Study Question 1: What isorganizational change?Transformational change.– Results in a major overhaul of the organizationor its component systems.Organizational Behavior: Chapter 16 495

– Described as radical change or frame-breakingchange.– Organizations experiencing transformationalchange undergo a significant shift in basiccharacteristic features.Study Question 1: What isorganizational change?Incremental change or frame-bending

change.– Part of the organization’s natural evolution inbuilding on the existing ways of operating toOrganizational Behavior: Chapter 16 496

enhance or extend them in new directions.– Introduction of new products, newtechnologies, and new systems and processes.– Continuous improvement through incrementalchange is an important asset.Study Question 1: What isorganizational change?Change agents.– Individuals and groups who take responsibility

for changing the existing behavior patterns ofOrganizational Behavior: Chapter 16 497

another person or social system.– Success of change efforts depends in part onchange agents.– Being an effective change agent means beinga great change leader.Study Question 1: What isorganizational change?Unplanned change.– Occurs spontaneously and without a changeagent’s direction, and such change may beOrganizational Behavior: Chapter 16 498

disruptive.

– Appropriate goal is to act quickly to minimizethe negative consequences and maximize anypossible benefits.Study Question 1: What isorganizational change?Planned change.– The result of specific efforts by a changeagent.– Direct response to someone’s perception of aOrganizational Behavior: Chapter 16 499

performance gap.• A performance gap is the discrepancy between thedesired and actual state of affairs.• Performance gaps represent problems to beresolved or opportunities to be explored.

Study Question 1: What isorganizational change?Organizational forces for change.– Organization-environment relationships.Organizational Behavior: Chapter 16 500

– Organizational life cycle.– Political nature of organizations.Study Question 1: What is organizationalchange?Organizational Behavior: Chapter 16 501

Study Question 1: What isorganizational change?

Reasons for failure of transformational change.– No sense of urgency.– No powerful guiding coalition.No compelling vision.Organizational Behavior: Chapter 16 502

– – Failure to communicate the vision.– Failure to empower others to act.– Failure to celebrate short-term wins.– Failure to build on accomplishments.– Failure to institutionalize results.

Study Question 1: What isorganizational change?Phases of planned change.– Unfreezing.• Preparing a situation for change by disconfirmingexisting attitudes and behaviors.Organizational Behavior: Chapter 16 503

– Changing.• Taking action to modify a situation by altering thetargets of change.– Refreezing.• Maintaining momentum and eventuallyinstitutionalizing the change.

Study Question 2: What changestrategies are used in organizations?Organizational Behavior: Chapter 16 504

Study Question 3: How is resistanceto change best managed?Resistance to change.– Any attitude or behavior that indicatesunwillingness to make or support a desiredOrganizational Behavior: Chapter 16 505

change.– Alternative views of resistance.• Something that must be overcome for change to besuccessful.

• Feedback that can be used to facilitate achievingchange objectives.

Study Question 3: How is resistanceto change best managed?

Why people resist change.– Fear of the unknown.– Lack of good information.Fear for loss of security.Organizational Behavior: Chapter 16 506

– – No reasons to change.– Fear for loss of power.– Lack of resources.– Bad timing.– Habit.

Study Question 3: How is resistanceto change best managed?

Resistance to the change itself.

– People may reject a change because they believe it isnot worth their time, effort, or attention.– To deal with resistance to the change itself, all thoseOrganizational Behavior: Chapter 16 507

affected should know how it satisfies the followingcriteria:• Benefit.• Compatibility.• Complexity.• Triability.

Study Question 3: How is resistanceto change best managed?

Resistance to the change strategy.– Force-coercion strategy.• Likely resistance among individuals who resent managementby “command” or the use of threatened punishment.Organizational Behavior: Chapter 16 508

– Rational persuasion strategy.

• Likely resistance when the data are suspect or the expertise ofadvocates is unclear.– Shared-power strategy.• Likely resistance if it appears manipulative and insincere.

Study Question 3: How is resistanceto change best managed?Resistance to the change agent.– Resistance to the change agent is directed atOrganizational Behavior: Chapter 16 509

the person implementing the change and ofteninvolves personality and other differences.Study Question 3: How is resistanceto change best managed?

How to deal with resistance.– Education and communication.– Participation and support.Organizational Behavior: Chapter 16 510

– Facilitation and support.– Negotiation and agreement.– Manipulation and cooptation.– Explicit and implicit coercion.Study Question 3: How is resistanceto change best managed?Organizational Behavior: Chapter 16 511

Study Question 4: How doorganizations innovate?

Innovation.– The process of creating new ideas and putting theminto practice.

Product innovations.Organizational Behavior: Chapter 16 512

– The introduction of new or improved goods orservices to better meet customer needs.

Process innovations.– The introduction of new and better work methods andoperations.

Study Question 4: How doorganizations innovate?Organizational Behavior: Chapter 16 513

Study Question 4: How doorganizations innovate?Features of innovative organizations.– Strategies and cultures that are built around acommitment to innovation.Organizational Behavior: Chapter 16 514

– Structures that support innovation.– Staffing with a clear commitment toinnovation.

– Top-management support for innovation.Study Question 5: How does stress affectpeople in change environments?Stress.– A state of tension experienced by individualsOrganizational Behavior: Chapter 16 515

facing extraordinary demands, constraints, oropportunities.Study Question 5: How does stress affectpeople in change environments?Source of stress.– Stressors.• The wide variety of things that cause stress forOrganizational Behavior: Chapter 16 516

individuals.

– Types of stressors.• Work-related stressors.• Life stressors.Study Question 5: How does stress affectpeople in change environments?Work-related stressors.– Task demands.– Role ambiguities.Organizational Behavior: Chapter 16 517

– Role conflicts.– Ethical dilemmas.– Interpersonal problems.– Career developments.– Physical setting.Study Question 5: How does stress affectpeople in change environments?Life stressors.

– Family events.– Economic difficulties.Organizational Behavior: Chapter 16 518

– Personal affairs.– Individual’s needs.– Individual’s capabilities.– Individual’s personality.Study Question 5: How does stress affectpeople in change environments?Stress and performance.– Constructive stress (or eustress).• Moderate levels of stress act in a positive way forboth individuals and organization.Organizational Behavior: Chapter 16 519

– Destructive stress (or distress).• Low and especially high levels of stress act in anegative way for both individuals and organization.

– Job burnout.• A loss of interest in and satisfaction with a job dueto stressful working conditions.Study Question 5: How does stress affectpeople in change environments?

Stress and health.– Stress can harm people’s physical and psychologicalhealth.– Health problems associated with stress.• Heart attack.• Stroke.Organizational Behavior: Chapter 16 520• Hypertension.• Migraine headache.• Ulcers.• Substance abuse.• Overeating.• Depression.• Muscle aches.– Managers and team leaders should be alert to signs of

excessive stress.Study Question 5: How does stress affectpeople in change environments?Stress management.– Stress prevention.• Taking action to keep stress from reachingdestructive levels in the first place.Organizational Behavior: Chapter 16 521

– Once stress has reached a destructive point,special techniques of stress management canbe implemented.– Stress management.• Begins with the recognition of stress symptomsand continues with actions to maintain a positiveperformance edge.

Study Question 5: How does stress affectpeople in change environments?Stress management (cont.).– Personal wellness.• Pursuit of one’s job and career goals with theOrganizational Behavior: Chapter 16 522

support of a personal health promotion program.– Employee assistance programs.• Provide help for employees who are experiencingpersonal problems and related stress.

Study Question 4: How does a firm learnand continue to learn over time?

Organizational learning.– Process of knowledge acquisition, informationdistribution, information interpretation, andOrganizational Behavior: Chapter 18 595

information retention in adapting successfully tochanging circumstances.– Adjustment of organization’s and individual’s actionsbased on experience.– The key to successful co-evolution.Study Question 4: How does a firm learnand continue to learn over time?Mimicry.– Occurs when managers copy what they believe

are the successful practices of others– Is important to new firms.Organizational Behavior: Chapter 18 596

• Provides workable, if not ideal, solutions to manyproblems.• Reduces the number of decisions that need to beanalyzed separately.• Establishes legitimacy or acceptance and narrowsthe choices requiring detailed explanation.Study Question 4: How does a firm learnand continue to learn over time?Experience.– A primary way to acquire knowledge.– Besides learning by doing, managers can alsoOrganizational Behavior: Chapter 18 597

systematically embark on structured programsto capture the lessons to be learned.– The major problem with emphasizing learningby doing is the inability to precisely forecastchanges.Study Question 4: How does a firm learnand continue to learn over time?Organizational Behavior: Chapter 18 598

Study Question 4: How does a firm learnand continue to learn over time?Scanning.– Involves looking outside the firm and bringingback useful solutions.Organizational Behavior: Chapter 18 599

Grafting.– The process of acquiring individuals, units, orfirms to bring in useful knowledge.Study Question 4: How does a firm learnand continue to learn over time?Common problems in informationinterpretation.– Self-serving interpretations.• People seeing what they want to see, rather thanOrganizational Behavior: Chapter 18 600

seeing what is.– Managerial scripts.• A series of well-known routines for problemidentification and alternative generation andanalysis that are commonly used by a firm’smanagers.

Study Question 4: How does a firm learnand continue to learn over time?Organizational myths.– Commonly held cause-effect relationships orassertions that cannot be empiricallyOrganizational Behavior: Chapter 18 601

supported.– Common myths.

Single organizational truth. Presumption of competence. Denial of tradeoffs.

Study Question 4: How does a firm learnand continue to learn over time?Information retention mechanisms.– Individuals.

– Organizational culture.Transformation mechanisms.Organizational Behavior: Chapter 18 602

– – Formal organizational structures.– Ecology.– External archives.– Internal information technologies.Study Question 4: How does a firm learnand continue to learn over time?Deficit cycles.– A pattern of deteriorating performance that isfollowed by even further deterioration.Organizational Behavior: Chapter 18 603

– Factors associated with deficit cycles.• Organizational inertia.• Hubris.• Detachment.

Study Question 4: How does a firm learnand continue to learn over time?Benefit cycles.– A pattern of successful adjustment followedby further improvements.Organizational Behavior: Chapter 18 604

– Firms can successfully co-evolve by initiatinga benefit cycle.– The firm develops adequate mechanisms forlearning.Chapter 19 Study QuestionsWhat is organizational culture?How do you understand an organizationalculture?

Organizational Behavior: Chapter 19 605

How can the organizational culture bemanaged?How can you use organizationaldevelopment to improve the firm?Study Question 1: What isorganizational culture?Organizational culture.– The system of shared actions, values, andbeliefs that develops within an organizationOrganizational Behavior: Chapter 19 606

and guides the behavior of its members.– Called corporate culture in the businesssetting.– No two organizational cultures are identical.

Study Question 1: What isorganizational culture?External adaptation.– Involves reaching goals and dealing withoutsiders regarding tasks to be accomplished,methods used to achieve the goals, andOrganizational Behavior: Chapter 19 607

methods of coping with success and failure.– Important aspects of external adaptation.• Separating eternal forces based on importance.• Developing ways to measure accomplishments.• Creating explanations for not meeting goals.

Study Question 1: What isorganizational culture?

External adaptation involves answering importantgoal-related questions regarding coping withreality.– What is the real mission?– How do we contribute?Organizational Behavior: Chapter 19 608

– What are our goals?– How do we reach our goals?– What external forces are important?– How do we measure results?– What do we do if specific targets are not met?– How do we tell others how good we are?– When do we quit?

Study Question 1: What isorganizational culture?Internal integration.– Deals with the creation of a collective identity

and with finding ways of matching methods ofworking and living together.Organizational Behavior: Chapter 19 609

– Important aspects of working together.• Deciding who is a member and who is not.• Developing an understanding of acceptable andunacceptable behavior.• Separating friends from enemies.

Study Question 1: What isorganizational culture?

Internal integration involves answering importantquestions associated with living together.– What is our unique identity?Organizational Behavior: Chapter 19 610

– How do we view the world?– Who is a member?– How do we allocate power, status, and authority?– How do we communicate?

– What is the basis for friendship?

Study Question 1: What isorganizational culture?Subculture.– A group of individuals with a unique patternof values and philosophy that are notinconsistent with the organization’s dominantOrganizational Behavior: Chapter 19 611

values and philosophy.Counterculture.– A group of individuals with a pattern of valuesand philosophy that outwardly reject thesurrounding culture.Study Question 1: What isorganizational culture?

Problems associated with subcultural divisionswithin the larger culture.– Subordinate groups are likely to form into aOrganizational Behavior: Chapter 19 612

counterculture pursuing self-interests.– The firm may encounter extreme difficulty in copingwith broader cultural changes.– Embracing natural divisions from the larger culturemay lead to difficulty in international operations.

Study Question 1: What isorganizational culture?

Taylor Cox’s five step program.– Step 1: The organization should develop pluralism.– Step 2: The organization should fully integrate itsstructure.Organizational Behavior: Chapter 19 613

– Step 3: The organization must integrate the informalnetworks.– Step 4: The organization should break the linkagebetween naturally occurring group identity andorganizational identity.– Step 5: The organization must actively work toeliminate identity-based interpersonal conflict.Study Question 2: How do youunderstand an organizational culture?Organizational Behavior: Chapter 19 614

Study Question 2: How do youunderstand an organizational culture?

Sagas.– Heroic accounts of organizational accomplishments.

Rites.

– Standardized and recurring activities that are used atOrganizational Behavior: Chapter 19 615

special times to influence organizational members.

Rituals.– Systems of rites.

Cultural symbols.– Any object, act, or event that serves to transmitcultural meaning.Study Question 2: How do youunderstand an organizational culture?Culture often specifies rules and roles.– Rules.Organizational Behavior: Chapter 19 616

• The various types of actions that are appropriate.– Roles.

• Where individual members stand in the socialsystem.Study Question 2: How do youunderstand an organizational culture?Shared values.– Help turn routine activities into valuable andimportant actions.Organizational Behavior: Chapter 19 617

– Tie the organization to the important values ofsociety.– May provide a very distinctive source ofcompetitive advantage.Study Question 2: How do youunderstand an organizational culture?

Characteristics of strong corporatecultures.– A widely shared real understanding of whatthe firm stands for, often embodied in slogans.Organizational Behavior: Chapter 19 618

– A concern for individuals over rules, policies,procedures, and adherence to job duties.– A recognition of heroes whose actionsillustrate the company’s shared philosophyand concerns.Study Question 2: How do youunderstand an organizational culture?Characteristics of strong corporate cultures

(cont.).– A belief in ritual and ceremony as important tomembers and to building a common identity.Organizational Behavior: Chapter 19 619

– A well-understood sense of the informal rulesand expectations so that employees andmanagers know what is expected of them.– A belief that what employees and managers dois important and that it is essential to shareinformation and ideas.Study Question 2: How do youunderstand an organizational culture?

Organizational myths.– Unproven and often unstated beliefs that areaccepted uncritically.Organizational Behavior: Chapter 19 620

– Myths enable managers to redefine impossibleproblems.– Myths can facilitate experimentation andcreativity.– Myths allow managers to govern.Study Question 2: How do youunderstand an organizational culture?National culture influences.– Widely held common assumptions may be

traced to the larger culture of the host society.Organizational Behavior: Chapter 19 621

– National cultural values may becomeembedded in expectations of organizationmembers.Study Question 3: How can theorganizational culture be managed?Strategies for managing corporate culture.– Managers help modify observable culture,shared values, and common assumptionsOrganizational Behavior: Chapter 19 622

directly.

– Use of organizational development techniquesto modify specific elements of the culture.Study Question 3: How can theorganizational culture be managed?Why a well-developed managementphilosophy is important.– Establishes generally understood boundariesOrganizational Behavior: Chapter 19 623

on all members of the firm.– Provides a consistent way for approachingnew and novel situations.

– Helps hold individuals together by showingthem a known path to success.Study Question 3: How can theorganizational culture be managed?

Strategies for building, reinforcing, and changingorganizational culture.– Directly modifying the visible aspects of culture.Organizational Behavior: Chapter 19 624

– Changing the lessons to be drawn from commonstories.– Setting the tone for a culture and for cultural change.– Fostering a culture that addresses questions of external

adaptation and internal integration.

Study Question 3: How can theorganizational culture be managed?

Mistakes that managers can make in building,reinforcing, and changing culture.– Trying to change people’s values from the topdown:Organizational Behavior: Chapter 19 625

• While keeping the ways in which the organizationoperates the same.• Without recognizing the importance of individuals.– Attempting to revitalize an organization bydictating major changes and ignoring sharedvalues.Study Question 4: How can you use

organization development to improve the firm?Organization development (OD).– The application of behavioral scienceknowledge in a long-range effort to improveOrganizational Behavior: Chapter 19 626

an organization’s ability to cope with changein its external environment and to increase itsinternal problem-solving capabilities.Study Question 4: How can you useorganization development to improve the firm?Organizational development.– Designed to work on both issues of externaladaptation and internal integration.Organizational Behavior: Chapter 19 627

– Used to improve organizational performance.– Seeks to achieve change so the organization’smembers maintain the culture and longer-runorganizational effectiveness.Study Question 4: How can you useorganization development to improve the firm?

Underlying assumptions of OD.– Individual level.• Respect for people and their capabilities.– Group level.Organizational Behavior: Chapter 19 628

• Belief that groups can be good for both people andorganizations.– Organizational level.• Respect for the complexity of an organization as asystem of interdependent parts.

Study Question 4: How can you useorganization development to improve the firm?Organization development goals.– Outcome goals.Organizational Behavior: Chapter 19 629

• Mainly deal with issues of external adaptation.– Process goals.• Mainly deal with issues of internal integration.Study Question 4: How can you useorganization development to improve the firm?

In pursuing outcome and process goals, OD helpsby:– Creating an open problem solving climate.– Supplementing formal authority with knowledge andcompetence.Organizational Behavior: Chapter 19 630

– Moving decision making where relevant information

is available.– Building trust and maximizing collaboration.– Increasing the sense of organizational ownership.– Allowing people to exercise self-direction and selfcontrol.Study Question 4: How can you useorganization development to improve the firm?Action research.– The process of systematically collecting dataon an organization, feeding it back to theOrganizational Behavior: Chapter 19 631

members for action planning, and evaluatingresults by collecting and reflecting on moredata after the planned actions have been taken.Study Question 4: How can you use

organization development to improve the firm?Organizational Behavior: Chapter 19 632

Study Question 4: How can you useorganization development to improve the firm?Organizational Behavior: Chapter 19 633

Study Question 4: How can you useorganization development to improve the firm?Organizationwide OD interventions.– Survey feedback.• Collection and feedback of data to organizationOrganizational Behavior: Chapter 19 634

members for action planning purposes.– Confrontation meetings.• Activities for quickly determining how anorganization can be improved and taking initialactions for betterment.Study Question 4: How can you use

organization development to improve the firm?Organizationwide OD interventions(cont.).– Structural redesign.Organizational Behavior: Chapter 19 635

• Realigning the organization’s structure or majorsubsystems.– Collateral organization.• Using representative organizational members inperiodic small group problem-solving sessions.Study Question 4: How can you useorganization development to improve the firm?Group and intergroup OD interventions.– Team building.

• Activities to improve the functioning of a group.Process consultation.Organizational Behavior: Chapter 19 636

– • Activities to improve the functioning of key groupprocesses.– Intergroup team building.• Activities to improve the functioning or two ormore groups.Study Question 4: How can you useorganization development to improve the firm?Individual OD interventions.– Role negotiation.• Clarifying expectations in working relationships.Job redesign.Organizational Behavior: Chapter 19 637

– • Creating long-term congruence between individualgoals and organizational career opportunities.

– Career planning.• Structured opportunities for individuals to workwith managers or staff experts on career issues.

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