CH 12

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Organizational Change
Four major types of change:

 Technology:
Continental Airlines is
· General rule is that technology change is bottom up. more than just an
airlines
 New product:
· Companies that successfully develop new products:
· Horizontal linkage model emphasizes shared development of innovations
among several departments.
· Time-based competition is based on the ability to deliver products and
services faster than competitors.
 Structure:
· Successful structural change is accomplished through a top-down approach.
 Culture/people:
· Training is the most frequently used tool for changing the organization’s
mind-set.
Model of Change Sequence of Events
Environmental
Forces
Monitor global
competition, and other Need for Implement
Initiate change
factors change change
Evaluate problems Facilitate search, Use force field analysis,

Internal and opportunities, creativity, idea tactics for overcoming
Forces define needed champions, venture resistance
changes in teams, skunk works and
Consider plans, technology products, idea incubators
goals, company structure, and culture
problems, and needs
Learning Organizations and Change
 Incremental, deals with an organizational effort to

gradually improve basic operational and work
processes in different parts of the company
 Transformational, change involving redesigning and
renewing the entire organization
Need for Change
 Based on external or internal forces.

 Performance gap-a disparity between existing and
desired performance levels.
 Performance gap may occur because:
• current procedures are not up to standard
• a new idea or technology could improve current
performance
Characteristics of Creative People
 Originality
 Open-minded
 Curiosity, a focused approach to problem solving
 Persistence
 A relaxed and playful attitude
 Receptive to new ideas
Idea Champion
A person who sees the need for and champions

productive change within the organization.
Four Roles in Organizational Change
Inventor Champion Sponsor Critic

· Develops and · Believes in idea ·High-level manager · Provides reality
understands · Visualizes benefits who removes test
technical aspects of · Confronts organizational · Looks for short-
ideas organization barriers comings
· Does not know how realities of cost, ·Approves and · Defines hard-nosed
to win support for benefits protects idea within criteria that idea
the idea or make a · Obtains financial organization must pass
business of it and
political support
· Overcomes obstacles
Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota
Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating
Organization,” Organizational Dynamics (winter 1982) 5-25.
Resistance to Change
 Self-Interest: the fear of personal loss is perhaps the

biggest obstacle to organizational change.
 Lack of Understanding and Trust: do not understand the
intended purpose of a change or distrust the intentions.
 Uncertainty: the lack of information about future events.
 Different Assessments and Goals: people who will be
affected may innovation may assess the situation
differently.
Forced Field Analysis
• The process of determining which forces drive and

which resist a proposed change
Driving Forces Restraining Forces (Barriers)

•Thought of as problems or •Lack of resources
opportunities that provide •Resistance from middle managers
motivation for change
•Inadequate employee skills
Traditional to Just In Time Inventory
Systems
Types of Organizational Change
Structure
Technology Strategy Products
Culture/People
SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human
Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley,
1964), 55-74.
Problems OD Can Address
Mergers/acquisitions Decline/revitalization Conflict management
OD Activities
Team building
Survey feedback
Large group intervention
OD Approaches to Culture Change
Traditional Organizational Large-Group Intervention

Development Model Model
Focus for action: Specific problem or group Entire system
Information
Source: Organization Organization and environment
Distribution: Limited Widely shared
Time frame: Gradual Fast
Learning: Individual, small group Whole organization
Change Process: Incremental Change Rapid transformation

SOURCE: Adapted from Barbara Benedict Bunker and Billie T. Alban, “Conclusion: What Makes Large Group Interventions Effective,” The Journal of Applied Behavioral Science 28, no 4
(December 1992), 579-591.

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Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

Four major types of change:

Evaluate problems Facilitate search, Use force field analysis,

 Incremental, deals with an organizational effort to

 Based on external or internal forces.

A person who sees the need for and champions

Inventor Champion Sponsor Critic

 Self-Interest: the fear of personal loss is perhaps the

• The process of determining which forces drive and

Driving Forces Restraining Forces (Barriers)

Technology Strategy Products

Mergers/acquisitions Decline/revitalization Conflict management

Large group intervention

Traditional Organizational Large-Group Intervention

Change Process: Incremental Change Rapid transformation

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