Organizational Change1

Study Question 1: What is organizational change?
Transformational change. Results in a major overhaul of the organization or its component systems.
Organizational Behavior: Chapter 16 !"
#escri$e% as ra%ical change or frame&
$rea'ing change. Organizations e(periencing transformational change un%ergo a significant shift in $asic characteristic features.

)ncremental change or frame&
$en%ing
change.
*art of the organization+s natural
evolution in $uil%ing on the e(isting ,ays of operating to

Organizational Behavior: Chapter 16 !6
enhance or e(ten% them in ne, %irections. )ntro%uction of ne, pro%ucts- ne, technologies- an% ne, systems an% processes. Continuous improvement through incremental change is an important asset.

Change agents. )n%ivi%uals an% groups ,ho ta'e responsi$ility
for changing the e(isting $ehavior patterns of

Organizational Behavior: Chapter 16 !.
another person or social system. /uccess of change efforts %epen%s in part on change agents. Being an effective change agent means $eing a great change lea%er.

0nplanne% change. Occurs spontaneously an% ,ithout a change agent+s %irection- an% such change may $e
Organizational Behavior: Chapter 16 !1
%isruptive.
2ppropriate goal is to act 3uic'ly to
minimize the negative conse3uences an% ma(imize any possi$le $enefits.

*lanne% change. The result of specific efforts $y a change agent. #irect response to someone+s perception of a
Organizational Behavior: Chapter 16 !!
performance gap.
4 2 performance gap is the %iscrepancy $et,een
the %esire% an% actual state of affairs. 4 *erformance gaps represent pro$lems to $e resolve% or opportunities to $e e(plore%.

Organizational forces for change. Organization&environment relationships.
Organizational Behavior: Chapter 16 "55
Organizational life cycle. *olitical nature of organizations.


Reasons for failure of
transformational change.
6o sense of urgency. 6o po,erful gui%ing coalition.
6o compelling vision.
8ailure to communicate the vision. 8ailure to empo,er others to act. 8ailure to cele$rate short&term ,ins. 8ailure to $uil% on accomplishments. 8ailure to institutionalize results.

*hases of planne% change. 0nfreezing.
4 *reparing a situation for change $y
%isconfirming e(isting attitu%es an% $ehaviors.

Changing. 4 Ta'ing action to mo%ify a situation $y altering the targets of change. Refreezing. 4 :aintaining momentum an% eventually institutionalizing the change.
Study Question 2: What change strategies are used in organizations?

Study Question 3: How is resistance to change best managed?

Resistance to change. 2ny attitu%e or $ehavior that in%icates un,illingness to ma'e or support a %esire%
Organizational Behavior: Chapter 16 "5"
change. 2lternative vie,s of resistance.

4 /omething that must $e overcome for change
to $e successful.
4 8ee%$ac' that can $e use% to facilitate
achieving change o$jectives.

;hy people resist change. 8ear of the un'no,n. <ac' of goo% information. 8ear for loss of security.
6o reasons to change. 8ear for loss of po,er. <ac' of resources. Ba% timing. =a$it.

Resistance to the change itself.
*eople may reject a change $ecause they
$elieve it is not ,orth their time- effort- or attention. To %eal ,ith resistance to the change itself- all those
Organizational Behavior: Chapter 16 "5.
affecte% shoul% 'no, ho, it satisfies the follo,ing criteria:

4 Benefit. 4 Compatibility. 4 Complexity. 4 Triability.

Resistance to the change strategy. 8orce&coercion strategy.
4 <i'ely resistance among in%ivi%uals ,ho resent
management $y >comman%? or the use of threatene% punishment.

Rational persuasion strategy.
4 <i'ely resistance ,hen the %ata are suspect or the
e(pertise of a%vocates is unclear.
/hare%&po,er strategy.
4 <i'ely resistance if it appears manipulative an%
insincere.

Resistance to the change agent. Resistance to the change agent is %irecte% at
Organizational Behavior: Chapter 16 "5!
the person implementing the change an% often involves personality an% other %ifferences.
=o, to %eal ,ith resistance. @%ucation an% communication. *articipation an% support.
8acilitation an% support. 6egotiation an% agreement. :anipulation an% cooptation. @(plicit an% implicit coercion.

Study Question 4: How do organizations innovate?

)nnovation. The process of creating ne, i%eas an% putting them into practice. *ro%uct innovations.
The intro%uction of ne, or improve% goo%s or
services to $etter meet customer nee%s. *rocess innovations. The intro%uction of ne, an% $etter ,or' metho%s an% operations.


8eatures of innovative
organizations.
/trategies an% cultures that are $uilt
aroun% a commitment to innovation.

/tructures that support innovation. /taffing ,ith a clear commitment to
innovation.
Top&management support for
innovation.
Study Question : How does stress a!!ect "eo"le in change environments? /tress.
2 state of tension e(perience% $y
in%ivi%uals
Organizational Behavior: Chapter 16 "1"
facing e(traor%inary %eman%sconstraints- or opportunities.
Study Question : How does stress a!!ect "eo"le in change environments? /ource of stress.
/tressors. 4 The ,i%e variety of things that cause stress for
in%ivi%uals.
Types of stressors. 4 ;or'&relate% stressors. 4 <ife stressors.
Study Question : How does stress a!!ect "eo"le in change environments? ;or'&relate% stressors.
Tas' %eman%s. Role am$iguities.
Organizational Behavior: Chapter 16 "1.
Role conflicts. @thical %ilemmas. )nterpersonal pro$lems. Career %evelopments. *hysical setting.
Study Question : How does stress a!!ect "eo"le in change environments? <ife stressors.
8amily events. @conomic %ifficulties.

*ersonal affairs. )n%ivi%ual+s nee%s. )n%ivi%ual+s capa$ilities. )n%ivi%ual+s personality.
Study Question : How does stress a!!ect "eo"le in change environments? /tress an% performance.
Constructive stress Aor eustressB. 4 :o%erate levels of stress act in a positive ,ay for $oth in%ivi%uals an% organization.
Organizational Behavior: Chapter 16 "1!
#estructive stress Aor %istressB. 4 <o, an% especially high levels of stress act in a negative ,ay for $oth in%ivi%uals an% organization.
Co$ $urnout. 4 2 loss of interest in an% satisfaction ,ith a jo$ %ue to stressful ,or'ing con%itions.
Study Question : How does stress a!!ect "eo"le in change environments?

/tress an% health. /tress can harm people+s physical an% psychological health. =ealth pro$lems associate% ,ith stress.
4 =eart attac'. 4 /tro'e.
4 =ypertension. 4 :igraine hea%ache. 4 0lcers. 4 /u$stance a$use. 4 Overeating. 4 #epression. 4 :uscle aches.
:anagers an% team lea%ers shoul% $e alert to
signs of
e(cessive stress.
Study Question : How does stress a!!ect "eo"le in change environments? /tress management.
/tress prevention. 4 Ta'ing action to 'eep stress from reaching %estructive levels in the first place.
Once stress has reache% a %estructive
pointspecial techni3ues of stress management can $e implemente%. /tress management.

4 Begins ,ith the recognition of stress
symptoms an% continues ,ith actions to maintain a positive performance e%ge.
Study Question : How does stress a!!ect "eo"le in change environments? /tress management Acont.B.
*ersonal ,ellness. 4 *ursuit of one+s jo$ an% career goals ,ith the
support of a personal health promotion program. @mployee assistance programs. 4 *rovi%e help for employees ,ho are e(periencing personal pro$lems an% relate% stress.
Study Question 4: How does a !irm learn and continue to learn over time?
Organizational learning. *rocess of 'no,le%ge ac3uisition- information %istri$ution- information interpretation- an%
Organizational Behavior: Chapter 11 "!"
information retention in a%apting successfully to changing circumstances. 2%justment of organization+s an% in%ivi%ual+s actions $ase% on e(perience. The 'ey to successful co&evolution.
Study Question 4: How does a !irm learn and continue to learn over time? :imicry.
Occurs ,hen managers copy ,hat they
$elieve are the successful practices of others
)s important to ne, firms.

Organizational Behavior: Chapter 11 "!6
4 *rovi%es ,or'a$le- if not i%eal- solutions to
many pro$lems. 4 Re%uces the num$er of %ecisions that nee% to $e analyze% separately. 4 @sta$lishes legitimacy or acceptance an% narro,s the choices re3uiring %etaile% e(planation.
Study Question 4: How does a !irm learn and continue to learn over time? @(perience.
2 primary ,ay to ac3uire 'no,le%ge. Besi%es learning $y %oing- managers
can also
Organizational Behavior: Chapter 11 "!.
systematically em$ar' on structure% programs
to capture the lessons to $e learne%. The major pro$lem ,ith emphasizing learning $y %oing is the ina$ility to precisely forecast changes.
Organizational Behavior: Chapter 11 "!1
Study Question 4: How does a !irm learn and continue to learn over time? /canning.
)nvolves loo'ing outsi%e the firm an%
$ringing $ac' useful solutions.

Organizational Behavior: Chapter 11 "!!
Drafting.
The process of ac3uiring in%ivi%uals-
units- or firms to $ring in useful 'no,le%ge.
Study Question 4: How does a !irm learn and continue to learn over time? Common pro$lems in information interpretation.
/elf&serving interpretations. 4 *eople seeing ,hat they ,ant to see- rather than
Organizational Behavior: Chapter 11 655
seeing ,hat is. :anagerial scripts. 4 2 series of ,ell&'no,n routines for pro$lem i%entification an% alternative generation an% analysis that are commonly use% $y a firm+s managers.
Study Question 4: How does a !irm learn
and continue to learn over time? Organizational myths.

Commonly hel% cause&effect
relationships or assertions that cannot $e empirically

supporte%. Common myths.

/ingle organizational truth. *resumption of competence. #enial of tra%eoffs.
Study Question 4: How does a !irm learn and continue to learn over time? )nformation retention mechanisms.
)n%ivi%uals. Organizational culture.
Transformation mechanisms.
8ormal organizational structures. @cology. @(ternal archives. )nternal information technologies.
Study Question 4: How does a !irm learn and continue to learn over time? #eficit cycles.
2 pattern of %eteriorating performance
that is follo,e% $y even further %eterioration.

8actors associate% ,ith %eficit cycles. 4 Organizational inertia. 4 =u$ris. 4 #etachment.
Benefit cycles. 2 pattern of successful a%justment follo,e% $y further improvements.

8irms can successfully co&evolve $y
initiating a $enefit cycle. The firm %evelops a%e3uate mechanisms for learning.
#ha"ter 1$ Study Questions

;hat is organizational cultureE =o, %o you un%erstan% an
organizational cultureE
Organizational Behavior: Chapter 1! 65"
=o, can the organizational
culture $e
manage%E =o, can you use organizational %evelopment to improve the firmE
Study Question 1: What is organizational culture?

Organizational culture. The system of share% actions- valuesan% $eliefs that %evelops ,ithin an organization
Organizational Behavior: Chapter 1! 656
an% gui%es the $ehavior of its mem$ers. Calle% corporate culture in the $usiness setting. 6o t,o organizational cultures are i%entical.
@(ternal a%aptation. )nvolves reaching goals an% %ealing ,ith outsi%ers regar%ing tas's to $e accomplishe%metho%s use% to achieve the goals- an%
Organizational Behavior: Chapter 1! 65.
metho%s of coping ,ith success an% failure. )mportant aspects of e(ternal a%aptation.
4 /eparating eternal forces $ase% on importance. 4 #eveloping ,ays to measure
accomplishments. 4 Creating e(planations for not meeting goals.

@(ternal a%aptation involves
ans,ering important
goal&relate% 3uestions regar%ing coping ,ith reality.

;hat is the real missionE =o, %o ,e contri$uteE
;hat are our goalsE =o, %o ,e reach our goalsE ;hat e(ternal forces are importantE =o, %o ,e measure resultsE ;hat %o ,e %o if specific targets are not metE =o, %o ,e tell others ho, goo% ,e areE ;hen %o ,e 3uitE

)nternal integration. #eals ,ith the creation of a collective i%entity an% ,ith fin%ing ,ays of matching metho%s of ,or'ing an% living together.
Organizational Behavior: Chapter 1! 65!
)mportant aspects of ,or'ing together. 4 #eci%ing ,ho is a mem$er an% ,ho is not. 4 #eveloping an un%erstan%ing of accepta$le an% unaccepta$le $ehavior. 4 /eparating frien%s from enemies.

)nternal integration involves
ans,ering important 3uestions associate% ,ith living together.

;hat is our uni3ue i%entityE
=o, %o ,e vie, the ,orl%E ;ho is a mem$erE =o, %o ,e allocate po,er- status- an%
authorityE =o, %o ,e communicateE ;hat is the $asis for frien%shipE
Study Question 1: What is
organizational culture?
/u$culture. 2 group of in%ivi%uals ,ith a uni3ue pattern of values an% philosophy that are not inconsistent ,ith the organization+s %ominant
values an% philosophy. Counterculture. 2 group of in%ivi%uals ,ith a pattern of values an% philosophy that out,ar%ly reject the surroun%ing culture.

*ro$lems associate% ,ith su$cultural
%ivisions ,ithin the larger culture.
/u$or%inate groups are li'ely to form into a

counterculture pursuing self&interests. The firm may encounter e(treme %ifficulty in coping ,ith $roa%er cultural changes. @m$racing natural %ivisions from the larger culture may lea% to %ifficulty in international operations.

Taylor Co(+s five step program. /tep 1: The organization shoul% %evelop pluralism. /tep 7: The organization shoul% fully integrate its structure.
/tep 9: The organization must integrate the
informal net,or's.
/tep : The organization shoul% $rea' the
lin'age $et,een naturally occurring group i%entity an% organizational i%entity. /tep ": The organization must actively ,or' to eliminate i%entity&$ase% interpersonal conflict.
Study Question 2: How do you understand an organizational culture?

Study Question 2: How do you understand an organizational culture?

/agas. =eroic accounts of organizational accomplishments. Rites. /tan%ar%ize% an% recurring activities that are use% at
special times to influence organizational mem$ers. Rituals. /ystems of rites. Cultural sym$ols. 2ny o$ject- act- or event that serves to transmit cultural meaning.
Study Question 2: How do you understand an organizational culture? Culture often specifies rules an% roles.
Rules.
4 The various types of actions that are
appropriate. Roles. 4 ;here in%ivi%ual mem$ers stan% in the social system.
Study Question 2: How do you
understand an organizational culture? /hare% values.

=elp turn routine activities into
valua$le an% important actions.

Tie the organization to the important
values of society. :ay provi%e a very %istinctive source of competitive a%vantage.
Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures.
2 ,i%ely share% real un%erstan%ing of
,hat the firm stan%s for- often em$o%ie% in slogans.

2 concern for in%ivi%uals over rules-
policiesproce%ures- an% a%herence to jo$ %uties. 2 recognition of heroes ,hose actions illustrate the company+s share% philosophy an% concerns.
Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures Acont.B.
2 $elief in ritual an% ceremony as
important to mem$ers an% to $uil%ing a common i%entity.

2 ,ell&un%erstoo% sense of the
informal rules an% e(pectations so that employees an% managers 'no, ,hat is e(pecte% of them. 2 $elief that ,hat employees an% managers %o is important an% that it is essential to share information an% i%eas.
Study Question 2: How do you understand an organizational culture? Organizational myths.
0nproven an% often unstate% $eliefs
that are accepte% uncritically.

:yths ena$le managers to re%efine
impossi$le pro$lems. :yths can facilitate e(perimentation an% creativity. :yths allo, managers to govern.
Study Question 2: How do you understand an organizational culture? 6ational culture influences.
;i%ely hel% common assumptions may
$e trace% to the larger culture of the host society.

6ational cultural values may $ecome
em$e%%e% in e(pectations of organization mem$ers.
Study Question 3: How can the organizational culture be managed?

/trategies for managing corporate
culture.
:anagers help mo%ify o$serva$le
cultureshare% valuesan% common assumptions

%irectly. 0se of organizational %evelopment techni3ues to mo%ify specific elements of the culture.

;hy a ,ell&%evelope%
management philosophy is important.

@sta$lishes generally un%erstoo%
$oun%aries
on all mem$ers of the firm. *rovi%es a consistent ,ay for approaching ne, an% novel situations. =elps hol% in%ivi%uals together $y sho,ing them a 'no,n path to success.

/trategies for $uil%ingreinforcing-
an% changing organizational culture.

#irectly mo%ifying the visi$le aspects of
culture.
Changing the lessons to $e %ra,n from
common stories. /etting the tone for a culture an% for cultural change. 8ostering a culture that a%%resses 3uestions of e(ternal a%aptation an% internal integration.
Study Question 3: How can the
organizational culture be managed?

:ista'es that managers can ma'e in
$uil%ingreinforcing- an% changing culture.

%rying to change "eo"le&s values !rom the
to" down:
4 ;hile 'eeping the ,ays in ,hich the
organization operates the same. 4 ;ithout recognizing the importance of in%ivi%uals. 'ttem"ting to revitalize an organization by dictating ma(or changes and ignoring shared values)
Study Question 4: How can you use organization develo"ment to im"rove the !irm? Organization %evelopment AO#B.
The application of $ehavioral science
'no,le%ge in a long&range effort to improve

an organization+s a$ility to cope ,ith change in its e(ternal environment an% to increase its internal pro$lem&solving capa$ilities. Study Question 4: How can you use organization develo"ment to im"rove the !irm? Organizational %evelopment. #esigne% to ,or' on $oth issues of e(ternal a%aptation an% internal integration.
0se% to improve organizational
performance.
/ee's to achieve change so the
organization+s mem$ers maintain the culture an% longer&run organizational effectiveness. Study Question 4: How can you use organization develo"ment to im"rove the !irm? 0n%erlying assumptions of O#.
*ndividual level) 4 Respect for people an% their capa$ilities.
+rou" level)
4 Belief that groups can $e goo% for $oth people an% organizations. ,rganizational level) 4 Respect for the comple(ity of an organization as a system of inter%epen%ent parts.
Study Question 4: How can you use
organization develo"ment to im"rove the !irm? Organization %evelopment goals. Outcome goals.
4 :ainly %eal ,ith issues of e(ternal a%aptation.
*rocess goals. 4 :ainly %eal ,ith issues of internal integration.
Study Question 4: How can you use organization develo"ment to im"rove the !irm? )n pursuing outcome an% process goals- O# helps $y:
Creating an open pro$lem solving climate. /upplementing formal authority ,ith
'no,le%ge an% competence.

:oving %ecision ma'ing ,here relevant
information is availa$le.
Buil%ing trust an% ma(imizing colla$oration. )ncreasing the sense of organizational
o,nership. 2llo,ing people to e(ercise self&%irection an% selfcontrol.
Study Question 4: How can you use organization develo"ment to im"rove the !irm? 2ction research. The process of systematically collecting %ata on an organization- fee%ing it $ac' to the
mem$ers for action planning- an% evaluating results $y collecting an% reflecting on more %ata after the planne% actions have $een ta'en. Study Question 4: How can you use
organization develo"ment to im"rove the !irm?

Study Question 4: How can you use organization develo"ment to im"rove the !irm?
Study Question 4: How can you use organization develo"ment to im"rove the !irm? Organization,i%e O#
interventions.
/urvey fee%$ac'. 4 Collection an% fee%$ac' of %ata to organization
mem$ers for action planning purposes. Confrontation meetings. 4 2ctivities for 3uic'ly %etermining ho, an organization can $e improve% an% ta'ing initial actions for $etterment.
Study Question 4: How can you use
organization develo"ment to im"rove the !irm? Organization,i%e O#
interventions Acont.B.
/tructural re%esign.
4 Realigning the organization+s structure or
major su$systems. Collateral organization. 4 0sing representative organizational mem$ers in perio%ic small group pro$lem&solving sessions.
Study Question 4: How can you use organization develo"ment to im"rove the !irm? Droup an% intergroup O#
interventions.
Team $uil%ing.
4 2ctivities to improve the functioning of a
group.
*rocess consultation.
4 2ctivities to improve the functioning of 'ey group processes. )ntergroup team $uil%ing. 4 2ctivities to improve the functioning or t,o or more groups.
Study Question 4: How can you use organization develo"ment to im"rove the !irm? )n%ivi%ual O# interventions. Role negotiation.
4 Clarifying e(pectations in ,or'ing
relationships.
Co$ re%esign.
4 Creating long&term congruence $et,een in%ivi%ual goals an% organizational career opportunities.
Career planning. 4 /tructure% opportunities for in%ivi%uals to ,or' ,ith managers or staff e(perts on career issues.
Than' Fou
,,,.$oo'fiesta u.c om
Organizational Behavior: Chapter 1 ,,,.$oo'fiesta u.com 691

Organizational Change1

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Study Question 1: What is organizational change?

#escri$e% as ra%ical change or frame&

Study Question 1: What is organizational change?

evolution in $uil%ing on the e(isting ,ays of operating to

Study Question 1: What is organizational change?

for changing the e(isting $ehavior patterns of

Study Question 1: What is organizational change?

2ppropriate goal is to act 3uic'ly to

minimize the negative conse3uences an% ma(imize any possi$le $enefits.

Study Question 1: What is organizational change?

Study Question 1: What is organizational change?

Organizational life cycle. *olitical nature of organizations.

Study Question 1: What is organizational change?

Study Question 1: What is organizational change?

Study Question 1: What is organizational change?

%isconfirming e(isting attitu%es an% $ehaviors.

Study Question 2: What change strategies are used in organizations?

Study Question 3: How is resistance to change best managed?

change. 2lternative vie,s of resistance.

4 8ee%$ac' that can $e use% to facilitate

achieving change o$jectives.

Study Question 3: How is resistance to change best managed?

Study Question 3: How is resistance to change best managed?

*eople may reject a change $ecause they

affecte% shoul% 'no, ho, it satisfies the follo,ing criteria:

Study Question 3: How is resistance to change best managed?

management $y >comman%? or the use of threatene% punishment.

Rational persuasion strategy.

4 <i'ely resistance ,hen the %ata are suspect or the

e(pertise of a%vocates is unclear.

Study Question 3: How is resistance to change best managed?

Study Question 3: How is resistance to change best managed?

Study Question 3: How is resistance to change best managed?

Study Question 4: How do organizations innovate?

The intro%uction of ne, or improve% goo%s or

Study Question 4: How do organizations innovate?

Study Question 4: How do organizations innovate?

aroun% a commitment to innovation.

/tructures that support innovation. /taffing ,ith a clear commitment to

Top&management support for

facing e(traor%inary %eman%sconstraints- or opportunities.

Types of stressors. 4 ;or'&relate% stressors. 4 <ife stressors.

8amily events. @conomic %ifficulties.

*ersonal affairs. )n%ivi%ual+s nee%s. )n%ivi%ual+s capa$ilities. )n%ivi%ual+s personality.

Study Question : How does stress a!!ect "eo"le in change environments?

:anagers an% team lea%ers shoul% $e alert to

Once stress has reache% a %estructive

pointspecial techni3ues of stress management can $e implemente%. /tress management.

symptoms an% continues ,ith actions to maintain a positive performance e%ge.

$elieve are the successful practices of others

)s important to ne, firms.

4 *rovi%es ,or'a$le- if not i%eal- solutions to

systematically em$ar' on structure% programs

$ringing $ac' useful solutions.

The process of ac3uiring in%ivi%uals-

units- or firms to $ring in useful 'no,le%ge.

Study Question 4: How does a !irm learn

and continue to learn over time? Organizational myths.

relationships or assertions that cannot $e empirically

supporte%. Common myths.

8ormal organizational structures. @cology. @(ternal archives. )nternal information technologies.

that is follo,e% $y even further %eterioration.

8actors associate% ,ith %eficit cycles. 4 Organizational inertia. 4 =u$ris. 4 #etachment.

Benefit cycles. 2 pattern of successful a%justment follo,e% $y further improvements.