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MGHD27H3 Study Guide - Learning Organization, Total Quality Management


Department
Management (MGH)
Course Code
MGHD27H3
Professor
txtbooknote

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Chapter 16: Organizational Change, Development, and
Innovation
Why Organizations Must Change
Organizations face external and internal pressures to change
Organizations must adapt to the market, to environmental factors, technology and to
consumer preference to maintain their competitive advantage external factors of
change
Internal factors such as low productivity, conflict, strikes, and high absenteeism and
turnover also provoke change
When a threat is perceived, organizations unfreeze, scan the environment for
solutions, and use threat as a motivator for change
Companies in a dynamic environment must show more change to be effective than
those operating in more stable environments
What Organizations Can Change
Goals and Strategies: change goals to adapt to environment new products, new
markets
Technology: can be minor (intranet) or major (moving from rigid to flexible
assembly line)
Job Design: redesign individual jobs to offer more/less autonomy, identity, or
feedback
Structure: formalizations, centralization, tallness, span of control, rules, policies,
etc
Processes: how work is completed do simultaneously instead of one after the other
Culture: culture is known to be a major factor in providing an organization with
competitive advantage and long-term effectiveness, therefore if change necessary, do
so
People: content of membership changed through hiring process, or change skills of
existing members with training programs
Change in one area often calls for change in other changes in goals, strategies,
technology, process, structure, culture, and job design require serious attention to
people changes
Kurt Lewins Change Process
1.Unfreezing: The recognition that some current state of affairs is unsatisfactory.
Factors such as employee attitude surveys, customer feedback, flawed structure or
task design, and flawed technology can lead to unfreezing, when these issues are
recognized.
2.Change: The implementation of a program or plan to move the organization or its
members to a more satisfactory state. Can include simple skills training program to
major changes like extensive job enrichment, radical restructuring, etc.
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3.Refreezing: The condition that exists when newly developed behaviours, attitudes,
or structures become an enduring part of the organization. Here, effectiveness of
change can be examined.
The Learning Organization
Organizational Learning: The process through which organizations acquire,
develop and transfer knowledge throughout the organization
Organizations learn through knowledge acquisition and through knowledge
development organizational members interact and share experiences and
knowledge and this travels throughout the organization
Learning Organization: Organization that has systems and processes for creating,
acquiring and transferring knowledge to modify and change its behavour to reflect
new knowledge and insights
4 Critical dimensions for a learning organization:
1.Vision/Support: Leaders must communicate clear vision or strategy and goals
2.Culture: organization has culture that supports learning, information sharing,
risk taking, and experimentation
3.Learning Systems/Dynamics: Employees challenged to think, solve problems
and make decisions by learning by doing approach managers mentor and
coach
4.Knowledge Management/infrastructure: established systems to acquire,
code, and distribute important information and knowledge so it is available to
those who need it
Learning organizations 50% more likely to have higher levels of overall profitability
Issues in the Change Process
At the unfreezing level, diagnosis and resistance are issues companies must
overcome. At the change level, resistance still remains an issue. Finally, at the
refreezing level, the issue is evaluation and institutionalization.
Diagnosis
Diagnosis: Systematic collection of information relevant to impending organization
change
Initial diagnosis can lead to unfreezing, further diagnosis can lead to reason for
change
Change Agents: Experts in the application of behavioural science knowledge to
organizational diagnosis and change
Questionnaires and interviews can involve intended targets of change in diagnostic
process
Careful diagnosis of specific needs is necessary before continuing through change
Resistance
Change (and unfreezing) is frequently resisted by those at whom it is targeted
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