BA 5201 Organization and Management Innovation, strategic change, and organizational learning Instructor: Ça ğ rı Topal 1

Organizational change Change in the status quo Springing from within or outside the organization Posing a dilemma or problem of balance between stability and rapid change, predictability and unpredictability, staleness and innovation, familiarity and unfamiliarity, boredom and enervation, certainty and uncertainty, and atrophy and new strength 2

Change process Recognizing and assessing the need Planning the process and specifying the goals Determining the tactics Implementing the change and unfreezing the old ways Evaluating the process and modifying it if necessary Refreezing and monitoring the new ways 3

Initiating change Planned incremental change Evolutionary rather than revolutionary One step at a time Disruptions limited Corrections easier and less costly Useful for continuous product improvements 4

Initiating change Radical change Frame breaking Resulting from major changes in strategy Long periods of stability punctuated by frame-breaking changes Change in structure, processes, and members Disruptive and costly 5

Initiating change Unplanned change Change that just happens or emerges Emerging in the course of business Embedded in constantly changing environments 6

Change types Changing goals and strategy Involved in most types of change Driven by local department or work unit goals Starting point for changing other aspects of the organization and large-scale changes 7

Change types Changing people Eliminating people through downsizing Carried out through specific rules and strategies Affecting employee morale Adding people with new skills Upgrading existing skills through training and development 8

Change types Changing products and services Managing environmental uncertainty through new products and services Entering new market niches Maintaining and improving existing market positions No guarantee for success 9

Change types Changing technology Increasing productivity and flexibility Involving technical advances Involving change in deployment of people or arrangement of tasks Cross-functional teams Process mapping 10

Change types Organizational development Changing and improving interactions between organizational members Reflecting and managing diversity Utilizing the behavioral sciences Improving trust, cooperation, acceptance, and tolerance among employees 11

Change types Changing structure and design Involving changes in division of labor and coordination mechanisms Involving in groupings of jobs, tasks, or output Becoming flatter, more decentralized, and networked Difficult Necessary to change the informal as well as the formal organization 12

Change types Changing culture Involving change in the norms, values, beliefs, and expectations in the organization Necessarily involving changes in people, goals, technology, structure, and design Top-down or bottom-up Very difficult process 13

Organizational learning Perspective that organizations have memory and can learn Constituted of what works, what does not work, and a rich history of the past Contained in the form of documents, policies, procedures, reports, products, databases, and in the minds of employees The learning organization: systematic approach to problem solving, ability to “think outside the box”, personal mastery of skills, information transfer, and shared vision 14

Facilitating change Top management support Structural support Champions Communications Resources 15