Organizational Change in MGT100

Forces Driving Organizational Change

  • Key Forces:

    • Workforce Diversity

    • The Economy

    • Technology

    • Globalization

    • Competition

  • Examples of Diversity:

    • Sex, race/ethnicity, cultural differences, LGBTQ, age/generation

  • Economic Forces:

    • Recession, government policy, rising healthcare costs

  • Technological Forces:

    • Mobile devices, social media, Internet security, robotics

  • Globalization Factors:

    • Multinational corporations, political instability, fair trade, sustainability, outsourcing, emerging markets

  • Competitive Factors:

    • Global competition, mergers and acquisitions, customer standards, time to market

Types of Organizational Change

  • Proactive vs. Reactive:

    • Planned change is proactive; managers assess the environment for needed actions

  • Change Types:

    • Incremental: Small adjustments to improve current processes

    • Radical: Fundamental transformation of basic assumptions & operations

  • Reactive Change Types:

    • Incremental: Daily problem-solving & quick fixes

    • Radical: Crisis management for major disruptions

  • Proactive Change Types:

    • Incremental: Tweaking and fine-tuning improvements

    • Radical: Revolutionary changes that redefine the organization

Organizational Subsystems in Planned Change

  • Formal Organization:

    • Coordination and control through organization charts and reward systems

  • Social Factors:

    • Individual differences, team interactions, organizational culture

  • Technology:

    • Workflow and job design impacting raw input processing

  • Physical Setting:

    • Arrangement and characteristics of physical space

Reactions to Change

  • Types of Reactions:

    • Resistance

    • Compliance

    • Commitment

Reasons for Change Failure

  • Key Issues:

    • Resistance

    • Poor Communication

    • Lack of Training

    • Lack of Time

    • High Turnover

    • Budget Constraints

Reasons for Resistance to Change

  • Personal Reasons:

    • Habits, security, economic concerns, fear of the unknown

  • Organizational Reasons:

    • Structural inertia, group inertia, threats to expertise and power

Overcoming Resistance to Change

  • Strategies:

    • Education and communication

    • Participation and building support

    • Positive relationships and fair implementation

    • Selecting change-accepting personnel

    • Last Resort Methods: Manipulation, co-optation, coercion

Lewin's Three-Step Model for Change

  • Steps:

    • Unfreezing

    • Changing

    • Refreezing

Tips for Managing Change

  • Management Tips:

    • Develop and adhere to a process

    • Start change initiatives at the top

    • Consider impacts of changes

    • Focus on managers' roles

    • Address and manage resistance

    • Celebrate early achievements

    • Maintain ongoing dialogue

    • Establish clear success metrics