Exam 4

developments in revolutionary change: reengineering

"reengineering"-- refers to the process by which managers redesign how tasks are bundled into roles and functions to improve org effectiveness -Michael Hammer and J. Champy popularized to-- the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed. -instead of focus on orgs FUNCTIONS, the mangers of a reengineered org focus on business PROCESSES -processes, not orgs, are the object of reengineering -companies do not reengineer their sales or manufacturing departments, they reengineer the work the people in those departments do. -*business process*-- an activity that cuts across functional boundaries and is vital to the quick delivery of goods and services or that promotes high quality or low costs -involves activities across functions -orgs that take up reengineering deliberately ignore the existing arrangement of tasks, roles, and work activities; they start the process with the customer (not the product or service) (in the past) *three main components of materials management*: purchasing, production control, and distribution -each are separate functions which makes coordinating difficult (today) most orgs put all three of the functional activities involved in the materials management process inside ONE FUNCTION -makes it easier to outsource -communication is easier *three guidelines for performing reengineering successfully*: 1. organize around outcomes, not tasks'; where possible, organize work so one person or one function can perform all the activities necessary to complete the process, thus avoiding the need for transfers (and integration) between functions 2. have those who use the output of the process perform the process; because the people who use the output of the process know best what they want, establish a system of rules and SOPs that will allow them to take control over it. 3. decentralize decision making to the point where the decision is made; allow the people on the spot to decide how best to respond to specific problems that arise HANDOFFS: -to eliminate the need for handoffs between departments, each team is responsible for all aspects of the design process -to reduce the ned for handoffs within a team, all team embers work together from the beginning to plan the steps in the design process, and all are responsible for reviewing the success of their efforts -*Reengineering and TQM are highly interrelated and complementary* (first answer reengineering question: "what is the best way to provide customers with the goods or service they require?" then TQM "how can we now continue to improve and refine the new process and find better ways of managing task and role relationships?" ) -successful orgs examine both Q's simultaneously

pondys model of org conflict

*STAGE 1: latent conflict *-- no outright conflict exists, but there is a potential for conflict because of several factors *sources of conflict:* 1.* interdependance* -as orgs differentiate, subunits want autonomy -task interdependence high= conflict likely to occur at the individual, functional, and divisional levels -if it were not for interdependence, there would be no potential for conflict to occur among org subunits or stakeholders 2. *difference in goals and priorities * -once goals are incompatible, potential conflict arises because the goals of one subunit may thwart the ability of another to achieve its goals 3. *bureaucratic factors* -the way in which task relationships develop in orgs can be a potential source of conflict -conflict occurs between staff and line functions -LINE FUNCTION: directly involved in the production of the orgs products; in hospitals doctors are line function -STAFF FUNCTION: advise and support the line function and include functions such as r&d, accounting, and purchasing 4. *incompatible performance inertia* -conflict arises because of orgs way of monitoring, evaluating, and reading different subunits -the way an org designs its structure to coordinate subunits can affect the potential for conflict 5. *competition for resources* -conflict would never be a problem if there was always an abundance of resources for subunits to use -when resources are scarce, choices about resource allocation have to be made, and subunits have to compete for their share -complex orgs with high levels of differentiators and integration=potential for conflict is great *STAGE 2: perceived conflict*-- subunits become aware of conflict and begin to analyze it. conflict escalates as groups battle over the cause of conflict -blame poor quality to very different causes than on another *STAGE 3: felt conflict *-- subunits respond emotionally to each other, and attitudes polarize: "us vs them". what began as a small problem escalates into huge conflict -argue POV= more conflict *STAGE 4: manifest conflict*-- subunits try to get back at each other. fighting and open aggression are common and org effectiveness suffers -open aggression between groups and people is common -infighting in the top management team is common -very effective form of manifest conflict is PASSIVE AGGRESSION: frustrating the goals of the opposition by doing nothing *STAGE 5: conflict aftermath*-- conflict is resolved in a way that leaves subunits feeling combative or cooperative -every episode of conflict leave a conflict aftermath that affects the way both parties perceive and react to future episodes -if conflict is resolved before it gets to the Manifest conflict stage, then the aftermath will promote good future working relationships -if conflict is not resolved until late in the process, or is not resolved at all, the aftermath will sour future working relationships, and the org culture is poisoned by permanently uncooperative relationships

Total quality management (TQM)

*TQM*-- a technique developed by W. Edwards Deming to continuously improve the effectiveness of flexible work teams -once adopted, it leads to continuous, incremental change, and all functions are expected to cooperate with each other to improve quality -developed by edwared and joseph duran -embraced by japanese companies after WWII -shop floor workers in Japan had been organized into *quality circles*-- groups of workers who met regularly to discuss the way work is performed in order to find new ways to increase performance changing cross functional relationships to help improve quality is important in TQM: -poor quality originates at crossover points or after handoffs when people turn over the work they are doing to people in different functions *changes with TQM include*: -changes in task, role, and group relationships *Negatives:* -not always easy because it requires workers and managers to adopt new ways of viewing their rolls in an org -managers must be willing to decentralize control of decision making, empower workers, and assume the role of facilitator rather than supervisor ("the command and control model" gives way to an "advice and support model") -it is important that workers and managers share in the increased profits of TQM *Two reason for lack of success with TQM*: 1. underestimates of the degree of commitment from people at all levels in the org necessary to implement a TQM program 2. long time frame necessary for TQM efforts to succeed and show results (TQM does not fix things overnight; is a long process)

knowledge management: codification vs. personalization

*codification approach*-- -knowledge is carefully collected, analyzed, and stored in databases where it can be retrieved easily by users who input org specific commands and keywords. -STANDARDIZED org -only suitable when the product or service being provided is itself quite standardized so best practices can continually be discoverd and entered into the knowledge management system -allows a MECHNISTIC structure to react in a more organic fashion (flexibility) *personalization approach*-- -is pursued when an org needs to provide customized products or solutions to clients, when technology is changing rapidly, and when employees rely much more on know how , insight, and judgment to make decisions -mutual adjustment -information systems are designed to show employees who in the org might possess the knowledge they might need or who might have confronted a similar problem in the past -an orgs ability to provide a quick, customized solution and translate this rapidly into best practices, often depends on the degree to which its is SPECIALIZED -knowledge management is an important tool for increasing the level of integration inside an org, among people, functions and even divisions -org must always compare the benefits and costs of using IT and knowledge management to facilitate learning

types of cognitive biases

*cognitive biases*-- factors that systematically bias congivite structure and affect org learning and decision making -*cognitive dissonance*-- the state of discomfort or anxiety a person feels when there is an inconsistency between his or her beliefs and actions -decision makers try to maintain consistency between their images of themselves, their attitudes, and their decisions -seek confirming and reenforcing beliefs; ignores info that does not -this theory explains why managers tend to misinterpret the real threats facing anorg and attempt to muddle through even when its clearn to many observers that the org is in crisis -the desire to reduce cognitive dissonance pushes managers to adopt FLAWED SOLUTIONS -*illusion of control*-- a cognitive bias that causes managers to overestimate the extent to which the outcomes of an action are under their personal control -managers can reduce the degree to which they fear uncertainty by strengthening their perception that they have the personal abilities to control the situation -the More managers perceive they can control the situation, the more likely a cognitive bias known as illusion of control to arise -*frequency and representativeness*-- -can also work in opposite directions *frequency*-- a cognitive bias that deceives people into assuming that extreme instances of phenomenon are more prevalent than they really are *representativeness*-- a congitive bias that leads managers to form judgements based on small and unrepresentative samples -*projection*-- a cognitive bias that allows managers to justify and reinforce their own preferences and values by attributing them to others -*ego-defensiveness*-- a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light -results in little org learning, and faulty decision making ultimately leading to a mangers replacement or an orgs failure -*escalation of commitment*-- a cognitive bias that leads managers to remain committed to a losing course of action and reduce to admit they have made a mistake -reinforced by incrementalist -may work in stable environments, its disastrous when technology or competition is rapidly changing -the net effect of all the cognitive biases is that managers lose their ability to see new problems or sistutations clearly and to devise new responses to new challenges and the level of learning falls.

devils advocacy and dialectical inquiry

*devils advocate*-- a person who is responsible for critiquing ongoing or learning -person willing to stand up and question beliefs of more powerful people, resist influence attempts, and work to convoke others that ew ideas or plans may be flawed or wrong and harmful -overcome cognitive bias and promoting org learning -an org that uses devils advocacy institutionalizes dissent by assigning a manager or management team the rol of devils advocate. -improve plan and verify its commercial viability -*dialectical inquiry*-- creates teams of decision makers -each team generates and evaluates different scenarios and courses of action and then recommend the best one

E-Engineering

*e-engineering*-- refers to companies attempts to use all kinds of info systems to improve their performance -the importance of e-engineering is increasing as it changes the way a company organizes its value-creation functions and links them to improve its performance

innovation

*innovation*-- the process by which orgs use their skills and resources to develop new goods and services or to develop new production and operating systems so they can better respond to the needs of their customers -one of the most difficult instruments of change to manager

resistance to change summary

*org level* -structure -culture -strategy *functional level* -differences in subunit orientation -power and conflict *group level* -norms -cohesiveness -groupthink *individual level* -cognitive biases -uncertainty and insecurity -selective perception and retention -habit

organizational development

*organizational development (OD)*-- a series of techniques and methods that managers can use in their action research program to increase the adaptability of their org -Warren Bennis, OD refers to-- a complex educational strategy intended to change beliefs, attitudes, values, and structure of orgs so that they can better adapt to new technologies, markets, and challenges and the dizzying rate of change itself. -*Goal of OD*: improve org effectiveness and to help people in orgs reach their potential and realize their goals and objectives -many OD techniques help managers unfreeze, change, and refreeze

developments in evolutionary change: sociotechnical systems theory

*sociotechnical systems theory*-- a theory that proposes the importance of changing role and task or technical relationships to increase org effectiveness -one of the first to propose this theory -it emerged from a study of changing work practices in the british coal mining industry -before WWII, coal minding was a small batch or craft process called *hand got method* --> to increase efficiency, managers replaced it with the *long wall method*-- which used a mechanized, mass production technology -managers need to fit or "joint optimize" the workings of an orgs technical and social systems, or to promote effectiveness two mass production settings: 1. managers routinize the technology, standardize the work process, and require workers to perform repetitive tasks as quickly as possible; workers on production line and don't switch jobs; managers monitor closely 2. managers standardize the work process but encourage workers to find better ways to perform tasks; workers are allowed to switch jobs; and workers are formed into teams that are empowered to minter and control important aspect of their own performance. (the more team based system will promote the development of values and norms that will host efficiency and product quality)

using game theory

- a useful tool that can help managers improve decision making and enhance learning is GAME THEORY-- in which interactions between orgs are viewed as a competitive game; if companies understand the nature of the competitive game they are playing, make better use of scarce resources -useful when competing against a limited number of rivals and are highly interdependent 2 basic types of games: -*sequential move game*-- (chess) players move in turn, and one player can select a strategy to pursue after considering its rivals choice of strategies -*simultaneous move game*-- players act at the same time, in ignorance of their rivals current actions -a FUNDAMENTAL PREMISE of game theory is that when making decisions, managers need to think in two related ways: 1. need to look forward, think ahead, and anticipate how rivals will respond to whatever might be their competitive moves 2. managers need to reason backward to determine which moves their company should pursue today given their assessment of how their rivals will respond to various future moves. -(if managers do both, make best choice, and greatest potential return) -this cardinal principle of game theory is know as LOOK FORWARD AND REASON BACK ^^ - can use decision tree to help process -must have good understanding of what their rival is likely to do under different scenarios and they need to be able to extrapolate their rivals future behavior aced on this understanding

unstructured model

-developed by henry mintzberg -recognizes that decision making takes place in a series of small, incremental steps that collectively have a major effect on org effectiveness over time -incremental decisions are made within an overall decision making framework consisting of 3 stages: 1. identification-- managers develop routine to recognize problems and to understand what is happening to the org 2. development-- they serache for and select alternatives to solve the problems they have defined. (new plans or modification of old plans) 3. selection-- managers use an incremental selection process-- judgement and intuition, bargaining, and to a lesser extent formal analysis (typical of the rational model)-- to reach a final decision -decision making is a process that may evolve unpredictably in an unstructured way UNSTRUCTURED MODEL--> *nonprgrammed decisions* INCREMENTALIST MODEL--> *programmed decisions*

levels of org learning

-four levels: individual, group, organizational, and inter organizational -developed by peter senge 1. *individual*-- managers need to do all they can to facilitate the learning of new skills, rules, norms, and values so individuals can increase their own personal abilities and to help build an org core competences. -for org learning, members need to develop a sense of PERSONAL MASTERY-- that org should empower all employees and allow them to experiment and create and explore what they want -to help achieve personal mastery and give employees a deeper understanding, org need to encourage employees to develop and use complex MENTAL MODELS that challenge them to find new or better ways of performing a task -MESSAGE BEHIND FIRST PRINCIPLE: orgs must encourage each individual member to develop a similar commitment and attachment to their job so they will develop a taste for experimenting and risk taking -REENGINEERING is about promoting org learning 2. *group*-- managers need to encourage learning by promoting the use of various kinds of groups- such as self managed or cross functional teams-- so that employees can share or pool their skills and abilities to solve problems -provide SYNERGY-- the idea that the whole is much more than the sum of its parts, which enhance performance -"group routines" and "shared pools of collective meaning" that enhance group effectiveness may develop from such group interactions--Senge refers to this as TEAM LEARNING -Senge argues that team learning is more important than individual learning 3. *organization*--managers can promote learning through the way they create its structure and culture -MECHANISTIC STRUCTURE--> exploitative learning -ORGANIC STRUCTURE--> exploring learning -orgs need a balance between these -BUILDING SHARED VISION-- by which he means creating an ongoing mental model that all org members can use to frame problems or opportunities and that binds them to an org. -terminal and instrumental values *adaptive cultures*-- cultures that value innovation and encourage and reward experimentation and risk taking by middle and lower level managers; (middle and lower managers) -org learning HIGHER -more likely to survive in a changing environment and should have higher performance than inert cultures *inert cultures*-- cultures that are cautious and conservative and do not encourage risk taking by middle and lower level managers 3. *interorganizational* - is important because orgs can improve their effectiveness by imitating each others distinctive competences -organic, adaptive, cultures--> more likely to actively seek out new ways to manage linkages with other orgs -mechanistic, inert, cultures--> slower to recongize and to take advantage of new linkage mechanisms -orgs can encourage explorative and exploitative learning by cooperating with their suppliers and distributors to find new and improved ways of handling inputs and outputs -Senge's fifth principles of org learning, SYSTEMS THINKING-- to create a learning org, managers must recognize the effects of one level of learning on the others (promote org learning in all four levels--called a learning system to quickly respond to change

Managing conflict: conflict resolution strategies

-org must balance the need to have some good conflict (which overcomes inertia and allows new orgs learning) with the need to prevent good conflict from escalating into bad conflict (which causes a breakdown in coordination and integration between functions and divisions) -the method an org chooses to manage conflict depends on the source of the problem -two common strategies managers use to resolve conflict: 1. *changing a orgs structure to reduce or eliminate the cause of conflict* -alter the level of differentiation and integration to change task relationships is one way to resolve conflict -unable to control overhead costs with different products= moving to product structure makes it much easier to assign overhead costs to different product lines -battling over resources= managers can increase the number of integrating roles in the org and assign top managers the responsibility for solving conflicts between divisions for improving the structure of working relationships; (increase level of integration) -another way to manage conflict is to make sure the design of an orgs hierarchy of authority is in line with its current needs -FLATTEN the hierarchy, and Decentralize 2. *trying to change the attitudes of individuals or replacing the individuals themselves* -differences in goals and beliefs about the the best way to achieve org goals are inevitable because of differences between functions and divisions -set up procedural system that allows parties in conflict to wait their grievances and hear other groups POV -procedural system very important in managing industrial conflicts between managers and unions -bargaining in labor disputs is ATTITUDINAL STRUCTURING-- a process designed to influence the attitudes of the opposing party and to encourage the perception that both parties are on the same side and want to solve a dispute amicably -an org often engages in THIRD PARTY NEGOTIATOR to moderate a dispute between subunits or stakeholders-- can be senior manager in expertise with solving dispute; role is to prevent polarization in felt conflict stage; often supports weaker party -another way is thy the exchange and rotation of people between subunits to encourage groups to learn each others POV; widespread in Japan -when attitudes are difficult to change because developed over long period of time, the only way to resolve is by changing people involved an orgs CEO is an important influence on attitudes in a conflict -way CEO acts affects the attitudes of other managers directly -CEO has ultimate power to resolve conflict between subunits -STRONG CEO actively manages org conflict and opens up a debate, allowing each group to express POV -STRONG CEO builds consensus for resolution and decision and can motivate subunits to cooperate to achieve org goals -WEAK CEO can increase org conflict; when CEO fails to manage the bargaining and negotiation process between subunits, the strongest subunits are encourage or allowed to fight for their goals at the expense of other subunits -WEAK CEO produces a power vacuum at the top of the org, enabling the strongest member of the org to compete for control. -as consensus is lost and infighting becomes the order of the day, conflict becomes destructive

the costs and benefits of org politics

-org politics is an integral part of decision making in an org -coalitions form to control the premises behind decision making, to lobby for their interest, to control the part of org change, and to resolve org conflict in their own favor -to manage org politics and gain benefits, an org must establish a balance of power in which alternative views and solutions can be offered and considered by all parties and dissenting views can be heard. -important for the balance of power to shift over time, toward the party that can best manage uncertainty and contingencies facing the org -politics can improve org effectiveness if it results in change that allocates resources where they can produce more value -an orgs ability to obtain the benefits of politics depends on the assumption that power flows to those who can be of moSt help to the org. -when the balance of power between stakeholders or subunits does not force the allocation of resources to where they can best create value, org effectiveness suffers -when powerful manners can suppress the views of those who oppose their interest, debate becomes restricted, checks and balances fade, bad conflict increases, and org inertia increases. -whether power and politics benefit or harm an org is a function of the balance of power among org STAKEHOLDERS

factors affecting org learning

-pual nystrom and william starbuck -as org learn to make decisions they develop rules and SOPs that facilitate programmed decision making -if org achieves success by using its SOPS--> lead to complacency and deter managers from searching for and learning form new experiences (past learning may inhibit new learning and lead to org inertia) -programmed decision makign drives out nonprobrammed decision making, the level of org learning falls -"WEATHERING THE STROM STRATEGIES"-- they postpone investments, downsize the workforce, and centralize decision making and reduce autonomy at lower levels in the org; incrementalist decision making -*cognitive structure*-- the system of interrelated beliefs, preferences, expectations, and values a person uses to define problems and events -plans, goals, stroies, myths, and jargon -shape the way top managers make decisions -shape their INTERPRETATION AND INFORMATION; that is they way mangers view a situation is shaped by their prior experience and customary ways of thinking

forces for and resistance to org change

-recognizing the nature of these forces is one of the mangers most important tasks -forces include: competitive, economic, political, global, demographic, social, and ethical (see below slides)

Organizational Power pg. 401

-the ability of one person or group to overcome resistance by others to resolve conflict and achieve a desired objective or result -org power is the mechanism through which conflict gets resolved -org power is the ability of A to cause B to do something that B would not have otherwise have done -when power is used to resolve conflict, COERCION exists; actors with power bring about outcomes they desire over others -possession of power determines the kind of decisions that will be selected to resolve conflict -conflict and power are intimately related

the garbage-can model PG. 340

-the view of decision making as an unstructured process is taken to its extreme -SOLUTION SIDE as from the problem side: they create a problem they can solve with solutions that are already available -problems, solutions, and the preferences of different managers and coalitions all mix and contend with one another for org attention and action. -org becomes an "organized anarchy"-- decision about which alternative to select depends on which manager or coalition has the most influence or power to sway other decision makers at the moment -decisions become fluid, unpredictable, and contradictory as the preferences and priorities of decision makers change -OPPOSITE OF RATIONAL MODEL

the nature of org learning

-when org in rut and managers cannot make decisions that allow it to change and adapt to its environment, it may fail and die; to prevent this need to encourage org learning -one of the most important processes that helps managers to make better non programmed decisions,-decisions that allow them to adapt to, modify, and change the environment to increase an org chances of survival- is org learning _*organizational learning*-- the process managers use to improve org members capacity to understand and mange the org and its environment so they can make decisions that continuously increase org effectiveness -the need for managers continually to restructure and reengineer their org is motivated by the realization today, only those orgs that learn new ways to operate more efficiently will survive and prosper.

the incrementalist model

-when selecting a set of new alternative courses of action, managers tend to choose those that are only slightly or incrementally different from those used in the past, thus lessening their chances of making a mistake -muddling through -change slowly -best in relatively stable environment where mangers can accurately predict movements and trends and so make the incremental decision that will lead to higher effectiveness

org insight

10.3 pg 284 12.1 pg. 338 14.1 pg. 393

strategies for org learning

3 ways in which managers can unlearn old ideas and learn new ones: 1. *listening to dissenters*-- to improve quality of decision making, top managers can choose to surround themselves with people who hold different and often opposing pov -research shows that managers do not listen to subordinates or others -because of BOUNDED RATIONALITY managers may be reluctant to encourage dissent because its stressful 2. *converting events into learning opportunities*-- nostrum and starbuck example -org needs to redesign its structure and culture to motivate managers to find better ways to respond to a situation -TQM based on the idea of having employees continuously examine their tasks to discover whether improments that increase quality and productivity can be made 3. *experimenting*-- to encourage explorative learning, orgs must encourage experimenting, the process of generating new alternates and testing the validity of old ones. -can be used to improve both incremental and garbage can decision making -IT is a vital part of learning how to experiment to improve performance

to manage change within a group or between groups, change agents can employ three different kinds of OD techniques:

1. *team building*-- an OD technique in which a facilitator first observes the interactions of group members and then helps them become aware of ways to improve their work interactions -GOAL: improve the way group members work together -DOES NOT focus on what the group is trying to achieve -is important when reengineering reorganizes the way people from different functions work together 2. *Intergroup training*--an OD technique that uses team building to improve the work interactions of different functions or divisions -GOAL: improve org performance by focusing on a functions or divisions joint activities and output. -popular form of intergroup training is *organizational mirroring*-- an OD technique in which a facilitator helps two interdependent groups explore their perceptions and relations in order to improve their work interactions 3. *total organizational interventions* -variety of OD techniques can be used at the org level to promote org wide change. one is *Organizational confrontation meetings*-- an OD technique that brings together all of the managers of an org at a meeting to confront the issue of whether the org is meeting its goals effectively -result of this process is changes in the org structure and operating procedures -**restructuring, reengineering, and TQM often originate in org-wide OD interventions that reveal the kinds of problems an org needs to solve

knowledge management and information technology

IT-enabled org structure allows for new kinds of task and role relationships among electronically connected people that promote superior communication and coordination -*knowledge management*-- a type of IT enabled org relationship that has important implications for both org learning and decision making -accenture realized the need for control system that facilitates creative, on the spot, decentralized decision making -to increase effectiveness, need way to allow consultants to share each others firsthand knowledge and expertise -to accomplish these goals ^, accenture decided to create a knowledge management system and substitute direct control by managers with control through a sophisticated in house IT system -if group members couldn't solve problem, they tapped into the company wide knowledge management database -accenture found that its knowledge management system, by flattening its structure, decentralizating authority, and enlarging and enriching roles, has increase its consultants creativity and performance -accenture was the biggest and most profitable IT consulting company

Managing change: Action Research

Kurt Lewin, whose force-field theory argues that orgs are balanced between forces for change and resistance to change, has a related perspective on how mangers can bring change to their org. *lewing three-step process for implementing change:* 1. unfreeze the org from its present state 2. make the desire type of change 3. refreeze the org in a new, desired state (managers must actively manage the change process) *action research*-- a strategy for generating and acquiring knowledge that mangers can use to define an orgs desired future state and to plan a change program that lows the org to reach that state. -helps unfreeze an org and move to refreezing it *STEPS IN ACTION RESEARCH *: 1. *DIAGNOSING THE ORG* -arises because somebody in the org perceives a gap between desired performance and actual performance (customer complaints about quality of goods or services have increased; turnover among managers or workers have become excessive; profits have recently fallen or operating costs have been escalating) -managers need to analyze what is going on and why problems are occurring -diagnosing the org can be a COMPLEX process -managers should collect info from people at all levels in the org and from outsiders such as customers and supplies -QUESTIONARE SURVEYS 2. *DETERMINING THE DESIRED FUTURE STATE* -involves a difficult planning process as managers work out various alternative courses of action that could move the org to where they would like to to be and determine what type of change to implement -what the org strategy and structure should be 3. *IMPLEMENTING ACTION* -*three step process:* (1) managers need to identify possible impediments to change that they will encounter as they go about making changes--impediments at the org, group, and individual level -the more revolutionary the change that is adopted, the greater the problem of implementing it. (2) deciding who will be responsible for actually making the changes and controlling the change process; the choices are to employ *external change agents*-- outside consultants who are experts in managing change or *internal change agents*-- managers from within the org who are knowledgeable about the situation to be changes -principle problem with using internal change agents is that other members of the org may perceive them as being politically involved in the changes and biased toward certain groups -external agents in contrast are likely to be perceives as less influenced by internal politics; have detached view of org problems and can distinguish between "forest and the trees" (3) deciding which specific change strategy will most effectively unfreeze, change, and refreeze the org -the types of change that these techniques give rise to fall into 2 categories: top down and bottom up *top-down change*-- change implemented by managers at a high level in the org -the result of radical organizational restructuring and reengineering is top-down change *bottom-up change*-- change implemented by employees at low levels in the org that gradually rises until it is felt throughout the org. -the first step (diagnosing the org) become pivotal in determining the success of the change -EASIER to implement than top-down because it provokes less resistance -orgs that use this change are usually well run and pay attention to change, are used to it, and change often -poorly run orgs (rarely change or postpone change until it is too late), are forced to engage in top-down restructuring to simply survive; change is so late that their only option is some massive restructuring or downsizing 4. *EVALUATING THE ACTION* -management decides whether more change is needed to reach to orgs desired future state or whether more effort is needed to refreeze the org in its new state -the best way to evaluate the change process is to develop measures or criteria that allow managers to asses whether the org has reached its desired objectives (survey workers/customers, compare costs before and after the change ) -assessing the impact of change is DIFFICULT because the effects of change may emerge slowly -need valid and reliable measures that can evaluate performance -poorly performing org fail to develop and consistently apply criteria that allow them to evaluate 5. *INSTITUTIONALIZING ACTION RESEARCH* -must make it a required habit or norm adopted by every member of an org -as necessary at the top of the org as it is on the shop floor -so hard to implement that members must be rewarded for being apart of change efforts -TOP MANAGERS can be REWARDED with stock options and bonus plans linked to org performance -LOWER-LEVEL members can be REWARDED through an employee stock ownership plan (ESOP) and by performance bonuses and pay linked to individual or group performance. -*(tangible, performance related rewards help refreeze an org in its new state because they help people learn and sustain desired behaviors)*

differences between the rational model and the carnegie model of decision making

RATIONAL MODEL: -info is available -decision making is costless -decision making is value free -the full range of possible alternatives is generated -solution is chosen by unanimous agreement -solution chosen is best for the org CARNEGIE MODEL: -limited info is available -decision making is costly (e.g. managerial costs, info costs) -decision making is affected by the preferences and values of decision makers -a limited range of alternatives is generated -solution is chosen by compromise, bargaining, and accommodation between org coalitions -solution chosen is satisfactory for the org

collateral org structure

collateral org structure-- an informal org of managers set up parallel to the formal org structure to shadow the decision making and actions of managers in the formal org. -managers choose this to improve the orgs ability to learn and adjust to new situations, and to enhance its ability to make decisions in an UNSTRUCTURED way -a collateral org structure allows an org to maintain its capacity for change at the same time it maintains its stability

competitive forces

competition is a force for change because unless an org matches or surpasses its competitors in efficiency, quality, or capability to innovate new or improved goods or services, it will not survive -adoption of new technology usually brings a change to task relationships as workers learn new skills or technique to operate the new technology

how devils advocacy and dialectical inquiry alter the rational approach to decision making

devils ad and dialectical inqurity improve the decision making by making mangers aware of several possible solutions to a problem and by encouraging the analysis of the pros and cons of each proposed solution before a final decision is made *rational approach*: problem identified--> solutions suggested-->solution chosen *devils advocacy*: problem identified--> solution suggested-->solutions challenged--> solution chosen *dialectical inquiry*: problem identified--> solution suggested x 2 -->solutions challenged--> solution chosen

economic, political, and global forces

economic, political, and global forces continually affect org and compel them to change how and where they produce goods and services economic and political unions among countries are becoming an increasingly important force for change -NAFTA paved the way for cooperating among canada, the us, and mexico -the EU included over 27 members eager to take advantage of a large protected market -japan and other fast growing asian countries such as china, recognizing that economic unios protect member nations and create barriers against foreign competitors, have moved to increase their operations in countries overseas. -NO org can afford to ignore the effects of global economic and political forces on its activities *Other global challenges facing orgs include: * -the need to change an org structure to allow expansion into foreign markets -the need to adapt to a variety of national cultures -the need to help expatriate managers adapt to the economic, political, and cultural values of the countries in which they are located

Flexible workers and flexible work teams

first: employees need to acquire and develop the skills to perform any of the tasks necessary for assembling a range of finished products second: flexible workers are then grouped into flexible work teams -*flexible work team*-- a group of workers who assume responsibility for performing all the operations necessary for completing a specified stage in the manufacturing process -a flexible work team is self managed: the team embers jointly assign takes and transfer workers from one task to another as necessary -separate teams assemble different components and turn those components over to the final product work team, which assembles the final product. -each team has to adjust its activities to the pull coming from the output side of the production process

targets of change

four different levels: 1. *human resources* -most important asset -orgs distinctive competences lie in the skills and abilities of its employees -change efforts directed at human resources include (1) a new investment in training and development actives so employees acquire new skills and abilities (2) socializing employees into the org culture so they learn the new routines on which org performance depends (3) changing org norms and values to motivate a multicultural and diverse workforce (4) an ongoing examination of the way in which promotion and reward systems operate in a diverse workforce (5) changing the composition of the top management team to improve org learning and decision making 2. *functional resources* -an org can improve the value that its functions create by changing its structure, culture, and technology -change from functional to a product team structure-->speed the new product development process 3. *technological capabilities* -give an org enormous capacity to change itself to exploit market opportunities -core competencies--> ability to develop a constant stream of new products or to modify existing products so they continue to attract customers -at org level, an org has to provide the context that allows it to translate its technological competences into value for its stakeholders (redesign of org activities) 4. *organizational capabilities* -org change often involves changing the relationship between people and functions to increase their ability to create value -changes in structure and cut lute take place at all levels of the org and include changing the routines an individual uses to greet customers, changing work group relatihisps, improving integration between devisions, and changing corporate culture by changing the top management team -these four level are interdependent; impossible to change one without changing another -

models of org decision making

in the past, org decision making was portrayed as a rational process in which all knowing managers make decisions that allow org to adjust perfectly to the environment in which they operate. -today, we recognize that decision making is an inherently uncertain process in which managers grope for solutions that may or may not lead to outcomes favorable to org stakeholders. *RATIONAL MODEL*-- -decision making is a straightforward three-stage process. STAGE 1: managers identify problems that need to be solved; effective orgs analyze all aspects of their org specific and general environment to identify conditions or problems that call for new action -to achieve a good fit between an org and its environment, they must recognize the opportunities or threats it presents STAGE 2: manners seek to design and develop series of alternative courses of acitno to solve the problems they have identifies; they study way to take advantage of the orgs specific competences to respond to opportunities and threats STAGE 3: managers compare the likely consequences of each alternative and decide which course of action offers the best solution to the problem they identified in stage 1. -the IDEAL SITUATION is one in which there is NO UNCERTAINTY: managers know all the courses of action open to them; they know the exact effects of all alternative on stakeholder interests; they are able to use the same set of objective criteria to evaluate each alternative; and they use the same decisions rules to rank each alternative and thus can make the ones best or right decision- the decisions that will maximize the return to org stakeholders -the IDEAL STATE is the situation assumed by the rational model of org decision making; ignores the ambiguity, uncertatiney, and chaos that typically plague decision making. -researchers have criticized as unrealistic or simplistic three assumptions underlying the rational model: 1.* the assumption that decision makers have all the info they need* -information and uncertainty: the assumption that managers are aware of all alternative courses of action and their consequences is unrealistic -for the assumption to be valid, managers would have access to all the info necessary to make the best decisions, could collect info about eery possible situation the org might encounter, and would possess accurate knowledge about how likely it is that each situation would occur -the assumption that it is possible to collect all the info needed to make the best decision is unrealistic -rational model ignores the fact that org decision making always takes place in the midst of uncertainty, which poses both an opportunity and a threat for an org. 2.* the assumption that decision makers have the ability to make the best decisions* -managerial abilities: the rational model assumed that managers posses the intellectual capability not only to evaluate all the possible alternative choices but also to select the optimum solution. -in reality, managers have only a limited ability to process the info required to make decisions, and most do not have the time to act as the rational model demands. -intelligence exceed managers mental abilities and necessitate the employment of an enormous number of managers -IGNORES the high level of managerial costs 3. *the assumption that decision makers agree about what needs to be done* -preferences and values: the rational model assumes that different managers have the same preferences and values and will use the same rules to decide on the best alternative -"agreement assumptions" are unrealistic -*the rational model of decision making is unrealistic because it rests on assumptions that ignore the info and managerial problems associated with eosins making. The Carnegie model and other newer models take these problems into consideration and provide a more accurate picture of how org decisions making takes place. *CARNEGIE MODEL* -in an attempt to better describe the realities of the decision making process, researchers introduced a new set of assumptions that have come to be called the carnegie model of decision making -the carnegie model recognizes the effects of satisficing, bounded rationality, and org coalitions -SATISFICING--limited info searches to identify problems and alternative solutions; to save time and cost, they choose a set of problem specific criteria or measures they will use to evaluate a range of possible solutions; much less costly info search and puts far less of a burden on managers than does the rational model. -BOUNDED RATIONALITY--a limited capacity to process info; restrict managers; managers can improve their decision making by sharpening their analytical skills; use technology; no way implies lack of ability or motivation -carnegie model recognizes that decision making is SUBJECTIVE and that decision making quality depends on mangers prior experience, knowledge, beliefs, and intuition ORGANIZATIONAL COALITIONS-- -recognizes that the preferences and values of managers differ and that disagreement and conflict between different managers is *inevitable* -any solution chosen must be approved by the DOMINANT COALITION--- the collection of managers or stakeholder who have the power to decide which solution is chosen and can commit resources to implement it. -recognizes that decision making is not a rational "neutral" process driven by object decsision rules, but a subjective process in which mangers formulate decision rules that allow them to achieve their personal goals and interests -*carnegie model recognizes that decision making takes place in an uncertain environment when info is often incomplete and ambiguous; decisions made by people who are limited by bounded rationality, who satisfice, and who form coalitions to pursue their own interests.* -MORE ACCURATE DESCRIPTION OF HOW DECISION MAKING TAKES PLACE IN AN ORG THAN A RATIONAL MODEL

ethical forces

it is critical for an org to take steps to promote ethical behavior in the face of increasing government, political, and social demands for more responsible and honest corporate behavior. -many companies have created the position of ethics officer, a person to whom employees can resort ethical lapses by an orgs managers or workers and can turn for advice on difficult ethical questions -also try to promote ethical behavior by giving employees more direct access to important decision makers and by protecting whistleblowers who turn the org in when they perceive ethical problems with the way certain managers behave -many orgs need to make changes to allow managers and workers at all levels to report unethical behavior so an org can move quickly to eliminate such behavior and protect the general interests of its members and customers -from customer design preferences, to the issue of where clothes should be produced, to the question of whether economic or political unrest will affect the availability of raw materials, and how to monitor the work conditions in which products are made overseas, the forces of change bombard orgs from all sides. -effective orgs are agile enough to adjust to these forces ^^^ -but many forces internal to an org make the org resistant to change and thus threaten its effectiveness and survival

types of org learning

james march has proposed that 2 principal types of org learning strategy can be pursued: exploration and exploitation Must be used together to increase org effectiveness 1. *exploration*-- org members search for and experimentation with new kinds or forms of org activities and procedures -new ways to manage environment: strategic alliance and network org -new kinds of org structures: product team and cross functional teams -MORE RADICAL LEARNING STRATEGY 2. *exploitation*-- org members learning of ways to regina and improve existing org actives and procedures -implementing TQM, continuous efinement, improved set of rules LEARNING ORGANIZATION-- an org that purposefully designs and constructs its structure, culture, and strategy so as to enhance and maximize the potential for org learning to take place -increase ability of employees at every level in the org, to question and analyze the way an org currently performs its actives and to experiment with new ways to change them to increase effectiveness

lewins force-field theory of change

kurt lewins *force-field theory*-- a theory of org change that argues that two sets of opposing forces within an org determine how change will take place -when forces are evenly balanced, the org isn in a state of inertia that does not change -to get an org to change, managers must find a way to INCREASE to forces for change, REDUCE resistance change, or do BOTH simultaneously

Demographic and social forces

managing a diverse workforce is one of the biggest challenges to confront orgs in the 2000s -changes in demographic characteristics of the workforce have led managers to change their styles of managing all employees and to learn how to understand, supervise, and motivate diverse members effectively. -orgs are coming to realize that the ultimate source of competitive advantage and org effectiveness lies in fully utilizing the skills of their members by ex: empowering employees to make important and significant decisions

organization-level resistance to change

many forces inside an org make it difficult for an org to change in response to changing conditions in its environment -the most powerful impediments to change include power and conflict, differences in functional orientation, mechanistic structure, and org culture *power and conflict*-- -when change causes power struggles and org conflict, an org is most likely to resist it. *differences in functional orientation*-- -another major impediment to change and a source of org inertia. -often see the source of a problem differently because they see an issue or problem primarily from their own viewpoint -this tunnel vision increase an org inertia because of the org must spend time and effort to secure agreement about the source of a problem before it can consider how the org needs to change to respond to the problem *mechanistic structure*-- -MORE RESISTANT to change than organic structures -principle source of inertia, especially in large orgs -people who work within a mechanistic structure are expected to act in certain ways and do not develop the capacity to adjust their behavior to changing conditions *organizational culture*-- -value and norms cause people to behave in predictable ways. -if org change disrupts taken for granted values and norms and forces people to change what they do and how they do it, an org culture will cause resistance to change -if the environment changes and a companys products become obsolete, the company has nothing to fall back on and failure is likely

group-level resistance to change

much of an orgs work is performed by groups, and several group characteristics can produce resistance to change 1.many groups develop *strong informal norms* that specify appropriate and inappropriate behaviors and govern the interactions between group members -change alters task and role relationships in a group; and when it does, it disrupts group norms and the informal expectations that group members have of one another.--> as a result, members of group may resist change because a new set of norms must be developed to meet the needs of the new situation 2. *group cohesiveness*, the attractiveness of a group to its members also affects group performance. -too much cohesiveness may actually reduce performance because it stifles opportunities for the group to change and adapt -a high cohesive group may resist attempts by management to change what it does or even who is a ember of the group. -group members may unite to preserve status quo 3. *groupthink* is a pattern of faulty decision making that occurs in cohesive groups when members discount negative info in order to arrive at a unanimous agreement. -escalation of commitment worsens this situation because even when group members realize their decision is wrong, they continue to pursue it because they are committed to it. -the more important group activities are to the org, the greater the impact of these process on org performance

improving decision making and learning

org inertia and cognitive biases make it difficult to maintain the quality of rog decision making and promote org learning over time. -orgs can use several means to *overcome the effect of cognitive biases and promote learning and change*: implement strategies for org learning, increase the breadth and diversity of the top management team, use devils advocacy and dialectical inquiry, use game theory , and develop a collateral org structure

using power: organizational politics pg. 407

organizational politics-- activities taken within orgs to acquire, develop, and use power and other resources to obtain ones preferred outcomes in a situation in which there is uncertainty or disagreement about choices *tactics for playing politics* -the reward for success is change that gives them a greater share of org resources--authority, money, status, etc. -individuals and subunits can use many political tactics to abstain the power they need to achieve their goals and objectives: 1. *becoming indispensable* -can be achieved by an increase in nonsubstituability or an increase in centrality 2. *becoming nonsubstitutable* -wily managers engage in behaviors and actions that make them non subs. -need to be called in to solve specific problems, and their ability to come up with solutions increases their status and prestige 3. *becoming central* - managers can also make themselves indispensable if they focus their efforts on becoming more central in decision making process -becoming central enhances ability to obtain info -politically astute managers cultivate both people and info and build a personal network of contacts in an org that they can use to pursue personal goals (promotion) and function goals (increase share of scarce resources) 4. *associating with powerful managers* -attach oneself to powerful managers who are on way to top -indicators of power include an individuals personal reputation and ability to (1) influence org decision making outcomes (2) control significant org resources (3) display symbols of prestige and status such as access to the corporate jet or limousine -another way to attach with powerful people is to take advantage of common ties 5. *building and managing coalitions* -forming a coalition of managers round an issue that is important to them all is a political tactic managers can use to obtain the power needed to resolve conflict in their favor -coalitions are often built around a trade off -building alliances with important customers is another valuable tactics -having a lot of friends enhances ones claim to power in an org -skills in coalition building are important to success in org politics because the interest of parties to a coalition change frequently as the environment changes; requires skillful negotiation and management -COOPTATION is important tool in coalition management--one subunit overcome another in decision making and rewarding cooperation 6. *ability to manipulate decision making* -one of the most important political tactics a manager can use to influence the politics of decision making is to develop the personal ability to utilize power to manipulate decision making -possessing and using power result of increasing indispensability -once the opposition realizes a manager is using power to further personal interests, opponents start to lobby for their own interest and protect their claims to the resources at stake -two tactics for controlling the decision making process so the use of power seems to be legitimate: controlling the agenda and bringing in an outside expert 7. *controlling the agenda* -managers and coalitions like to be on committees so they can control the agenda or business decisions of the committee. -are able to control the issues and problems that important decision makers will consider--such as how and when to change org strategy and structure -coalition of powerful managers can prevent considerations of any issue they do not support by putting it on the agenda -ability to control the agenda is similar to the ability to control the premises of decision making-->both tactics limit the alternatives considered in the decision making process 8. *bringing in an outside expert* -objective views of the expert are used to support the position of the coalition in power -the opposition is outgunned and accepts the inevitable

resistance to change

performance decline is almost always an orgs inability to change in response to changes in its environment because of *organizational inertia*-- the tendency of an org to resist change and maintain status que. -resistance to change LOWERS and orgs effectiveness and reduces its chances of survival -resistances or impediments to change that cause inertia are found at the org, group, and individual levels

Restructuring

restructuring and reengineering are also closely linked, for in practice the move to a more efficient org structure generally results in the layoff of employees, unless the org is growing reap idly to employees can be transferred or absorbed elsewhere in the org. (this is why reengineering are unpopular to managers and workers *restructuring*-- a process by which mangers change task and authority relationships and redesign org structure and culture to improve org effectiveness -the move from a functional to some for of divisional structure, and the move from one divisional structure to another, represent one of the most common kinds of restructuring effort -another common or restructuring is *downsizing*-- the process by which managers streamline the org hierarchy and lay off managers and workers to reduce bureaucratic costs -the drive to reduce bureaucratic costs is often a response to increasing competitive pressures in the environment as companies fight to increase their performance and introduce new info technology -downsizing waves take place across companies in an industry -concerns with the process has gone far enough or even too far -*anorexic or hollows*-- used to refer to orgs that downsized too much and have too few managers to help them grow when conditions change -many orgs become too tall and bloated -change in the relationship between divisions or functions is a common outcome of restructuring -all too often, companies are forced to downsize and lay off employees because they have not continually monitored the way they operate (their basic business processes) and have not made the incremental changes to their strategies and structure that would have allowed them to contain costs and adjust to changing conditions *resistance to change*: -restructuring, like reengineering, TQM, and other change strategies generates resistance to change; thus take a long time to implement and fail because of the high level of resistance that they encounter at all levels

individual-level resistance to change

several reasons why an individual may be inclined to resist change: 1. *feeling uncertain or insecure about what its outcome will be* -can cause org inertia -absenteeism and turnover may increase as change takes place, and workers may become uncooperative, attempt to delay or slow the change process, and otherwise passively resist the change in an attempt to quash it. 2. *general tendency for people to selectively perceive info that is consistent with their existing views of their org.* -when change takes place, workers tend to focus only on how it will affect them or their function or division personally. 3. *habit* -difficulty of breaking habits and adopting new styles of behavior indicates how resistant habits are to change -habits are hard to break because people have built in tendency to return to their original behaviors, a tendency that stymies change.

sources of org power pg. 402

sources of org power: all functions and divisions gain power from one or more of these sources: 1. *authority* -power that is legitimized by the legal and cultural fountains on which an org is based -is ULTIMATE SOURCE OF POWER IN ORG -derives from org legal charter -people who join org accept legal right of org to control their behavior -manager exercises legal right to control resources, including human resources -distribution depends on org setting CENTRALIZED= authority is top managers; less scope for people to engage in behaviors aimed at gaining power; difficult for coalitions to form -people become afraid to take responsibility for decisons or to initiate new actions for fear they will overstep their authority and be censured by top management -effectiveness is reduced -classic way in which superiors hold on to power is by restricting the info they give to subordinates to make a decision -mangers have to realize there is a difference between the decentralization of authority and the loss of authority--> decentralizing authority to a subordinate do nest reduce a managers authority because the manager continues to bear the responsibility for whatever decisions the subordinate makes -DECENTRALIZED= authority is delegated to those lower in the hierarchy, who are then held responsible for the way they use org resources -EMPOWERMENT is the deliberate decentralization of authority to encourage subordinates to assume responsibility for org activities; goal= give subordinates wide latitude to make decisions and thus motivate them to make the best use of their skills to create value -empowerment is imp orate at the corporate division level; primary role of corporate mangers it to make resource allocation decision that maximize the amount of value the whole org can create, and then monitor the performance of each division to ensure they make the best use of the resources they have been allocated 2. *control over resources* -power is not a fixed quantity -managers who make decision and perform actions that benefit the org, such as making changes that raise performance, can increase their power -power within an org comes from ability to control resources -to survive must have resources such as capital, human skills, raw materials, and customers -MONEY OR CAPITAL is the ultimate org resource because money buys other resources -ability to allocate financial resources is a major source of power, and so is the ability to Generate financial resources 3. *control over information* -info is very important and scarce org resources -access to strategic info and control of info flow is power in org decision making -top managers may manipulate other manger by supplying them with info that causes them to make bad decisions -control of info is the source of the power of many people or subunits in specialized roles -all subunits possess some expert info and knowledge, but the functions or divisions that control critical info have the most 4. *non-substitutability* -if no one else can perform the tasks that a person or subunit performs, that person or subunit is non substitutable -only it can provide the resources that other subunits or org requires 5. *centrality* -the people and subunits that control the flow of resources through org production system are most central and have the ability to reduce the uncertainty facing other subunits -org strategy is crucial determinant of which subunit is central inane org 6.* control over uncertainty* -a subunit that can directly control and reduce the main sources of uncertainty or contingencies facing an org has significant power -r&d= major source of uncertainty is whether an org can discoed safe new drugs -over time, as the contingencies facing an org change, the power of the subunits that can respond to them increases while the power of the subunits that find their services no longer so valuable falls -rapid pace of change, the power of subunits rises and falls as their ability to cope with specific org contingencies change 7.* unobtrusive power* -Resource of power stems from the power of the DOMINANT COALITION--the set of managers who form a partnership and use their combined power secretively to influence the decision making process in ways that favor their interest -UNOBTRUSIVE POWER-- dominant coalition can often use its power subtly to control the premises behind decision making because other managers are generally not aware that the coalition is shaping their perceptions or interpretations of a situation -the power of coalition lies in its ability to control the assumptions, goals norms, or other values that managers use to judge alternative solutions to a problem -managers can increase profits in two basic ways: expanding sales revenues or decreasing operating costs -org power is a dynamic concept, and org strategy can change quickly if the balance of power shifts from one coalition to another

OD techniques to deal with resistance to change

tactics to reduce resistance to change: 1. *education and communication* -most important impediments to change is uncertainty about what is going to happen -through this tactic, internal and external agents of change can provide members with info about the change and how it will affect them (by meetings, memo, one on one meetings, email, videoconferencing) -as orgs become more and more aware of the benefits offered by incremental change, they are increasing communication with the workforce to gan workers cooperating and to overcome their resistance to change 2. *participation and empowerment* -participation complements empowerment, increases workers involvement in decision making, and gives them greeter autonomy to change work procedures to improve org performance -empowerment reduces the number of middle managers and become "new non-manager managers" 3. *facilitation* -several ways to help members manage stress: providing them with training to help them learn how to perform new tasks, providing them with time off from work to recuperate from the stressful effects of change, or give senior members sabbaticals to allow them to recuperate and plan their future work activities -many companies employe psychologists and consultant to help handle stress with change 4. *bargaining and negotiating* -help managers manage conflict -members negotiate future takes and roles and reach compromises that will lead them to accept change -negotiation also helps individuals and groups understand how change will affect others so the org as a whole can develop a common perspective on why change is taking place and why it is important -politics and co-optating and building alliances become important as ways of overcoming the opposition of powerful functions and divisions that feel threatened by the change 5. *coercion* -ultimate way to eliminate resistance to change is to coerce the key players into accepting change and threaten dire consequences if they choose to resist. -threaten with reassignment, demotion, or termination -ADVANTAGE is speed of change -DISADVANTAGE is that is can leave people angry and disenchanted and can make the refreezing process difficult

OD techniques to Promote change

the choice of technique is determined by the type of change -the More Revolutionary a change is, the MORE likely is an org to use OD techniques at all three levels. *counseling, sensitivity training, and process consultation* -help individuals to understand the nature of their own and other people personalities and to use the knowledge to improve their interactions with others. -OD's main efforts has been to improve the quality of the work life of org members and increase their well being and satisfaction *sensitivity training*-- an OD technique that consists of intense counseling in which group members, aided by facilitator, learn how others perceive them and may learn how to deal more sensitively with others -an intense type of counseling *process consultation*-- an OD technique in which a facilitator works closely with a manager on the job to help the manager improve his or her interactions with other group members -resemblance to both counseling and sensitivity training -*(process consultation, sensitivity training, and counseling are the three of many OD techniques that have been developed to help member learn to change their attitudes and behavior so they can function effectively both as individuals and as org members)*

organizational conflict

the class that occurs when the goal directed behavior of one group blocks or thwarts the goals of another -conflict is inevitable -conflict can be beneficial because it can overcome org inertia and lead to org learning and change; can improve org effectiveness; improve decision making -beyond a certain point, conflict can cause org decline -too much conflict can cause org inertia: as different groups fight for their own positions and interest, they fail to arrive at consensus and the org drifts along; failure to change makes org go from bad to worse

organizational change

the process by which orgs move from their present state to some desired future state to increase their effectiveness -goal of planned org change: is to find new or improved ways of using resources and capabilities to increase an orgs ability to create value and improve returns to its stakeholders -an org in decline may need to restructure its competences and resources to improve its fit with a changing environment -even thriving, high performance orgs need to continuously change the way they operate over time (often week to week) to meet ongoing challenges. -managers must constantly search for better ways to use org resources to develop a flow of new and improved products or find new markets for their existing products -to lead on the dimension of innovation and obtain a technological advantage over competitors, a company must possess skills in managing the process of innovation, another source of change

organizational decision making

the process of responding to a problem by searching for and selecting a solution or course of action that will create value for org stakeholders -org is not only a value-creation machine, its also decision-making team -to make the best choices, managers must make two kinds of decisions: programmed and non programmed PROGRAMMED DECISIONS-- decisions that are repetitive and routine -involves selecting the most effective--easy, repetitive, and routine-- operating procedures to handle an orgs ongoing value creation activities -the routines and procures that result in the most efficient way of operating are formalized in advance in an orgs written rules and standard operating procedures (SOPS) and are present in the values and norms of its culture NONPROGRAMMED DECISION MAKING-- decisions that are novel and unstructured -no rules, routines, or SOPs can be developed to handle non routine problems in advance because they are unique or unexpected. so solutions often have to be found after new problems have arisen -much more search for info and active cooperation between managers function s and divisions- to find solutions than does programmed decision making. -impossible to know in advance if these decisions are the right ones, unlike with programmed decisions tharte are based on the results of past experience and so managers can normally continually imp roe on routines and procedures over time. -ex: R&D -forces managers to rely on judgement, intutition, and creativity to solve org problems; they cannot rely on rules and SOPs to provide non programmed solutions -lead to the creation of new set of rules and prcedurs then org members can improve the programmed decisions they use to increase org effectiveness. -all orgs must have the capability to make both programmed and nonprogrammed decisons. -programmed decisions making allows an org to increase its efficiency and reduct the costs of making goods and services; it provides stability and increases predictability -nonprogrammed decision making allows an org to change and find new ways to adapts to and take advantage of its environment

nature of top management team

the way the top management team is constructed and the type of people who are on it affect the level of org learning *wheel configuration*-- -org learning is DECREASED because mangers from different functions report separately to the CEO -works BEST when problems are simple and require minimal coordination among top team members -when problems are complex and non programmed decision making is required, the wheel configuration slows org learning because all coordination takes place through the CEO *circle configuration* -top mangers from different functions interact with one another and with the CEO; function as a team; promotes team and org learning -works BEST for complex problems requiring coordination among group members to arrive at a solution -communcation around the circle takes least ime because there is more opportunity for team and org learning between all top managers -the level and quality of org learning and decision making yb the top management team is also a function of the personal characteristics and backgrounds of team members -top management team from many different industries and background promote org learning -MOST LEARNING takes place when there is considerable heterogeneity among team members and when mangers from different functions have an opportunity to express their vies; stable environments as well -when mangers bring different info and viewpoints to bear on a problem, the org can avoid GROUPTHINK-- the conformity that emerges when like minded people reinforce one anthers tendencies to interpret events and info in similar ways -when a team membership is STABLE, group cohesiveness increases and promotes communication among members and improved decision making -designing and managing the top manamgnet team to promote org learning is a vital task for the CEO. -major problems center on the challenge of global expansion and competition -sometimes the only way to promote org learning is to CHANGE CEO or top management team; removing and changing top managers can be the QUICKEST way to erase org memory and thus poor programmed decision making, allowing an org to develop successful routines

evolutionary and revolutionary change in orgs

types of change fall into two broad categories: 1. *evolutionary change*-- change that is gradual, incremental, and specifically focused. -constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate to changes taking place in the environment -*three important instruments*: sociotechnical systems theory, total quality management, and the creation of empowered, flexible work groups -faced with drastic, unexpected changes in the environment (new technological breakthrough) or with emending disaster resulting from years of inaction and neglect, an org needs to act quickly and decisively and should go to revolutionary change 1. *Revolutionary change*-- change that is sudden, drastic, and org-wide -involves a bold attempt to quickly find new ways to be effective. -likely the result in a radical shift in ways of doing things, new goals, and a new structure -it has repercussions at all levels in the org (corporate, divisional, functional, group, and individual) -*three important instruments*: reengineering, restructuring, and innovation