Chapter 16 – Organizational Change, Development, and Innovation
• He who rejects change is the architect of decay. The only human institution which rejects
progress is the cemetery. ~Harold Wilson
– principle of loose coupling
• Change is inevitable - except from a vending machine. ~Robert C. Gallagher
• All change is not growth, as all movement is not forward ~Ellen Glasgow
– All learning is change, but not all change is transformational (i.e. growth)
Why do Organizations Change?
1. External sources of pressure (i.e.“E” & “T” issues; global competition; deregulation; advanced
technologies all bringing about changes in structure and strategy)
2. Internal sources of pressure (i.e. “P” issues; lower productivity; internal conflict; strikes; high
absenteeism and turnover bringing about changes in structure and strategy)
**What Organizations Can Change
Goals and strategies
offer new product line, new service
moving from L to R or R to L
alter task, identity, autonomy, variety, etc.
flatten, decentralize, increase formalization, narrow span of control, etc.
altering how work is to be done
macro-level project to shift beliefs, norms, etc.
recruiting and selection systems, reward and recognition systems, etc.
Three important points about the areas that organizations can change (3 difficulties relating to
1. Change in one area very often calls for changes in other areas (the domino effect, ripple
effect, spider web effect)
E.g., change policy affects how things are done elsewhere
Intended vs. emergent (plans not going the way intended)
2. Change in most areas require serious attention be given to people (culture eats strategy
for breakfast – people might resist against strategy)
E.g., often resist change
3. Change requires employees to learn new skills and change their attitudes (what’s in it for
E.g., learn new computer software
Breakdown to breakthrough
**Psychological Dynamics of Change (How we Change)
1. Sense of loss
– change ALWAYS associated with loss
2. Lack of clarity
– brain races, confusion 3. Self preservation
– what’s in this for me?
4. Personal (in the gut then to head)
– low vs. high emotional intelligence
5. Loss in performance
– failure is expected
– let people fall, support them to rise from it
Definition of Change
• A variation or alteration… passing from one state or form to another
• A disruption of expectations
• The important change is not the physical equipment, technology change, rather it’s what
happens inside a person’s head.
• Change = cognitive dissonance
**Stages of Transition: Individual Change
o Endings Neutral zone Beginnings
Kurt Lewin’s Model
1. Unfreeze (can be voluntary or involuntary)
The recognition that some current state of affairs is unsatisfactory (need for change)
Present structure, task design, technology ineffective, member skills
Employee attitude surveys, customer surveys, and accounting data are often used to
anticipate problems and initiate change before crises are reached (anticipate resistance)
The implementation of a program or plan to move the organization or its members to a
more satisfactory state.
Change efforts can range from minor to major.
80% of time we try to change, but go back to bad habits
The condition that exists when newly developed behaviours, attitudes, or structures
become an enduring part of the organization.
The effectiveness of the change is examined and the desirability of extending change
further can be considered.
Transformation has happened
Systems and processes for creating, acquiring and transferring knowledge to modify and change
its behavior to reflect new knowledge and insights
Vision/support leader must communicate clear vision of strategy and goals
Culture LO has culture that supports learning; knowledge/info sharing, risk-taking
Learning systems/dynamics employees challenged to think, solve problems, make
decisions; “learning by doing”
Knowledge management/infrastructure systems and structure to acquire, code,
store and distribute important info and knowledge that it available to those who n