Managing Change and Organizational Learning Chapter Sixteen McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, Inc All rights reserved Copyright © 2012 by The McGraw-Hill Companies, Inc All rights reserved After reading the material in this chapter, you should be able to: LO16.1 Discuss the external and internal forces that can create the need for organizational change LO16.2 Describe Lewin’s change model and systems model of change LO16.3 Explain Kotter’s eight steps for organizational change the leading 16-2 After reading the material in this chapter, you should be able to: LO16.4 Review the 11 reasons employees change resist LO16.5 Identify alternative strategies for overcoming resistance to change LO16.6 Define the term learning organization LO16.7 Review the factors that hinder an organization’s ability to learn from success and failure 16-3 Forces of Change External forces for change originate outside the organization Internal forces for change originate inside the organization 16-4 External Forces Demographic characteristics Technological advancements Customer and market changes Social and political pressures 16-5 Internal Forces 16-6 Question? ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48% This was primarily attributed to job dissatisfaction by employees This represents a(n) for ABC A.External force for change B.Social and political pressure C.Technological advancements D.Internal force for change 16-7 Lewin’s Change Model Unfreezing Focus is to create the motivation to change Begin by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes 16-8 Lewin’s Change Model Benchmarking the overall process by which a company compares its performance with that of other companies, then learns how the strongestperforming companies achieve their results 16-9 Question? Fredfirst, a securities trading company, regularly compares its performance with that of high performing organizations in the industry, such as Merrill Lynch This process is described as A.Change B.Refreezing C.Benchmarking D.A strategic plan 16-10 Question? Jamie is not directly affected by the change introduced in her company, but she is actively resisting it to protect the interests of her friends This describes which reason for resistance to change? A.Surprise and fear of the unknown B.Personality conflicts C.Peer pressure D.Lack of tact 16-26 Why People Resist Change in the Workplace Disruption of cultural traditions and/or group relationships Personality conflicts Lack of tact and/or poor timing 10 Leadership style 11 Failure to legitimize change 16-27 Overcoming Resistance to Change Resilience to change represents a composite characteristic reflecting high self-esteem, optimism, and an internal locus of control, was positively associated with recipients’ willingness to accommodate or accept a specific organizational change 16-28 Overcoming Resistance to Change Commitment to change A mind-set “that binds an individual to a course of action deemed necessary for the successful implementation of a change initiative” 16-29 Overcoming Resistance to Change Provide as much information as possible to employees about the change Inform employees about the rationale for the change Conduct meetings to address employee’s concerns Provide employees the opportunity to discuss how the proposed change might affect them 16-30 Six Strategies for Overcoming Resistance to Change 16-31 Creating a Learning Organization Learning organization proactively creates, acquires, and transfers knowledge throughout the organization 16-32 Creating a Learning Organization Team mental model Represents team members’ “shared, organized understanding and mental representation of knowledge about key elements of the team’s relevant environment” 16-33 Leadership Is the Foundation of a Learning Organization Building a commitment to learning Working to generate ideas with impact Working to generalize ideas with impact Helping the organization to “unlearn” old mental models 16-34 Factors That Detract from an Organization’s Ability to Learn from Failure 16-35 Working to Generate Ideas with Impact Implement continuous improvement programs Increase employee competence through training, or buy talent from outside the organization Experiment with new ideas, processes, and structural arrangements Go outside the organization to identify world-class ideas and processes 16-36 Working to Generalize Ideas with Impact Measuring and rewarding learning Increasing open and honest dialogue among organizational members Reducing conflict Increasing horizontal and vertical communication Promoting teamwork 16-37 Working to Generalize Ideas with Impact Rewarding risk taking and innovation Reducing the fear of failure Increasing the sharing of successes, failures, and best practices across organizational members Reducing stressors and frustration Reducing internal competition 16-38 Helping the Organization to Unlearn Old Mental Models Management must seriously question and challenge the ways of thinking that worked in the past if they want to create a learning organization For example, the old management paradigm of planning, organizing, and control might be replaced with one of vision, values, and empowerment 16-39 Video Case: Louisville Slugger – Hillerich & Bradsby What role information systems play at H&B? What were the internal and external trade-offs between reconfiguring the old information system and designing a new one? Why was the transition to the new system difficult? How could Kotter’s eight steps be used to facilitate such a transition? Why did some people resist change and experience stress? What strategies could H&B have used to overcome resistance to change? 16-40 ... external and internal forces that can create the need for organizational change LO16.2 Describe Lewin’s change model and systems model of change LO16.3 Explain Kotter’s eight steps for organizational. .. Research and Practical Implications Planned organizational change works Change programs are more successful when they are geared toward meeting both short-term and long-term results Organizational change. .. dissatisfaction by employees This represents a(n) for ABC A.External force for change B.Social and political pressure C.Technological advancements D.Internal force for change 16-7 Lewin’s Change Model