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Def: The adoption of a new idea or behavior by an organization.

• Change is common aspect of current business environment• Adaptation to change is central point of learning organization• For success, adaptation to change must exist in current workforce• Change includes redefining of roles, processes, values and removal of barriers

Model for Planned Change1. Both internal and external forces contribute to change2. Organizations must monitor the forces of change and determine when there is a need for change.3. Initiate search for response to the change4. Implement the response to the change

Organizational Change

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Forces of Change

Environmental (External) Forces• Customers• Competitors• Technology• Economic• International arena

What are examples of these forces?

Internal Forces• Goals• Employees• Labor Unions• Production efficiencies• Company performance

What are examples of these forces?

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Need For Change

How does a manager determine a need for change?

• Disparity between existing and desired performance levels ( Performance Gap).

Is this gap due solely to non-performance?

How does the sense of urgency enter into the identification of the need for change?

Management’s responsibility is to: a. Monitor threats and opportunities in the external environmentb. Identify strengths and weaknesses in the organization.

Why is it important to have sensitive sensors to determine the need for change? • Resources• Impact

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Initiating Change

Def: To search for or create ideas that solve perceived needs are developed.

Search: process of learning about current developments inside or outside the organization that can meet the perceived need.

Creativity: Generating novel ideas that have the potential of meeting the perceived need or opportunity.Characteristics of a Creative individual

1. Conceptual Fluency2. Originality3. Open mindedness4. Less authority, Independence5. Playfulness, Curiosity, Undisciplined exploration6. Persistence, commitment, focused approach

Idea Champion: Passionate , committed to the idea despite rejection by others.Inventor: Develops the idea but does not have the ability or interest to promote.Sponsor: High-level manager who approves, protects and removes major barriers.Critic: Challenges the concept and provides reality checks.

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1. Open channels of communication2. Contact with outside sources3. Overlapping territories4. Brainstorming, suggestion systems5. Assignment of non-specialist to problem6. Eccentricity allowed7. Use of teams8. Decentralization, loosely defined positions9. Acceptance of mistakes, risk taking10. Freedom to pursue and choose problems11. Playful culture12. Freedom to discuss ideas, long time horizon13. Resources allocated to creative personnel and projects without immediate payoff14. Reward system that encourages innovation15. Absolution of peripheral responsibilities

Development of a Creative Organization

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Implementing Change

Why do we resist change?

• Self Interest: Perceived loss of power, prestige, pay, or company benefits.

• Lack of Understanding and Trust: purpose unknown.

• Uncertainty: Lack of information.

• Different Assessments of goals: Goals conflict, differ in perceived outcome.

Force Field AnalysisTo implement a change requires an analysis of the driving forces and the restraining forces. Removal of restraining forces allows driving forces to implement change.

What is meant by this statement?

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Implementation Tactics

Communication and Education• Change is technical• Users need accurate information and analysis to understand change.

Participation• Users need to feel involved• Design requires information from others• Users have power to resist

Negotiation• Group has power over implementation• Group will lose out in the change

Coercion• A crisis exists• Initiators clearly have power• Other implementation techniques have failed

Top Management support• Change involves multiple departments or reallocation of resources• Users doubt legitimacy of change

Examples?Examples?

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Types of Planned Change

Technology changesRelated to the organization’s production process. (efficiency)Technology change is from the bottom up.Lower level techs act as idea champions. Why

What type of Implementation tactic would you use and Why?

Structural ChangesInvolves the hierarchy of authority, goals, structural characteristics, administrative procedures and management systems.

Accomplished thru a Top - Down approach. Why?

Champions are Top level and Middle management Why would the Preferred Implementation Tactics be Education, Negotiation & Participation?

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• Change in the organization’s product or service output

• Primary way that organizations adapt to changes in markets, technologies and competition.

• Implemented more along a Horizontal line

• Horizontal Linkage Model shows that a new product must be developed simultaneously by marketing, research & manufacturing.

What roles do these depts play in a successful development of new product?

(Marketing, Technical specialists, research, manufacturing)

How does time play into the new product strategy?(Time Based Competition)

New Product Changes

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Cultural / People Changes

Refers to a change in values, norms, attitudes, beliefs and behaviors of employees. Way people think, Mindset rather than technology, structure or products

Training is the most frequently used tool.

Organizational Development: promotes improvement of internal relationships and increased problem solving capabilities to improve an organization’s effectiveness.

OD methods:Team buildingSurvey feedback activitiesLarge group intervention

OP Steps:1. Unfreezing: participants become aware of problems and then increase willingness to change (Change Agent)

2. Changing: Experiment with new behavior and learn new skills.

3. Refreezing: New behaviors are evaluated and reinforced by

individuals who have newly acquired attitudes or values and are rewarded for them by the organization.