Ch10 of Org Theory by Jones

8/10/2019 Ch10 of Org Theory by Jones

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10-Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 1

Organizational Theory,Design, and Change

Sixth Edition Gareth R. Jones

Chapter 10

Types and Formsof Organizational

Change


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Learning Objectives1. Understand the relationship among

organizational change, redesign, anorganizational effectiveness

2. Distinguish among the major formsor types of evolutionary andrevolutionary change organizationsmust manage

3. Recognize the problems inherent inmanaging change and the obstaclesthat must be overcome


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Learning Objectives (cont.)

4. Describe the change process andunderstand the techniques that canbe used to help an organizationachieve its desired future state


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What is Organizational Change?

! Organizational change: theprocess by which organizations movefrom their present state to somedesired future state to increase theireffectiveness

! Goal is to find improved ways of using

resources and capabilities in order toincrease an organization

s ability tocreate value


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What is Organizational Change? (cont.)

! Targets of change include improvingeffectiveness at four different levels

! Human resources! Functional resources! Technological capabilities! Organizational capabilities


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Targets of Change:Human Resources

! Typical kinds of change effortsdirected at human resources include:

1. Investment in training and development

2. Socializing employees into theorganizational culture3. Changing organizational norms and

values to motivate a multicultural and

diverse workforce4. Promotion and reward systems5. Changing the composition of the top-

management team


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Targets of Change:Functional Resources! Change efforts directed at functional

resources by transferring resourcesto the functions where the most

value can be created in response toenvironmental change

! An organization can improve the

value that its functions create bychanging its structure, culture, andtechnology


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Targets of Change:Organizational Capabilities

! Change efforts directed atorganizational capabilities alterorganizational culture and structure,thereby permitting the organizationto harness its human and functionalresources to exploit technological

opportunities



Forces for Change! Competitive forces: organization

must make changes to attempt tomatch or exceed its competitors onat least one of the followingdimensions:

! Efficiency! Quality! Innovation



Forces for Change (cont.)! Economic, political, and global

forces: affect organizations by forcingthem to change how and where they

produce goods and services! Need to change organizational structure

to:! Allow expansion in foreign market! Adapt in a variety of national cultures! Help expatriates adapt to the cultural values

of where they are located



Forces for Change (cont.)! Demographic and social forces: changes in the composition of the

workforce and the increasing diversityof employees has presented manychallenges for organizations

! Increased need to manage diversity! Ethical forces: government, political,

and social demands for moreresponsible corporate behavior

! Creation of ethics officer position! Encourage employees to report unethical

behaviors



Resistances to Change! One of the main reasons for some

organizations

inability to change isorganizational inertia that maintains

the status quo! Resistance to change lowers an

organization

s effectiveness and

reduces its chances of survival



Resistances to Change (cont.)! Organization-level resistance to

change stems from:! Power and conflict

! When change causes power struggle andconflicts, there is resistance

! Differences in functional orientation!

Mechanistic structure! Organizational culture



Resistances to Change (cont.)! Group-level resistance to change

stems from:! Group norms! Group cohesiveness! Groupthink! Escalation of commitment



Resistances to Change (cont.)! Individual-level resistance to change

stems from:! Uncertainty and insecurity! Selective perception and retention! Habit



Figure 10.1: Forces for andResistances to Change



Levin's Force-FieldTheory of Change

! This theory of change argues that two setsof opposing forces within an organizationdetermine how change will take place

!

Forces for change and forces makingorganizations resistant to change! When forces for and against change are equal,

the organization is in a state of inertia!

To change an organization, managers mustincrease forces for change and/or decreaseforces resisting change



Figure 10.2: Levin's Force-FieldTheory of Change



Types of Change in Organizations

! Evolutionary change: change thatis gradual, incremental, and narrowlyfocused

! Revolutionary change: changethat is sudden, drastic, and broadlyfocused



Developments inEvolutionary Change

! Sociotechnical systems theory: atheory that proposes the importance ofchanging role and task or technicalrelationships to increase organizationaleffectiveness

! Managers must fit or

jointly optimize

the workings of an organization

stechnical and social systems or cultureto promote effectiveness

! Managers need to make changes in thetechnical system slowly to allow group

norms and cohesiveness are not disrupted



Developments inEvolutionary Change (cont.)

! Total quality management (TQM): an ongoing and constant effort by allof an organization

s functions to find

new ways to improve the quality of theorganization

s goods and services! Quality circles: groups of workers who

meet regularly to discuss the way work isperformed in order to find new ways toincrease performance

! Changing cross-functional relationships isvery important to TQM



Developments inEvolutionary Change (cont.)! Flexible workers: employees who

have acquired and developed the skillsto perform any of the tasks necessaryfor assembling a range of finishedgoods

! Compensation frequently tied to the

number of different tasks that a personcan perform

! Workers can substitute for one another


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Developments inEvolutionary Change (cont.)

! Flexible work teams: a group ofworkers who assume responsibility forperforming all the operationsnecessary for completing a specifiedstage in the manufacturing process

! Team members jointly assign tasks and

transfer workers from one task to another! Manager

s role is to facilitate the team

sactivities


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Figure 10.3: The Use of FlexibleWork Teams to Assemble Cars

l


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Developments inRevolutionary Change

! Reengineering: managers redesignhow tasks are bundled into roles andfunctions to improve organizational

effectiveness! Instead of focusing on an organization

sfunctions, the managers of areengineered organization focus on

business processes! Companies reengineer the work people

do


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Developments inRevolutionary Change (cont.)

! Reengineering (cont.)! Deliberately ignores the existing

arrangement of tasks, roles, and work

activities! Guidelines for performing reengineering

successfully include:! Organize around outcomes, not tasks! Have those who use the output of the

process perform the process! Decentralize decision making to the point

where the decision is made

Figure 10 4: Improving Integration in


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Figure 10.4: Improving Integration inFunctional Structure in Creating a MaterialsManagement Function

D l i


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Developments inRevolutionary Change (cont.)

! E-engineering: refers to companies

attempts to use information systems toimprove their performance

! Restructuring: changing task andauthority relationships and redesigningorganizational structure and culture toimprove organizational effectiveness

! Downsizing: the process of streamliningthe organizational hierarchy and layingoff managers and workers to reducebureaucratic costs


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M i Ch


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Managing Change: Action Research! Action research: a strategy for

generating and acquiring knowledgethat managers can use to define an

organization

s desired future state! Used to plan a change program that

allows the organization to reach thatstate

i 0 i h S


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Figure 10.5: Levin's Three-StepChange Process


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Steps in Action Research! Diagnosing the organization

! Recognize problems and need to solveproblems!

Gap perceived between actual and desiredperformance! A complex process to distinguish

between symptoms and causes! Information should be collected from all

levels of the organization and outsidestakeholders such as customers andsuppliers


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10-Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Action Research (cont.)

! Determining the desired future state! A difficult planning process including

deciding what the structure and strategyshould be

! Managers need to work out variousalternative courses of action that couldmove the organization to where they wouldlike it to be

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Steps in Action Research (cont.)! Implementing action

! Identify impediments to change! Decide who will be responsible for

making the changes and controlling thechange process! External change agents: people who are

outside consultants who are experts inmanaging change

! Internal change agents: managers fromwithin the organization who areknowledgeable about the situation to bechanged


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Steps in Action Research (cont.)! Implementing action (cont.)

! Decide which specific change strategywill most effectively unfreeze, change,and refreeze the organization! Top-down change: change that is

implemented by managers at a high level inthe organization

! Bottom-up change: change that isimplemented by employees at low levels inthe organization and gradually rises until itis felt throughout the organization


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Steps in Action Research (cont.)! Evaluating the action

! Evaluating the action that has been takenand assessing the degree to which thechanges have accomplished the desired

objectives! Institutionalizing action research

! Must become a norm of the organization! Necessary at all levels of management! Members at all levels must be rewarded for

their efforts


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Organizational Development (OD)

! Organizational development (OD): a series of techniques and methodsthat managers can use in their actionresearch program to increase theadaptability of their organization


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Organizational Development(cont.)

! OD techniques to deal with resistanceto change! Education and communication: inform

workers about change and how they will be

affected! Participation and empowerment:

involve workers in change! Facilitation: help employees with change! Bargaining and negotiation! Manipulation: change the situation to

secure acceptance! Coercion: force workers to accept change

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! OD techniques to promote change! Counseling: help people understand

how their perception of the situation may

not be right! May learn how to manage their interactions

with other people more effectively! Sensitivity training: intense counseling

in which group members, aided by afacilitator, learn how others perceive themand may learn how to deal moresensitively with others

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! Techniques to promote change (cont.) ! Process consultation: a trained

consultant works closely with a manageron the job to help the manager improve hisor her interactions with other groupmembers

! Consultant acts as a sounding board! Team building: an OD technique in which

a facilitator first observes the interactionsof group members and then helps thembecome aware of ways to improve theirwork interactions

O g i ti l D l t


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! Techniques to promote change (cont.) ! Intergroup training: uses team building

to improve the joint activities of different

functions or divisions! Organizational mirroring: a facilitator

helps two interdependent groups exploretheir perceptions of each other and theirrelations in order to improve their workinteractions

! Each group takes turns describing the othergroup

O g i ti l D l t


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! Total organizational interventions! Organizational confrontation

meeting: brings together all of the

managers of an organization to meet toconfront the issue of whether theorganization is effectively meeting itsgoals

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Ch10 of Org Theory by Jones