Managing Change and Organizational Learning

1
Chapter Sixteen
Managing Change and Organizational Learning
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16-1a
Chapter Sixteen Outline

• Forces of Change
• External Forces
• Internal Forces
• Models of Planned Change
• Lewins Change Model
• A Systems Model of Change
• Kotters Eight Steps for Leading Organizational
  Change
• Organizational Development

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16-1b
Chapter Sixteen Outline (continued)

• Understanding and Managing Resistance to Change
• Why People Resist Change in the Workplace
• Alternative Strategies for Overcoming Resistance
  to Change
• Creating a Learning Organization
• Defining Organizational Learning and a Learning
  Organization
• Building an Organizations Learning Capability
• Leadership is the Foundation of a Learning
  Organization
• Unlearning the Organization

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16-2a
Forces of Change
External Forces originate outside the
organization.

• Demographic Characteristics- the workforce is
  more diverse- there is a business imperative to
  effectively manage diversity
• Technological Advancements- organizations are
  increasingly using technology as a means to
  improve productivity and market competitiveness
• Market Changes- the emergence of a global
  economy is forcing companies to be more
  competitive and to do business differently-
  organizations are forging new partnerships and
  alliances aimed at creating new products and
  services
• Social and Political Pressures- society and its
  legislative bodies can put pressure on
  organizations to change the way they do business
  the tobacco industry is a good example

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16-2b
Forces of Change (continued)

Internal Forces originate inside the
organization.

• Human Resource Problems/Prospects- employees
  needs, job satisfaction, organizational
  commitment, behavior, and performance are forces
  of change- dissatisfied employees and high
  levels of absenteeism and turnover are signs
  that change is needed
• Managerial Behavior/Decisions- the level of
  conflict between managers and their direct
  reports is a force for change- inappropriate
  leader behavior may result in employee problems
  requiring change- inequitable reward systems are
  an additional force for change

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Lewins Change Model
16-3

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A Systems Model of Change
16-4 Figure 16-1
Target Elements of Change
OrganizingArrangements
Inputs
Outputs
Internal Strengths Weaknesses External
Opportunities Threats
OrganizationalLevel Department/group
level Individuallevel
Strategy
Goals
Social Factors
People
Methods
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Kotters Steps for Leading Organizational Change
16-5a Table 16-1a

• Step Description
• Establish a sense Unfreeze the organization by
  creating aof urgency compelling reason for why
  change is needed.
• Create the guiding Create a cross-functional,
  cross-level group ofcoalition people with
  enough power to lead the change.
• Develop a vision Create a vision and strategic
  plan to guide theand strategy change process.
• Communicate the Create and implement a
  communication strategychange vision that
  consistently communicates the new vision and
  strategic plan.
• Empower broad- Eliminate barriers to change, and
  use targetbased action elements of change to
  transform the organization. Encourage risk
  taking and creative problem-solving.

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Kotters Steps for Leading Organizational Change
(continued)
16-5b Table 16-1b

• Step Description
• Generate short- Plan for and create short-term
  wins orterm wins improvements. Recognize and
  reward people who contribute to the wins.
• Consolidate gains The guiding coalition uses
  credibility fromand produce more short-term wins
  to create more change.change Additional people
  are brought into the change process as change
  cascades throughout the organization.
  Attempts are made to reinvigorate the change
  process.
• Anchor new Reinforce the changes by
  highlightingapproaches in the connections
  between new behaviors and culture processes and
  organizational success. Develop methods to
  ensure leadership development and successes.

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Characteristics of OrganizationDevelopment (OD)
16-6

• OD involves profound change
• OD is value loaded
• OD is a diagnosis/prescription cycle
• OD is process-oriented

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16-7a
Resistance To Change

Resistance to Change an emotional/behavioral
response to real or imagined work change.

• The leading reasons why people resist change are
• An individuals predisposition toward change
• Surprise and fear of the unknown
• Climate of mistrust
• Fear of failure
• Loss of status and/or job security

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16-7b
Resistance to Change (cont)

• Leading Reasons Why People Resist Change (cont)
• Peer pressure
• Disruption of cultural traditions and/or group
  relationships
• Personality conflicts
• Lack of tact and/or poor timing
• Nonreinforcing reward systems

For Class Discussion What do you think are the
top three reasons people resist change?
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16-8 Hands on Exercise
Assessing an Organizations Readiness for Change

• Why is readiness for change an important
  consideration?
• What survey questions resulted in the lowest
  readiness for change? Why did this occur?
• What can managers do to prepare an organization
  for change?

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Strategies for Overcoming Resistance to Change
16-9a Table 16-2a

Approach
Commonly Used in Situations
Advantages
Drawbacks
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Strategies for Overcoming Resistance to Change
(continued)
16-9b Table 16-2b

Approach
Commonly Used in Situations
Advantages
Drawbacks
16
Strategies for Overcoming Resistance to Change
(continued)
16-9c Table 16-2c

Approach
Commonly Used in Situations
Advantages
Drawbacks
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Building an Organizations Learning Capability
16-10 Figure 16-2

Internalstructure andprocesses
Facilitating factors
Customer satisfaction
Sales growth
An organizations learning capability
Organizational performance
Learning mode
Profitability
Culture and experience
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Factors That FacilitateOrganizational Learning
16-11 Table 16-3

• Scanning imperative
• Performance gap
• Concern for measurement
• Experimental mindset
• Climate of openness
• Continuous education
• Operational variety
• Multiple advocates
• Involved leadership
• Systems perspective

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Skills and Best Practices Becoming a
Teacher-Learner
16-12

• Become actively involved in teaching and
  learning.
• Demonstrate that you care about your coworkers
  well-being.
• Develop relationships with as many people from
  different backgrounds, experience, and
  organizational positions as possible.
• Reflect on what you have learned from a given
  situation.
• Listen to others and try to learn something from
  social interactions with others.