05 Organizational Change

Question 1

Organizational Barriers: Why does Change Fail? (5)

Answer 1

Excessive Focus on Costs

Failure to perceive benefits

Lack of coordination and cooperation

Fear of Loss

Uncertainty avoidance

Question 2

Individual Barriers to Change

1.
2.
3.
4.
5.

Answer 2

Loss of Control (of autonomy and self determination)

Uncertainty Avoidance (leaving the comfort zone)

Loss of Face (people associated with the past are likely defensive)

Concerns about Personal Competence (people feeling incompetent)

More Work (people feeling overloaded)

Question 3

Leadership Strategy: Loss of Control

Answer 3

inviting people to planning, giving ownership

Question 4

Leadership Strategy: Uncertainty Avoidance

Answer 4

Planting seeds
Sprinkling hints
seeking input

Question 5

Leadership Strategy: Loss of face

Answer 5

maintaining dignity by celebrating the good party of the past

Question 6

Leadership Strategy: Concerns about personal competence

Answer 6

Providing abundant information, offering training

Question 7

Leadership Strategy: More Work

Answer 7

Allowing some people to focus exclusively on it

Question 8

What is a small Organization?

1.
2.
3.
4.
5.
6.

Answer 8

• Responsive, flexible
• rather regional reach
• simple
• flat structured and organic
• niche finding
• entrepreneurs

Question 9

What is a Large Organization?

1.
2.
3.
4.
5.
6.

Answer 9

• Economies of scale
• global reach
• vertical hierarchy, mechanistic
• complex
• stable market
• “organization men”

Question 10

What is the organizational life cycle?

Answer 10

• A way of thinking about organizational growth and change
• includes four stages

After: Greiner Model

Question 11

What are the Four Stages of the Model of Organizational Life Cycle?

Answer 11

• Entrepreuneurial stage - emphasize on creating a product or service and surviving in the market place
• Collectively stage - orgas begin to develop clear goals and direction
• Formalzation stage - involves the installation of rules, procedures, control systems
• Elaboration stage - focus on collabs and teamwork

Question 12

External Reasons for Change (6)

Answer 12

Political drivers

Economic drivers

Social Drivers

Technological Drivers

Environmental drivers

Legal Drivers

Question 13

Examples For Political Drivers

Answer 13

changes in government policies, ideologies, systems (e.g. health care system, educational system)

Question 14

Examples for Economics Drivers

Answer 14

changes in economic climate, e.g. economic growth. inflation, interests, taxes

Question 15

Examples for social drivers

Answer 15

change in socio-cultural values
(behaviour, values, attitudes, expectations)

Question 16

Examples for Technological Drivers

Answer 16

change in technological conditions, leading to new developments for products and processes

Question 17

Examples for Environmental Drivers

Answer 17

e.g. climate weather

Question 18

Examples for Legal Drivers

Answer 18

change in regulatory sytems that set legal boundaries for firms, e.g. labour law, trade regulations

Question 19

Internal reasons for change (5)

Answer 19

Processes

Technology

People

Organizational Culture

Structures

Question 20

What Types of Change are there?

1.
2.
3.
4.

Answer 20

Incremental Change
Radical Change

Reactive Change
Proactive Change

Question 21

What is Incremental Change?

Answer 21

A series of continual progressions that maintain the orgas gebreal equilibrium and often affect only one organizational part

Occurs through the established structure and management process

Question 22

What is radical Change?

Answer 22

Breaks the frame of reference for the orga, often transforming the entire organization

Creation of new structure and new management process, fundamwental change of characteristics and attributes of the organization

Question 23

what is Reactive Change?

Answer 23

When an organization is faced with driving forces that apply a lot of pressure that change MUST take place

Question 24

What is Proactive Change?

Answer 24

Proactive change situations are more often orderly and more efficient bc changes can be analysed, planned and implemented with enough time and resources

Question 25

Aspects of the Force Field Analysis

Answer 25

by Lewin´s (1951)

Forces of change
vs Forces resisitng change

Driving forces vs Restraining forces

Question 26

3 Phases of an Idealized Change Process

Answer 26

Unfreeze - Examine status quo, increase driving forces to change, decrease resisitng forces against

Move - take action! make change and involve people

Refreeze - make change permanent, reward desired outcomes

BY KURT LEWIN

Question 27

8 steps of the Change Process

Answer 27

by John Kotter

Step 1: Establish a sense of urgency
Step 2: Form a powerful guiding coalition
Step 3: Create a change vision
Step 4: Communicate the change vision
Step 5: Empower others to act on the vision
Step 6: Plan for and create short-term wins
Step 7: Conolidate improvements and produce more change
Step 8: Institutionalise new approaches

Question 28

8 Steps of the change Process: intercultural

Answer 28

different from country to country

does the person have to have a certain status? - hierarchy, older people
are both men and women allowed to be in the team?
how certain is the vision allowed to be?
how formal do you communicate?
Who makes a final decision?
Are you allowed to give feedback?

Question 29

Leading Change - John P. Kotter
Why Transformation Efforts Fail (8)

Answer 29

1. Sense of Urgency is not established big enough (not enough patience, comfort zone - 75% should be convinced)
2. Not Creating Poweful Enough Guiding Coalition (must be powerful! needs to operate OUTSIDE the normal hierarchy - if it was good, there neednt be tranformation)
3. Lacking a vision
4. Undercommunicating Vision by a factor of 10 - many need to want to help, using all communication channels
5. Not removing Obstacles of Vision - orga structure, self-interest?
6. Not systemically Planning for and creating short-term wins
7. Declaring Vistory too soon
8. Not anchoring changes in the corporations culture