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MGHB02H3 (269)
Chapter 16

Chapter 16 Notes

4 Pages
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Department
Management (MGH)
Course Code
MGHB02H3
Professor
Julie Mc Carthy

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Chapter 16 Organizational Change, Development, and Innovation Notes The Concept of Organizational Change Why Organizations Must Change all organizations face two basic sources of pressure to changeexternal sources and internal sources organizations are open systems that take inputs from the environment, transform some of thee inputs, and send them back into the environment as outputsorganizations work hard to stabilize their inputs and outputs when threat is perceived, organizations unfreeze, scan the environment for solutions, and use a threat as a motivator for change other times, organizations seem paralyzed by threat, behave rigidly, and exhibit extreme inertia change almost always entails some investments of resources, be it money or management time; also, it almost always requires some modification of routines and processesif either of these prerequisites is missing, inertia will occur What Organizations Can Change in theory, organizations can change just about any aspect of their operations since change is a broad concept, it is useful to identify several specific domains in which modifications can occur factors that can be changed include these: goals and strategies; technology; job design; structure; process; culture; and people two important points should be made about the various areas in which organizations can introduce change(1) a change in one area very often calls for changes in others; and (2) changes in goals, strategies, technology, structure, process, job design, and culture almost always require that organizations give serious attention to people changes The Change Process there are 3 basic stages of the change processunfreezing, changing, and refreezing unfreezing the recognition that some current state of affairs is unsatisfactory; this might involve the realization that the present structure, task design, or technology is ineffective, or that member skills or attitudes are inappropriate change the implementation of a program or plan to move the organization or its members to a more satisfactory state refreezing condition that exists when newly developed behaviours, attitudes, or structures become an enduring part of the firm The Learning Organization organizational learning process through which a firm acquires, develops, and transfers knowledge throughout the organization there are 2 primary methods(1) firms learn through knowledge acquisition, which involves the acquisition, distribution, and interpretation of knowledge that already exists but which is external to the firm; and (2) firms also learn through knowledge development, which involves development of new knowledge that occurs in a firm primarily through dialogue and experience organizational learning occurs when organizational members interact and share experiences and knowledge, and through 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 to modify and change its behaviour to reflect new knowledge and insights there are 4 key dimensions for a learning organization: visionsupport (communicating a clear vision of strategy and goals, in which learning is a critical part and key to organizational success), culture (culture that supports learning, knowledge, information sharing, risk taking, and experimentation), learning systemsdynamics (employees are challenged to think, solve problems, make decisions, and act according to systems approach by considering patterns of interdependencies and by learning by doing), and knowledge managementinfrastructure (established systems 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 are better able to change and transform because of greater ability for acquiring and transferring knowledge Issues in the Change Process Diagnosis diagnosis the systematic collection of information relevant to impending organizational change initial diagnosis can provide information that contributes to unfreezing by showing that a problem exists 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, while for more complex, non-routine problems, there is considerable merit in seeking out the diagnostic skills of a change agent change agents experts in the application of behavioural science knowledge to organizational diagnosis and change Resistance resistance overt or covert failure by organizational members to support a change effort several common reasons for resistance include: politics and self-interest; low individual tolerance for change; lack of trust; different assessments of the situation; strong emotions; and a resistant organizational culture underlying these various reasons for resistance are two major themes: (1) change is unnecessary because there is only a small gap between the organizations current identity and its ideal identity; and (2) change is unobtainable (and threatening) because the gap between the current and ideal identities is too large www.notesolution.com
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