1. Chapter 16 Chapter 16 Managing Change and Organizational Learning Chapter 16 Team Japan Katie Whitman, Anna Somvong, Sam Rola, Bridgette Walker, Kelli DeVink

2. Introduction Organizational and societal changes are accelerating rapidly, companies must change in order to survive. Organizational and societal changes are accelerating rapidly, companies must change in order to survive. Requires: Requires: –Managerial commitment –An implementation plan –Cooperation from all employees Current and future managers must learn how to successfully implement organizational change Current and future managers must learn how to successfully implement organizational change

3. Forces of Change Forces of Change External Forces – Originate outside the organization External Forces – Originate outside the organization -Demographic Characteristic -Technological Advancements -Customer and Market Changes -Social and Political Pressures Examples: population, improved productivity, customer demands, and use of lobbyists Examples: population, improved productivity, customer demands, and use of lobbyists Internal Forces – Originate inside the organization Internal Forces – Originate inside the organization Examples: Low job satisfaction, low productivity, high turnover, and conflict

4. Models of Planned Change  Lewin’s Change Model  Unfreezing  Changing  Refreezing  Systems Model  Kotter’s 8 Steps

5. Systems Model 1. Inputs –mission statement: the reason an organization exists –strategic plan: a long term plan outlining actions needed to achieve planned results 2. Target elements of change: components of an organization that may be changed. –Realign: organizing arrangements, social factors, methods, goals, people 3. Outputs –Represent desired end results of change –Consistent with strategic plan

6. Kotter’s 8 Steps Establish a sense of urgency Establish a sense of urgency Create the guiding coalition Create the guiding coalition Develop a vision and strategy Develop a vision and strategy Communicate the change vision Communicate the change vision Empower broad-based action Empower broad-based action Generate short-term wins Generate short-term wins Consolidate gains and produce more change Consolidate gains and produce more change Anchor new approaches in the culture Anchor new approaches in the culture

7. Why People Resist Change 1. Individual predisposition toward change 2. Surprise & fear of the unknown 3. Climate of mistrust 4. Fear of failure 5. Loss of status and/or job security 6. Peer pressure 7. Disruption of cultural traditions and/or group relationships 8. Personality conflicts 9. Lack of fact and/or poor timing 10. Non-reinforcing reward systems

8. 6 Strategies for Overcoming Resistance to Change Education + Communication Education + Communication Participation + Involvement Participation + Involvement Facilitation + Support Facilitation + Support Negotiation + Agreement Negotiation + Agreement Manipulation + Cooperation Manipulation + Cooperation Explicit + Implicit Coercion Explicit + Implicit Coercion

9. Learning Capability Set of core competencies and internal processes that enable an organization to adapt to its environment (the fuel for organizational success) Set of core competencies and internal processes that enable an organization to adapt to its environment (the fuel for organizational success) –2 major contributors: Facilitating factors Facilitating factors Learning modes Learning modes

10. Learning Modes 1. Analytic 1. Analytic Deductive logic Deductive logic 2. Synthetic 2. Synthetic Interrelationships between issues, looking for patterns Interrelationships between issues, looking for patterns 3. Experimental 3. Experimental try out and monitor results try out and monitor results 4. Interactive 4. InteractiveInteractive Learning-by-doing 5. Structural 5. Structural Learning by organizational routines, over and over 6. Institutional 6. Institutional Observing examples or senior executives, socialization.

11. Family Feud