•Structure-Organizations can be modified from a functional to a product form or vice versa.
Traditional structural characteristics of organizations such as formalization and
centralization can also be changed.
•Processes- The basic processes by which work is accomplished can be changed.
•Culture- One of the most important changes that an organization can make is to change its
culture. Changing an organization's culture is considered to be a fundamental aspect of
•People- The membership of an organization can be changed either through a revised hiring
process or by changing the skills and attitudes of existing members through training and
1. a change in one area very often calls for changes in others
oFailure to recognize this systematic nature of change can lead to severe problems
2. changes in goals, strategies, technology, structure, process, job design and culture
almost always require that organizations give serious attention to people changes
3. in order for people to learn, organizations much learn
oMany change programs fail because of the absence of learning
C. The Learning Organization
•Organizational learning -process through which organizations acquire, develop, and
transfer knowledge throughout the organization. Organizations learn through knowledge
acquisition and knowledge development
•two methods of organizational learning
•knowledge acquisitions: acquisition, distribution and interpretation of knowledge
that already exists but which is external to the organization
•knowledge development: development of new knowledge that occurs in an
organization primarily through dialogue and experience
•organizational learning occurs when organizational member interact and share experiences
and knowledge and thorough the distribution of new knowledge and information
throughout the organization
•learning organization -an organization that has systems and processes for creating,
acquiring, and transferring knowledge in order to modify and change its behaviour to
reflect new knowledge and insights. There are four key dimensions that are critical for a
•organizational change is more likely to occur in a learning organization
Four key dimensions for learning organization
1. Vision /support. Leaders must communicate a clear vision of the organization's 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.
3. Learning systems/dynamics. Employees are challenged to think, solve problems, make
decisions, and act according to a systems approach by considering patterns of
interdependencies and by "learning by doing."
4. Knowledge management /infrastructure. Learning organizations have established systems
and structures to acquire, code, store, and distribute important information and knowledge
so that it is available to those who need it, when they need it.
•Learning organizations have been found to be almost 50 percent more likely to have higher
overall levels of profitability than those organizations not rated as learning organizations,
and they are also better able to retain essential employees