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Chapter 13

Chapter 13

8 Pages
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Department
Human Resources
Course Code
MHR 405
Professor
Louis Pike

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Chapter 13 – Organizational change and development
Types of organizational change
Planned organizational change is the process by which organizations move from their
present state to some desired future
First-order change is developmental change, it is the improvement of a skill, method or
condition that for some reason does not measure up
Second-order change is transformational change, it is the change in which the
organization moves to a radically different, and sometimes unknown, future state
oIt is the most difficult type of change to manage
oFor example, Kimberly-Clark who produces paper but transformed into paper
diaper business
Targets of change
4 common targets of change are
oOrganizations structure
When companies restructure, outsource part of their operations, combine
with another company are all examples of changing the organizations
structure
Downsizing is the intended reductions in the number of employees
People who do downsizing also experience negative consequences such as
huge increases in workload, a search for meaning, social and
organizational isolation, and decreased family functioning
Organizational restructuring means cutting staff out without reorganizing
work, resulting in increased workloads for survivors
oTechnology
Competitive factors require organizations to introduce new equipment,
tools or automation
oTasks or work processes
www.notesolution.com
Organizations use total quality management (TQM), business process re-
engineering, and flexible manufacturing to change entire work processes
oPeople and culture
Actual culture of the company must be targeted directly and values need to
be clear
Challenges to effective change management
Individual reactions to change
oPeople often react to change as a normal response that is based on selfishness
oNegative reaction occurs when individuals feel that their personal freedom is
threatened
oMost commonly types of individual reactions to change are fear of the unknown,
fear of loss, fear of failure, reluctance to break routines, cynicism and selective
perception
Fear of the unknown
For example, when an employee is introduced to a new computer
system, they may resist the change because the change is unknown
to them
Fear of loss
When a change is coming, employees may fear that they will lose
something of value, either material or psychological
For example, some may fear job loss when company introduces
new technology like robots
Fear of failure
Employees may fear that changes will result in increased workloads
or increased task difficulty and they may question their own
capabilities for handling these
May also fear that performance expectations will be increased
following the change and that they may not measure up
www.notesolution.com
Reluctance to break routines
People form routines and develop habits
Organizational change requires that these habits or routines be
broken and that we move outside of our comfort zones and into
ambiguous territory
Another way of viewing reluctance to break routines is active
inertia
Active inertia is when managers get trapped by success and
respond in disruptive ways by accelerating activities that succeeded
in the past
Selective perception
When we receive info that does not fit with the mental model we
have created, we either filter it out or ignore it
Cynicism
Cynicism does not result from self-interest, misunderstanding, or
low tolerance for change
Cynicism is a loss of faith in the leaders of the change based on a
history of change attempts that have not been entirely successful
(aka change fatigue)
Cynical people affect other peoples’ reactions to change as well
Organizational resistance to change
oThere are 3 common causes of organizational resistance to change
The focus of the change may be too limited
Sometimes change initiatives fail because the change targets are too
limited and the related dept., people, or processes are not aligned,
making it difficult for implementation to succeed
Team norms may cause people to resist
www.notesolution.com

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Description
Chapter 13 Organizational change and development Types of organizational change Planned organizational change is the process by which organizations move from their present state to some desired future First-order change is developmental change, it is the improvement of a skill, method or condition that for some reason does not measure up Second-order change is transformational change, it is the change in which the organization moves to a radically different, and sometimes unknown, future state o It is the most difficult type of change to manage o For example, Kimberly-Clark who produces paper but transformed into paper diaper business Targets of change 4 common targets of change are o Organizations structure When companies restructure, outsource part of their operations, combine with another company are all examples of changing the organizations structure Downsizing is the intended reductions in the number of employees People who do downsizing also experience negative consequences such as huge increases in workload, a search for meaning, social and organizational isolation, and decreased family functioning Organizational restructuring means cutting staff out without reorganizing work, resulting in increased workloads for survivors o Technology Competitive factors require organizations to introduce new equipment, tools or automation o Tasks or work processes www.notesolution.com
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