1BA3 Topic 13 Winter 2024 - Student Slides

Commerce 1BA3
Organizational Behaviour
Organizational Change
Lucy Djelalian Pepper
DegrooteSchool.ca
Why do Organizations Change?
External sources of pressure (eg.“E” & “T” issues; global competition; deregulation;
advanced technologies all bringing about changes in structure and strategy)
Internal sources of pressure (e.g.. “P” issues; lower productivity; internal conflict; strikes;
high absenteeism and turnover bringing about changes in structure and strategy)
Strategic and Structural Change Responses
department reorganizations opening new national/international branches
mergers business process design projects (reengineering)
acquisitions installation of new technology
buyouts system upgrade/replacement
downsizing or expansion implementation of a new incentive system
restructuring shutting down particular manufacturing lines
launch of new products new marketing campaigns or changes to marketing programs
outsourcing of major organizational activities redesign of jobs
business model changes or new business ventures changes impacting suppliers and/or customers
What Organizations Can Change
Goals and Strategies Technology Job Design
Structure Process People Culture

What Organizations Can Change
Three important points about the areas that organizations can change:
Change in one area very often calls for changes in other areas.
• E.g., change policy affects how things are done elsewhere
Change in most areas require serious attention be given to people.

• E.g., often resist change
Change requires employees to learn new skills and change their attitudes.
• E.g., learn new computer software
Definition of Change?
A variation or alteration… passing from one state or form to another
The important change is not the physical equipment, technology change,

rather it’s what happens inside a person’s head.
Psychological Dynamics of Change
(How we change)
Sense of loss Lack of clarity
Personal Loss in performance

Self Preservation (in the gut then to head)
Stages of Transition: Individual Change
Change is a personal journey in 3 stages (K. Lewin)
Video: https://www.youtube.com/watch?v=MUHfVoQUj54
1. Unfreeze
Lewin’s
Three-Step The recognition that some current state
of affairs is unsatisfactory
Model
Employee attitude surveys, customer
surveys, and accounting data are often
used to anticipate problems and initiate
change before crises are reached
2. Change
Lewin’s The implementation of a program or

Three-Step plan to move the organization or its
members to a more satisfactory state.
Model
Change efforts can range from minor to
major.
3. Refreeze
Lewin’s The condition that exists when newly
Three-Step developed behaviours, attitudes, or

structures become an enduring part of
Model the organization.
The effectiveness of the change is

examined and the desirability of
extending change further can be
considered.
Issues in Change Process
Process: Unfreeze Change Refreeze
Problems: Diagnosis Resistance Evaluation,

Institutionalization
TIME
Causes of Resistance
Politics and self-interest
Low individual tolerance for change
Lack of trust
Different assessments of the situation
Strong emotions
Strong organizational identification
A resistant organizational culture

Time and Resistance
There are considerable differences in how people react to change over time
• Welcome change from the beginning and maintain

Champions: change-supportive perceptions over time
• Resist change form the get-go and persist in their

Doubters: resistance
Converts: • Resistant at first but come to see the value of change
• Have initial change-supportive perceptions but become

Defectors: resistant over time
*Exhibit 15.5 Pg. 555

Changing mindsets and attitudes (58%)
Corporate culture (49%)
Complexity is underestimated (35%)
Shortage of resources (33%)
Major Lack of commitment of higher mg’t (32%)
Change Lack of change know how (20%)
Challenges Lack of transparency (18%)

Lack of motivation of involved employees (16%)
Change of process (15%)
Change of IT systems (12%)
Technology barriers (8%)
Organizational Development
Organizational development (OD) is a planned, ongoing effort to change organizations to be
more effective and more human.
TEAM BUILDING SURVEY FEEDBACK TOTAL QUALITY REENGINEERING

MANAGEMENT (TQM)
Does Org Development
Work?
Most OD techniques have a positive impact on
productivity, job satisfaction, or other work
attitudes.
OD seems to work better for supervisors or
managers than for blue-collar workers.
Changes that use more than one technique

seem to have more impact.
The Innovation Process
Innovation requires:
Innovation is the process of Creativity refers to the production
developing and implementing Creative ideas and creative people. of novel but potentially useful
new ideas in an organization. People who will fight for new ideas. ideas.
Good communication.
The proper application of resources and
rewards.
Idea champions are people who see The role of idea champion is often It involves sponsorship and
the kernel of an innovative idea and an informal and emergent role. support.
help guide it through to
implementation.
The Knowing-Doing Gap
Many managers know what to do, but have considerable trouble

implementing this knowledge in the form of action.
Why does the knowing-doing gap happen?

The Knowing-Doing Gap
The tendency for some organizational cultures to reward short-term talk
rather than longer-term action.
Many organizations foster internal competition that is not conducive to

the cooperation between units that many changes require.
When managers do manage to make changes, they sometimes fail

because techniques are adopted without understanding their underlying
philosophy.

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Commerce 1BA3

Lucy Djelalian Pepper

department reorganizations opening new national/international branches

mergers business process design projects (reengineering)

acquisitions installation of new technology

buyouts system upgrade/replacement

downsizing or expansion implementation of a new incentive system

restructuring shutting down particular manufacturing lines

launch of new products new marketing campaigns or changes to marketing programs

outsourcing of major organizational activities redesign of jobs

Goals and Strategies Technology Job Design

Structure Process People Culture

Change in most areas require serious attention be given to people.

A variation or alteration… passing from one state or form to another

The important change is not the physical equipment, technology change,

Sense of loss Lack of clarity

Personal Loss in performance

Change is a personal journey in 3 stages (K. Lewin)

Lewin’s The implementation of a program or

Lewin’s The condition that exists when newly

Three-Step developed behaviours, attitudes, or

Model the organization.

The effectiveness of the change is

Process: Unfreeze Change Refreeze

Problems: Diagnosis Resistance Evaluation,

Low individual tolerance for change

Different assessments of the situation

Strong organizational identification

A resistant organizational culture

• Welcome change from the beginning and maintain

• Resist change form the get-go and persist in their

Converts: • Resistant at first but come to see the value of change

• Have initial change-supportive perceptions but become

*Exhibit 15.5 Pg. 555

Change Lack of change know how (20%)

Challenges Lack of transparency (18%)

TEAM BUILDING SURVEY FEEDBACK TOTAL QUALITY REENGINEERING

Changes that use more than one technique

Many managers know what to do, but have considerable trouble

Why does the knowing-doing gap happen?

Many organizations foster internal competition that is not conducive to

When managers do manage to make changes, they sometimes fail

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