05 Organizational Change Flashcards
Organizational Barriers: Why does Change Fail? (5)
Excessive Focus on Costs
Failure to perceive benefits
Lack of coordination and cooperation
Fear of Loss
Uncertainty avoidance
Individual Barriers to Change
1.
2.
3.
4.
5.
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)
Leadership Strategy: Loss of Control
inviting people to planning, giving ownership
Leadership Strategy: Uncertainty Avoidance
Planting seeds
Sprinkling hints
seeking input
Leadership Strategy: Loss of face
maintaining dignity by celebrating the good party of the past
Leadership Strategy: Concerns about personal competence
Providing abundant information, offering training
Leadership Strategy: More Work
Allowing some people to focus exclusively on it
What is a small Organization?
1.
2.
3.
4.
5.
6.
- Responsive, flexible
- rather regional reach
- simple
- flat structured and organic
- niche finding
- entrepreneurs
What is a Large Organization?
1.
2.
3.
4.
5.
6.
- Economies of scale
- global reach
- vertical hierarchy, mechanistic
- complex
- stable market
- “organization men”
What is the organizational life cycle?
- A way of thinking about organizational growth and change
- includes four stages
After: Greiner Model
What are the Four Stages of the Model of Organizational Life Cycle?
- 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
External Reasons for Change (6)
Political drivers
Economic drivers
Social Drivers
Technological Drivers
Environmental drivers
Legal Drivers
Examples For Political Drivers
changes in government policies, ideologies, systems (e.g. health care system, educational system)
Examples for Economics Drivers
changes in economic climate, e.g. economic growth. inflation, interests, taxes
Examples for social drivers
change in socio-cultural values
(behaviour, values, attitudes, expectations)
Examples for Technological Drivers
change in technological conditions, leading to new developments for products and processes
Examples for Environmental Drivers
e.g. climate weather
Examples for Legal Drivers
change in regulatory sytems that set legal boundaries for firms, e.g. labour law, trade regulations
Internal reasons for change (5)
Processes
Technology
People
Organizational Culture
Structures
What Types of Change are there?
1.
2.
3.
4.
Incremental Change
Radical Change
Reactive Change
Proactive Change
What is Incremental Change?
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
What is radical Change?
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
what is Reactive Change?
When an organization is faced with driving forces that apply a lot of pressure that change MUST take place
What is Proactive Change?
Proactive change situations are more often orderly and more efficient bc changes can be analysed, planned and implemented with enough time and resources
Aspects of the Force Field Analysis
by Lewin´s (1951)
Forces of change
vs Forces resisitng change
Driving forces vs Restraining forces
3 Phases of an Idealized Change Process
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
8 steps of the Change Process
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
8 Steps of the change Process: intercultural
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?
Leading Change - John P. Kotter
Why Transformation Efforts Fail (8)
- Sense of Urgency is not established big enough (not enough patience, comfort zone - 75% should be convinced)
- Not Creating Poweful Enough Guiding Coalition (must be powerful! needs to operate OUTSIDE the normal hierarchy - if it was good, there neednt be tranformation)
- Lacking a vision
- Undercommunicating Vision by a factor of 10 - many need to want to help, using all communication channels
- Not removing Obstacles of Vision - orga structure, self-interest?
- Not systemically Planning for and creating short-term wins
- Declaring Vistory too soon
- Not anchoring changes in the corporations culture
