managing change and organizational learning chapter sixteen copyright © 2010 the mcgraw-hill...
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Managing Change and Organizational Learning
Chapter Sixteen
Copyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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After reading the material in this chapter, you should be able to:
• Discuss the external and internal forces that can create the need for organizational change.
• Describe Lewin’s change model and the systems model of change.
• Explain Kotter’s eight steps for leading organizational change.
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After reading the material in this chapter, you should be able to:
• Review the 11 reasons employees resist change.
• Identify alternative strategies for overcoming resistance to change.
• Discuss the process organizations use to build their learning capabilities.
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Forces of Change
• External forces for change - originate outside the organization
• Internal forces for change - originate inside the organization.
External Forces
• Demographic characteristics• Technological advancements• Customer and market changes• Social and political pressures
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Internal Forces
• Low job satisfaction• High turnover• Conflict• Management pressure• Organizational culture
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Question?
ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48%. This was primarily attributed to job dissatisfaction by employees. This represents a(n) ______ for ABC.
A.External force for changeB.Social and political pressureC.Technological advancementsD.Internal force for change
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Lewin’s Change Model
• Unfreezing- Focus is to create the motivation to change- Begin by disconfirming the usefulness or
appropriateness of employees’ present behaviors or attitudes
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Lewin’s Change Model
• Benchmarking - process by which a company compares its
performance with that of high-performing companies
Question?
Fredfirst, a securities trading company, regularly compares its performance with that of high performing organizations in the industry, such as Merrill Lynch. This process is described as
A.Change.B.Refreezing.C.Benchmarking.D.A strategic plan
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Lewin’s Change Model
• Changing- Organizational change can be aimed at
improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity
- Can be targeted at different levels in an organization
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Lewin’s Change Model
• Refreezing- Change is stabilized by helping employees
integrate the changed behavior or attitude into their normal way of doing things
- Giving employees the chance to exhibit new behaviors, which are then reinforced
A Systems Model of Change
• Systems Approach- Based on the premise that any change, no
matter how large or small, has a cascading effect throughout an organization
- Takes a “big picture” perspective of organizational change
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A Systems Model of Change
• Mission statement - summarizes why an organization exists
• Strategic plan - long-term plan outlining actions needed to
achieve desired results
• Target elements of change - components of an organization that may be
changed
Target Elements of Change
• Organizational arrangements• Social factors• Methods• People
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A Systems Model of Change
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Figure 16-1
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Applying the Systems Model of Change
• Aid during the strategic planning process• Using the model as a diagnostic framework to determine the causes of an organizational problem and to propose solutions
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Steps to Leading Organizational Change
Table 16-1
Question?
Dale needs to change the manufacturing processes of his firm. This will cause many changes to his labor force. He shares a compelling reason to his employees. Which step is this in leading change?
A.Generate short term winsB.Develop a vision and strategyC.Establish a sense of urgencyD.Create a guiding coalition
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Creating Change Through Organization Development
• Organization Development - a set of techniques or tools that are used to
implement organizational change- Involves profound change- Value loaded- Diagnostic/prescription cycle- Process oriented
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Some OD Interventions for Implementing Change
Table 16-2
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OD Research and Practical Implications
1. Planned organizational change works2. Change programs are more successful when
they are geared toward meeting both short-term and long-term results
3. Organizational change is more likely to succeed when top management is truly committed to the change program
4. Effectiveness of OD interventions is affected by cross-cultural considerations
Why People Resist Change in the Workplace
• Resistance to change - emotional or behavioral response to real or
imagined work changes
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Why People Resist Change in the Workplace
1. An individual’s predisposition toward change
2. Surprise and fear of the unknown3. Climate of mistrust4. Fear of failure5. Loss of status and/or job security6. Peer pressure
Question?
Jamie is not directly affected by the change introduced in her company, but she is actively resisting it to protect the interests of her friends. This describes which reason for resistance to change?
A.Surprise and fear of the unknownB.Personality conflictsC.Peer pressureD.Lack of tact
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Why People Resist Change in the Workplace
7. Disruption of cultural traditions and/or group relationships
8. Personality conflicts9. Lack of tact and/or poor timing10.Nonreinforcing reward systems11. Past success
Overcoming Resistance to Change
• Commitment to change - a mind-set of doing whatever it takes to
effectively implement change
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Overcoming Resistance to Change
1. Provide as much information as possible to employees about the change
2. Inform employees about the rationale for the change
3. Conduct meetings to address employee’s concerns
4. Provide employees the opportunity to discuss how the proposed change might affect them
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Six Strategies for OvercomingResistance to Change
Table 16-3
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Creating a Learning Organization
• Learning organization - proactively creates, acquires, and transfers
knowledge throughout the organization
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Building an Organization’s Learning Capability
Figure 16-2
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Building an Organization’s Learning Capability
• Learning capabilities - set of core competencies and internal
processes that enable an organization to adapt to its environment
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Building an Organization’s Learning Capability
• Facilitating factors - represent the internal structure and processes
that affect how easy or hard it is for learning to occur and the amount of effective learning that takes place
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Factors that Facilitate Organizational Learning
Insert new Table 16-4
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Learning Modes
• Learning modes - various ways in which organizations attempt
to create and maximize their learning
Six Dominant Modes of Learning
1. Analytical learning2. Synthetic learning3. Experimental learning4. Interactive learning5. Structural learning6. Institutional learning
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Question?
Grant learns through systematic gathering of information. He is a(n) __________ learner.
A.AnalyticB.SyntheticC.ExperimentalD.Interactive
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Key Functions in Building a Learning Organization
1. Building a commitment to learning2. Working to generate ideas with impact3. Working to generalize ideas with impact
Supplemental Slides
• Slides 40-44 contain extra non-text examples to integrate and enhance instructor lectures
- Slide 40: Change Approaches- Slides 41: Rational Approach to Change- Slide 42: Emotional Approach to Change- Slide 43: Change Management- Slide 44: Video discussion slide
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Change Approaches
• Economic focus: Firms value financial return to stockholders using downsizing, layoffs, restructuring.
- Al “Chainsaw” Dunlap - Scott Paper, Sunbeam
• Focus on organizational capabilities: Firms value corporate culture, human capabilities, information feedback, measurements.
- Denny’s approach to achieving court-ordered change
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Change Management
• Read an article on “An Improvisational Model of Change Management”
Video Case: Louisville Slugger –Hillerich & Bradsby
• What role do information systems play at H&B? What were the internal and external trade-offs between reconfiguring the old information system and designing a new one?
• Why was the transition to the new system difficult? How could Kotter’s eight steps be used to facilitate such a transition?
• Why did some people resist change and experience stress? What strategies could H&B have used to overcome resistance to change?
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