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BUS 272 Study Guide - Scientific Method, Appreciative Inquiry, Learning Organization

Business Administration
Course Code
BUS 272
Christopher Zatzick

of 2
Chapter 14: Organizational Change
What causes change?
Mergers, acquisitions, divestitures, global competition, management, organizational structure.
Forces for change
Nature of the workforce: ex more
cultural diversity
Economic shocks: ex rise&fall of stocks
Competition: ex global competitors
Social trends: ex internet chat rooms
World politics: ex war
Change agents: people who act as catalysts and assume the responsibility for managing change activities
Approaches to managing change
Lewin’s three-step model:
Unfreezing: change efforts to overcome the pressures of both individual resistance and group conformity
o Driving forces: forces that direct behavior away from the status quo
o Restraining forces: forces that hinder movement away from the status quo
Moving: efforts to get employees involved in the change process
Refreezing stabilizing a change intervention by balancing driving and restraining forces
Kotter’s eight-step plan for implementing change
1. Establish a sense of urgency.
2. Form a coalition.
3. Create a new vision.
4. Communicate the vision.
5. Empower others to act.
6. Develop short-term “wins.”
7. Consolidate improvements.
8. Reinforce changes
Action research: a change process based on the systematic collection of data and then selection of a change action
based on what the analyzed data indicate
provids a scientific method for managing planned change
diagnosis, analysis, feedback, action, and evaluation
Appreciative inquiry: an approach to change that seeks to identify the unique qualities and special strengths of an
organization, which can then be built on to improve performance
Resistance to change
Feeling uninformed about what was happening
Lack of communication and respect from one’s
Lack of communication and respect from one’s
union representative
Lack of opportunity for meaningful participation
in decision making
Individual resistance:
Organizational resistance
Structural inertia: built-in mechanisms
Limited focus of change: subsystems cannot be changed without affecting the others
Group inertia: group norms may act as a constraint
Threat to expertise: may threaten the expertise of specialized groups
Threat to estabilished power relationships
Threat to established resource allocations
Overcoming resistance to change
Education and communication
Participation and involvement
Building support and commitment
Implementing changes fairly
Manipulation and co-optation
Selecting people who accept change
Explicit and implicit coercion
The politics of change
First-order change: change that is incremental and straightforward
Second-order change: change that is multidimensional, multilevel, discontinuous, and radical
Innovation: a new idea applied to initiating or improving a product, process, or service
Sources of innovation: Structural variables; cultures; human resources
idea champions: individuals who active and enthusiastically promote an idea, build support for it, overcome
resistance to it and ensure that the idea is implemented.
Learning organization: an organization that has developed the continuous capacity to adapt and change
The organization has a shared vision.
People discard old ways of thinking and standard routines.
Members think of all organizational processes as part of a system of interrelationships.
People openly communicate with each other without fear of criticism or punishment.
People sublimate own interests and work together to achieve the organization’s shared vision.
Single-loop learning: a process of correcting errors using past routines and present policies
Double-look learning: a process of correcting errors by modifying the organization’s objectives, policies, and standard