Lec 18 Organizational Change.docx

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University of Toronto Scarborough
Management (MGH)
Joanna Heathcote

Lec 18 Organizational Change, Development, and Innovation The Concept of Organizational Change Organizational changes can have a profound impact on organizational members and customers. The way that changes are implemented and managed is crucial to both organizational members and customers. Why must organizations change? Why Organizations Must Change All organizations face two basic sources of pressure to change: External sources and internal sources Changes in the external and internal environment stimulate organizational change. Change entails some investment of resources and almost always requires some modification of routines and processes. The internal and external environments of various organizations will be more or less dynamic. As a result, organizations will differ in the amount of change they display. Change and Organizational Effectiveness What Organizations Can Change  Goals and strategies  Technology  Job design  Structure  Processes  Culture  People Two important points about the areas that organizations can change:  Change in one area very often calls for changes in other areas.  Change in most areas require serious attention be given to people changes. Necessary skills and favourable attitudes should be fostered before other changes are introduced. The Change Process Change involves a sequence of organizational events or a psychological process that occurs over time. This sequence or process involves three basic stages:  Unfreezing  Changing  Refreezing Unfreezing The recognition that some current state of affairs is unsatisfactory. Crises are especially likely to stimulate unfreezing. Employee attitude surveys, customer surveys, and accounting data are often used to anticipate problems and initiate change before crises are reached. Change The implementation of a program or plan to move the organization or its members to a more satisfactory state. Change efforts can range from minor (e.g., skills training program) to major (e.g., job enrichment). Refreezing The condition that exists when newly developed behaviours, attitudes, or structures become an enduring part of the organization. The effectiveness of the change is examined and the desirability of extending change further can be considered. Refreezing is a relative and temporary state of affairs. The model probably applies to firms in hyper-turbulent environments although there has been some debate about this. The Learning Organization Organizational learning refers to the process through which an organization acquires, develops, and transfers knowledge throughout the organization. Two primary methods of organizational learning:  Knowledge acquisition  Knowledge development Organizational learning occurs when organizational members interact and share experiences and knowledge, and through the distribution of new knowledge and information throughout the organization. A learning organization is an organization that has systems and processes for creating, acquiring, and transferring knowledge to modify and change its behaviour to reflect new knowledge an
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