Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Organizational Change Four major types of change:  Technology: ·General rule is that technology change is bottom up.  New product: ·Companies that successfully develop new products: ·Horizontal linkage model emphasizes shared development of innovations among several departments. ·Time-based competition is based on the ability to deliver products and services faster than competitors.  Structure: ·Successful structural change is accomplished through a top-down approach.  Culture/people: ·Training is the most frequently used tool for changing the organization’s mind-set. Continental Airlines is more than just an airlines

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Model of Change Sequence of Events Environmental Forces Internal Forces Need for change Initiate change Implement change Monitor global competition, and other factors Consider plans, goals, company problems, and needs Evaluate problems and opportunities, define needed changes in technology products, structure, and culture Facilitate search, creativity, idea champions, venture teams, skunk works and idea incubators Use force field analysis, tactics for overcoming resistance

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Learning Organizations and Change  Incremental, deals with an organizational effort to gradually improve basic operational and work processes in different parts of the company  Transformational, change involving redesigning and renewing the entire organization

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Need for Change Based on external or internal forces. Performance gap-a disparity between existing and desired performance levels. Performance gap may occur because: current procedures are not up to standard a new idea or technology could improve current performance

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Characteristics of Creative People  Originality  Open-minded  Curiosity, a focused approach to problem solving  Persistence  A relaxed and playful attitude  Receptive to new ideas

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Idea Champion A person who sees the need for and champions productive change within the organization.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Four Roles in Organizational Change Inventor ·Develops and understands technical aspects of ideas ·Does not know how to win support for the idea or make a business of it Sponsor ·High-level manager who removes organizational barriers ·Approves and protects idea within organization Critic ·Provides reality test ·Looks for short- comings ·Defines hard-nosed criteria that idea must pass Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating Organization,” Organizational Dynamics (winter 1982) Champion ·Believes in idea ·Visualizes benefits ·Confronts organization realities of cost, benefits ·Obtains financial and political support ·Overcomes obstacles

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Resistance to Change  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected may innovation may assess the situation differently.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Forced Field Analysis The process of determining which forces drive and which resist a proposed change Restraining Forces (Barriers) Lack of resources Resistance from middle managers Inadequate employee skills Driving Forces Thought of as problems or opportunities that provide motivation for change

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Traditional to Just In Time Inventory Systems

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Types of Organizational Change Culture/People Strategy Structure Technology Products SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley, 1964),

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Problems OD Can Address Decline/revitalization Mergers/acquisitions Conflict management

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. OD Activities Survey feedback Team building Large group intervention

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. OD Approaches to Culture Change Traditional Organizational Development Model Large-Group Intervention Model Change Process: Incremental ChangeRapid transformation Focus for action: Information Source: Distribution: Time frame: Learning: Specific problem or group Organization Limited Gradual Individual, small group Entire system Organization and environment Widely shared Fast Whole organization SOURCE: Adapted from Barbara Benedict Bunker and Billie T. Alban, “Conclusion: What Makes Large Group Interventions Effective,” The Journal of Applied Behavioral Science 28, no 4 (December 1992),