The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
The management function concerned with defining goals for future organizational performance and deciding on the tasks and resource use needed to attain them.
Assigning tasks, grouping tasks into departments, and allocating resources to departments.
Involves the use of influence to motivate employees to achieve the organization’s goals.
Concerned with monitoring employees’ activities, keeping the organization on track toward its goals, and making corrections as needed.
Changing an organization
Process of modifying an existing organization to increase organizational effectiveness
Five Major Factors on the Success of Changing an Organization
Change agent, individuals affected by change, evaluation of change, type of change to be made, determination of what should be changed
The Change Agent
Refers to anyone inside or outside the organization who tries to modify an existing organizational structure
Successful change agents have the ability to
1. Determine how change should be made
2. Solve change related problems
3. Use behavioral science tools to influence people appropriately during the change
4. Determine how much change employees can withstand
Factors to consider when changing an organization
What should be changed, the type of change to make, Individuals affected by change, evaluation of change
Three main factors
People factors, structural factors, technological factors
Attitudes, leadership skills, communication skills, etc.
Organization controls, such as policies and procedures
Any types of equipment or processes assisting organizational members in the performance of their jobs
Types of Change
Structural, Matrix, and People Change
Type of organizational change emphasizing modifying an existing organizational structure. This includes:
1. Modifying organizational structure to fit the communication needs of the organization
2. Decentralizing the organization to reduce costs of coordination, increase the controllability of subunits, increase motivation, and gain greater flexibility
A matrix organization is a traditional organizational structure that is modified primarily for the purpose of completing some type of special project
People change: Organizational development (OD)
People change is changing certain aspects of organizational members to increase organizational effectiveness
Organizational Development (OD) is the process of people change
Managers need to be aware of three key concerns
Resistance to change, Reducing resistance to change, The behavioral side of change
Resistance to Change
Resistance to change within an organization is as common as the need for change in the first place
Reducing Resistance to Change
Avoid surprises, promote real understanding, set the stage for change, and make tentative change (incrementalism)
The Behavioral Side of Change
Almost any change requires members to modify the way they are accustomed to behaving or working.
Three conditions that cause behavioral change (According to Lewin)
1. Unfreezing – a state in which individuals become ready to acquire or learn new behaviors
2. Changing – a situation in which individuals, now unfrozen , begin experimenting with new behavior
3. Refreezing – a situation where individuals see the new behavior they have experimented with during the “changing” period as part of themselves
Evaluation of Change
Provides insights into how the change might be modified to further increase organizational effectiveness, and also to determine if the steps taken can be modified to increase effectiveness the next time they are used
Change is justified if it
1. Further improves the means for satisfying someone’s economic wants
2. Increases profitability
3. Promotes human work for human beings
4. Contributes to individual satisfaction and social well-being
External Forces of Change
4. Work Force
Internal Forces of Change
3. Continuous improvement
Characteristics of Creative Organizations
1. Develop new products and services before others do
2. Are better at shifting gears quickly
3. Observe things around them
4. Innovate more rapidly than other organizations
5. Allow their employees a great deal of autonomy
6. Encourage open communication at all levels
7. Transcend organizational boundaries and silos
8. Hire people with diverse backgrounds
9. Avoid groupthink
10. Evaluate ideas on their own merits
11. Encourage research
12. Allow employees to take risks
13. Employ techniques to help people be more creative
Characteristics of Change Champions
1. Someone who will take charge of an idea and bring it to fruition
2. Assumes responsibility for moving an idea toward implementation
3. Must have a deep and emotional commitment to the idea
4. Must be extremely knowledgeable about the issue/product/service in question
5. Must be willing to stick with an idea long enough to see it through
Allowing too much complacency. Not establishing a high enough sense of urgency in fellow managers and employees.
Solution: Create sufficient urgency at the beginning of the change process
Failing to create a sufficiently powerful guiding coalition
Solution: create a powerful coalition that supports the change process
Underestimating the power of vision
Solution: establish a clear and sensible vision
Under-communicating the vision by a factor of 10
Solution: establish clear and measurable communication channels
Permitting obstacles to block the new vision
Solution: identify and dismantle obstacles (continually access to identify new obstacles)
Failing to create short-term wins. Without short-term wins, too many employees give up or actively join the resistance.
Solution: establish measurable short-term wins (3-6 months)
Declaring victory too soon.While celebrating is fine, any suggestion that the job is mostly done is generally a terrible mistake.
Solution: Small wins…establish and communicate success at different stages.
Neglecting to anchor changes firmly in the corporate culture. Until new behaviors are rooted in social norms and shared values, they are always subject to degradation as soon as pressures associated with a change effort are removed.
Solution: Show people how specific behaviors and attitudes have helped improve performance and allow sufficient time to ensure that the next generation of management really does personify new approaches.
The Eight-Stage Process of Creating Major Change
1. Establishing a sense of urgency
2. Creating a guiding coalition
3. Developing a vision and strategy
4. Communicating the change vision
5. Empowering broad-based action
6. Generating short-term wins
7. Consolidating gains and producing more change
8. Anchoring new approaches in the culture