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This chapter’s objectives are to: Illustrate how internal influences create unique types of cultures, explain how managers analyze challenges and opportunities in organizations, summarize the common reasons why managers change how their organizations operate, summarize how managers change organizations by intervening in systems.
MANAGEMENT SECOND EDITION Chapter Organizations and Change Management Learning Objectives § § § § Illustrate how internal influences create unique types of cultures Explain how managers analyze challenges and opportunities in organizations Summarize the common reasons why managers change how their organizations operate Summarizehowmanagerschangeorganizationsby interveninginsystems Copyrightâ2017JohnWiley&Sons,Inc Introduction(p.86) Đ Internalenvironment ã ã Đ Comprisestheforcesinsideanorganizationthataffecthow managers set expectations, how employees perform their roles, and how the company interacts with stakeholders and responds to external environments Emphasized by managementfocused capitalism External environment • • Specific and general factors outside an organization that can change how it operates Emphasized by customerfocused capitalism Copyrightâ2017JohnWiley&Sons,Inc Introduction(cont.) Figure4.1 Copyrightâ2017JohnWiley&Sons,Inc InternalEnvironment(p.87) Organizationalculture ã Collectionofbeliefs,sharedbyindividualsandgroups,tohelptheir organizationtorespondtoenvironmentalforcesandchanges ã Experiencedatthe: Đ Consciouslevelcanbe seenorheardopenly(p.88) Đ Unconsciouslevelthings thatemployeesthinkorfeel Đ Copyrightâ2017JohnWiley&Sons,Inc InternalEnvironment(cont.) § Organizational culture (cont.) – manifest in: • Slogan – repetitive phrase intended to support an organizational culture, mission, vision, or values (p. 88) • Story – narrative, usually fictionalized or enhanced over time, based on actual organizational experiences • Symbol – event, situation, object, person, or other artifact that provides greatermeaningtotheorganization(p.89) ã Ritualformalizedactivityintendedtocommunicateandteachthe organizationsculture ã Ceremonyeventthatprovidesoneormorestakeholderswithasenseof purposeandmeaningconnectedtotheorganization Copyrightâ2017JohnWiley&Sons,Inc InternalEnvironment(cont.) Đ Organizationalculture(cont.)manifestin: ã Heroesrealorimaginedpersonwhorepresentsanideal performerspecifictotheorganizationalculture(p.90) Đ Stagesinaherosjourney Figure4.3 Copyrightâ2017JohnWiley&Sons,Inc SpecificEnvironment(p.91) Đ § An organizations specific environment includes the external factors that affect and organization’s operations and performance Customers – needs responded to by: • • • Reactive engagement – modify products and services based on customer feedback Proactiveengagementcreatealternativeproduct/servicetoenhance customersexperience Interactiveengagementưcollaboratewithcustomerstodevelop products/servicesbettersuitedtotheirneeds Copyrightâ2017JohnWiley&Sons,Inc SpecificEnvironment(cont.) Đ Talent(p.92) ã ã § People who have the skills, knowledge, creativity, and relationships necessary to optimize an organization’s performance Crowd sourcing – companies employ the efforts of its customers and the public to innovate and further its mission Advocacy group (p. 93) • • Set of people dedicated to instituting change based on their concerns or interests Boycottattemptbyanindividualorgrouptochangetheactionsofan organizationbyconvincingothercustomersnottopurchasethe productsorservices Copyrightâ2017JohnWiley&Sons,Inc SpecificEnvironment(cont.) Đ Suppliers(p.94) ã Đ Entitiesthatprovideanorganizationwiththeexternalresourcesthatit needstooperate,includingmoney,materials,people,andinformation Regulation(p.95) ã ã Rulessetbyexternalgoverningbodiesthatdictatestandardsand proceduresforindustries,businesses,andprofessionals Governmentactivismroleplayedbygovernmentinencouraging businesstobehaveinwaysthatareinthepublicinterestthroughtax creditsandotherincentives(p.96) Copyrightâ2017JohnWiley&Sons,Inc SpecificEnvironment(cont.) Đ Competitors(p.97) ã ã Organizationsthatsellcomparableproductsand services Competitiveanalysisattempttounderstandthe featuresandbenefitsofcompetitorsproductsand services Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(p.97) Đ Đ Externalforcesthataffectallorganizations participatinginaneconomy,wheremanagershave littleornopowertoeffectchange Politics/laws ã ã Relatetomost,ifnotall,businesses,andnotjusttothose inaparticularindustry CitizensUnited Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Resources(p.99) ã Demandinfluencedbytheworldpopulation Figure4.7 Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Resources(cont.) ã Energy(p.100)ưprojectedworldenergy consumption Figure4.8 Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Resources(cont.) ã Water(p.101)anincreasinglywastedresource Figure4.9 Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Technology(p.101) ã § Speed of technology innovation requires managers to assess and adapt continuously to its impact Sociocultural forces (p. 102) • Behaviors and beliefs associated with demographic groups that comprise an organization’s available talent and customers § Demographics – sociological characteristics that define an organizationstalentandcustomers(e.g.,age,gender,ethnicity) Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Economy(p.102) Orchestratedsystemoftalent,resources,and moneyintendedtocreateanddistributeproducts andservices ã Stockmarket indexes ã Figure4.10 Copyrightâ2017JohnWiley&Sons,Inc GeneralEnvironment(cont.) Đ Economy(cont.) ã Grossdomesticproduct(GDP)valueofwhata countryproducesonanannualbasis(p.104) § § Represents the size of the economy as a number (nominal) or per person (capita) Internet and ecommerce have enabled countries around the world to exchange services easily § Leads to rapid expansion of economies Copyright ©2017 John Wiley & Sons, Inc General Environment (cont.) § World economies – nominal GDP Figure 4.11 Copyright ©2017 John Wiley & Sons, Inc General Environment (cont.) § World economies – per capita GDP Figure 4.11 Copyright ©2017 John Wiley & Sons, Inc How Do Managers Change Organizations?(p.106) Đ Changemanagement ã Đ Achievinggoalsbyalteringbehaviorsorprocessesin responsetoenvironmentalforces Resistancetochangestemsfrom: ã ã • • • Threat to personal interests Uncertainty about meaning of change Mistrust of those initiating change Doubts about ability to cope with changes Clashing perspectives among different people about the change Copyright ©2017 John Wiley & Sons, Inc HowDoManagersChange Organizations?(cont.) Đ Drivingandrestrainingforces(p.107) ã ForceưfieldanalysisưKurtLewin Đ Đ Đ Drivingforcesprovidemotivationforachievinga goal Restrainingforcesbarrierstochangethatimpede progresstothegoal Assesstheneedforchangeandidentifythepotential obstaclesthatmayhavetobeovercometoachieve change Copyrightâ2017JohnWiley&Sons,Inc HowDoManagersChange Organizations?(cont.) Đ Stagesofchange(p.108) ã Unfreezingprocessofinformingemployeesof thechangeandwhyitisneeded Đ ã ã Changeagentsspecialistswhofacilitatechangeby identifyingproblemsandpreseentingthemto management Changingastrategyforemployeestohelp reinforcetheneedforchange Refreezingpeopleembracethechangeandare rewardedfortheircommitmentandparticipationin makingthechangehappen Copyrightâ2017JohnWiley&Sons,Inc HowDoManagersChange Organizations?(cont.) Đ Leadingchange:Eightstepsforimplementingchange (p. 109) • • • • • • • • Putting the pressure on Forming a guiding coalition Creating a vision Using widespread communication Overcoming obstacles Celebrating short term wins Assessing the transformation process Instilling change in the corporate culture Copyright ©2017 John Wiley & Sons, Inc ... How Do Managers? ?Change? ? Organizations? (cont.) § Stages of? ?change? ?(p. 108) • Unfreezing? ?–? ?process of informing employees of the? ?change? ?and? ?why it is needed § • • Change? ?agents? ?–? ?specialists who facilitate? ?change? ?by ... Explain how managers analyze challenges? ?and? ? opportunities in? ?organizations Summarize the common reasons why managers changehowtheirorganizationsoperate Summarizehowmanagerschangeorganizationsby interveninginsystems... identifying problems? ?and? ?preseenting them to management Changingastrategyforemployeestohelp reinforcetheneedforchange Refreezingpeopleembracethechangeandare rewardedfortheircommitmentandparticipationin