organizational change Flashcards
vocab:
Lower costs and rapid improvements in technology impacts firms internally and externally.
technology
Technology facilitates the automation and improve of processes which eads to lower costs, increased efficiency, and better data to make decisions. Examples: Migration to cloud, big data, applications, automation of jobs
internal
Technology facilitates the continuous improvement of existing products and services as well as development of new products and services: Ex. Smart phone apps, electronics on wheels
external
Virtual reality can enhance training of new employees and customers as well as enhancing new products and services. Medical devices incorporating virtual reality. AI’s future impact
both (technology)
The lost of sales/profits to a competitor threatens the life of a firm, and this ignites change to survive. Sometimes this results in mergers and acquisitions. Ex. Ford
competition
When labor markets arde tight, firms must change to maintain and recruit talent. Ex. WFH, flexible work hours, office layouts, benefits, work-life balance
people
what are the 3 market forces for change
- technology,
- competition
- people
Redistribution of power (reward, coercive, references, legatamiate, export)
Organizational Resistance to Change
what are the organizational resistance for change (5)
- decision making power
- group interim
- threatened expertise
- new resource allocations
- embedded culture and systems
Change in authority to take decisions threatens an individual’s power relationship with others. Example: switching from centralized to decentrailed decision-making.
decision making power
Even if individuals embrace change, other team members, may pressure them to drop their support.
Group Interia
High valuable individual and group expertise developed over years is suddenly of little or no value. Example, Sweitching tech platforms
Threatened expertise
Meaningful change reqquires a reallocation of funds from one group to another resulting in winners and losers.
New Resource Allocations
Cultural components (norms, rituals, values, stories) have guided the development the existing information systems and procedures to produce consistent and stable results. This formal and informal structures provide significant resistance. Ex. System of rewards/ motivation
Embedded Culture and Systems
how to leaders influence organizational culture
reference and reward power
Stating the organization’s new strategy / culture should be included in all communication including promotion announcement, annual and quarterly financial statements, reorganiation, announcements, and all other internal and external communication
Consistent Communication
Consistently modeling values nad beahiors tht reinforce the culture demonstrating that the espoaused culture applies to them. Ex: Walamrt executueves sharing hotel rooms
Role Modeling
Nitrite existing traditions, stories, and rituals that express, define, and reinforce the new exposed culture. If lacking the CEO may have to establish new ones
rituals
what are the brand approaches to changing culture
Reference and Coercive Power
Change must start from the top with leaders demonstrating a strong commitment to the new culture and serving as a role model for the desired behaviors and values through their actions, decisions, and communication
Top-Down
Firing the CEO and other members of the top management team strongly communicates the need for major change and creates the expectation that the new leaders from outside of the company will be bringing values and norms.
New Leader Top-Down
Empower employees to actively participate in the change process by soliciting their feedback, involving them in decision- making and encouraging them to take ownership of the new culture. This fosters sense of ownership and commitment among employees.
bottom- up
how to change organizations culture
- define espoused value
- Promote New Strategy/ Culture
- Change Organizational Structure
- Promote Proponents
- Address Resistance
- Align Systems and Processes
- Align Culture with Brand
- Sustain Momentum
Do people understand them and how they relate to day to day behavior? Come up with behavioral descriptors for each value you define adn articulate how those would translate into actionable behavrios at all levels
Define Espoused Values
Formally change and promote the new mission and values statements on company website and all publications. Strategy and culture are inseparable and must always be communicated together.
Promote New Strategy/ Culture
Change organization chart to evaluate and create new positions in support of new values. Example. Quality value needs VP of quality control, innovation needs VP pd R&D.
Change Organizational Structure
Highlight and promote people who embody the new culture and clearly state how they do this in promotion announcements
Promote Proponents
Expect resistance and address it proactively through open dialouge, coaching, and support. Encourage constructive feedback and create a safe environment for employees to express their concerns. Firing and demoting empployees is a last resort.
Address Resistance
Review existing systems, processes, and policies to ensure they support the desired culture. This may involve revising performance management systems, reward systems, reward structures, recruitment, and onboarding practices to reinforce the new cultural norms.
Align Systems and Processes
values resonate with both employees and customers who are consuming products and serv ices that are produced from the culture.
Align Culture with Brand
Cultural changes is an outgoing process that requires continuous effort and reinforcement.
Sustain Momentum
