ST.

JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Week 16 Organization Change and Innovation

Lesson Title Influence Model of the Change Process in Organizations
Describe the influence model of the change process in
Learning Outcome(s)
organizations.
Time Frame

At SJPIICD, I Matter!
LEARNING INTENT!
Terms to Ponder
This section provides meaning and definition of the terminologies
that are significant for better understanding of the terms used
throughout the simplified course pack of Human Behavior in
Organization. As you go through the labyrinth of learning, in case you
will be confronted with difficulty of the terms refer to the defined terms
for you to have a clear picture of the learning concepts.
Organizational culture is system of shared values and beliefs that
influence worker behavior.
Organization development (OD) is any strategy, method, or
technique for making organizations more effective by bringing about
constructive, planned change.
Essential Content
An Influence Model of the Change Process in Organizations.
“The only constant is change” is a frequently repeated cliché in the
workplace. To meet their objectives, managers and professionals must
manage change effectively almost daily. Even companies that appear from
the outside to work in a stable environment are faced with change.
Competitive threats are a primary mover for changes within an
organization, even for market leaders. For example, major packaged foods
producers have been challenged by small food companies producing what
SCP-MGT4 | 1
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

the public perceives as healthier choices. In response, a few of the major

producers have sold off poorly performing brands and also created new
divisions to produce and market more natural foods. The many other
types of change in organizations include changes in technology,
organizational structure, and the people with whom one works, such as
customers and company insiders.
Fostering Understanding and Conviction. Believing in the
“why” behind a change can inspire people to change their behavior.
Leaders therefore have to spend sufficient time communicating the
rationale behind their change efforts. In times of transformations, it is
recommended that leaders develop a change story that helps all
stakeholders understand where the organization is headed, why it is
changing, and why this change is important. Leaders at Crate & Barrel,
as well as at other retailers, had to explain to employees that selling
beautiful merchandise in stores was no longer enough to generate
sufficient store visits from today’s shoppers. Stores had to shift to
creating exciting experiences, such as demonstrations by décor experts,
to attract potential customers.
Reinforcing with Formal Mechanisms. The changes in
behavior required by the organizational changes should be reinforced.
Rewards that are the most effective for the situation must be chosen
carefully. A Middle Eastern telecommunications company examined
performance drivers and found that collaboration and purpose were more
important than compensation. The organizational change in question was
moving the company to substantially higher levels of customer service.
Company management therefore shifted from awarding minor individual
bonuses for performance to celebrating how specific teams made a real
difference in the lives of customers. The shift increased motivation and
also saved the company mil-lions of dollars.
Developing Talent and Skills. Organizational changes often
require that organizational members develop talents and skills to fit the
new thrust brought about by the changes. Assume that an organization
is going through a change to become more culturally diverse with respect
to employees and the customer base. Key talents and skills to develop

SCP-MGT4 | 2
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

include becoming more culturally sensitive and relating more effectively

to people outside one’s demographic group.
Role Modeling. Organizations seeking employee support for
major transformational efforts need to recognize that key opinion leaders
throughout the organization may exert considerable influence. The point
is that other workers will model the behavior of staff members they
perceive to have sound opinions. Imagine that an organization decides it
should transform into a paperless company—a difficult transition even in
an increasingly digital work environment. Handfuls of influential people
who talk positively about going paperless, and go paperless themselves,
will facilitate the desired organizational change.
Why People Resist Change. Before a company’s managers can
gain support for change, they need to understand why people resist
change. People resist change for reasons they think are important, the
most common being the fear of an unfavorable outcome. This outcome
could be less money, personal inconvenience, more work, or any other
outcome viewed as negative. People also resist change for such varied
reasons as not wanting to disrupt social relationships and not wanting to
break well-established habits. A deep-level reason many employees resist
change is that they face competing commitments. Even if the worker
wants to go along with a workplace change, he or she might direct
productive energy toward a hidden competing commitment.
Organizational psychologists Robert Kegan and Lisa Laskow Lahey
explain that an employee who moves slowly on a project may have an
unrecognized competing commitment to avoid an even tougher
assignment that might follow. If he performs well on the present project,
he might be given an even greater challenge that he fears might be beyond
his potential. The competing commitment functions as an immunity to
change. Another example of a competing commitment is that a worker
might resist performing well in a new supervisory position; if she performs
well as a supervisor, she might be perceived as being disloyal to members
of the work group of which she was a well-accepted member.
Organization Development as a Change Strategy. When it is
necessary to bring about long-term, significant changes in a firm, a
formal method of organizational change is sometimes used. Organization

SCP-MGT4 | 3
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

development (OD) is any strategy, method, or technique for making

organizations more effective by bringing about constructive, planned
change. You might think of an executive coach working with the
individual to bring about change, whereas an organization development
professional focuses on improving the entire organization. OD applies
principles of human behavior to promote healing, growth, and
constructive change in organizations. In its pure form, organization
development attempts to change the culture toward a more democratic
and humanistic model and is therefore value driven. At other times,
organization development aims to help change the technology or
structure of the firm.

SELF-SUPPORT: You can click the URL Search Indicator below to help you further understand the lessons.

Search Indicator
Anand, N., & Barsoux, J. (2017). What Everyone Gets Wrong about Change
Management. Harvard Business Review.

Bassford, T. & Schanginger, B. (2016). The Four Building Blocks of Change.

McKinsey & Company.

Kegan, R., & Lahey, L. (2001). The Real Reason People Won’t Change. Harvard
Business Review.

Stoner, J. & Freeman, R. (1989). Management, (4th ed.). Upper Saddle River, NJ:
Prentice-Hall.

SCP-MGT4 | 4
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

LET’S INITIATE!
Activity 1. Let us try to check your understanding of the topics. Write your
answers to the space provided below every after the questions.

1. What do you predict will be a major change that employees will

have to cope with in the upcoming years?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
2. How can a manager tell if an employee is resisting change?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
3. Why might the transition from “jobs” to “work” lead to resistance
to change from many people?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___________________________________________________________________
__________________________________________________________________

SCP-MGT4 | 5
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

LET’S INQUIRE!
Activity 1. In this activity, you are required to expound your answer to
each of the questions below.
1. Identify a major change you will have to cope with in the next several
years and describe your plan of action for coping with it.
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
2. For years, lists of innovative companies have included Apple Inc. and
Google Inc. right at the top of the list. Why do you think these two
companies are considered to be highly innovative?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

SCP-MGT4 | 6
 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

I
LET’S NFER!
Activity 1. Choose any firm or organization that you’ve known. Outline
your proposals on what areas the firm/ organization should change
or innovate. What are the reasons why you recommend it?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________

SCP-MGT4 | 7