Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. hapter Change and Development Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Organizational Change Four major types of change:  Technology: ·General rule is that technology change is bottom up.  New product: ·Companies that successfully develop new products: ·Horizontal linkage model emphasizes shared development of innovations among several departments. ·Time-based competition is based on the ability to deliver products and services faster than competitors.  Structure: ·Successful structural change is accomplished through a top-down approach.  Culture/people: ·Training is the most frequently used tool for changing the organization’s mind-set. Four major types of change:  Technology: ·General rule is that technology change is bottom up.  New product: ·Companies that successfully develop new products: ·Horizontal linkage model emphasizes shared development of innovations among several departments. ·Time-based competition is based on the ability to deliver products and services faster than competitors.  Structure: ·Successful structural change is accomplished through a top-down approach.  Culture/people: ·Training is the most frequently used tool for changing the organization’s mind-set. Continental Airlines

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Two Types of Planned Change  Operational Change based on efforts to improve basic work and organizational processes.  Transformational Change involves redesign and renewal of the total organization.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Model of Change Sequence of Events Environmental Forces Internal Forces Implement Change Initiate Change Need for Change Monitor global competition, customers, competitors, and other factors. Consider plans, goals, company problems, and needs. Evaluate problems and opportunities, define needed changes in technology, products, structure, and culture. Facilitate search, creativity, idea champions, and venture teams. Use force field analysis, tactics for overcoming resistance. Pinchot & Company

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Need for Change  Based on external or internal forces.  Performance gap-a disparity between existing and desired performance levels.  Performance gap may occur because: current procedures are not up to standard. a new idea or technology could improve current performance.  Based on external or internal forces.  Performance gap-a disparity between existing and desired performance levels.  Performance gap may occur because: current procedures are not up to standard. a new idea or technology could improve current performance.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Creative People  Open-minded  Originality  Less authority, independence  Persistence  A relaxed and playful attitude  Persistence, focused approach  Open-minded  Originality  Less authority, independence  Persistence  A relaxed and playful attitude  Persistence, focused approach

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Idea Champion A person who sees the need for and champions productive change within the organization.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Four Roles in Championing an Idea Inventor ·Develops and understands technical aspects of ideas. ·Does not know how to win support for the idea or make a business of it. Champion ·Believes in idea. ·Visualizes benefits. ·Confronts organization realities of cost, benefits. ·Obtains financial and political support. ·Overcomes obstacles. Sponsor ·High-level manager who removes organizational barriers. ·Approves and protects idea within organization. Critic ·Provides reality test. ·Looks for short- comings. ·Defines hard-nosed criteria that idea must pass. Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating Organization,” Organizational Dynamics (winter 1982) 5-25.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Recent Idea for Facilitating Corporate Innovation New venture team:  a unit separate from the rest of the organization.  responsible for developing and initiating a major innovation.  teams are typically small.  loosely structured.  Flexible. New venture team:  a unit separate from the rest of the organization.  responsible for developing and initiating a major innovation.  teams are typically small.  loosely structured.  Flexible.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Implementing Change May Provide  Creative Culture  New Venture Teams  Idea Champions The Document Company, Xerox

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Resistance to Change  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected by innovation may assess the situation differently.  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected by innovation may assess the situation differently. Managers and employees often seem to prefer the status quo.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Using Force Field Analysis to Change from Traditional to JIT Inventory System

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Types of Organizational Change TechnologyStrategy Structure Products Culture/People

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Horizontal Linkage Manufacturing Department Marketing Department Research Department New Technology Customers, Market Conditions Organization

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Organizational Development Can help managers address: mergers/acquisitions organizational decline/revitalization conflict management

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. OD Activities  Team Building: enhances the cohesiveness and success of organizational groups and teams.  Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization.  Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.  Team Building: enhances the cohesiveness and success of organizational groups and teams.  Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization.  Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.

Developed by Stephen M.PetersHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Three Distinct Steps for Achieving Behavioral and Attitudinal Change Unfreezing: diagnosis stage participants are made aware of problems in order to increase their willingness to change their behavior Changing: intervention stage individuals experiment with new workplace behavior Re-freezing: reinforcement stage individuals acquire a desired new skill or attitude and are rewarded for it by the organization Unfreezing: diagnosis stage participants are made aware of problems in order to increase their willingness to change their behavior Changing: intervention stage individuals experiment with new workplace behavior Re-freezing: reinforcement stage individuals acquire a desired new skill or attitude and are rewarded for it by the organization