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Organizational Theory,

Design, and Change


Sixth Edition
Gareth R. Jones

Chapter 10
Types and Forms
of Organizational
Change

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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What is Organizational
Change?
Organizational change: the process
by which organizations move from their
present state to some desired future
state to increase their effectiveness

Goal is to find improved ways of using


resources and capabilities in order to
increase an organizations ability to create
value

Targets of change include improving


effectiveness at four different levels

Human resources
Functional resources
Technological capabilities
Organizational capabilities
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Targets of Change
Human Resource changes include:

Investment in training and


development
Socializing employees into the
organizational culture
Changing organizational norms and
values to motivate a multicultural
and diverse workforce
Promotion and reward systems
Changing the composition of the topmanagement team
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Targets of Change
Functional Resources changes
Include:

Transferring resources to the functions


where the most value can be created
in response to environmental change
An organization can improve the value
that its functions create by changing
its structure, culture, and technology

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Targets of Change
Technological capabilities changes
include:

Efforts intended to give an organization the


capacity to change itself in order to exploit
market opportunities
Adoption and use of new technologies
Development of new products/ technologies
and the changing of existing ones
Technological capabilities are a core
competence

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Targets of Change
Organizational capabilities
changes include:

Changing organizational design

Culture and structure

Changing strategy
Changes that permeate entire
organization

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Figure 10.1: Forces for and


Resistances to Change

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Levin's Force-Field
Theory of Change

Argues that two sets of opposing forces within an


organization determine how change will take place

Forces for change and forces making organizations


resistant to change
When forces for and against change are equal, the
organization is in a state of inertia
To change an organization, managers must increase forces
for change and/or decrease forces resisting change

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Types of Change in
Organizations
Evolutionary change: change
that is gradual, incremental, and
narrowly focused
Revolutionary change:
change that is sudden, drastic,
and broadly focused

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Developments in
Evolutionary Change

Sociotechnical systems theory: a


theory that proposes the importance of
changing role and task or technical
relationships to increase organizational
effectiveness
Total quality management (TQM):
an ongoing and constant effort by all of
an organizations functions to find new
ways to improve the quality of the
organizations goods and services
Flexible workers and Flexible work
teams
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Developments in
Revolutionary Change
Reengineering: the process by which
managers redesign how tasks are
bundled into roles and functions to
improve organizational effectiveness

Focuses on business processes versus


functions
Deliberately ignores the existing
arrangement of tasks, roles, and work
activities

E-engineering: refers to companies


attempts to use information systems
to improve their performance
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Developments in
Revolutionary
Change
Restructuring: changing task and authority
relationships and redesigning organizational
(cont.)

structure and culture to improve


organizational effectiveness

Downsizing: the process of streamlining


the organizational hierarchy and laying off
managers and workers to reduce
bureaucratic costs
Innovation: the process by which
organizations use their skills and resources to:

Create new technologies


Develop new goods and services
Better respond to the needs of their customers
One of the most difficult instruments of change to
manage
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Figure 10.2: Levin's ForceField Theory of Change

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Figure 10.5: Levin's ThreeStep Change Process

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Managing Change:
Action Research
Action research: a
strategy for
generating and
acquiring knowledge
that managers can
use to define an
organizations desired
future state

Used to plan a change


program that allows the
organization to reach
that state
Helps in the unfreezing,
changing, and
refreezing process

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Organizational Development
(OD)
Organizational development
(OD): a series of techniques and
methods that managers can use in
their action research program to
increase the adaptability of their
organization

Goal is to improve organizational


effectiveness and to help people in
organizations reach their potential and
realize their goals and objectives
Can be used to unfreeze, change, and
refreeze attitudes and behaviors
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Organizational
Development
(cont.)

OD techniques to deal with resistance


to change

Education and communication: inform


workers about change and how they will
be affected
Participation and empowerment:
involve workers in change
Facilitation: help employees with change
Bargaining and negotiation
Manipulation: change the situation to
secure acceptance
Coercion: force workers to accept change

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Organizational
Development (cont.)
OD techniques to promote
change
Counseling, Sensitivity training,
and Process consultation
Team building, Intergroup training,
and Organizational mirroring
Total organizational interventions

Organizational confrontation meeting

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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