Organizational Change Def: The adoption of a new idea or behavior by an organization. Change is common aspect of current business environment Adaptation to change is central point of learning organization For success, adaptation to change must exist in current workforce Change includes redefining of roles, processes, values and removal of barriers Model for Planned Change 1. Both internal and external forces contribute to change 2. Organizations must monitor the forces of change and determine when there is a need for change. 3. Initiate search for response to the change 4. Implement the response to the change

Forces of Change Environmental (External) Forces Customers Competitors Technology Economic International arena What are examples of these forces? Internal Forces Goals Employees Labor Unions Production efficiencies Company performance What are examples of these forces?

Need For Change Management’s responsibility is to: a. Monitor threats and opportunities in the external environment b. Identify strengths and weaknesses in the organization. How does a manager determine a need for change? Disparity between existing and desired performance levels ( Performance Gap). Is this gap due solely to non-performance? How does the sense of urgency enter into the identification of the need for change? Why is it important to have sensitive sensors to determine the need for change? Resources Impact

Initiating Change Characteristics of a Creative individual Def: To search for or create ideas that solve perceived needs are developed. Search: process of learning about current developments inside or outside the organization that can meet the perceived need. Creativity: Generating novel ideas that have the potential of meeting the perceived need or opportunity. Characteristics of a Creative individual 1. Conceptual Fluency 2. Originality 3. Open mindedness 4. Less authority, Independence 5. Playfulness, Curiosity, Undisciplined exploration 6. Persistence, commitment, focused approach Idea Champion: Passionate , committed to the idea despite rejection by others. Inventor: Develops the idea but does not have the ability or interest to promote. Sponsor: High-level manager who approves, protects and removes major barriers. Critic: Challenges the concept and provides reality checks.

Development of a Creative Organization 1. Open channels of communication 2. Contact with outside sources 3. Overlapping territories 4. Brainstorming, suggestion systems 5. Assignment of non-specialist to problem 6. Eccentricity allowed 7. Use of teams 8. Decentralization, loosely defined positions 9. Acceptance of mistakes, risk taking 10. Freedom to pursue and choose problems 11. Playful culture 12. Freedom to discuss ideas, long time horizon 13. Resources allocated to creative personnel and projects without immediate payoff 14. Reward system that encourages innovation 15. Absolution of peripheral responsibilities

What is meant by this statement? Implementing Change Why do we resist change? Self Interest: Perceived loss of power, prestige, pay, or company benefits. Lack of Understanding and Trust: purpose unknown. Uncertainty: Lack of information. Different Assessments of goals: Goals conflict, differ in perceived outcome. Force Field Analysis To implement a change requires an analysis of the driving forces and the restraining forces. Removal of restraining forces allows driving forces to implement change. What is meant by this statement?

Implementation Tactics Communication and Education Change is technical Users need accurate information and analysis to understand change. Participation Users need to feel involved Design requires information from others Users have power to resist Negotiation Group has power over implementation Group will lose out in the change Coercion A crisis exists Initiators clearly have power Other implementation techniques have failed Top Management support Change involves multiple departments or reallocation of resources Users doubt legitimacy of change Examples?

Types of Planned Change Technology changes Related to the organization’s production process. (efficiency) Technology change is from the bottom up. Lower level techs act as idea champions. Why What type of Implementation tactic would you use and Why? Structural Changes Involves the hierarchy of authority, goals, structural characteristics, administrative procedures and management systems. Accomplished thru a Top - Down approach. Why? Champions are Top level and Middle management Why would the Preferred Implementation Tactics be Education, Negotiation & Participation?

New Product Changes Change in the organization’s product or service output Primary way that organizations adapt to changes in markets, technologies and competition. Implemented more along a Horizontal line Horizontal Linkage Model shows that a new product must be developed simultaneously by marketing, research & manufacturing. What roles do these depts play in a successful development of new product? (Marketing, Technical specialists, research, manufacturing) How does time play into the new product strategy? (Time Based Competition)

Cultural / People Changes Refers to a change in values, norms, attitudes, beliefs and behaviors of employees. Way people think, Mindset rather than technology, structure or products Training is the most frequently used tool. Organizational Development: promotes improvement of internal relationships and increased problem solving capabilities to improve an organization’s effectiveness. OD methods: Team building Survey feedback activities Large group intervention OP Steps: 1. Unfreezing: participants become aware of problems and then increase willingness to change (Change Agent) 2. Changing: Experiment with new behavior and learn new skills. 3. Refreezing: New behaviors are evaluated and reinforced by individuals who have newly acquired attitudes or values and are rewarded for them by the organization.