1. Unit Lesson
MBA 6001: Unit V
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2. Models for organizational change
Unit V:
Models for organizational change
Please be sure to turn up your volume or plug in your headphones. The next several slides contain important audio.
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3. Models for Organizational Change
Change is a normal factor in an organizational environment. Managing change is a continuous and relevant factor to maintain a competitive environment, quality, and improve customer relations. Market penetration drives organizations, and managing change is the single-most critical leadership issue facing the business world today. Weidman (2002) stated that change is the driving force redefining how we conduct business. In this unit, we will not only discuss organizational change, but also discuss the drivers and models of change and employees’ resistance to change.
(Altmann, 2015a)
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4. Forces of Change Internal External Productivity Retention
Management Styles
Organizational Culture
Employee Behaviors
Technological Advancements
Customers
Shareholders
Political, Social, and Economic Changes
Internal forces of change include factors under the company’s control and internal to the organization such as productivity, retention, management styles, organizational culture, and employee behaviors. External forces of change include forces beyond the organization's control such as technological advancements; customers; shareholders; or political, social, and economic changes. Change sometimes is continuous and planned, or unplanned and reactive if unexpected or determined by external forces.

5. Influences of Change
Leaders know when to change depending on the type of change needed. Organizations implement policy or procedural change at a specific time or date. If a change involves a new product, process, or organizational change, a leader needs processes and plans to implement key ideas and strategic plans. Changes are also necessary whenever existing methods no longer work. Economic, technological, or organizational factors influence change.
(Stachowiak, 2016)

6. Leading Change Establish a sense of urgency Create guiding coalition
Develop a vision and strategy
Communicate change
Remove obstacles and address issues
Generate short term wins
Generate more wins with projects and plans
Communicate
Kotter (1996) in the book, Leading Change, outlines an eight–stage change process for implementing a successful transformation of change. First, establish a sense of urgency to understand and discuss crises, potential barriers, or major opportunities. Second, create a guiding coalition such as a team of leaders capable of leading the change process. Third, develop a vision and strategy to direct the change effort. Fourth, use every available vehicle to communicate the change, while leaders role model behaviors for employees. Fifth, empower broad-based action by removing obstacles and addressing issues that challenge the change process. Sixth, generate short term wins. Seventh, generate more short-term wins with core projects and action plans. Lastly, communicate performance measures and connections between new behaviors and organizational links to ensure adaptation and leadership development.

7. Resistance to Change
Organizations operating in global markets where high uncertainty, high complexities of change, and many political risk factors exist, need powerful leaders that tactfully and ethically use political strategies to accomplish goals (McLarney & Dastrala, 2001).
Tempered radicals are individuals who use relationships and networks to make a difference as they inspire and motivate others toward transformation (Meyerson & Scully, 1995).
According to Hossan (2015), researchers such as Lewin, Nadler, and Kotter have studied models of change. Organizations operating in global markets where high uncertainty, high complexities of change, and many political risk factors exist, need powerful leaders that tactfully and ethically use political strategies to accomplish goals (McLarney & Dastrala 2001).
According to Meyerson and Scully (1995), "tempered radicals" are leaders who want to make a change in their organizations or communities because they are committed to a cause, certain values, or ideology. Although these individuals push for changes different from the norm, they often work within the system as not to alienate their profession or the organization. Tempered radicals are individuals who use relationships and networks to make a difference as they inspire and motivate others toward transformation (Meyerson & Scully, 1995).

8. Leaders Use scenario thinking Develop stewardship Engage people
Expose and test assumptions
Focus on developing better ideas
Shared Vision
Systems Thinking
Personal Mastery
Team Learning
Mental Models
The problem of diffusion is a concern of many organizations. Senge et al. (1999), in the book, Dance of Change, explain that for leaders to implement strategies, organizations must put emphasis on knowledge management systems and encourage information sharing. Senge et al. (1999) list five disciplines, including a shared vision, systems thinking, personal mastery, team learning, and mental models.
Chowdhury (2000) emphasized to implement strategies, leaders should 1) use scenario thinking to investigate blind spots, 2) develop stewardship as an organization practice, 3) engage people at all levels, 4) expose and test the assumptions, and 5) focus on developing better ideas and strategic plans.

9. Training and Development
Training and development helps employees because it promotes critical thinking, decision making, and systems thinking. Training and development thereby influences organizational assets and revenue. A highly trained workforce yields higher productivity, performance, and competitiveness. Trained individuals are more capable of innovations, creative ideas, and implementing strategic goals. Organizational alignment allows people to receive consistency and reinforces behavior that supports the core to achieve desired outcomes.
(Altmann, 2015c)

10. Leaders Flexibility Decision Making Global Strategies Integration
Manage Stakeholders at home and abroad
Leaders must adapt and be flexible to deal with changes more than ever. Strategic leadership includes quick decision making and the ability to share knowledge and think about global strategies. Leaders need to think in a way that integrates customers, business suppliers, markets, competition, and world standards. Savvy managers must employ business diplomacy.
To achieve competitive advantage, competent managers need to manage multiple stakeholders at home and abroad. These managers must know how to deal with foreign country interests, domestic pressure groups, and international conflict.
(Altmann, 2014a)

11. Leadership
Leadership as an organizational asset contributes to profit or advantage that benefits the company. Organizations today promote leadership as one of the essential assets of the organization. Organizational effectiveness determines productivity, performance, and the ability to implement strategic visions and goals. Leadership promotes productivity through the implementation of missions, visions, and the strategic objectives.
(Altmann, 2015b)

12. Self Check True or False
Internal forces of change include forces beyond the organization's control such as technological advancements; customers; shareholders; or political, social, and economic changes.
(Altmann, 2014b)
The next few slides consist of self check questions for you to test your knowledge regarding the content covered in this unit. The correct answer will be indicated on the next slide.
True or False: Internal forces of change include forces beyond the organization's control such as technological advancements; customers; shareholders; or political, social, and economic changes.

13. FALSE
External forces of change include forces beyond the organization's control such as technological advancements; customers; shareholders; or political, social, and economic changes. Internal forces of change include factors under the company’s control and internal to the organization such as productivity, retention, management styles, organizational culture, and employee behaviors.
The answer is False!
External forces of change include forces beyond the organization's control such as technological advancements; customers; shareholders; or political, social, and economic changes.
Internal forces of change include factors under the company’s control and internal to the organization such as productivity, retention, management styles, organizational culture, and employee behaviors.
(ClkerFreeVectorImages, 2012)

14. Economic, technological, or organizational factors influence change.
True or False
Economic, technological, or organizational factors influence change.
(Altmann, 2014b)
True or False: Economic, technological, or organizational factors influence change.

15. TRUE
Leaders know when to change depending on the type of change needed. Organizations implement policy or procedural change at a specific time or date. If a change involves a new product, process, or organizational change, a leader needs processes and plans to implement key ideas and strategic plans. Changes are also necessary whenever existing methods no longer work. Economic, technological, or organizational factors influence changes.
True! Leaders know when to change depending on the type of change needed. Organizations implement policy or procedural change at a specific time or date. If a change involves a new product, process, or organizational change, a leader needs processes and plans to implement key ideas and strategic plans. Changes are also necessary whenever existing methods no longer work. Economic, technological, or organizational factors influence changes.
(ClkerFreeVectorImages, 2014)

16. References
Altmann, G. (2014a). Global increase [Image]. Retrieved from
Altmann, G. (2014b). Test [Image]. Retrieved from
Altmann, G. (2015a). Change [Image]. Retrieved from
Altmann, G. (2015b). Goal [Image]. Retrieved from
Altmann, G. (2015c). Training [Image]. Retrieved from
ClickerFreeVectorImages. (2012). X [Image]. Retrieved from
ClickerFreeVectorImages. (2014). Checkmark [Image]. Retrieved from
Chowdhury. S. (2000). Management 21C: Someday we'll all manage this way. Great Britain. Prentice Hall.

17. References
Hossan, C. (2015). Applicability of Lewin's change management theory in Australian local government. International Journal of Business and Management, 10(6),
Kotter, J. P. (1996). Leading change. Upper Saddle River, NJ: Pearson.
McLarney, C., & Dastrala, R. (2001). Socio-political structures as determinants of global success: The case of Enron corporation. International Journal of Social Economics, 28(4),
Meyerson, D. E., & Scully, M. A. (1995). Tempered radicalism and the politics of ambivalence and change. Organization Science, 65(5), 585–600.
OpenClipartVectors. (2013). Headset [Image]. Retrieved from
Senge, P., Kleiner, A., Roberts, C., Ross, R., Roth, G., & Smith, B. (1999). The dance of change: The challenges of sustaining momentum in learning organizations. New York, NY: Doubleday.
Stachowiak, K. (2015). Arrows [Image]. Retrieved from
Weidman, D. (2002). Redefining leadership for the 21st century. Journal of Business Strategy, 23(5), 16.