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2. 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

3. Model of Change Sequence of Events
Environmental Forces
Monitor global competition, and other factors
Need for change
Implement change
Initiate change
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
Internal Forces
Consider plans, goals, company problems, and needs

4. 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

5. 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

6. Characteristics of Creative People
Originality
Open-minded
Curiosity, a focused approach to problem solving
Persistence
A relaxed and playful attitude
Receptive to new ideas

7. Idea Champion A person who sees the need for and champions
productive change within the organization.

8. Four Roles in Organizational Change
Champion
Believes in idea
Visualizes benefits
Confronts
organization
realities of cost, benefits
Obtains financial and
political support
Overcomes obstacles
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) 5-25.

9. 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.

10. Forced Field Analysis
The process of determining which forces drive and which resist a proposed change
Driving Forces
Thought of as problems or opportunities that provide motivation for change
Restraining Forces (Barriers)
Lack of resources
Resistance from middle managers
Inadequate employee skills

11. Traditional to Just In Time Inventory Systems

12. Types of Organizational Change
Structure
Technology
Strategy
Products
Culture/People
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),

13. Problems OD Can Address
Mergers/acquisitions
Decline/revitalization
Conflict management

14. Large group intervention
OD Activities
Team building
Survey feedback
Large group intervention

15. OD Approaches to Culture Change
Traditional Organizational Development Model
Large-Group Intervention Model
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
Change Process:
Incremental Change
Rapid transformation
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),