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OB - CH14 - Organizational Change - Coggle Diagram

- - - - Unfreezing the status quo, change efforts to overcome the pressures of both individual resistance and group conformity
        
        the driving forces, which direct behaviour away from the status quo can be increased.
        
        the restraining forces, which hinder movement from the existing equilibrium, can be decreased.
        
        Combine the two approaches
        
        Cases
        
        companies that have been successful in the past might encounter restraining forces because people question the need for change.
        
        companies that have strong cultures excel at incremental change but are overcome by restraining forces against radical change
      - Moving to a new state, efforts to get employees involves in the change process
        
        for actual change to be effective, is has to happen quickly.
        
        companies that build up to change do less well than those that get to and through the moving stage quickly
      - refreezing, stabilizing a change intervention by balancing driving and restraining forces
        
        without this, change might be short lived
        
        stabilize the new situation by balancing the driving and restraining forces.
        
        systematically replace temporary forces with permanent ones, such as a new bonus system tied to the specific changes desired.
        
        formal rules and regulations governing behaviour of those affected by the change should also be revised to reinforce the new situation.
        
        over time, the work group's own norms will evolve to sustain the new equilibrium
    - - inability to create a sense of urgency about the need for change
        
        Establish a sense of urgency by creating a compelling reason for why change is needed
      - failiure to create a sense of urgency about the need for change
        
        Form a coalition with enough power to lead the change
      - failure to create a coalition for managing the change process
        
        create a new vision to direct the change and strategies for achieving the vision
      - the absence of a vision for change and inability to effectively communicate that vision
        
        communicate the vision throughout the organization
      - not removing obstacles that could impede the achievement of the vision
        
        empower others to act on the vision by removing barriers to change and encouraging risk-taking and creative problem-solving
      - failure to provide short-term and achievable goals
        
        plan for, create, and reward short-term "wins" that move the organization towards the new vision
      - tendency to declare victory too soon
        
        consolidate improvements, reassess changes, and make necessary adjustments in the new programs
      - not anchoring changes in the organization's culture.
        
        reinforce the changes by demonstrating the relationship between new behaviours and organizational success
    - - diagnosis, based on questions, reviews records, interviews employees, and listens to their concerns.
      - Analysis, what problems do people key in on? what patterns do these problems seem to take? the change agent organizes this information into primary concerns, problem areas, and possible actions.
      - feedback, requires sharing with employees what has been found from the first and second steps, the employees with the help of the change agent, develop action plans for bringing about any needed change.
      - action, employees and the change agent carry out the specific actions they have identified to correct the problems
      - evaluation, use the initial data gathered as a benchmark and evaluate the plan's effectiveness
      - two specific benefits
        
        it is problem focused, meaning, its not solution focused, it doesn't favour an idea, like implementing flex time or what not, it focuses on the real problems and solves them in the most adecuate way
        
        it involves employees so thoroughly in the process, it reduces resistance to change.
    - - Discovery, identify what people think are the strengths of the organization employees recount times they felt the organization worked best or when they specifically felt most satisfied with their jobs
      - Dreaming, Employees use information from the discovery phase to speculate on possible futures for the organization, such as what the organization will be like in five years.
      - Design, based on the dream articulation, participants focus on finding a common vision of how the organization will look, and agree on its unique qualities.
      - Destiny, in the final step, participants discuss how the organization is going to fulfill its dream, and they write action plans and develop implementation strategies.
  - - - overt
      - implicit
      - immediate
      - deferred
    - - self interest, people worry that they will lose something of value if change happens. Thus they look after their own self-interests rather than those of the total organization
      - misunderstanding and lack of trust, people resist change when they don't understand the nature of change, and fear the cost of change will outweigh any potential gains for them, This often occurs when they don't trust those initiating the change.
      - different assessments, people resist change when they see it differently than their managers do and think the costs outweigh the benefits, even for the organization.
      - low tolerance of change, people resist change because they worry that they do not have the skills and behaviour required of the new situation. They may feel they are being asked to do too much, too quickly.
      - people tend to worry to learn that what they were doing in the past was wrong.
      - Cynicism, employees often feel cynical about the change process, particularly if they have been through several rounds of "change" and nothing appears to change.
        
        Feeling uninformed about what was happening
        
        lack of communication and respect from one's manager
        
        lack of communication and respect from one's union representative
        
        lack of opportunity for meaningful participation in decision making.
        
        employees with negative personalities were more likely to be cynical about change.
    - - structural inertia, organizations have built-in mechanisms, such as their selection processes and formalized regulations- to produce stability. when an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.
      - Limited focus of change, organizations are made up of a number of inter-dependant subsystems. One cannot make changes without affecting the others. So limited changes in subsystems tend to be nullified by the larger system.
      - Group intertia, even if individuals want to change their behaviour, group norms may act as a constraint.
      - threat to expertise, changes in organizational patterns may threaten the expertise of specialized groups
      - threat to established power relationships, any redistribution of decision-making authority can threaten long-established power relationships within the organization
      - threats to established resources allocations, groups in the organization that control sizable resources often see change as a threat. they tend to be content with the way things are.
    - - Speed trap, making speedy decisions can lead to bad decisions
      - fog of change, those who are initiating change fail to realize the full magnitude of the effects they are causing or to estimate their true costs to the organization
      - change agents need to think thoroughly the full implications of change before they commit to it.
      - Tactics to deal with resistance to change
        
        Education and communication, Communicate the logic of a change, reduces the effects of misinformation and poor communications, and can be used to "sell" the need for change idea.
        
        changes are most effective when it communicates its rationale balancing various stakeholders (community, customers, employees, shareholders) vs rationale based.
        
        Participation and involvement, assuming employees have the required expertise to be involved in the decision making, this will help to reduce resistance to change.
        
        Building support and commitment, when fear and anxiety are high, employee counselling and therapy, new skills training, or a short paid leave of absence may facilitate adjustment. Employees are more accepting of changes when they are committed to the organization as a whole.
        
        developing positive relationships, people are more willing to accept changes if they trust the managers implementing them.
        
        "Implementing changes fairly. procedural fairness becomes especially important when employees perceive an outcome as a negative, so it's crucial that employees see the reason for the change and perceive its implementation as consistent and fair.
        
        manipulation and co-optation,
        
        manipulation refers to covert influence attempts, twisting and distorting facts to make them more attractive, withholding undesirable information, and creating false rumors to get employees to accept change.
        
        co-optation, its a form of both manipulation and participation, it seeks to "buy off" the leaders of a resistance group by giving them a key role, seeking their advice not to find a better solution but to get their endorsement.
        
        both tactics can work, but if they are caught red handed, it will surely backfire.
        
        selecting people who accept change, some people simply have more positive attitudes about change than others based on their personality, it is also important to analyze the group, as it also can have a pro change attitude or not.
        
        Explicit and implicit coercion, coercion is the application of direct threats or force upon the resisters. this can also backfire.
      - Politics of change,
        
        politics suggests that the demand for change is more likely to come from outside change agents, employees who are new to the organization (who have less invested in the status quo), or managers who are slightly removed from their main power structure.
        
        long time power holders tend to implement incremental change.
        
        radical change is too threatening, this explains why boards of directors that recognize the need for rapid and radical change frequently turn to outside candidates for new leadership.
  - - - defining innovation, a new idea applied to initiating or improving a product, process or service.
      - Sources of innovation, structural variables have been the most studied potential source of innovation
        
        Organic structures positively influence innovation, because they are lower in vertical differentiation, formalization, and centralization, organic organizations facilitate the flexibility, adaptation, and cross-fertilization that make the adoption of innovations easier.
        
        Long tenure in management is associated with innovation managerial tenure apparently provides legitimacy and knowledge of how to accomplish tasks and obtain desired outcomes.
        
        innovation is nurtured when there are slack resources, having an abundance of resources allows an organization to afford to purchase innovations, bear the cost of instituting innovations, and absorb failures.
        
        interunit communication is high in innovative organizations, innovative orgs are high users of committees, task forces, cross-functional teams, and other mechanisms that facilitate interaction across departmental lines.
        
        innovative organizations tend to have similar cultures, they encourage experimentation, they reward both success and failures, they celebrate mistakes,.
        
        innovative orgs actively promote training and development of their members so they keep current, offer high job security so employees don't fear getting fired for making mistakes, and encourage individuals to become champions of change. Idea Champions, actively and enthusiastically promote the idea, build support for it, overcome resistance to it, and ensure that it's implemented.
    - - single loop learning, when errors are detected, the correction process relies on past routines and present policies.
      - double loop learning, a process of correcting errors by modifying the organizations objectives, policies and standard routines.
        
        it challenges deeply rooted assumptions and norms within an organization.
        
        it provides opportunities for radically different solutions to problems and dramatic jumps in improvement.
      - the characteristics of a learning organization
        
        has a shared vision that everyone agrees on
        
        people discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs
        
        members think of all organizational processes, activities, functions, and interactions with the environment as part of a system of interrelationships.
        
        people openly communicate with each other (across vertical and horizontal boundaries) without fear of criticism or punishment
        
        people suppress their personal self-interest and fragmented departmental interets to work together to achieve the organization's shared vision.
      - proponents envision it as a remedy for three fundamental problems of traditional organizations
        
        fragmentation, based on specialization creates walls and chimneys that separate different functions into independent and often warring fiefdoms
        
        competition, managers compete to show who is right who knows more or who is more persuasive
        
        reactiveness misdirects managements attention to problem solving rather than creation.
      - How to manage learning?
        
        Establish a strategy, managers need to make their commitment to change, innovation, and continuous improvement explicit.
        
        Redesign the organization's structure, flattening the structure, eliminating or combining departments, increasing the use of cross functional teams reinforces interdependence and reduces boundaries.
        
        Reshape the organization's culture, managers must demonstrate by their actions that taking risks and admitting failures are desirable traits. Managers also have to encourage functional conflict.
        
        Do people believe its possible? in cultures where people believe they can dominate the environment, individuals will take a proactive view of change.
        
        if change is possible, how long will it take to bring it about? depending on the culture's time orientation, different cultures can focus on long term or short term, Japan vs Canada
        
        is resistance to change greater in some cultures than in others? resistance to change will be influenced by societies reliance on tradition, such as italians vs canadians.
        
        does culture influence how change efforts will be implemented? high power distance cultures expect change to work autocratically, in low power distance cultures like Denmark, change is expected to work democratically.
        
        Do successful idea champions do things differently in different cultures? people in collectivistic cultures, appeal for cross functional support for innovation efforts, people in high power distance cultures prefer champions to work closely with those in authority to approve innovative activities before work is conducted on them., and higher the uncertainty avoidance, the more champions should work within the organization's rules and procedures to develop the innovation.