MGMT 4263 Exam 1

recognizing the need for change is not enough

- "why change" is aided by solid analysis of what needs to change and why it's important to expand resources on this area, but we need to be able to craft a compelling vision of...where we want to go (the desired change) and why it's worth the effort

open systems perspective

- a system seeks equilibrium, and one at equilibrium will only change if energy is applied - individuals within a system may have views of the system's function and purpose that differ greatly from those of others - things that occur within and/or to open systems should not be viewed in isolation (see them as interconnected and interdependent components of a complex system)

acceleration

- action planning - implementation - transition management

change facilitators

- aids in analysis and issue management along the way - provides advice and council - sometimes helps smooth the way through helping resolve issues, alleviate resistance, and nurture support

four organization change roles

- change initiators - change implementers - change facilitators - change recipients

change implementers

- chart the detailed path forward and make it happen - nurture support and alleviate resistance

Gentile's Giving Voice to Values

- clarification and articulation of one's values - post decision making analysis and implementation plan - the practice of speaking ones values and receiving feedback from peers

good visions are...

- clear, concise, easily understandable - memorable - exciting and inspiring - challenging - excellence-centered - stable but flexible - implementable and tangible

awakening

- conduct organizational analysis - why change? - scan external and internal environments - review forces for and against change - create buy-in and awareness - identify change vision - conduct a gap analysis - what to change - need for change

evaluation of Gentile's Giving Voice to Values

- considers ethical implications of organizational change - focuses on the "identify need for change" step in other models - curriculum gives people the skills to speak up when organizational practices conflict with their values

dynamic complexity because systems are...

- constantly changing - tightly coupled - governed by feedback - nonlinear - history dependent - self organizing - adaptive - characterized by trade-offs - counterintuitive - policy resistant

creating a need for change

- create awareness that a crisis is near, or create a crisis that needs to be addressed - develop a transformational vision for the change based on compelling values - find a transformation leader to champion the change - focus on common shared goals and work out ways to achieve them - create dissatisfaction with status quo through information and education

uses of Quinn's Competing Values Framework

- describe current culture - describe tasks - portray focus of rewards systems - describe a needed shift - individual management development

new organizational forms and management challenges due to environmental change - macro changes and impact

- digitization leading to: faster information transmission, lower cost information storage and transmission - integration of states and opening markets - geographic dispersion of the value chain - all leading to globalization of markets

unfreeze

- dislodge some of the beliefs and assumptions of those involved - may be due to a crisis or other factors - systems, structures, beliefs, and habits become fluid - unfreezing must happen at multiple levels

refreeze

- employees adapt to changes - monitor changes after implementation to determine effectiveness - modify as needed - changes are incorporated to become the new normal

organizational development is...

- focused on human potential, participation, and development rather than economic or competitive advantage - based on behavioral science knowledge and practice - a flexible and adaptive process for diagnosing, planning, and implementing change efforts - focused on creating, reinforcing, and sustaining new activities and behaviors over time - one type of organizational change

characteristics and skills of the change leader

- formal change leaders (or agents) spearhead the change and may play any or all of the change roles - informal change leaders can emerge anytime throughout the change process

new organizational forms and competitive dynamics

- global small and medium sized enterprises - global constellations of organizations (networks) - large, focused global firms - all leading to: spread of autonomous dislocated teams, digitally enabled structures, intense global rivalry and running faster while seeming to stand

new management challenges

- greater diversity - greater synchronization requirements - greater time-pacing requirements - faster decision making, learning, and innovation - more frequent environmental discontinuities - faster industry life cycles - faster newness and obsolescence of knowledge - risk of competency traps where old competencies no longer produces desired effects - greater newness and obsolescence of organizations

overcoming groupthink

- have the leader play an impartial role - actively seek dissenting views (have members play devil's advocate) - actively discuss and assess the costs, benefits, and risks of diverse alternatives - establish a methodical decision-making process at the beginning - ensure an open climate and solicit input from informed outsiders and experts - allow time for reflection and do not mistake silence for consent

types of organizational development interventions

- human processes interventions - techno-structural interventions - human resource management interventions - strategic interventions

Quinn's Competing Values Framework

- human resources view - open systems view - internal processes view - rational economic view

change initiators

- identifies need and vision - acts as champion

The Change Path Model

- identify the need for change - articulate the gap between current situation and desired future state and develop - ? - ?

groupthink

- illusion of invulnerability - construct rationalizations - morality of position is unquestioned - stereotypes (distort images of other parties) - pressure applied to those who express doubts about the group's position - self-censorship (deviations from consensus are avoided) - illusion of unanimity - mind-guards (leaders and fellow members protected from adverse information)

tuning

- incremental (continuous) and anticipatory - need is for internal alignment - focuses on individual components or sub-systems - middle management role - implementation is the major task

adaptation

- incremental (continuous) and reactive - incremental changes made in response to environmental changes - need is for internal alignment - focuses on individual components or sub-systems - middle management role - implementation is the major task

what is a vision statement?

- it provides conceptual framework for understanding the organization's purpose - includes a road map and has an emotional appeal - a vision without task is a dream world, and task without vision is drudgery

what's required to be a successful change leader?

- keen insight into the external environment and skilled anticipator of what is evolving - rich understanding of organizational systems and processes, power structures, and stakeholder networks - excellent analytic, interpersonal, and communication skills - driving passion for action, yet patient and persistent - well developed sense of timing and tactics - ability to assess and manage risk - tolerance for ambiguity and risk taking - emotional maturity and courage - self-confidence and optimism - honest and trustworthy - inspires confidence - deep understanding of themselves and their impact - curiosity and strong desire to learn

approaches to visions for change

- leader developed vision - leader-senior team developed vision - bottom-up visioning

common causes of difficulty with organizational change

- managers don't do their analytic homework - managers are action oriented and assume others will see the inherent wisdom in the proposed change - managers under or overestimate their own power and influence (and that of others) - managers see transition periods as a cost, not an investment - executives underestimate the resources and commitment needed to integrate the human dimensions with other aspects of change - managers are unaware their actions (and those of other key managers) may be sending conflicting messages - managers find human processes unsettling or threatening - managers lack capacity (attitudes, skills, and abilities) to manage complex changes that involve people - managers' critical judgement is impaired due to overconfidence, under confidence, and/or group think - unanticipated external factors can play a huge role

why this change?

- many things need change - must analyze importance of expending resources - craft a compelling vision of where you are going and why it's worth the effort

change

- may be uncertainty - need to determine: what to change, who is affected and who will be involved in implementing change, how to implement the change

institutionalization

- measurement (note that this should be thought of much earlier in the process) - tracking - new structures and systems in place

barriers to recognizing the need for change ('active inertia')

- mental models about the world become blinders - past successes reinforce existing practices - existing values and corporate culture may harden into dogma - leadership practices may impede recognition of need for change - embedded systems and processes can harden into unquestioned routines and habits - existing relationships can become shackles that impede the ability to respond to a changing environment

organization components

- mission and vision - strategy - goals - structure - processes or systems - technology - people

why change?

- must demonstrate the need for change is real (unfreeze current or previous practices) - recognize that differences in perspective are real, rather than stubbornness, lack of intelligence, deviance, etc.

readying an organization for change

- need for change is identified in terms of the gap between the current state and the desired state - people must believe that the proposed change is the right change - people must believe they can accomplish the change - the change is supported by key individuals that organizational members look to - "what's in it for me?"

Stacey's Complexity Theory

- organizations are webs of nonlinear feedback loops that are connected with individuals and organizations through similar webs - these feedback systems operate in stable and unstable states of equilibrium, even to the point at which chaos ensues - organizations are inherently paradoxes, pulled by forces of stability and instability - if organizations give into forces of stability, they become ossified and change impaired - if organizations succumb to forces of instability they will disintegrate - success is when organizations... - short term dynamics (or noise) are characterized by irregular cycles and discontinuous trends, but long term trends are identifiable - a successful organization faces an unknowable specific future because things can and do happen - agents can't control the long term future they can only act in relation to the short term - long term development is a spontaneous self- organizing process that may give rise to new strategic directions - it is through this process that managers create and come to know the environments and long term futures of their organizations

open systems perspective

- organizations exchange information, material, and energy with their environment (not isolated) - a system is the product of its interrelated and interdependent parts (complex web of interrelationships, not a chain of linear cause-effect relationships)

evaluation of Kotter's Eight Stage Process

- overcomes simplicity of Lewin's model - says steps must go in a sequence - make sure change is embedded in organization's culture and norms

Nadler and Tushman Organizational Congruence Model

- performance includes work, people, formal organization, and informal organization: if they are aligned with each other, and if internal and external system are aligned, performance in external marketplace will be better

environmental forces driving changes (PESTE factors)

- political / legal changes - economic changes - social, cultural, and demographic - new technologies - ecological / environmental factors

readiness dimensions

- previous change experience - executive support - credible leadership and change agents - openness to change - rewards for change - measures for change and accountability

change leaders embrace change paradoxes

- recognize that change leaders sometimes drive change from the front while at other times they empower others and stay out of the way - recognize resistance to change is both a problem and an opportunity - focus on the outcomes of change but are very careful about the management of the process - recognize the tension between "getting on with it" and reassessing and changing direction - capacity to balance patience and impatience - recognize the absolute rate of learning is less important than the relative rate of learning in comparison to competitors

common management responses to competitive pressures

- running hard, but for all purposes standing still (called the Red Queen phenomenon) - in global competition, relative pace of a firm's development compared to rivals matters more than the firm's absolute rate of learning and innovation

developing your understanding of the need for change and create awareness and legitimacy for it

- seek out and make sense of external data - seek out and make sense of the perspectives of other stakeholders - seek out and make sense of internal data - seek out and assess personal concerns and perspectives

why do visions fail?

- senior management's walk doesn't match the talk - ignores needs of those putting it into practice - unrealistic expectations develop that can't be met - lacks grounding in the reality of the present - either too abstract or too concrete - lack of creative input - poor management of participation - complacency (no sense of urgency)

evaluation of Lewin's View

- simplistic but still useful - limitations: presents change as simple and linear, does not address the need for change, assumes the refreezing is optimal

reorientation

- strategic and anticipatory - strategic and proactive changes based on predicted major changes in the environment - need is for positioning the whole organization to a new reality - focuses on all organizational components - senior management creates sense of urgency and motivates the change

recreation

- strategic and reactive - response to a significant performance crisis - need to reevaluate the whole organization, including its core values - focuses on all organizational components to achieve rapid, system-wide change - senior management creates vision and motivates optimism

disadvantages of Nadler and Tushman Organizational Congruence Model

- strategy change doesn't always come first - environment isn't only source of change

mobilization

- take identification of what needs to change a step further - change leaders convince others of the need to change and proposed course - address formal systems and structures - people factors: change agents, change recipients, interpersonal dynamics

change recipients

- those affected by the change who have little input to the process or content of the organizational change - have to alter behaviors to ensure change success

issues and problems with the linear view

- time delays and lag effects related to variables and outcomes you are trying to manage ex: inventory stocks and flows, customer satisfaction, purchase decisions - complexity makes cause-effect relationships difficult to predict and track - attribution errors and false learning often result from the above

rate the organization's readiness for change

- total scores can range from -10 to +35 - the higher the score, the more ready the organization is for change - organizations that score below +10 are likely not ready for change, making change very difficult - use the scores from each area as a guide to focus your attention on those low-scoring sections needing improvement before attempting change

types of organizational change

- tuning - adaptation - strategic - recreation

the vision trap

- watch for vision creep - get back to basics (language people can identify with, language people can do something with and focus upon, vision that engages and energizes and is not abstract and ambiguous)

critical questions when considering change

- what is the environment telling you prior to, at the beginning, during, and following the implementation of the change? - why is change needed? who sees this need? - what is your purpose and agenda? - how will you implement and manage the change? - how will you ensure that you act (and are seen to act) ethically and with integrity? what have I learned about change and how can I remember it for the future? how can I pass on what I learned? - once the change is completed, what comes next? the completion of one change simply serves as the starting point for the next

the need for change

- what is your assessment of the need for change and the important dimensions and issues that underpin it? - have you investigated fully the perspectives of internal and external stakeholders? - can the different perspectives be integrated in ways that offer the possibility for collaborative solutions? - have you developed and communicated the need for change in ways that will heighten readiness and willingness to change?

ten things a killer vision statement should accomplish

1. be short and to the point 2. be motivational and inspirational 3. captivate the intended audience 4. be timeless (must be applicable months or years into the change journey 5. be a unified voice of the business (not a department opinion) 6. identify with a common most urgent goal 7. cross boundaries and diversities 8. create a sense of urgency 9. be a call to action 10. be genuine, believable, and spoken straight from the heart

Kotter's Eight Stage Process

1. establishing a sense of urgency 2. creating a guiding coalition 3. developing a vision and strategy 4. communicate the change vision 5. empower employees 6. generate short-term wins 7. consolidate gains and produce more change 8. anchor the new approaches in the culture

Greiner's 5 Phases of Organizational Growth

1. growth through creativity - crisis of leadership - 2. growth through direction - crisis of autonomy - 3. growth through delegation - crisis of control - 4. growth through coordination - crisis of red tape - 5. growth through collaboration - crisis of ? -

a second look at readiness

1. leadership viewed as trustworthy by followers 2. followers viewed as trustworthy and able to dissent by leaders 3. have capable champions of change 4. involved middle management 5. innovative culture 6. accountable culture 7. effective communications 8. systems thinking

Duck's Five Stage Curve

1. stagnation 2. preparation 3. implementation 4. determination 5. fruition

organization change is the planned alteration of organizational components to improve the __________ of organizations. A. effectiveness B. profitability C. efficiency D. culture

A. effectiveness

which of the following are the four change roles describe in the book? A. implementers, initiators, recipients, and facilitators B. leaders, followers, resisters, and receivers C. initiators, champions, recipients, and facilitators D. agents, leaders, facilitators, and planners

A. implementers, initiators, recipients, and facilitators

what is a key tool used heavily in the institutionalization stage? A. measurement B. urgency C. compelling vision D. gap analysis

A. measurement

recreation happens in response to a major external event. A. true B. false

A. true

Kotter's Model of Change asserts that every change is different and that change can be implemented through a variety of different paths or steps in varying order. A. true B. false

B. false

The Change Path Model provides thorough instructions for enacting change that should be followed closely to ensure success. A. true B. false

B. false

once a gap analysis is performed, it is fairly straightforward to decide how the organization can reach the desired future state. A. true B. false

B. false

the best way to foster strong organization change and commitment includes all of the following except: A. instill a broader perspective in employees' connection to their work B. focus on a holistic perspective on change C. communicate and elicit ideas from employees about the change D. offer financial incentives for employee compliance

B. focus on a holistic perspective on change

tuning describes which of the following: A. minor changes in response to external stimuli B. small, deliberate, ongoing changes C. large strategic change resulting from internal planning D. significant shift due to external events

B. small, deliberate, ongoing changes

Gentile's Giving Voice to Values is meant to strengthen business students' skills in what type of situation? A. when negotiating for salary B. when instigating a change project C. when in a situation that runs counter to their principles D. when on boarding new employees

C. when in a situation that runs counter to their principles

what should companies consider when expanding their reach internationally? A. the challenges of having a homogenous workforce B. maintaining their culture and norms despire cultural shifts C. nothing; if they are small companies they will not be affected D. diversity-related challenges and differing rules and regulations

D. diversity-related challenges and differing rules and regulations

what are the three stages of Lewin's Model of Change? A. easy, hard, and harder B. stop, drop, and roll C. stop, look, and listen D. unfreeze, change, and refreeze

D. unfreeze, change, and refreeze

roots of organizational development

Frederick Taylor scientific management - management theory to analyze and synthesize workflow - improve efficiency and productivity - high level of managerial control over work process --> high levels of resentment and dissatisfaction

organizational development

a system-wide application of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness

Change Path Model

awakening --> mobilization --> acceleration --> institutionalization

advantages of Quinn's Competing Values Framework

can describe multiple levels - organizational rewards - group processes - individual viewpoints - skills and perspectives

advantages of Nadler and Tushman Organizational Congruence Model

complex yet allows for action planning

organizational change is...

disruptive and ineffective without organizational development - balance vs. evolution

Beckhard and Harris' Change Process Model

initial organization analysis --> why change? --> gap analysis --> action planning --> managing the transition

change management

intervention strategies: - driven by strategy - simultaneous focus on several components (strategy, human resources, organization design, technology) - action-oriented (change behavior before attitudes)

organizational development

intervention strategies: - not directly linked to strategies - focus on one component at a time - normative re-educative (change attitudes to change behavior)

the 'knowing-doing' gap

knowing concepts and theories is not enough - managers need to become effective agents of change, possessing the will and skills to make positive change happen

the causal model driving change

macro changes and impacts in the environment --> new organizational forms and competitive dynamics --> management challenges in a "new time"

nature of the impact of change

planned changes don't always produce the intended results

evaluation of Duck's Five Stage Curve

related to emotional transitions

disadvantages of Quinn's Competing Values Framework

static view

organizational change

the intentional and planned alteration of organizational components to improve organizational effectiveness

Lewin's View

unfreeze --> change --> refreeze