Organizational Change and Learning Chapter 12 Organizational Change and Learning Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Learning Objectives Describe four types of organizational change. Explain the planning process for organizational change. Identify four methods of organizational change. Describe how innovation relates to organizational change. Discuss how learning organizations foster change. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Organizational Change Organizational change refers to any transformation in the design or functioning of an organization. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Degree of Change Radical change occurs when organizations make major innovations in the ways they do business. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Three Stages of Radical Change (adapted from Figure 12.1) Unfreezing Transitioning Refreezing Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Degree of Change (cont) Incremental change is an ongoing process of evolution over time, during which many small adjustments occur routinely. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Timing of Change Reactive change occurs when an organization is forced to change in response to some event in the external or internal environment. Anticipatory change occurs when managers make organizational modifications based on forecasts of upcoming events or early in the cycle of a new trend. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Types of Organizational Change (adapted from Figure 12.2) Small Adjustments Incremental Reactive Change Incremental Anticipatory Change Degree of Change Radical Anticipatory Change Radical Reactive Change Major Transformation Timing of Change Before Major Shifts in the Environment After Major Shifts in the Environment Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

The Process of Organizational Change (adapted from Figure 12.3) 2. Determine the Performance Gap 1. Assess the Environment 3. Diagnose Organizational Problems 7. Monitor the Changes 6. Anticipate Resistance and Take Action to Reduce 4. Articulate and Communicate a Vision for the Future 5. Develop and Implement an Action Plan Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Methods for Creating Change (adapted from Figure 12.4) Technological Change Organizational Redesign Job Redesign Organizational Development Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

How to Set Up a Focus Group Discussion (adapted from Figure 12.5) The facilitator explains the topic to be discussed, the role of the scribe, and how the organization will use the results of the focus group discussion. The participants come prepared to discuss a specific topic. If confidentiality is a concern, participants are chosen from different units of the organization, not the same work group. The scribe takes notes about what is said, but not who says it. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Organizational Change and Innovation Innovation is the process of creating and implementing a new idea. Types of innovation Technical innovation refers to the creation of new goods and services. Process innovation involves creating a new way of producing, selling, and/or distributing an existing good or service. Administrative innovation occurs when creation of a new organization design better supports the creation, production, and delivery of goods and services. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Learning Organizations A learning organization has both the drive and the capabilities to modify or transform itself and improve its performance continuously. Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved

Characteristics of a Learning Organization (adapted from Figure 12.6) Shared Leadership Culture of Innovation Customer-Focused Strategy The Learning Organization Organic Organization Design Intensive Use of Information Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved