Unit 2 Orianizational Structure & Diversity Flashcards
Leading Organizational Change
4 Steps
- Diagnosis: Why is change needed?
- Design: What sort of change is called for?
- Delivery: How can change best be implemented? Who will most likely be affected? What skills and support do leaders need as they manage the process?
- Evaluation: How can the impact of the change be assessed and measured?
Performance Gaps
Performance gaps arise from a difference between expected and actual performance.
Opportunity Gaps
Opportunity gaps are defined as potential future problems or missed value-creating opportunities the organization will face if it does not act today.
Scope of Change
Radical vs. Incremental
- Radical change is intended to affect nearly all of these aspects of the organization.
- Incremental change is intended to make small adjustments to the existing organizational systems, processes, and routines.
Origin of Change
Top-Down vs. Bottom-Up
- Leaders typically plan top-down change, with clear directives, goals, communication
plans, and assessment models. - Bottom-up change emerges from within the organization
Tactical Change
Change that is top-down and incremental.
Evolutionary Change
Change that is bottom-up and incremental.
Revolutionary Change
Change that is bottom-up and radical.
Transformational Change
Change that is top-down and radical.
Rollout of Change
Systemwide vs. Localized
- Systemwide changes are rolled out across multiple units or subunits simultaneously, it can require significant resources and coordination.
- Localized change is rolled out in a successive process. This approach involves implementing the change in specific units of the organization, one by one, until it reaches all areas,
Timing of Change
Fast vs. Slow
- A fast change effort is implemented quickly, with the goal of enacting it rapidly and then returning to the “new normal.”
- A slow change effort, on the other hand, is implemented over an extended period
or may go on indefinitely.
Implementation of Change
Steps and Sequencing
(8 Steps)
- *1 Establish a Sense of Urgency:** Identify and communicate performance or opportunity gaps.
- *2 Form a Powerful Guiding Coalition:** Assemble a group powerful enough to lead the change effort. Encourage the group to work as a team.
- *3 Create a Vision:** Create a vision powerful enough to help direct the change effort.
- *4 Communicate a Vision:** Use every vehicle possible to communicate the new vision.
- *5 Empower Others to Act on the Vision:** Get rid of obstacles by changing systems or structures that seriously undermine the vision.
- *6 Plan for and Create Short-term Wins:** Plan for visible performance improvements and recognize employees involved in the improvements.
- *7 Consolidate Improvements and Produce Still More Change:** Use increased credibility to change the systems, structures, and policies that don’t fit. Hire, promote, or develop employees who can implement the vision. Reinvigorate the process with new projects, themes, and change agents.
- *8 Institutionalize the New Approaches:** Articulate the connections between the new behaviors and corporate success. Develop the means to ensure leadership development and succession.
Assessment of Readiness to Change
- *• Discrepancy:** Do individuals in the organization believe that there is a significant gap between the current state of the organization and what it should be and that the change is needed?
- *• Appropriateness:** Do organization members believe that a specific change designed to address a discrepancy is the correct one for the situation?
- *• Efficacy:** Do members of the organization believe that they personally, and the organization as a whole, can successfully implement a change?
- *• Principal Support:** Do individuals in the organization believe that their leaders are committed to the change’s success and that it is not going to be another passing fad or “program of the month”?
Creating Buy-in and Acceptance
for Change
- Awareness: The first thing leaders must do is determine who should be aware of the change. For some groups, knowing that a change is underway may be enough. Stakeholder analysis—a process of identifying individuals or groups who are most likely to support or resist the proposed change—provides useful information about which groups require more or less attention.
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Self-Concern: The second stage asks individuals to associate some self-concern
with the change. Leaders should help others understand how the change matters to them personally. - Mental Tryout: The third stage gives individuals an opportunity to imagine what the change might be like before it happens. This is a low-risk way of helping people experience what lies ahead without having to change their existing behaviors.
- Hands-on Trial: The fourth stage asks individuals to experience the change in a low-risk environment. Leaders can create pilots for people to experience the change for a short period of time, and without significant time or resource commitments.
- Acceptance: The fifth stage marks an individual’s acceptance of the change. The individual has weighed the costs and benefits and has decided to adopt the new practice, technology, or behavior. For some, however, this stage marks a decision to reject the change.
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Champion: Finally, certain individuals who accept the change may ultimately
become champions of the idea for others. At this stage, individuals have not
only bought in, but are eager to communicate the benefits to others.
Abundance-Based Change
Leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work.
Appreciative Conversations
Intense, positively framed discussions that help people to develop common ground as they work together to cocreate a positive vision of an ideal future for their organization.
Appreciative Inquiry Model
A model specifically designed as an abundance-based, bottom-up, positive approach, broadly defined, can be any question-focused, participatory approach to change that creates an appreciative effective on people and organizations.
Boundary Conditions
Define the degree of discretion that is available to employees for self-directed action.
Bureaucratic Model
Max Weber’s model that states that organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinating their differentiated efforts within a hierarchy of responsibility.
Centralization
The concentration of control of an activity or organization under a single authority.
Change Agents
People in the organization who view themselves as agents who have discretion to act.
Change Management
The process of designing and implementing change.
Command-and-Control
The way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization.
Complex Adaptive Systems (CAS)
A model that views organizations as constantly developing and adapting to their environment, much like a living organism. A CAS approach emphasizes the bottom-up, emergent approach to the design of change, relying on
the ability of people to self-manage and adapt to their local circumstances.
Conventional Mindset
Leaders assume that most people are inclined to resist change and therefore need to be managed in a way that encourages them to accept change.
Culture Change
Involves reshaping and reimagining the core identity of the organization.
Deficit-Based Change
Leaders assume that employees will change if they know they will otherwise face negative consequences.
Differentiation
The process of organizing employees into groups that focus on specific functions in the organization.
Disturbances
Can cause tension amongst employees, but can also be positive and a catalyst for change.
Emergent or Bottom-Up Approach
Organizations exist as socially constructed systems in which people are constantly making sense of and enacting an organizational reality as they interact with others in a system.
Entrepreneurship
The process of designing, launching, and running a new business.
Flat Organization
A horizontal organizational structure in which many individuals across the whole system are empowered to make organizational decisions.
Formal Organization
A fixed set of rules of organizational procedures and structures.
Formalization
The process of making a status formal for the practice of formal acceptance.
Geographic Structures
Occur when organizations are set up to deliver a range of products within a geographic area or region.
Group-Level Change
Centers on the relationships between people and focuses on helping people to work more effectively together.
Horizontal Organizational Structure
Flat organizational structure in which many individuals across the whole system are empowered to make organizational decisions.
Incremental Change
Small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization.
Individual-Level Change
Focuses on how to help employees to improve some active aspect of their performance or the knowledge they need to continue to contribute to the organization in an effective manner.
Informal Organization
The connecting social structure in organizations that denotes the evolving network of
interactions among its employees, unrelated to the firm’s formal authority structure.
Intentionality
The degree to which the change is intentionally designed or purposefully implemented.
Kotter’s Change Model
An overall framework for designing a long-term change process:
- Establish a sense of urgency
- Form a powerful guiding coalition
- Create a vision of change
- Communicate the vision
- Remove any obstacles
- Create small wins
- Consolidate improvements
- Anchor the changes
Level of Organization
The breadth of the systems that need to be changed within an organization.
Managed Change
How leaders in an organization intentionally shape shifts that occur in the organization when market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work over time.
Matrix Structure
An organizational structure that groups people by function and by product team simultaneously.
Mechanistic Bureaucratic Structure
Mechanistic Bureaucratic Structure, (usually resistant to change) describes organizations characterized by:
- Centralized authority
- Formalized procedures and practices
- Specialized functions.
OD Consultant
Someone who has expertise in change management processes.
Organic Bureaucratic Structure
Used in organizations that face unstable and dynamic environments and need to quickly adapt to change.
Organization Development (OD)
Techniques and methods that managers can use to increase the adaptability of their organization.
Organization-Level Change
A change that affects an entire organizational system or several of its units.
Organizational Change
The movement that organizations take as they move from one state to a future state.
Organizational Design
The process by which managers define organizational structure and culture so that the organization can achieve its goals.
Organizational Development (OD)
Specialized field that focuses on how to design and manage change.
Organizational Structure
The system of task and reporting relationships that control and motivate colleagues to achieve organizational goals.
Participatory Management
Includes employees in deliberations about key business decisions.
Planned Change
An intentional activity or set of intentional activities that are designed to create movement toward a specific goal or end.
Positive or Appreciative Mindset
Leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability.
Product Structures
Occurs when businesses organize their employees according to product lines or lines of business.
Scope of Change
The degree to which the required change will disrupt current patterns and routines.
Span of Control
The scope of the work that any one person in the organization will be accountable for.
Specialization
The degree to which people are organized into subunits according to their expertise—for example, human resources, finance, marketing, or manufacturing.
Strategic Change
A change, either incremental or transformational, that helps align an organization’s operations with its strategic mission and objectives.
Structural Change
Changes in the overall formal relationships, or the architecture of relationships, within an organization.
Technological Change
Implementation of new technologies often forces organizations to change.
Top-Down Change
Relies on mechanistic assumptions about the nature of an organization.