Managing Change

and
Organizational
Learning

Chapter 8

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2012 The McGraw-Hill Companies, Inc. All rights reserved.
 Forces of Change
External forces for Internal forces for
change change
 originate outside the  originate inside the
organization organization.

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 External Forces
Demographic characteristics
Technological advancements
Customer and market changes
Social and political pressures

16-3
 Internal Forces

Low job
Low productivity
satisfaction

Conflict Strikes

16-4
 Question?
ABC Trucking, conducted an analysis of employee
job satisfaction and turnover, and concluded that
its turnover rate was 48%. This was primarily
attributed to job dissatisfaction by employees.
This represents a(n) ______ for ABC.
A.External force for change
B.Social and political pressure
C.Technological advancements
D.Internal force for change

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 Lewin’s Change Model
Unfreezing
 Focus is to create the motivation to change
 Begin by disconfirming the usefulness or
appropriateness of employees’ present
behaviors or attitudes

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 Lewin’s Change Model
Benchmarking
 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

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 Question?
Fredfirst, a securities trading company,
regularly compares its performance with that
of high performing organizations in the
industry, such as Merrill Lynch. This process
is described as
A.Change.
B.Refreezing.
C.Benchmarking.
D.A strategic plan

16-8
 Lewin’s Change Model
Changing
 providing employees with new information, new
behavioral models, new processes or
procedures, new equipment, new technology,
or new ways of getting the job done
 change can be aimed at improvement or
growth, or it can focus on solving a problem
such as poor customer service or low
productivity

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 Lewin’s Change Model
Refreezing
 Change is stabilized by helping employees
integrate the changed behavior or attitude into
their normal way of doing things
 Giving employees the chance to exhibit new
behaviors, which are then reinforced

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 A Systems Model of Change
Systems Approach
 Based on the premise that any change, no
matter how large or small, has a cascading
effect throughout an organization
 Takes a “big picture” perspective of
organizational change

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 A Systems Model of Change
Mission statement Vision
 represents the  a long-term goal
“reason” an that describes
organization exists “what” an
organization wants
to become.

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 A Systems Model of Change
Strategic plan
 outlines an organization’s long-term direction
and the actions necessary to achieve planned
results
Target elements of change
 components of an organization that may be
changed

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Target Elements of Change

Organizational arrangements

Social factors

Methods

People

16-14
A Systems Model of Change

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Applying the Systems Model of Change

Two ways to supply the systems model:

Aid during the strategic planning process
Using the model as a diagnostic framework
to determine the causes of an
organizational problem and to propose
solutions

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 Steps to Leading
Organizational Change
Table 16-1

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 Question?
Dale needs to change the manufacturing
processes of his firm. This will cause many
changes to his labor force. He shares a
compelling reason to his employees. Which
step is this in leading change?
A.Generate short term wins
B.Develop a vision and strategy
C.Establish a sense of urgency
D.Create a guiding coalition

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 Creating Change Through
Organization Development
Organization Development
 consists of planned efforts to help persons work
and live together more effectively, over time, in
their organizations

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The OD Process

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OD Research and Practical Implications
1. Planned organizational change works
2. Change programs are more successful when
they are geared toward meeting both short-term
and long-term results
3. Organizational change is more likely to succeed
when top management is truly committed to the
change program
4. Effectiveness of OD interventions is affected by
cross-cultural considerations

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 Why People Resist Change
in the Workplace
Resistance to
change
 emotional or
behavioral response
to real or imagined
work changes

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 Why People Resist Change
in the Workplace
1. An individual’s predisposition toward
change
2. Surprise and fear of the unknown
3. Fear of failure
4. Loss of status and/or job security
5. Peer pressure
6. Past success

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 Question?
Jamie is not directly affected by the change
introduced in her company, but she is actively
resisting it to protect the interests of her friends.
This describes which reason for resistance to
change?
A.Surprise and fear of the unknown
B.Personality conflicts
C.Peer pressure
D.Lack of tact

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 Why People Resist Change
in the Workplace
7. Disruption of cultural traditions and/or
group relationships
8. Personality conflicts
9. Lack of tact and/or poor timing
10. Leadership style
11. Failure to legitimize change

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Overcoming Resistance to Change
Resilience to change
 represents a composite characteristic reflecting
high self-esteem, optimism, and an internal
locus of control, was positively associated with
recipients’ willingness to accommodate or
accept a specific organizational change

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Overcoming Resistance to Change
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”

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Overcoming Resistance to Change
1. Provide as much information as possible to
employees about the change
2. Inform employees about the rationale for the
change
3. Conduct meetings to address employee’s
concerns
4. Provide employees the opportunity to discuss
how the proposed change might affect them

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Six Strategies for Overcoming
Resistance to Change

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Creating a Learning Organization
Learning organization
 proactively creates, acquires, and transfers
knowledge throughout the organization

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Creating a Learning Organization
Team mental model
 Represents team members’ “shared, organized
understanding and mental representation of
knowledge about key elements of the team’s
relevant environment”

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 Leadership Is the Foundation
of a Learning Organization
Building a commitment to learning
Working to generate ideas with impact
Working to generalize ideas with impact
Helping the organization to “unlearn” old
mental models

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Factors That Detract from an Organization’s
Ability to Learn from Failure

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Working to Generate Ideas with
Impact
Implement continuous improvement programs.
Increase employee competence through training,
or buy talent from outside the organization.
Experiment with new ideas, processes, and
structural arrangements.
Go outside the organization to identify world-class
ideas and processes.

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Working to Generalize Ideas with
Impact
Measuring and rewarding learning.
Increasing open and honest dialogue
among organizational members
Reducing conflict.
Increasing horizontal and vertical
communication.
Promoting teamwork.

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Working to Generalize Ideas with
Impact
Rewarding risk taking and innovation.
Reducing the fear of failure.
Increasing the sharing of successes,
failures, and best practices across
organizational members.
Reducing stressors and frustration.
Reducing internal competition.

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 Helping the Organization to
Unlearn Old Mental Models
Management must seriously question and
challenge the ways of thinking that worked
in the past if they want to create a learning
organization.
For example, the old management
paradigm of planning, organizing, and
control might be replaced with one of vision,
values, and empowerment.

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 Case: Louisville Slugger –
Hillerich & Bradsby
What role do information systems play at H&B?
What were the internal and external trade-offs
between reconfiguring the old information system
and designing a new one?
Why was the transition to the new system difficult?
How could Kotter’s eight steps be used to facilitate
such a transition?
Why did some people resist change and
experience stress? What strategies could H&B
have used to overcome resistance to change?

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