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Chapter 16

Chapter 16 Organization Change p.552-582

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

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MGTB29 Chapter 16 Organization Change p.552-582
Concept of Organization Change p.552-558
- the way changes are implemented and managed is crucial to customers and members
Why Organizations Must Change
- environmental changes must accompany organizational changes in order for organization
to remain effective
- increased competition is example of external environment stimulating organizational
change
- global economy, deregulation, advanced technology cause leaner and meaner businesses
- internally, low productivity, conflict, strikes, sabotage, high absenteeism and turnover
signal change
- internal forces for change occur in response to change designed to deal with external
environment like cultural conflict after merger/acquisition
- change needs investment of resources and modification of routines and process
- extent of change depends on stability of environment
- organization in constant flux fails to establish regular patters of behaviour necessary for
effectiveness and employees become cynical of competence of management
What Organizations Can Change
Factors that can be changed:
Goals and strategies expansion, intro of new products, pursuit of new markets
Technology rigid assembly line to flex manufacting major chg, online portal access
minor chg
Job design offer more or less variety, autonomy, identity, significance, feedback
Structure functional to product form, formalization and centralization,
modifications in policies
Processes stages of project done concurrently instead of sequentially
Culture major factor providing competitive adv and long-term effectiveness,
fundamental aspect of change
People content of membership thru revised hiring process, skills and attitudes by
training and development methods
www.notesolution.com
Three important pts about various areas:
1.Change in one area calls for changes in others
2.Changes in goals, strats, tech, job design, structure, process, and culture require ppl
change. Necessary skills and attitudes should be fostered before chgs introduced.
3.Employees learn new skills and attitudes, but so must organizations. It must learn
something new to change and improve itself.
The Learning Organization
Organizational Learning: process thru which an organization acquires, develops, and
transfers knowledge throughout an organization
Two methods of learning:
1.Knowledge acquisition acquisition, distribution, and interpretation of info already
existing but external to organization
2.Knowledge development new knowledge internally thru dialogue and experience
Learning Organization: organization that has systems and processes for creating,
acquiring, and transferring knowledge to modify and chg its behaviour to reflect new
knowledge and insights
Four key dimensions of learning organization:
1.Vision/support leaders must communicate clear vision of organizations strategy
and goals
2.Culture knowledge and info sharing, risk taking, experimentation supported,
continuous learning regular part of organizational life
3.Learning systems/dynamics employees challenged and act according to systems
approach by considering patterns of interdependencies and by learning by doing
4.Knowledge management/infrastructure systems to acquire, code, store, and
distribute info to those who need it when they need it
The Change Process
Three Basic Stages:
1.Unfreezing recognition that current state is unsatisfactory, realizing present
structure, task design, or tech is ineffective, or skills and attitudes inappropriate.
www.notesolution.com
Crises stimulates with drop in sales, big lawsuit, unexpected strikes. Employee and
customer surveys with accounting data anticipate needed chg before crises.
2.Change program implemented to reach satisfactory state. Minor chgs are simple
skills training program and revised hiring procedure. Major chgs involves job
enrichment, restructuring, or empowering the workforce.
3.Refreezing new behaviours, attitudes, and structures become enduring part of
organization. Effectiveness of chg examined and desirability of extending chg
considered. Refreezing is relative and temporary.
Unfreezing: recognition that some current state of affairs is unsatisfactory
Change: implementation of a program or plan to move organization or its members to more
satisfactory state
Refreezing: condition that exists when newly developed behaviours, attitudes, or
structures become enduring part of organization
Issues in Change Process p.558-562
Diagnosis
Diagnosis: systematic collection of info relevant to impending organizational chg
- initial diagnosis reveals problem exists
- further diagnosis clarifies problem and suggest what chgs should be implemented
- routine diagnosis handled thru existing channels
Change Agent: experts in the application of behavioural science knowledge to
organizational diagnosis and chg
- complex problems seek change agents
- independent objective perspective to diagnosis working with ppl undergoing chg with
consulation
- proper diagnosis clarifies problem and suggests what should be chgd and proper strategy
for implementation w/o resistance
Resistance
- defence mechanisms to deny or rationalize signals that chg is needed
- specific plan for chg resisted
www.notesolution.com

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Description
MGTB29 Chapter 16 Organization Change p.552-582 Concept of Organization Change p.552-558 - the way changes are implemented and managed is crucial to customers and members Why Organizations Must Change - environmental changes must accompany organizational changes in order for organization to remain effective - increased competition is example of external environment stimulating organizational change - global economy, deregulation, advanced technology cause leaner and meaner businesses - internally, low productivity, conflict, strikes, sabotage, high absenteeism and turnover signal change - internal forces for change occur in response to change designed to deal with external environment like cultural conflict after mergeracquisition - change needs investment of resources and modification of routines and process - extent of change depends on stability of environment - organization in constant flux fails to establish regular patters of behaviour necessary for effectiveness and employees become cynical of competence of management What Organizations Can Change Factors that can be changed: Goals and strategies expansion, intro of new products, pursuit of new markets Technology rigid assembly line to flex manufacting major chg, online portal access minor chg Job design offer more or less variety, autonomy, identity, significance, feedback Structure functional to product form, formalization and centralization, modifications in policies Processes stages of project done concurrently instead of sequentially Culture major factor providing competitive adv and long-term effectiveness, fundamental aspect of change People content of membership thru revised hiring process, skills and attitudes by training and development methods www.notesolution.comThree important pts about various areas: 1. Change in one area calls for changes in others 2. Changes in goals, strats, tech, job design, structure, process, and culture require ppl change. Necessary skills and attitudes should be fostered before chgs introduced. 3. Employees learn new skills and attitudes, but so must organizations. It must learn something new to change and improve itself. The Learning Organization Organizational Learning: process thru which an organization acquires, develops, and transfers knowledge throughout an organization Two methods of learning: 1. Knowledge acquisition acquisition, distribution, and interpretation of info already existing but external to organization 2. Knowledge development new knowledge internally thru dialogue and experience Learning Organization: organization that has systems and processes for creating, acquiring, and transferring knowledge to modify and chg its behaviour to reflect new knowledge and insights Four key dimensions of learning organization: 1. Visionsupport leaders must communicate clear vision of organizations strategy and goals 2. Culture knowledge and info sharing, risk taking, experimentation supported, continuous learning regular part of organizational life 3. Learning systemsdynamics employees challenged and act according to systems approach by considering patterns of interdependencies and by learning by doing 4. Knowledge managementinfrastructure systems to acquire, code, store, and distribute info to those who need it when they need it The Change Process Three Basic Stages: 1. Unfreezing recognition that current state is unsatisfactory, realizing present structure, task design, or tech is ineffective, or skills and attitudes inappropriate. www.notesolution.com
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