1. 12-1IBUS 681, Dr. Yang Organizational Change Chapter 8

2. 12-2IBUS 681, Dr. Yang. Learning Objectives Define organizational change and understand why managing change is an important part of international management Understand the individual, group, and structural levels of change Know what internal and external factors influence organizational change

3. 12-3IBUS 681, Dr. Yang Learning Objectives (cont.) Explain the role of national and organizational culture on organizational stability and change Understand the processes involved in planning organizational change, including sources of resistance to change and ways to overcome them Understand how macro level theories of organizational change influence the management of change

4. Roberto C. Goizueta Former Chairman and CEO Coca-Cola Company There is no permanent organizational chart for the world… It is of supreme importance to be ready at all times to take advantage of new opportunities.

5. 12-4IBUS 681, Dr. Yang Organizational Change Reconfigures components of an organization to increase efficiency and effectiveness Including any alternations in people, structure, or technology

6. 12-5IBUS 681, Dr. Yang Levels of Organizational Change Structural Change Group Change Individual Change Cross-culture variation U.S. Japan Germany China

7. 12-6 IBUS 681, Dr. Yang Internal Change Factors Technical Production Processes Production New Technologies Quality Political Processes New Organizational Goals Conflict New Leadership Organizational Culture Values Norms New Member Socialization

8. 12-7IBUS 681, Dr. Yang External Change Factors The Immediate Environment Domestic Competition Population Trends Social Trends Government Actions The General Environment Foreign Competition Social Movements Political-Economic Movements Technology Professionalization Culture Contact

9. 12-8 IBUS 681, Dr. Yang National Culture and Organizational Change Time Orientation: Past Present Future Short-term v. long- term oriented Resistance to Change Tradition Habit Resource Limitations Power and Influence Fear of the Unknown Values

10. 12-9IBUS 681, Dr. Yang Resistance to Change in Different Clusters of Countries Dimension Scores Resistance level PD ID UA Country Clusters 4 (strongest) 3 (strong) highlow high medmedhigh highhighhigh high medhigh highlowmed Most of Latin America, Portugal, Korea, the former Yugoslavia Japan Belgium,France Spain, Argentina, Brazil, Greece, Turkey, Arab Countries Indonesia, Thailand, Taiwan, Iran, Pakistan, African countries

11. Resistance to Change in Different Clusters of Countries (cont.) Dimension Scores Resistance level PD ID UA Country Clusters 2 (medium) 1 (week) 0 (weakest) highlowlow lowmedhigh medhighmed medhighlow lowhighlow Philippines, Malaysia, India Austria, Israel Italy, Germany, Switzerland, South Africa Singapore, Hong Kong, Jamaica Anglo countries, Nordic countries, the Netherlands 12-10 IBUS 681, Dr. Yang

12. 12-11IBUS 681, Dr. Yang Managing Change Organization development Lewin’s model of change Managing resistance to change Impact of cultural values OD model Consulting Power versus employee participation

13. 12-12IBUS 681, Dr. Yang Lewin’s Model of Change Phase 1 - Diagnosis Phase 2 - Unfreezing Phase 3 - Movement Phase 4 - Refreezing Phase 5 - Renewal

14. 12-13IBUS 681, Dr. Yang Managing Resistance to Change Education and communication Participation and involvement Negotiation and agreement Manipulation and cooptation Coercion

15. 12-14IBUS 681, Dr. Yang The Interaction of National and Organizational Cultures National culture Organizational culture

16. IBUS 681, Dr. Yang Change Strategies for Different Groups of Countries Change Strategy PD ID MA UACountry Clusters 5 (power) 4 (power, manipulation /persuasion) highlowhighhigh highlow medhigh Columbia, Ecuador, Venezuela, Mexico rest of Latin America, Spain, Portugal, former Yugoslavia, Greece, Turkey, Arab countries, Korea Dimension Scores 12-15

17. Change Strategies for Different Groups of Countries (cont.) Change Strategy PD ID MA UA Country Clusters Dimension Scores 3 (manipulation/ persuasion) 2 (manipulation/ persuasion, consultation) 1 (consultation, participation) medmedhighhigh highhighmedhigh highlowmedlow medlowhighlow lowmedmedhigh medhighhighmed lowhighhighlow lowhighlowlow Japan Belgium, France Indonesia, Thailand, Taiwan, Iran, Pakistan, African countries Philippines, Malaysia, India Singapore, Hong Kong, Jamaica Austria, Israel Italy, Germany,Switzerland, South Africa Anglo countries Nordic countries, Netherlands 12-16IBUS 681, Dr. Yang

18. 12-17IBUS 681, Dr. Yang Macro-organizational Change Theories Life-cycle theory Teleological theory Dialectical theory Evolutionary theory Cultural implications

19. 12-18IBUS 681, Dr. Yang Convergence or Divergence? Competitive pressures Attempts to standardize product quality on a worldwide basis Diffusion of advanced management techniques Transfer of technological innovations Problems with diffusion of organizational innovations Culture and local conditions as barriers to change

20. 12-19IBUS 681, Dr. Yang Implications for Managers Culture influences organizational change. When formulating a change program, it is necessary to assess need for change, what changes are appropriate, nature of resistance to change, and how to implement planned changes. Be aware of internal and external forces for change and how different cultures may respond to them. Understand larger processes affecting organizational change and how they may limit change.