OTD Chapter 10

Question 1

Organizational change

Answer 1

The process by which organizations move from their present state to some desired future state to increase their effectiveness.

Question 2

Targets of change

Answer 2

HOFT

Human Resources
Organizational capabilities
Functional resources
Technological capabilities

Question 3

Human Resources (organizational change)

Answer 3

Typical kinds of efforts directed at Human Resources.

• New investment in training and development activities.
• Socialising employees into the organizational culture.
• Changing organizational norms and values
• On-going examination of the way in which promotion and reward systems operate.
• Changing the composition of the top-management team

Question 4

Functional resources (organizational change)

Answer 4

Transferring resources to the functions where most value can be created.

Question 5

Technological capabilities (organizational change)

Answer 5

The ability to develop a constant stream of new/improved products.

Question 6

Organizational capabilities (organisational change)

Answer 6

Changing the relationship between people and functions to increase their ability to create value.

Question 7

Forces for change

Answer 7

Both internal and external.

Competitive forces, global forces, demographic and social forces, ethical forces.

Question 8

Resistance to change

Answer 8

Mostly internal.

Organizational level
Group level (functional level included)
Individual level

Question 9

Organizational inertia

Answer 9

The tendency of an organization to resist change and maintain the status quo. Remaining unchanged.

Question 10

Organizational-level resistance to change

Answer 10

• Differences in functional orientation
• Organizational culture
• Mechanistic structure
• Power and conflict

Question 11

Differences in functional orientation (Organizational-level resistance to change)

Answer 11

Functions and divisions seeing the source of a problem differently because they can only see an issue or problem from their own point of view.

Question 12

Organizational culture (organizational level resistance to change)

Answer 12

An organization’s values and norms, when they are disrupted or changed, can cause resistance.

Question 13

Mechanistic structure (Organizational-level resistance to change)

Answer 13

Mechanistic structure is more resistant to change (compared to the organic structure) because people are expected to act a certain way and do not develop the capacity to adjust behaviour to changing conditions.

Question 14

Power and conflict (organization-level resistance to change)

Answer 14

E.g. conflict between two functional departments.

Question 15

Group-level resistance to change

Answer 15

• Groups having developed strong informal norms that govern behaviour and interaction. When change is needed, it changes the task-role relationship, leading to disruption.
• Group cohesiveness: too much cohesiveness sniffles opportunities to adapt.
• Groupthink: faulty decision making. Even if a group is aware that their decision is wrong, they will continue to pursue it because they are committed to it.

Question 16

Individual-level resistance to change

Answer 16

• Resistance due to uncertainty and insecurity: leading to absenteeism and un-cooperation.
• Resistance due to the focus on the influence of the change on their function/division.
• Resistance if there are few benefits/opportunities.
• Resistance due to habits: people prefer familiar actions. Difficult to break.

Question 17

Lewin’s force-field theory of change

Answer 17

A theory of organizational change that argues that two sets of opposing forces within an organization determine how change will take place. To get an organization to change, managers must find a way to increase the forces of change and/or reduce the forces against change.

When the forces (for and against) are balanced, the company is in a state of inertia and does not change.

Question 18

Evolutionary change

Answer 18

Incremental, emergent (Burnes). Change that is gradual, incremental, and specifically focused. Change happens over a period of time.

Question 19

Revolutionary change

Answer 19

Bold stroke (Burnes)

Change that is sudden, drastic, and organization wide. Coming from upstairs. Revolution: turnaround, sudden, complete, radical.

Question 20

Lewin’s three step change process

Answer 20

1. Unfreeze the organization from its present state.
2. Make the desired type of change.
3. Refreeze the organization in the new desired state.

Question 21

Action Research

Answer 21

A strategy for generating and acquiring knowledge that managers can use to define an organisation’s future state and to plan a change program that allows the organization to reach that state.

Question 22

Steps in Action Research

Answer 22

1. Diagnosing the organization.
2. Determining the desired future state.
3. Implementing action.
4. Evaluating the action.
5. Institutionalizing action research.

Question 23

External change agents

Answer 23

Outside consultants who are experts in managing change.

Question 24

Inside change agents

Answer 24

Managers from within the organization who are knowledgeable about the situation to be changed.

Question 25

Top-down change

Answer 25

Change implemented by managers at high levels within the organization.

Question 26

Bottom-up change

Answer 26

Change implemented by employees at lower levels in the organization that gradually rises until it is felt throughout the organization.

Bottom-up change is easier to implement than top-down change, because it provokes less resistance.

Organizations that have time to engage in bottom-up change are generally well-run organizations that pay attention to change, are used to change, and change often.

Question 27

Poorly-run organization (rare change) > top-down restructuring > revolutionary change.

Answer 27

Well-run organizations (common change) > bottom-up restructuring > evolutionary change.

Question 28

Tactics that managers can use to reduce resistance to change

Answer 28

• Education and communication
• Participation and empowerment
• Facilitation
• Bargaining and negotiation
• Coercion

Question 29

Education and communication (tactic to reduce resistance to change)

Answer 29

Providing information about the change and how it effects them.

Question 30

Participation and empowerment (tactic to reduce resistance to change)

Answer 30

Increasing involvement in change and decision making.

Question 31

Facilitation (tactic to reduce resistance to change)

Answer 31

Helping members manage the stress of change through training, time off, sabbaticals, and employing psychologists.

Question 32

Bargaining and negotiation (tactic to reduce resistance to change)

Answer 32

Using action research to negotiate future tasks of groups and individuals.

Question 33

Coercion (tactic to reduce resistance to change)

Answer 33

Coerce and threaten dire consequences if they choose to resist.

Question 34

Sensitive training

Answer 34

A technique that consists of intense counselling in which group members, aided by a facilitator, learn how others perceive them and may learn how to deal more sensitively with others.

Question 35

Process consultation

Answer 35

A technique in which a facilitator works closely with a manager on the job to help the manager improve his or her interactions with other group members.

Question 36

Team building

Answer 36

A technique in which a facilitator first observes the interactions of group members and then helps them become aware of ways to improve their work interactions.

Question 37

Intergroup training

Answer 37

A technique that uses team building to improve the work interactions of different functions and divisions.

A popular form of intergroup training is called organizational mirroring: a technique in which a facilitator helps two interdependent groups explore their perceptions and relations in order to improve work interactions.

Question 38

Organizational confrontation meeting

Answer 38

A technique that brings together all the managers of an organization at a meeting to confront the issue of whether the organization is meetings its goals effectively.

Question 39

Techniques that can be used at individual, group, and Organizational-level change.

Answer 39

• Counselling, sensitivity training and process consolation.
• Team building and intergroup training.
• Total organizational interventions.