MANAGING

ORGANIZATIONAL Jennilyn P. Talavera-Nopueto

CHANGE AND MD

INNOVATION
Studies have shown that most changes are reactive and ad hoc and that 70% fail.
People are very naturally apprehensive and cling to the status quo.
Proposed changes may be seen as undermining the security that their past practices
afforded.
Change = loss
Productivity might drop and the organization might suffer.
BRINGING ABOUT CHANGE
EFFECTIVELY
Managers need to clarify and communicate the problems inherent in the current
situation
Manages should involve people throughout the organization in the change process
People involved in change simply need time
TYPES OF CHANGE
 Incremental
 Changes take place WITHIN the context of the organization’s existing framework and orientation
 Tinkering and fine tuning ongoing operations

 Discontinuous
 Fundamental and dramatic change
 Seeking a whole new strategy or configuration
 Involve almost a complete break with the past and a major reconstruction of every element in the
organization’s work
TYPES OF CHANGE
•Strategic
• Broad range; long term

•Grassroots
• Implementing and sustaining the changes envisioned at the strategic level
RHYTHM OF
ORGANIZATIONAL CHANGE
Dramatic
Inititated in times of crisis

Systemic
Slower and less ambitious

Organic
Arises from the ranks without being formally manages

”Achieving dynamic symbiosis”

WAYS OF THINKING
Classic approaches

LEWIN (1951)
Group life is never without changes, merely differences in the amount and type that exists.
“driving” and ”restraining” forces

1. Unfreezing the existing situation

2. The change itself
3. Refreezing the situation
Organizational culture
3 levels
1. Artifacts and creations
2. Values of the organization
3. Basic underlying assumptions – the core definition of culture

CULTURE – a pattern of basic assumptions that has worked well enough to be considered
valid and, therefore, to be taught to new members as the correct way to perceive, think and
feel in relation to those problems.
6 ELEMENTS OF THE NOTION
OF ORGANIZATIONAL
CULTURE
Organizational culture is the culture that exists in an organization, something akin to a
societal culture
It is made up of such things as values, beliefs, assumptions, perceptions, behavioral
norms, artifacts, and patterns of behavior.
It is socially constructed, unseen and unobservable force behind organizational
activities
It is a social energy that moves organization members to act
It is a unifying theme that provides meaning, direction and mobilization for
organization members
It functions as an organizational control mechanism, informally approving or
prohibiting behaviors
“THAT’S JUST THE WAY WE DO
THINGS AROUND HERE”
Culture of innovation
Tuttle (2007): 5 core values
Integrity
Caring
Accountability
Respect
Equity
FIVE STEP APPROACH TO
BEHAVIORAL CHANGE
Latham (2003)
1. Establish a superordinate goal
2. Goal setting
3. Ensuring integrity
4. Ensuring accessibility of managers in the organization
5. Organization’s culture is socially constituted
LIMITATIONS TO SEEKING
CULTURAL CHANGES
1. Cultural norms are deep seated and people may be quite resistant to changes
2. Successful changes in an organization’s culture typically occur over a long period
3. Ethical questions may arise

“Managers should be able to BUILT ON and evolve the culture one has rather than
wishing for some dramatic changes or some cultural norms”
OPEN SYSTEMS AND
ORGANIZATIONAL LEARNING
Organizational learning – building a learning organization;
starts with individual learning

Open systems theory

Argyris and Schon (1974)
Espoused theories and Theories-in-use

“We may not do what we say; we might not walk the walk”
LEARNING
1. Single-loop learning
 Learning new strategies (fixed; procedural)

2. Double-loop learning
 Learning new governing variables (ask why)
FIVE ‘DISCIPLINES’ IN WHICH
INDIVIDUALS CAN ENGAGE
TO BUILD A LEARNING
ORGANIZATION
1. Personal mastery – connects personal skills
2. Mental models – the way in which we see the world
3. Shared vision – how a compelling vision or ideal becomes part of the whole
organization’s culture
4. Team learning – shared vision of their work
5. Systems building- recognizing the interconnectedness and their consequence for
broader systems
THE PURSUIT OF
SIGNIFICANCE
Denhardt (2000)
A commitment to values
Serving the public
Empowerment and shared leadership
Pragmatic incrementalism
A dedication to public service
FIVE ESSENTIAL ELEMENTS
FOR BUILDING ”GREAT”
PUBLIC ORGANIZATIONS
Collins (2005) From Good to Great and the Social Sector
1. Defining great – calibrating success without business metrics
2. Level 5 leadership – getting things done within a diffuse power structure
3. First considering who – getting the right people on the bus, within social sector
constraints
4. The hedgehog concept-rethinking the economic engine without a profit motive
5. Turning the flywheel – building the momentum by building the brand
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
4 steps that should be taken in creating a new agency

Defining the job to be carried out

Selecting a director
Determining the nature and number of units required
Establishing a structure of authority through which the director can coordinate and
control the activities of the unit
WORK CAN BE DIVIDED ON
THE BASIS OF THE FF:
Purpose
Process
Persons or things
Place

Luther Gulick (1937)

“Organization design involves decisions about the configuration of the formal
organizational arrangements including the formal structure, processes, and systems
that make up an organization. The goal is to develop and implement a set of formal
organizational arrangements that will, over time, lead to congruence, or good fit,
among all the components of the organization: strategy, work, people, the informal
organization, and the formal organizational arrangements”

Nadler and Tushman on organizational arrangements

“Flexibility is trumping structure as the governing principle behind organizational
design”

Oxman and Smith 2003

APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
Based on the behavioral sciences
Aimed at systemwide improvements in the functioning of the organization
Conducted primarily with a focus on improving individual human capabilities, especially process
skills
Guided by an external consultant or interventionist hired to facilitate the group’s development
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
T- groups
Process consultation
Third-party interventions
Survey feedback
Quality of work life
Team building
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
Change through appreciative inquiry
Focusing on the strengths of the organization
From the perspective of what is done right
4 phases in the process of appreciative inquiry (Cooperrider and Whitney 2005)
1. Discovery
2. Dream
3. Design
4. Destiny
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
Change through appreciative inquiry
Change through six sigma
A sigma rating is based on the number of defects per million products
99.9997% perfection
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
Change through appreciative inquiry
Change through the arts
THE MANAGEMENT OF
CHANGE
1. Steps in Organizational Transformations (Denhardt and Denhardt 1999)
 Assess their organization’s environment and need for change
 Plan for change both strategically and pragmatically
 Build support for the change process both through conversation and through modeling the change
process in their own behavior
 Implement specific changes while at the same time encouraging a broader positive attitude toward
change and innovation
 Institutionalize the changes
Nadler and colleagues (1995)
Five phases in the change process:
1. Diagnosis
2. Clarification and coalition building
3. Action
4. Consolidation and refinement
5. Sustainability
APPROACHES TO BRINGING
ABOUT CHANGE
Change through management action or reorganization
Change through organization development
Change through appreciative inquiry
Change through the arts
Change in innovation and public organizations
Experimentation and innovation are not feared but rather valued.
Denhardt and Denhardt (1999) found that many in public organizations place a high value of not
“rocking the boat’
THE ETHICS OF MANAGING
CHANGE
Who determines the need for change, the intended outcomes, and the organizations’
values?
How can managers instill change in a way that is both effective and ethical?
THE ETHICS OF MANAGING
CHANGE
Managers should bring about change that is both EFFECTIVE and ETHICAL
UNETHICAL practices
Coercion
Manipulation ; 1. Situational 2. Psychological
WAYS OF ACTING
1. If you are seeking to lead change, consider carefully the emotional and
psychological components of resistance to change, both your own and that of others.
2. If you are seeking to lead change, try to clarify and communicate throughout the
organization the problems associated with the current way of operating and what
benefits might accrue if you tried something else.
3. If you are seeking to lead change, try to involve people throughout the
organization in the change process
4. Think about the forces that are driving change and those that are resisting change
5. Consider the culture of the organization
6. Listen listen listen.
7. Think of building a capacity for learning in the organization
WAYS OF ACTING
8. Remember the difference between single and double loop learning
9. If changes in the organization’s structure appear necessary, think twice
10. Remember that today’s public organizations reside in a complex world of diverse
policy networks
11. To encourage change and innovation throughout the organization, consider
employing a more organic, democratic or participatory way of operating.
12. Be attentive to politics of change