2The Nature of Organization Change Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).Forces for ChangeExternal forces in the general and task environments that force the organization to alter the way it competes.Internal forces inside the organization cause it to change its structure and strategy.Some internal forces are responses to external pressures.
3Classifications of Organization Change Planned ChangeIs designed and implemented in an orderly and timely fashion in anticipation of future events.Reactive ChangeIs a piecemeal response to events and circumstances as they develop.
4Managing Change in Organizations Three Step Change Process Model (Kurt Lewin)UnfreezingIndividuals must be shown why the change is necessary.Implementing changeThe change itself is implementedRefreezingInvolves reinforcing and supporting the change so that it becomes a permanent part of the system.
6Understanding Resistance to Change People resist change because of:Uncertainty about the extent and effects of change.Threats to self-interests and power and influence.Different perceptions of change effects and outcomes.Feelings of loss in disrupted social networks, power, security, and familiarity with existing procedures.
7Overcoming Resistance to Change Techniques for overcoming resistance to change:Encouraging active participation in the change process.Providing education and communication about the change process.Facilitating the change process by making only necessary changes, announcing changes in advance, and allowing time to adapt to change.
8Overcoming Resistance: Force-field Analysis for Plant Closing at GMC
10Reengineering in Organizations The radical redesign of all aspects of a business to achieve major gains in cost, service, or time.Focus is on identifying & eliminating marginal activities.Downsizing (a.k.a., Right-sizing) - Intentional reduction of the workforce.May result from closing facilities.Avoid organizational anemia.
11Reengineering in Organizations Need for ReengineeringEntropy occurs as the maintenance of status quo puts an organization out of synch with its environment, and it starts consuming its own resources.Approaches to ReengineeringRecognizing the need for change and acting on it with a sense of urgency.Starting with a clean slate to open up the process.Using a blend of top-down and bottom-up involvement.
13Organization Development (OD) A planned, organization-wide effort, managed from the top, that is intended to increase organizational effectiveness and health through interventions in the organization’s processes using behavioral science knowledge.
14Organization Development (OD) OD AssumptionsEmployees desire to grow and develop.Employees have a strong need to be accepted.Individuals will influence the organization and the organization will influence individuals
15Organization Development Techniques Diagnostic ActivitiesTeam BuildingSurvey FeedbackEducationIntergroup ActivitiesThird-Party PeacemakingTechnostructural ActivitiesProcess ConsultationLife and Career PlanningCoaching and CounselingPlanning and Goal Setting
17Forms of Organizational Innovation Radical InnovationFundamentally changes the nature of competition in an industry.A new product, service, or technology developed by an organization that completely replaces the existing product, service, or technology in an industry.Incremental InnovationDoes not significantly affect competition in an industry.A new product, service, or technology that modifies an existing one.
18Forms of Organizational Innovation (Technical v Forms of Organizational Innovation (Technical v. Managerial Innovations)Technical innovationA change in the physical appearance or performance of a product or service, or the physical processes through which a product or service is manufactured.Managerial innovationA change in the management process by which products and services are conceived, built, and delivered to customers.
19Forms of Organizational Innovation (Product v. Process Innovations) Product innovationA change in the physical characteristics or performance of existing products or service or the creation of brand-new products or services.Process innovationA change in the way a product or service is manufactured, created, or distributed.
20Effects of Product and Process Innovation on Economic Return
21Innovation Reasons for Failing to Innovate Lack of resources Failure to recognize opportunitiesResistance to change
22Innovation Promoting Innovations in Organizations Using the reward systemHaving a supportive organizational cultureEncouraging intrapreneurship in larger organizationsInventorsProduction championsSponsors