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Chapter 16

Chapter 16 Organizational Behaviour Notes

5 Pages
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Department
Business
Course Code
BUS 2090
Professor
Hassan Wafai

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Chapter 16 Individuals, Groups & Organizations
Organizational Change, Development & Innovation
The Concept of Organizational Change
Why Orgs Must Change
All orgs face 2 basic sources of pressure to change external & internal
Trends in the environment businesses must adapt
Increased competitiveness of the business brought on by a more global economy, deregulation and
advanced technology
Low productivity, conflict, strikes, sabotage and high absenteeism & turnover are some factors that signal
that change is needed
Employee opinion can force change
Dynamic environments must generally show more change than static to be effective
What Orgs Can Change
Goals & Strategies
Expansion, new product intros, and pursuit of new markets for example
Technology
Can be major or minor such as moving from a rigid assembly line to flexible manufacturing
Job Design
Can redesign individual groups of jobs to offer more or less variety, autonomy, identity, significance, and
feedback
Structure
Can be modified from a functional to a product from or vice versa
Formalization & centralization can be modified, as can tallness, spans of control and networking with other
firms
Structural changes also include modifications in rules, policies & procedures
Processes
The basic process by which work is accomplished can be changed
Culture
An org. culture has strong influence on the attitudes and behaviours of org. members
Cultural change is so critical that the main reason reported for the failure of org. change programs is the
failure to change the org. culture
People
The membership of an org can be changed by (1) changing the actual content of the membership through a
revised hiring process (2) change in terms of the skills and attitudes by various training & development
methods
The Change Process
Change involves a sequence of organizational events or a psychological process that occurs over time
Kurt Lewin suggested process involves 3 basic stages
Step 1: Unfreezing
Unfreezing: The recognition that some current state of affairs is unsatisfactory
Might involve the realization that the present structure, task design or technology is ineffective or that
member skills or attitudes are inappropriate
Crisis is especially likely to stimulate unfreezing (e.g. dramatic drop in sales, big lawsuit etc.)
Step 2: Change
Occurs when some program or plan is implemented to move the org. or its members into a more
satisfactory state
Can be major or minor efforts
Step 3: Refreezing
Refreezing: The condition that exists when newly developed behaviours, attitudes or structures become an
enduring part of the org.
Effectiveness of the change can be examined
The Learning Organization
Organizational Learning: The process through which an org acquires develops & transfers knowledge
throughout the org.
2 Primary methods of org. learning (1) learning through knowledge acquisition & (2) learning through
knowledge development
Learning Organization: An org. that has systems and processes fork creating, acquiring & transferring
knowledge to modify and change its behaviour and insights
Some organizations are better at learning than others
4 Key dimensions that are critical for a learning organization…
A. Vision/Support: Leaders must communicate a clear vision of the org’s strategy & goals in which learning is
a critical part & key to organizational success
B. Culture: Has a culture that supports learning
C. Learning systems/Dynamics: Employees challenged to think, solve problems & make decisions and act
according to a systems approach by considering patterns of interdependencies ad “earning by doing
D. Knowledge Management/Infrastructure: Have systems and structures to acquire, code, store & distribute
important info and knowledge that's available to those who need it, when they need it
Issues in the Change Process
Diagnosis
Diagnosis: The systematic collection of info relevant to impending org change
Initial diagnosis can show that a problem exists = unfreezing
Once unfreezing occurs, further diagnosis can clarify the problem and suggest just what changes should be
implemented
Relatively routine diagnosis might be handled through existing channels
Change Alerts: Experts in the application of behavioural science knowledge to organizational diagnosis and
change
For more complex, non-routine problems
Some large orgs have in-house change agent and some seek outside consultants
Resistance
People are creatures of habit and may resist unfreezing & change
At unfreezing, defense mechanism might be activated
Causes of Resistance
Politics & Self-Interest: People might feel that they’ll personally lose status, power or even their jobs when
change occurs
Low Individual Tolerance for change
Lack of trust
Different Assessments of the Situation: The targets of change might sincerely feel that the situation doesn't
warrant the proposed change an that the advocates of change have misread the situation
Strong Emotions: Sometimes change makes people feel helpless and resistant
Resistant org. culture
Two major themes underlie these reasons for resistance (1) change is unnecessary b/c there is only a small gap
between the org’s current identity & the ideal identity and (2) change is unobtainable b/c the gap between the
current ideal identities is too large
Dealing W/ Resistance
Low tolerance for change is mainly an individual matter and it can often be overcome w/ supportive,
patient supervision
If politics and self-interest are at the root of resistance, it might be possible to co-opt the reluctant by giving
them a special, desirable role in the change process or by negotiating special incentives for change
If misunderstanding, lack of trust, or different assessments are provoking resistance, good communication
can help

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Description
Chapter 16 Individuals, Groups & Organizations Organizational Change, Development & Innovation The Concept of Organizational Change Why Orgs Must Change  All orgs face 2 basic sources of pressure to change – external & internal  Trends in the environment – businesses must adapt  Increased competitiveness of the business brought on by a more global economy, deregulation and advanced technology  Low productivity, conflict, strikes, sabotage and high absenteeism & turnover are some factors that signal that change is needed  Employee opinion can force change  Dynamic environments must generally show more change than static to be effective What Orgs Can Change Goals & Strategies  Expansion, new product intros, and pursuit of new markets for example Technology  Can be major or minor such as moving from a rigid assembly line to flexible manufacturing Job Design  Can redesign individual groups of jobs to offer more or less variety, autonomy, identity, significance, and feedback Structure  Can be modified from a functional to a product from or vice versa  Formalization & centralization can be modified, as can tallness, spans of control and networking with other firms  Structural changes also include modifications in rules, policies & procedures Processes  The basic process by which work is accomplished can be changed Culture  An org. culture has strong influence on the attitudes and behaviours of org. members  Cultural change is so critical that the main reason reported for the failure of org. change programs is the failure to change the org. culture People  The membership of an org can be changed by (1) changing the actual content of the membership through a revised hiring process (2) change in terms of the skills and attitudes by various training & development methods The Change Process Change involves a sequence of organizational events or a psychological process that occurs over time  Kurt Lewin suggested process involves 3 basic stages Step 1: Unfreezing Unfreezing: The recognition that some current state of affairs is unsatisfactory  Might involve the realization that the present structure, task design or technology is ineffective or that member skills or attitudes are inappropriate  Crisis is especially likely to stimulate unfreezing (e.g. dramatic drop in sales, big lawsuit etc.) Step 2: Change  Occurs when some program or plan is implemented to move the org. or its members into a more satisfactory state  Can be major or minor efforts Step 3: Refreezing Refreezing: The condition that exists when newly developed behaviours, attitudes or structures become an enduring part of the org.  Effectiveness of the change can be examined The Learning Organization Organizational Learning: The process through which an org acquires develops & transfers knowledge throughout the org.  2 Primary methods of org. learning (1) learning through knowledge acquisition & (2) learning through knowledge development Learning Organization: An org. that has systems and processes fork creating, acquiring & transferring knowledge to modify and change its behaviour and insights  Some organizations are better at learning than others 4 Key dimensions that are critical for a learning organization… A. Vision/Support: Leaders must communicate a clear vision of the org’s strategy & goals in which learning is a critical part & key to organizational success B. Culture: Has a culture that supports learning C. Learning systems/Dynamics: Employees challenged to think, solve problems & make decisions and act according to a systems approach by considering patterns of interdependencies ad “earning by doing D. Knowledge Management/Infrastructure: Have systems and structures to acquire, code, store & distribute important info and knowledge that's available to those who need it, when they need it Issues in the Change Process Diagnosis Diagnosis: The systematic collection of info relevant to impending org change  Initial diagnosis can show that a problem exists = unfreezing  Once unfreezing occurs, further diagnosis can clarify the problem and suggest just what changes should be implemented  Relatively routine diagnosis might be handled through existing channels Change Alerts: Experts in the application of behavioural science knowledge to organizational diagnosis and change  For more complex, non-routine problems  Some large orgs have in-house change agent and some seek outside consultants Resistance  People are creatures of habit and may resist unfreezing & change  At unfreezing, defense mechanism might be activated Causes of Resistance  Politics & Self-Interest: People might feel that they’ll personally lose status, power or even their jobs when change occurs  Low Individual Tolerance for change  Lack of trust  Different Assessments of the Situation: The targets of change might sincerely feel that the situation doesn't warrant the proposed change an that the advocates of change have misread the situation  Strong Emotions: Sometimes change makes people feel helpless and resistant  Resistant org. culture Two major themes underlie these reasons for resistance (1) change is unnecessary b/c there is only a small gap between the org’s current identity & the ideal identity and (2) change is unobtainable b/c the gap between the current ideal identities is too large Dealing W/ Resistance  Low tolerance for change is mainly an individual matter and it can often be overcome w/ supportive, patient supervision  If politics and self-interest are at the root of resistance, it might be possible to co-opt the reluctant by giving them a special, desirable role in the change process or by negotiating special incentives for change  If misunderstanding, lack of trust, or different assessments are provoking resistance, good communication can help  Involving people who are the targets of change in the change process often reduces their resistance  Transformational leaders are especially good at overcoming resistance to change Evaluation and Institutionalization  Evaluate changes to determine whether they accomplished what they were supposed to and whether the accomplishment is adequate  Objective goals (ROI, Market share etc.) might be easiest to evaluate  Organizations a lot of time do weak evaluation of “soft” change programs that involve skills, attitudes & values but can do thus through evaluating variables such as reactions to change in program, learning, behaviour and outcomes  To some extent, reactions measure resistance, learning reflects change and behaviour reflects successful refreezing  Outcomes determine whether refreezing is useful for the org.  If the outcome of the change is favorable, the org. will wish to institutionalize that change Organizational Development: Planned Organizational Change Organizational Development: A planned, ongoing effort to change organizations to be more effective & more human  It uses the knowledge & behavioural science to foster a culture of organizational self-examination & readiness for change  Interpersonal & group processes are stressed  OD efforts tend to be ongoing b/c efforts usually extend over a period time and if it becomes institutionalized, continual re-examination and readiness for further change become permanent parts of the culture  OD seeks to modify cultural norms and rules so that the org remains self-conscious and prepared for adaptation  Traditionally, the values & assumptions of OD change agents were decidedly humanistic and democratic and thus self-actualization trust, cooperation and the open expression of feelings among all org. members have been viewed as desirable Some Specific Organizational Development Strategies Organizations that seek to “develop itself” has recourse to a wide va
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