Ch. 16 Managing Change & Organizational Learning

2 Ways the Systems Model of Change is Used

1) To aid during the strategic planning process 2) To determine the causes of an organizational problem

3 Critical Elements for Change

1. A strong dissatisfaction with the current situation 2. A compelling vision for a successful future 3. A process to help make change happen Change = Dissatisfaction * Vision of the Future * Process > Resistance (C=D*V*P>R)

4 Key Functions of Leaders

1. Building a commitment to learning 2. Working to generate ideas with impact 3. Working to generalize ideas with impact 4. Helping the organization to unlearn old mental models

Commitment to Change

A mind-set "that binds an individual to a course of action deemed necessary for the successful implementation of a change initiative"

Transition

A psychological event, it is a three-phase process that individuals go through over time to come to terms with the external changes; starts with an ending

Resistance to Change

An emotional/behavioral response to real or imagined threats to an established work routine

Change

An event that is observable, situational, external to oneself; starts with a beginning

Vision

An organization's long-term goal that describes "what" an organization wants to become

Organization Development

Consists of planned effort to help persons work/live together more effectively, overtime, in their organizations

4 Types of Elements of Change

1. Organizational Arrangements - policies, procedures 2. People - knowledge, ability, behavior 3. Methods - processes, job design, technology 4. Social Factors - organization culture, communication

4 Key External Forces

1. Demographic Characteristics 2. Technological Advancements (i.e., telepresence - an example of a technology that enables organizations to change the way they deliver products, coordinate virtual workers, encourage employee collaboration, improve communication, and increase productivity) 3. Customer & Market Changes 4. Social & Political Pressures (i.e., "going green")

4 Steps in the Organizational Development Process

1. Diagnosis - what is the problem and its causes? 2. Intervention - what can be done to solve the problem? 3. Evaluation - is the intervention working? 4. Feedback - what does the evaluation suggest about the diagnosis and the effectiveness of how the intervention was implemented

Kotter's 8 Steps for Leading Organizational Change

1. Establish sense of urgency, "unfreeze" 2. Create guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Empower broad-based action 6. Generate short-term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture

4 Stages in a Systems Model of Change

1. Inputs (mission statement, vision, SWOT analysis) 2. Strategic Plans 3. Target Elements of Change - components of an organization that can be changed 4. Outputs - represent the desired end results of a change

3 Models of Planned Change

1. Lewin's Change Model 2. A System's Model of Change 3. Kotter's 8 Steps for Leading Organizational Change

3 Stages in Lewin's Change Model

1. Unfreezing - creating motivation to change, unfreezing the old way of doing things 2. Changing - improving some process, product, service etc.; also entails providing employees with new information, behavioral models, etc. (should be targeted at a desired end result) 3. Refreezing - reinforcing the change; helping employees integrate the changed behavior/attitude into their normal way of doing things; positive reinforcement is good for this

Resilience to Change

A composite characteristic reflecting high self-esteem, optimism, and an internal locus of control

Benchmarking

Describes the overall process by which a company compares its performance with that of other companies, then learns how the strongest-performing companies achieve their results

Learning Organization

One that proactively creates, acquires and transfers knowledge and that changes its behavior on the basis of new knowledge and insights

Change Agent

Someone who is a catalyst in helping organizations to deal with old problems in new ways

Team Mental Model

Team members' "shared organized understanding and mental representation of knowledge about key elements of the team's relevant environment"

Mission Statement

The "reason" an organization exists