Change Management Final Exam Notes Test Questions

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External Drivers of Change
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• Global Competitive Pressures • Technological innovations • Mergers and acquisitions • Restructuring/Downsizing • Geographic Re-locations • Strategic re-directions
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Internal Drivers of Change
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• Leadership change • Vision/Mission/Goals • Organization Structure/Work Setting • Systems/Processes/Practices • Organization Culture-VANS o Values o Assumptions o Norms that are o Shared
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Targets of Change
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• Strategies • Cultures-shared values, habits, and norms • Structures-MOST COMMON • Systems • People- attitudes, expectations, beliefs
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Outcomes of Change
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• Increased profitability • Enhanced efficiency • Organizational growth • Reduced turnover and absenteeism • Individual/group development • Organizational learning • System enhancement • Organizational renewal
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Interventions of Change
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Human Process HR Management Techno-structural Strategic
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Human process Intervention
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o Leadership o Communication o Decision Making o Problem-Solving
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HR Management Intervention
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o Rewards Systems o Performance Management o Career Planning o Training o Recruitment and Staffing o Diversity Management
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Techno-structural Intervention
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o Technological Development o Organizational Design
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Strategic Intervention
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o Visioning o New Mission o New Strategies and Goals
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Change Interventions Intensities
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• High Stimulus Interventions (Gamma) o Policy change o Deep cultural change • Low Stimulus Interventions (Alpha, Beta) o Job Rotation o Flexible work hours o Skill-building training
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Why Change Interventions Fail
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• Lack of Commitment and shared vision • Lack of competencies • Declaring victory too soon • Fear of the unknown
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Types of Change
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• Transformational vs transactional • Dramatic vs incremental • Episodic vs continuous • Strategic vs operational • Global vs local • System-wide vs single unit • Tectonic Change
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Alpha Organization Change
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A minor incremental modification within an establishment framework
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Beta Organization Change
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A modification to present framework
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Gamma Organization Change
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A radical redefinition or re-concenptualization or replacement of the present framework; 8-10 years
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Change Models
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Lewin (1947) Unfreezing Moving Refreezing Beckhard and Harris (1977) Present State Transition State Future State
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Summary of Change Models
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• Diagnose need for change • Identify target readiness • Establish a vision • Identify necessary interventions • Motivate stakeholders and overcome resistance • Empower people to achieve vision • Institutionalize change • Evaluate change
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Do’s to Promote Effective Change
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• Provide clear message/explanation for change • Develop a business case • Encourage interest • Train and develop • Offer change incentives • Recognize and reward • Involve all stakeholders
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Don’ts
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• Stray from the mission and vision • Be stingy with resources • Neglect awareness training • Ignore possibility of resistance o Passive-Withdrawal, quiet o Active-loud or formal complaint (verbal or written) • Ignore subcultures
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Why is Change Resisted?
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• Loss of control • Loss of face • Too much uncertainty • Too many surprises • Confusion • Competence concerns
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Role of Communication in Reducing Resisting
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• Increases loyalty and trust • Clarifies expectations • Addresses issues of rewards • Reduces perceptions of secrecy and dishonesty • Serves to control dysfunctional rumors
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Theories that Help Explain Different Responses to Change Initiatives
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• Individual Difference Theory • Social Differentiation Theory • Social Relationships Theory
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Individual Difference Theory
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Different responses to change are a product of different beliefs, values, or personalities
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Social Differentiation Theory
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Different responses are a result of cultural or sub-cultural differences
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Social Relationships Theory
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o Different responses depend on the network of relationships Opinions leaders Informal leaders Friends Mentors
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Competitive Challenges
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• Globalization: interconnectivity around the world • Value-chain orientation • Profitability (triple bottom line: people, profit, planet) • Capability Focus • Change, change, and more change o Personal change o Organizational change • Technology • Attracting, retaining, and measuring competence (ability)
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Next-Generation B-Education
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• Global • Change oriented • Diverse • Socially Acceptable • Customized • Community focused • Ethics Based
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Global Trends
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• Globalization • Learning organization • Global technology • Business ethics • Creativity • Emerging roles of women • Changing global workforce
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Levels of Change
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• Individual • Group • Organizational
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Components of Organizational Change
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• Content (what) • Process (how) • Cause (why)
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Factors Contributing to Effective Change Management
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• Motivating change • Creating a vision • Developing support • Managing the transition • Sustaining the change
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Motivating Change
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• Creating change readiness o Sensitize organization to pressures for change o Reveal gaps between current and desired states • Overcoming resistance o Empathy and support o Communication o Participation
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Creating a Vision
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• Articulate the future • Make the vision real to everyone • Clarify expected outcomes • Identify conditions necessary for success
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Developing Support
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• Identify change agents and sponsors • Identify change recipients • Influence stakeholders
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Who do you need support from?
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• CEO • Key functional/divisional heads • Employees responsible for carrying out the change • Administrators • Consultants
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Managing the Transition
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• Action planning o What needs to be done o Who needs to do it o By when • Communication planning • Ongoing training and support
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Goal Setting -SMART
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• Specific • Measurable • Attainable • Realistic • Time-bound o 8-10 years
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Purpose of Change Planning
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• Defines the purpose of the change • Communicates this purpose • Develops ownership • Ensures effective use of resources • Provides a bases measuring progress • Provides a common link between groups
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Sustaining the Change-Most neglected area
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• Evaluating and monitoring • Adapting and refining • Feedback and communication
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Organizational Change Success Factors
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• Senior leadership involvement • Communication and staff involvement • Change planning • Training in change management • Overcoming obstacles (resistance, passive)
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Why is Training Important?
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• Formal training is a $56.8 billion industry in U.S. • Spent over $200 billion per year on HR Development
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Factors Influencing Training Transfer
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• Learners • Program design and execution • Program content • Changes required to apply learning • Organizational context • Cultural/social influences
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Training
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• Is a process, not a program • Develop skills • Provides information • Nurture attitudes • Improves individual performance • Develops individuals and facilitates learning
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ADDIE Model of Training
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• Analysis • Design • Development • Implementation • Evaluation
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Creating a Training P.O.P.
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• Purpose • Outcomes • Plan
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Training Environment
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• Stimulating to the senses o Auditory o Visual o Interactive o Tactile o Kinesthetic o Food • Sensitive to multiple elements o Physical environment o Psychological environment
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Purposes and Techniques
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• Personal growth and development • Continuous improvement and performance
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Empowerment
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•Empower o”To enable”: motivating through increasing personal efficiency oEnablement
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Power
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• Power is “the ability to influence” the conduct of others • Leadership involves “the use of influence” to direct and cooridate activities of the members of an organized group o Management is a special kind of leadership
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Types of Power
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•Organizational o Reward o Coercive o Legitimate •Personal o Referent o Expert
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Empowering People to Change
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•Regulative (Have to) •Normative (Obliged to)-cultural •Cognitive (Want to)-mental, sustain o Policy change o Obliged to do things
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Management Empowerment Methods
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•Expressing confidence in subordinates’ accomplishments •Fostering opportunities for subordinates to participate •Providing autonomy and discretion •Setting inspirational and meaningful goals
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Empowering Strategies
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•Employee Empowerment Programs (EEP’s) o Job enrichment •BPR and Lean (Business Process Re-engineering) •Quality Circles (QC’s) •Self-Directed Work Teams (SDWT’s) •Appreciate Inquiries (AI’s)
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What is Organizational Culture?
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•Set of values, assumptions, beliefs, understandings, and norms that are shared by members of an organization •Change in culture=GAMMA CHANGE
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Culture Shock
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•Disorientation in a new cultural environment
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Levels of Culture (Iceberg)
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•Visible: artifacts (dress, language) •Invisible: expressed value
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National Culture Dimensions
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Individualism-collectivism Power Distance-moderate Uncertainty audience Masculinity -Femininity Confucian Dynamism
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Organization Culture Dimensions
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Employee-centered Profession-centered Task- Innovation
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Elements of Organizational Culture
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Ceremonies Symbols Rituals Language
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Purpose of Strategic Planning
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Defines the PURPOSE of the organization COMMUNICATES this purpose Develops OWNERSHIP Ensures EFFECTIVE use of resources Provides a COMMON LINK between different groups
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Steps in the Strategic Planning Process
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Information gathering Development of a mission and vision Strategic objectives and goal setting Action Planning Implementation and evaluation
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Why a vision and mission?
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BENEFITS: shared understanding unified sense of purpose improves decision making capture “big picture”
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Vision
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Defines future state Organization wants “to be” Guidance and inspiration Helps employees see big picture in day-to-day activities Offers vitality Celebrates the best of what you are Drives action and motivates people Written succinctly
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Mission
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Defines the present state and purpose Shows what it does Who it does it for How it does what it does
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Strategic Goals
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Main direction to be pursued Aligned with mission statement Aligned with current/future competencies
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Action Planning
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What needs to be done Who needs to do it Where, how, and by when?

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