HADM 646 Organizational Change

OD's Planned Model of Change (Action Research)

A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates

Organizational Development

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well being.

Matrix Organizations

A cross between a traditional functional structure with a product structure. Specifically, employees reporting to department managers are also pooled together to form project or product teams.

Strategic Alliances

A form of boundaryless design where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for both parties.

In what type of organization is experimenting, learning new things, and reflecting on new knowledge the norm? A strategic alliance A boundary-less organization A learning organization A modular organization

A learning organization

Which of the following statements regarding a matrix structure in an organization is correct? A matrix organization is a cross between a mechanistic and organic structure. A matrix organization structure tends to reduce the frequency of communication within the organization. A matrix organization violates the unity of command principle. A matrix organization presents less opportunity for conflict than either a functional or a divisional structure.

A matrix organization violates the unity of command principle

Unity Of Command

A situation where each person reports to a single manager. Traditional organizations are based on the principle of unity of command, while matrix organizations do not follow this principle.

Boundaryless Organization

A term coined by Jack Welch of GE and refers to an organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment.

Resistance to change takes many forms such as

Active resistance, passive resistance, compliance, enthusiastic support

Learning Organization

An organization where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of an organization's design.

Modular Organization

An organization where all the nonessential functions are outsourced.

Tall Structures

An organization where there are several layers of management between frontline employees and the top level.

Flat Structures

An organization with few layers, often with large numbers of employees reporting to a single manager.

Passive Resistance

Being disturbed by changes without necessarily voicing these opinions.

An organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment is a: Modular organization. Matrix organization. Learning organization. Boundaryless organization

Boundaryless organization

Small Wins - Kotter

Change. Create small wins, recognize what is working and celebrate it, share SUCCESS stories

Persevere - Kotter

Change. Don't give up, maintain focus and alignment on VISION and TASK...don't celebrate VICTORY too earlier, before it sticks

Empower Action - Kotter

Change. Motivate!! Align roles with responsibilities. Remove barriers that undermine (structures, systems, people). Encourage risk taking

Coalition

Consists of cross functional members. Guide and implement the vision and mission of an organization to align with goals. Transformational leadership. Craft, communicate, and support the vision.

Prior to actual change implementation, the first stage of the change process is unfreezing. Individuals in the organization to be changed may be resistant to change, what advice would you provide to prepare them for the change? Let the employees know that things are going well in the company so this change is not urgent only beneficial. Refrain from communicating too much with employees; there are simply many aspects of the change that they do not need to know about. Keep the change process firmly in management's hands; involvement of employees only creates more opportunity for resistance. Convince the change leaders in the organization of the need for this change and use them to build a coalition of support.

Convince the change leaders in the organization of the need for this change and use them to build a coalition of support

John P. Kotter offers an eight stage process for change. What is the initial stage of this process? Create a sense of urgency when introducing the change effort. Communicate a plan for change. Build a coalition. Create a vision for change and make change part of the vision.

Create a sense of urgency when introducing the change effort

Enthusiastic Support

Defenders of the new way and actually encourage others around them to give support to the change effort as well.

Delete

Delete

Why People Resist Change

Disrupted habits, personality, perceived loss of power, feelings of uncertainty, fear of failure, personal impact of change, prevalence of change, perceived loss of power

Maurice works in a department of XYZ company, which is responsible for product A. His best friend, Lawrence, works across town in another department of XYZ, which is responsible for product B. Today Maurice worked on Product A's marketing program, and tomorrow he will be attending a meeting looking at the details of product A's production. Maurice works for a firm organized into a _____________ structure. matrix functional divisional mechanistic

Divisional

Kotter's Change Framework - Change

Empower Action, Small Wins, Persevere

OD's Planned Model Steps

Entering and contracting, diagnosing, planning and implementation, evaluating / institutionalize back to diagnosing.

Which of the following is not a reason why people resist change? Disrupted habits Feelings of certainty Personality Fear of Failure

Feelings of certainty

Organic Structures

Flexible and decentralized structures with low levels of formalization where communication lines are more fluid and flexible.

At Mallard Manufacturing Industries, whenever a problem arises as to who should be scheduled for overtime or what the appropriate procedure for completing an expense request might be, everyone refers to the employee handbook. _______________ is an important structural component at Mallard Manufacturing Industries. Unity of command Centralization Formalization Span of control

Formalization

Institutionalize - Kotter

Freezing. Create structures that make relationships and roles clear, that facilitate VISION, align with vision and goals

An organization arranged into marketing, manufacturing, finance, accounting, human resources, and information systems departments is using a(n): divisional structure. organic structure. matrix structure functional structure.

Functional Structure

Compliance

Going along with proposed changes with little enthusiasm.

Functional Structures

Grouping of jobs based on similarity in functions.

Divisional Structures

Grouping of jobs based on the products, services, customers, or geographic locations the company is serving.

Kotter's Change Framework - Unfreeze

Increase urgency, build a guiding team, get the vision right, communicate

Which of the following statements regarding why people are resistant to change is incorrect? Individuals get used to doing things in a habitual manner and they simply do not like to change. Individuals with high risk tolerance are strongly threatened by change. Individuals who are experts in their fields may be unsure of whether their expertise will be recognized as such after the change. Individuals may feel their power and influence will be negatively impacted by the change.

Individuals with high risk tolerance are strongly threatened by change

Kotter's Change Framework - Freezing

Institutionalize

Ringi System

Involves proposals at lower levels being signed and passed along to higher level management in an effort to build consensus.

Which of the following would management refrain from doing so that the change that is implemented will be successful? Build on the momentum of early change successes. Make change a part of the organization culture. Keep the results of the change effort low key; do not share all aspects of the results with employees so as not to upset those still resistant to change. Reward those who embrace the change effort.

Keep the results of the change effort low key; do not share all aspects of the results with employees so as not to upset those still resistant to change

Otis works for a manufacturing firm where efficiency is the overall goal. Managers at the firm are constantly urging employees to minimize all costs. Jobs are highly formalized with very specific job descriptions. Lines of communication are very clear. The manufacturing firm has what kind of organizational structure?

Mechanistic

Change

Or executing the planned changes, is the second phase of Lewin's change model.

Unfreezing

Or making sure that organizational members are ready for and receptive to change, is the first step in Lewin's suggested change model.

ABC Company is implementing major changes in its organization. Formerly the firm was structured along functional lines, but come January it will be structured as a matrix organization. Additional substantive changes are occurring in all procedures and rules in the firm. Max is not happy about the changes, but he has not said anything to his manager or his coworkers. He feels increasingly nervous and stressed about the impact these changes might have on him, and he even discussed with his wife the possibility of looking for a new job. Max's reaction is an example of: active resistance. compliance. passive resistance. enthusiastic support.

Passive Resistance

Action Research Benefits

Problem focused rather than solution centered. Heavy employee involvement reduces resistance to change.

OD Values

Respect for people, trust and support, power equalization, confrontation, participation

Kotter Understanding Change Number

Square root of total number of people in organization

Organizational change is a response to all of the following conditions except: Technological developments. Strong performance by the firm. Change in market conditions. Workforce demographics.

Strong performance by the firm

Mechanistic Structures

Structures that resemble a bureaucracy and are highly formalized and centralized.

Common OD Techniques

Survey, process consultation, team building, intergroup development, appreciative inquiry

A _________ has several layers of management between frontline employees and the top level while a _______ has few such layers. flat structure, tall structure large span of control, small span of control small span of control, large span of control tall structure, flat structure

Tall structure, flat structure

Centralization

The degree to which decision making authority is concentrated at higher levels in an organization.

Centralization refers to: The degree to which decision-making authority is concentrated at higher levels in an organization. How individual and team work within an organization is coordinated. The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated. A situation where each person reports to a single manager.

The degree to which decision-making authority is concentrated at higher levels in an organization.

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated.

Refreezing

The final stage of Lewin's change model, involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm.

Active Resistance

The most negative reaction to a proposed change attempt.

Organizational Change

The movement of an organization from one state of affairs to another.

Span Of Control

The number of employees reporting to a single manager.

Lewin's Three Step Model

Unfreeze, change, and refreeze

Lewin's three stage process of change begins with what step? Unfreezing Change Refreezing Implementation

Unfreezing

Get the Vision Right - Kotter

Unfreezing. Envision future, translate it into actual responsibilities

Increase urgency - Kotter

Unfreezing. Staying the same is worse than changing

Build a Guiding Team - Kotter

Unfreezing. This is your coalition! Make it cross-functional, cross-level support. Get LINE managers involved, not just C-suite. Make sure you have enough POWER, get them to work as a team...suppress HIERARCHY

Communicate - Kotter

Unfreezing. make is simply to explain, 5 minute rule. CONTINUOUSLY talk about it, use all communication media to do so, every opportunity. Always link back to VISION- current problems, challenges

Which of the following statements is true regarding responses to changes in the organization's environment? An aging workforce offers no challenges for firms. Technological development will slow dramatically in the next year. Globalization represents a serious threat to all companies but no longer offers any opportunities. While 50% of all new small businesses fail in their first year, those that do survive often evolve into larger, complex organizations.

While 50% of all new small businesses fail in their first year, those that do survive often evolve into larger, complex organizations