deliberately separated from normal operations to encourage development of new products
managing change in a unionized environment
4 essential elements to managing change in a unionized environment
an effective system for resolving day to day issues
a jointly administered business education process
a jointly developed strategic vision for the org
a nontraditional, problem solving method of negotiating collective agreements
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Flashcard (46)