2. Manage Change and Organizational Learning
Chapter Sixteen
Manage Change and Organizational Learning
McGraw-Hill/Irwin
Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

3. After reading the material in this chapter, you should be able to:
Discuss the external and internal forces that can create the need for organizational change.
Describe Lewin’s change model and the systems model of change.
Explain Kotter’s eight steps for leading organizational change.

4. After reading the material in this chapter, you should be able to:
Review the 11 reasons employees resist change.
Identify alternative strategies for overcoming resistance to change.
Discuss the process organizations use to build their learning capabilities.

5. External Forces
External forces for change - originate outside the organization.
Demographic characteristics
Technological advancements
Customer and market changes
Social and political pressures

6. Internal Forces
Internal forces for change - originate inside the organization.

7. Lewin’s Change Model Unfreezing
Focus is to create the motivation to change
Begin by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes

8. Question?
What is the process by which a company compares its performance with that of high-performing companies?
Corporate assessment
Productivity evaluation
Benchmarking
Contingency divergence
The correct answer is “C” – benchmarking. See next slide.

9. Lewin’s Change Model
Benchmarking – process by which a company compares its performance with that of high-performing companies

10. Lewin’s Change Model Changing
Organizational change can be aimed at improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity
Can be targeted at different levels in an organization

11. Lewin’s Change Model Refreezing
Change is stabilized by helping employees integrate the changed behavior or attitude into their normal way of doing things
Giving employees the chance to exhibit new behaviors, which are then reinforced

12. Change Management
Read an article on “An Improvisational Model of Change Management”

13. A Systems Model of Change
Systems Approach
Based on the premise that any change, no matter how large or small, has a cascading effect throughout an organization

14. A Systems Model of Change
Mission statement – summarizes why an organization exists
Strategic plan – long-term plan outlining actions needed to achieve desired results

15. A Systems Model of Change
Target elements of change – components of an organization that may be changed
Organizational arrangements
Social factors
Methods
People

16. Applying the Systems Model of Change
Aid during the strategic planning process
Using the model as a diagnostic framework to determine the causes of an organizational problem and to propose solutions

17. Steps to Leading Organizational Change
Table 16-1

18. Organization Development
Organization Development - a set of techniques or tools that are used to implement organizational change.

19. Some OD Interventions for Implementing Change
Table 16-2

20. OD Research and Practical Implications
Planned organizational change works
Change programs are more successful when they are geared toward meeting both short-term and long-term results
Organizational change is more likely to succeed when top management is truly committed to the change program
Effectiveness of OD interventions is affected by cross-cultural considerations

21. Why People Resist Change in the Workplace
An individual’s predisposition toward change
Surprise and fear of the unknown
Climate of mistrust
Fear of failure
Loss of status and/or job security
Peer pressure

22. Why People Resist Change in the Workplace
Disruption of cultural traditions and/or group relationships
Personality conflicts
Lack of tact and/or poor timing
Nonreinforcing reward systems
Past success

23. Six Strategies for Overcoming Resistance to Change
Table 16-3

24. Learning Organization
Learning organization – proactively creates, acquires, and transfers knowledge throughout the organization

25. Building an Organization’s Learning Capability
Figure 16-2

26. Question?
What are the set of core competencies and internal processes that enable an organization to adapt to its environment?
Learning capabilities
Knowledge contingencies
Learning contingencies
Learning culture
The correct answer is “A” – learning capabilities. See next slide.

27. Building an Organization’s Learning Capability
Learning capabilities – set of core competencies and internal processes that enable an organization to adapt to its environment

28. Building an Organization’s Learning Capability
Facilitating factors – represent the internal structure and processes that affect how easy or hard it is for learning to occur and the amount of effective learning that takes place

29. Factors that Facilitate Organizational Learning
Table 16-4

30. Learning Modes
Learning modes – various ways in which organizations attempt to create and maximize their learning
Analytical learning
Synthetic learning
Experimental learning
Interactive learning
Structural learning
Institutional learning

31. Key Functions in Building a Learning Organization
Building a commitment to learning
Working to generate ideas with impact
Working to generalize ideas with impact
Working to Generate Ideas with Impact
Implement continuous improvement programs
Increase employee competence through training, or buy talent from outside the organization
Experiment with new ideas, processes, and structural arrangements
Go outside the organization to identify world-class ideas and processes
Instill systems thinking throughout the organization
Working to Generalize
Ideas with Impact
Measuring and rewarding learning
Increasing open and honest dialog among organizational members
Reducing conflict
Increasing horizontal and vertical communications
Promoting teamwork
Rewarding risk taking and innovation
Reducing the fear of failure
Increasing the sharing of successes, failures, and best practices across organizational members
Reducing stressors and frustration
Reducing internal competition
Increasing cooperation and collaboration
Creating a psychologically safe and comforting environment

32. Video: Johnson & Johnson
See how the Johnson & Johnson Credo impacts the employees. (12:00)