MGHD27H3 Lecture : Textbook notes-Chapter 16-Organizational Change, Development and Innovation
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CHAPTER 16: ORGANIZATIONAL CHANGE, DEVELOPMENT, AND INNOVATION
THE CONCEPT OF ORGANIZATIONAL CHANGE
Why organizations must change:
- all organizations face basic sources of pressure to change 0 external sources and internal
sources
internal environment
- low productivity, conflict, strikes, sabotage, high absenteeism and turnover
- sometimes, when a threat is perceived, organization unfreeze, scan the environment for
solutions, and use the threat as a motivator for change
- change always entails some investment of resources , money or time
- organizations in a dynamic environment must generally show more change to be effective than
those operating in a more stable environment
What organizations can change
1) goals and strategies
ex. expansion, and the pursuit of market
2) technology
3) structure
- functional etc
- formalization and centralization can be manipulated, tallness, spans of control, networking
- structural changes include modification in rules, policies, procedures
4) process
- concurrently rather than sequentially
5) culture
- most mp changes
- considered a fundamental aspect of organizational change
6) people
i) actual content of membership (hiring)
ii) exiting membership can be changed in terms of skills and attitudes by various training and
development methods
1) a change in one area often calls for changes in others
- failure to recognize this systemic nature of change can lead to severe problems
2)changes in goals, strategies, tech, structure, process, job design, and culture, almost always
require that organization give serious attentions ppl changes
- as much as possible, necessary skills, and favourable attitudes, should be fostered before these
changes are introduced
3) change require employees to learn new skills and change their attitudes
- but for ppl to learn, organizations must also learn
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The Learning Organization
organizational learning: the process through which an organization acquires develops, and
transfers knowledge throughout the organization
2 primary methods of organizational learning
1) knowledge acquisition : acquisition distribution, and interpretation of knowledge that already
exists but which is external to the organization
2) knowledge development: development of new knowledge that occurs in an organization
primarily through dialogue and experience
- organizational learning occurs when organizational members interact and share experiences
and knowledge and through the distribution of new knowledge and info throughout the
organization
learning organization: an organization that has systems and processes for creating, acquiring,
and transferring knowledge to modify and change its behaviour to reflect new knowledge and
insights
4 key dimensions
1) vision/support
- leaders must communicate a clear vision of the organization strategy and goals in which
learning is a critical part and key to organizational success
2) culture
- a learning organization has a culture that supports learning
- knowledge and info sharing, risk taking, and experimentation are supported and cost learning
is considered to be a regular part of organization life and ht responsibility of everybody in the
organization
3) learning systems/dynamics
- employees are challenged to think, solve problems, make decisions, and ac according to a
system approach by considering patterns of interdependence and by learning by doing
- managers must be active in coaching, mentoring and facilitating learning
4) knowledge management/infrastructure
- learning organization have established systems and structures to acquire, code, store, and
distribute imp info and knowledge so that its available to those who need it , when the need it
- this requires the integration of ppl, processes, and tech
- learning organizations are 50% more profitable
The change process
3 stages
1) unfreezing: the recognition that some current state of affairs is unsatisfactory
- might involve the realization that the present structure, task design, or tech is ineffective, or
that member skills or attitudes are inappropriate
- crisis are likely to stimulate unfreezing
- employee attitude surveys, customer surveys, and accounting data are often used to anticipate
problems and to initiate change before crises are reached
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2) change: the implementation of a program or plan to move the organization of its members to
a more satisfactory state
3) refreezing: the condition that exists when newly developed behaviours, attitudes, or
structures becoming an enduring part of the organization
[chart pg 558]
ISSUES IN THE CHANGING PROCESS
1) Diagnosis: the systematic collection of information relevant to impending organizational
change
- initial diagnose can provide info that contributes to unfreezing bu showing that a problem
exists
- future diagnose can clarify the problem and suggest just what changes should be implemented
change agents: experts in the application of behavioural science knowledge to organizational
diagnosis and change
- some large firms have in house change agents or others use outside consultants
- its possible to obtain diagnostic info through a combo of observations, interviews,
questionnaires, and the scrutiny of records
- attention to the views of customers or clients is critical
- proper diagnosis clarifies the problem and suggests what should be hanged and the proper
strategy for implementing change without resistance
- managers sometimes confuse symptoms with underlying problems, and lead to trouble
2) resistance
- at the unfreezing stage, defence mechanisms might be activated to deny or rationalize the
signals that change is needed
causes of resistance
resistance : overt or convert failure by organizational members to support a change effort
i) politics and self interest
- ppl might feel that they personally will lose status, power, or even their jobs with the advent of
the change
ii) low individual tolerance for change
- predisposition in personality might make some ppl uncomfortable with changes in established
routines
iii) misunderstanding
- the reason for the change or the exact course that the change will take might be
misunderstood
iv) lack of trust
- ppl might clearly understand the arguments being made for change, butnot trust the motives
of those proposing the change
v) different assessments o the situation
- the targets of change might sincerely feel that the situation does not warrant the proposed
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Document Summary
All organizations face basic sources of pressure to change 0 external sources and internal sources internal environment. Low productivity, conflict, strikes, sabotage, high absenteeism and turnover. Sometimes, when a threat is perceived, organization unfreeze, scan the environment for solutions, and use the threat as a motivator for change. Change always entails some investment of resources , money or time. Organizations in a dynamic environment must generally show more change to be effective than those operating in a more stable environment. What organizations can change: goals and strategies ex. expansion, and the pursuit of market, technology, structure. Formalization and centralization can be manipulated, tallness, spans of control, networking. Structural changes include modification in rules, policies, procedures: process. Failure to recognize this systemic nature of change can lead to severe problems. 2)changes in goals, strategies, tech, structure, process, job design, and culture, almost always require that organization give serious attentions ppl changes.
