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MGHB02H3 (268)
Anna Nagy (23)
Chapter 16

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University of Toronto Scarborough
Management (MGH)
Anna Nagy

MGTB27 Chapter 16: Organizational Change, Development, and Innovation The Concept of Organizational Change  Two pressures – external and internal sources  Increased competitiveness of business  Low productivity, conflict, strikes, sabotage, high absenteeism and turnover  Requires modification of routines and processes What Organizations Can Change  Goals and strategies  Process  Technology  Culture  Job design  People  Structure The Change Process  Unfreezing o Realization that present structure, task design, technology is ineffective, member skills or attitudes are inappropriate  Change o Minor changes – training program and revised hiring procedure o Major changes – extensive job enrichment, radical restructuring, or empowering the workforce  Refreezing o Examine effectiveness of change, the desire ability of extending change o Norm  constant, unpredictable, non-linear change o Applies to hyper turbulent firms (software, technology) o Seamless changes, NOT step-like process The Learning Organization  Organization acquires, develops, and transfers knowledge throughout the organization  Knowledge acquisition  Knowledge development  Key Dimensions: o Vision/ support o Culture o Learning systems/ dynamics o Knowledge management/ infrastructure  Positive relationship between learning organization practices and firm’s financial performance Issues in the Change Process  Diagnosis o Info relevant to impending organizational change o Change agents: experts in application of behavioural science knowledge to organizational diagnosis and change o Strategy  implement change without resistance MGTB27  Resistance o Subtle and pervasive o Cause of resistance: overt or covert failure by organizational members to support a change effort  Politics and self-interest  Low individual tolerance for change  Lack of trust  Different assessment of the situation  Strong emotions  A resistance organizational culture o Give a special, desirable role o Good communication o Involving people who are targets of change in the process o Transformational leaders  Evaluation and Institutionalization o Reactions o Learning o Behaviours o Outcomes o Reactions measure resistance, learning reflects, change, and behaviours reflects successful refreezing o Environmental pressure cause management to regress to more familiar behaviours and abandon change efforts Organizational Development: Planned Organizational Change  A planned, ongoing effort to change organizations to be more effective and more human  Behavioural science knowledge  Modify cultural norms and roles  Focus on interpersonal and group  Shifted from simple humanistic advocacy to generating data or alternatives Strategies:  Team building o Increase the effectiveness of work teams by improving interpersonal processes, goal clarification, and role clarification o Clarify expected role relationships and additional training to build trust among team members o Integrated approach  Survey Feedback o Data from organizational members and the provision of feedback about the results o Systemic nature  permits comparison of survey results across subunits o Effective during face to face meetings  Total Quality Management o Achieve continuous improvement in the quality of an organization’s products or services o Improvements occur within each stage and between stages MGTB27
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