Chapter 18 Flashcards
1
Q
BECOMING WORLD CLASS
tyranny of the or
A
- the belief go must be either A or B and cannot be both; that only one goal and not another can be attained
- examples : beliefs that you must choose either change or stability; be conservative or bold; have control and consistency or creative freedom; do well in the short term or invest for the future; plan methodically or be opportunistic; create shareholder wealth or do good for the world; be pragmatic or idealistic
- such beliefs, that only one goal but not another can be attained, often are invalid and certainly are constraining
2
Q
BECOMING WORLD CLASS
genius of the and
A
- ability to achieve multiple objectives simultaneously
- develops via the actions of many individuals throughout the organization
- purpose beyond profit and pragmatic pursuit of profit
- relatively fixed core values and vigorous change and movement
- conservatism with the core values and bold business moves
- clear vision and direction and experimentation
- stretch goals and incremental progress
- control based on values and operational freedom
- long-term thinking and investment and demand for short-term results
- visionary, futuristic thinking and daily, nuts-and-bolts execution
3
Q
BECOMING WORLD CLASS
Four key factors for achieving sustained greatness
A
- Strategy : focused on customers, continually fine-tuned based on marketplace changes, and clearly communicated to employees
- Execution : good people, with decision-making authority on the front lines, doing quality work and cutting costs
- Culture : one that motivates, empowers people to innovate, rewards people appropriately (psychologically as well as economically), entails strong values, challenges people, and provides a satisfying work environment
- Structure : making the organization easy to work in and easy to work with, characterized by cooperation and the exchange of information and knowledge throughout the organization.
4
Q
BECOMING WORLD CLASS
organizational ambidexterity
A
- ability to achieve multiple objectives simultaneously
5
Q
MANAGING CHANGE
General reasons for resistance
A
- Inertia : usually people don’t want to disturb the status quo; the old ways of doing things are comfortable and easy, so people don’t want to shake things up and try something new; for example it is easier to stay in the same apartment or house than move.
- Timing : people often resist change because of poor timing; if managers or employees are unusually busy or under stress, or if relations between management and workers are strained, the timing is wrong for introducing new proposals
- Surprise : if the change is sudden, unexpected, or extreme, resistance may be initial - almost reflexive - reaction; managers or others initiating a change often forget that others haven’t given the matter much thought; the change leaders need to allow time to prepare for the change
- Peer pressure : even if individual members do not strongly oppose a change suggested by management, the team may band together in opposition; will cause individuals to resist even reasonable changes, especially if a group is highly cohesive and has anti management norms
6
Q
MANAGING CHANGE
Change-specific reasons for resistance
A
- Self-interest : most people care less about the organization’s best interest than they do about their own best interests; they will resist a change if they think it will cause them to lose something of value
- Misunderstanding : people may not see how the change fits with the firm’s strategy, or they simply may not see the change’s advantage over current processes
- Different assessments : employees receive different - and usually less - information than management received; such discrepancies cause people to develop different assessments of proposed changes; management expects advantages in terms of increased efficiency, but workers may see the change as another arbitrary, ill-informed management rule that causes headaches for those who must carry it out
- Management tactics : management may attempt to force the change and may fail to address concerns or it may fail to provide the necessary resources, knowledge, or leadership to help the change succeed;sometimes a change receives so much exposure and glorification that employees resent and resist
7
Q
BECOMING WORLD CLASS organizational development (OD)
A
- the systemwide application of behavioral science knowledge to development, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness
- is not a narrow improvement in technology or operations but a broader approach to changing organizations, units, or people.
- two features :
1. It aims to increase organizational effectiveness - improving the organization’s ability to deal with customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life.
2. Has an important underlying value orientation : it supports human potential, development, and participation in addition to performance and competitive advantage. - types :
- strategic interventions - helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances
- technostructural interventions - relating to organization structure and design, employee involvement, and work design
- human resources management interventions - attracting good people, setting goals, and appraising and rewarding performance
- human process interventions - conflict resolution, team building, communication, and leadership
10
Q
MANAGING CHANGE
unfreezing
A
- realizing that current practices are inappropriate and that new behavior is necessary
- people must come to realize that some of the past ways of thinking, feeling, and doing things are obsolete
- when managers communicate the need to change, they need to take care not to arouse people’s defensiveness
11
Q
MANAGING CHANGE
performance gap
A
- the difference between actual performance and desired performance
- as an impetus for change, a performance gap can apply to the organization as a whole; it can also apply to departments, groups, and individuals
- gap typically implies poor performance; for example, sales, profits, stock price, or other financial indicators are down
- this situation attracts management’s attention, and management introduces changes to try to correct things
- this type of gap can occur when performance is good but someone realizes it could be be
13
Q
MANAGING CHANGE
moving
A
- instituting the change
- begins with establishing a vision of where the company is heading
- vision can realized through strategic, structural, cultural, and individual change
- changes in structure may involve moving to the divisional, matrix, or some other appropriate form
- cultural changes are institutionalized through effective leadership
14
Q
MANAGING CHANGE
refreezing
A
- strengthening the new behaviors that support the change
- involves implementing control systems that support the change, applying corrective action when necessary, and reinforcing behaviors and performance that support the agenda
- management should consistently support and reward evidence of movement in the right direction
- is appropriate when it permanently installs behaviors that focus on important business results and maintain essential core value
- behaviors that should be refrozen are those that promote continued adaptability, flexibility, experimentation, assessment of results, and continuous improvement - lock in key values, capabilities, and strategic mission but not necessarily specific practices and procedures
15
Q
MANAGING CHANGE
total organizational change
A
- introducing and sustaining multiple policies, practices, and procedures across multiple units and levels
- such change affects the thinking and behavior of everyone in the organization, can enhance the organization’s culture and success, and can be sustained over time.
16
Q
SHAPING THE FUTURE
reactive change
A
- a response that occurs under pressure; problem-driven change
- is also implies being a follower
18
Q
SHAPING THE FUTURE
adapters
A
- companies that take the current industry structure and its evolution as givens, and choose where to compete
- this posture is taken by most companies by conducting standard strategic analysis and choosing how to compete within given environments
19
Q
SHAPING THE FUTURE
shapers
A
- companies that try to change the structure of their industries, creating a future competitive landscape of their own design
20
Q
REVIEW
Discuss what it takes to be world class.
A
- You should strive for world-class excellence, which means using the very best and latest knowledge and ideas to operate at the highest standards of any place anywhere.
- Sustainable greatness comes from, among other things, having strong core values, living those values constantly, striving for continuous improvement, experimenting, and always trying to do better tomorrow than today.
- It is essential not to fall prey to the tyranny of the or - that is, the belief that one important goal can be attained only at the expense of another.
- The genius of the and is that multiple important goals achieved simultaneously and synergistically.
21
Q
REVIEW
Describe how to manage and lead change effectively.
A
- Effective change management occurs when the organization moves from its current state to a desired future state without excessive cost to the organization or its people. People resist change for a variety of reasons, including inertia, poor timing, surprise, peer pressure, self-interest, misunderstanding, different information about (and assessments of) the change, and management’s tactics.
- Motivating people to change requires a general process of unfreezing, moving, and refreezing, with the caveat that appropriate and not appropriate behaviors be refrozen. More specific techniques to motivate people to change include education and communication, participation and involvement, facilitation and support, negotiation and rewards, manipulation and cooptation, and coercion. Each approach has strengths, weaknesses, and appropriate uses, and multiple approaches can be used. It is important to harmonize the multiple changes that are occurring throughout the organization.
- Effective change requires active leadership, including creating a sense of urgency, forming a guiding coalition, developing a vision and strategy, communicating the change vision, empowering broad-based action, generating short-term wins, consolidating gains and producing more change, and anchoring the new approaches in the culture.
22
Q
REVIEW
Describe strategies for creating a successful future.
A
- Preparing for an uncertain future requires a proactive approach.
- You can proactively forge the future by being a shaped more than an adapter, creating new competitive advantages, actively managing your career and your personal development, and becoming an active leader and a lifelong learner.
