Change Management Test

Front 1

Chapter 1
Managing Change

Back 1

1. Change can be interpreted in different ways
2. Change means different things to different people
3. There are a wide range of issues that affect why & how change occurs

Front 2

Ch. 2 -- Images of Managing Change
Three Core Uses of the Images

Back 2

1. They highlight a variety of assumptions that change mgrs. make about change & increase the awareness of different interpretations of change.
2. They draw attention to the dominant images of change within an organization.
3. They highlight a range of perspectives available to change managers.

Front 3

Director

Back 3

• Based on an image of management as control & of change outcomes as being achievable.
• Supported by the n-step models & contingency theory.

Front 4

Coach

Back 4

• Relies upon building in the right set of values, skills & “drills” that are deemed to be the best ones that organizational members will be able to draw on in order to achieve desired organizational outcomes.
• Related to OD approaches.

Front 5

Navigator

Back 5

• Control is still seen as at the heart of mgt. action, although a variety of factors external to mgrs. mean that while they may achieve some intended change outcomes, others will occur over which they have little control.
• Supported by the contextualist & processual theories of change.

Front 6

Interpreter

Back 6

• The mgr. creates meaning for other organizational members, helping them to make sense of various organizational events & actions.
• Supported by the sense-making theory of organizational change

Front 7

Caretaker

Back 7

• Change mgr.’s ability to control is severely impeded by a variety of internal & external forces beyond the scope of the manager.
• Caretaker is seen as shepherding their organizations along as best they can.

Front 8

Nurturer

Back 8

• Even small changes may have a large impact on organizations &
• Managers are not able to control the outcome of these changes.
• However, they may nurture their organizations, facilitating organizational qualities that enable positive self-organizing to occur.

Front 9

Ch. 3 -- Why Organizations Change
Environmental Pressures for Change

Back 9

Fashion, Mandated, Geopolitical, Market Declining, Hypercompetition, reputation and credibility

Front 10

Internal Organizational Pressures for Change

Back 10

Growth, Integration & collaboration, Identity, new-broom, power and political

Front 11

Fashion Pressure

Back 11

Boeing underwent a number of structural & cultural changes based on what Jack Welch had done at GE.
Neo-institutionalism: mimetic isomorphism. An organization imitates companies that are considered to be successful.

Front 12

Mandated Pressures

Back 12

Chevron Texaco was sued for racial discrimination by employees. They changed company practices to ensure fair treatment of employees.
Neo-institutionalism: coercive isomorphism. An organization changes through either formally or informally mandated requirements.

Front 13

Geopolitical Pressures

Back 13

Once Europe became more unified & moved towards opening its borders 3M’s presence in various European countries was no longer suitable.
This is when global changes (or crises) greatly impact an organization & change is necessaryfor survival

Front 14

Market Decline Pressures

Back 14

In the face of changing technology, AOL saw a decline in the demand for their internet provision. They needed to implement strategic changes to survive.
When current markets that the organization operates in begin to decline there is pressure to find newer, more viable markets.

Front 15

Hyper- competition pressures

Back 15

Gateway faced fierce competition from Dell & changed the structure & image of the company.
The increasingly rapid pace of business affects the way organizations respond to their consumers & their competitors

Front 16

Reputation & credibility pressures

Back 16

Walt Disney faced serious criticism for the close ties between the directors & CEO & the lack of management experience. They changed structures & practices to rectify this. In light of recent corporate governance scandals in organizations, the pressure to maintain a good reputation & high level of credibility has increased.

Front 17

Growth pressures

Back 17

The systems & practices in place from Microsoft’s entrepreneurial roots were not able to be applied to the increased scale of operations as the company grew. Existing systems & processes in a small organization may no longer be applicable when its size increases.

Front 18

Integration & collaboration pressures

Back 18

EDS had pioneered IT services but found that its own internal system was lacking. There was a lack of co-ordination & communication between the different business units. The possibility of integrating parts of the organization & creating economies of scale can pressure change in organizations.

Front 19

Identity pressures

Back 19

Hotels under this banner were competing against each other & lacked a unified identity with Forte. The company was separated into four distinct market segments & organizational culture programs were put in place. A common organizational identity & the unified commitment of staff in different areas of an organization can be difficult to manage & may encourage change.

Front 20

Chapter 4 -- What Changes in Organizations
Scale of Change
First Order

Back 20

– Incremental
– They maintain & develop the organization
– E.g. continuous & smaller changes to the structure of an organization

Front 21

• Second-order change

Back 21

– Transformational
– Fundamentally changes the way an organization functions
– E.g. downsizing

Front 22

Between First and Second Order Change
• Mid-range changes

Back 22

– Overcomes inertia but is not revolutionary
– Avoids the alarming implications of large scale change

Front 23

Between First and Second Order Change
• Punctuated equilibrium

Back 23

– Long periods of stability followed by short bursts of change & instability

Front 24

Between First and Second Order Change
Robust transformation

Back 24

– Considers environmental conditions as being temporary & requiring robust responses including the enactment of new capabilities.

Front 25

Type of Down-sizing
Retrenchment

Back 25

is where the firm tries to maintain variety & output but rearranges where products or services are produced in order to improve efficiency (i.e. companies moved to more cost-effective locations).

Front 26

– Downscaling

Back 26

reduces product or service output while maintaining variety. An example would be temporary plant closures in the auto industry to keep supply in line with demand.

Front 27

– Downscoping (refocusing)

Back 27

reduces variety & may or may not change output. In some cases, output can increase if the firm successfully transfers employees & plants from the discontinued products or services to those that were retained.

Front 28

DOWNSIZING

Back 28

• Does not necessarily lead to increased productivity
• Can be an excessively costly exercise

Front 29

Key Change Challenges for Downsizing

Back 29

• Employee retention
• Avoiding “hard landings”
• Minimizing political behavior & loss of teamwork
• Survivor syndrome
• Communication
• Due diligence
• Cultural adjustment
• Choice of restructuring technique

Front 30

Key Change Challenges for New Technologies

Back 30

• Goal synthesis
• Choice of technology
• Identifying political barriers
• The IT team
• Communication
• Time frame
• Contingency planning

Front 31

Key Change Challenges for Mergers & Acquisitions

Back 31

• Cost savings
• Cultural adjustment
• Balancing change & continuity
• Due diligence
• Employee retention
• Contingency planning
• Power structure
Communication

Front 32

Chapter 5 - Diagnosis for Change Diagnostic models

Back 32

• 7-S framework
• Four frame model
• PESTEL framework
• Gap analysis
• Stakeholder analysis
• Force-field analysis

Front 33

• The 7-S Framework

Back 33

As with the previous model, the 7-S framework focuses on seven organizational variables that draw out soft mgt. issues, such as style.
• The 7-S Framework: As with the previous model, the 7-S framework focuses on 7 organizational variables that draw out soft mgt. issues, such as style.
• This could help to highlight the underlying cultural issues that affect change at Boeing which have previously gone unnoticed.

Front 34

• The Four Frame Model

Back 34

Gives the change mgr. the opportunity to take into consideration the multiple interpretations of change. This is the first of the models presented to challenge the way a mgr. sees the process of change.
The Four Frame Model: gives the change mgr. the opportunity to take into consideration the multiple interpretations of change. This is the first of the models presented to challenge the way a manager sees the process of change.
– This could be a useful tool for change mgrs. to expand the way they view the organization & how they see the future of Boeing

Front 35

• PESTEL Framework:

Back 35

Characterizes the organizational environment in terms of six factors: political, economic, social, technological, environmental, & legal. Focuses on trends that might impact on the future operation of the organization.
• The PESTEL Framework: As Boeing has not paid significant heed to the ext. environment, the PESTEL analysis may be a useful starting point for Boeing to set the context for their business & analyze where they are in respect to external trends.

Front 36

• Gap Analysis

Back 36

Reviews an organization’s position by answering three questions: 1) Where are we now? 2) Where do we want to get to? 3) How can we get there?
• Gap Analysis: helps to identify where Boeing is looking to go & how they can achieve their goals. Although an effective tool, in this instance & with the given information, it may not be the most useful in the chapter.
• For the Boeing mgt. team, however, this would be an effective process to undertake..

Front 37

• Stakeholder analysis

Back 37

analyses the position of key stakeholders in regard to a proposed change.
• Stakeholder Analysis: focuses on the key stakeholders & their readiness for change.
• Using this tool at Boeing would effectively determine the variety of opinions regarding change at the org. so mgt. could better understand how the changes will affect others & how ready the employees are for change.

Front 38

• Force-field analysis:

Back 38

analyses the factors that can assist (i.e. driving forces) or hinder (i.e. restraining forces) the implementation of change.
• Force-Field Analysis: highlights the driving & restraining forces for change.
• This determines where the support & resistance for change is originating & can be helpful in assessing a useful implementation path for Boeing for specific changes.

Front 39

Chapter 6 -- Resistance to Change
Resistance to Change

Back 39

• Resistance is a very real & common issue that is faced by change managers during the process of change.

Front 40

Tridimensional Factors of Resistance to Change

Back 40

• It can be considered “tridimensional” – made up of three components:
1. Affective: how a person feels about change
2. Cognitive: what they think about it
3. Behavioral: how they act or what they do in the face of change.
• The behavioural response may take active or passive forms.

Front 41

Signs of Resistance to Change
Active signs of resistance

Back 41

• Being critical
• Finding fault
• Ridiculing
• Appealing to fear
• Using facts selectively
• Blaming or accusing
• Sabotaging
• Intimidating or threatening
• Manipulating
• Distorting facts
• Blocking
• Undermining
• Starting rumors
• Arguing

Front 42

Passive signs of resistance

Back 42

• Agreeing verbally but not following through (“malicious compliance”)
• Failing to implement change
• Procrastinating or dragging one’s feet
• Feigning ignorance
• Withholding information, suggestions, help, or support
• Standing by & allowing change to fail

Front 43

Reason for Resistance

Back 43

1. Dislike of change
2. Discomfort with uncertainty
3. Perceived negative effects on interests
4. Attachment to established culture/ways of doing things
5. Perceived breach of psychological contract
6. Lack of conviction that change is needed
7. Lack of clarity as to what is expected
8. Belief that the specific change being proposed is inappropriate
9. Belief that the timing is wrong
10. Excessive change
11. Cumulative effect of other changes in one’s life
12. Perceived clash with ethics
13. Reaction to the experience of previous changes
14. Disagreement with the way the change is being managed

Front 44

Managing Resistance: A “Situational” Approach
This approach outlines six methods that can be used to manage resistance to change

Back 44

1. Education and communication
2. Participation and involvement
3. Facilitation and support
4. Negotiation and agreement
5. Manipulation and cooptation
6. Explicit and implicit coercion

Front 45

Chapter 7 – Implementing Change
Organization Development

Back 45

1. Change is planned, incremental & participative
2. Outcomes are focused on the improved effectiveness of the organization
3. Long-term focus to achieve its action-orientated goals
4. The primary conduits used in change are groups or teams
5. Focus on changing the attitudes & behaviors of employees
6. Top-down focus

Front 46

Appreciative Inquiry

Back 46

• Participation by large-scale intervention
• Shows a shift from problem solving to joint envisioning of the future
• Involves a four-step technique:
– Discovering current best practices
– Building on existing knowledge
– Designing changes
– Sustaining the organization’s future

Front 47

Positive Organizational Scholarship

Back 47

• It encompasses approaches such as Appreciative Inquiry & others including positive psychology & community psychology.
• Centers on the positive aspects of organizational life.
• It can be considered a coaching method to assist organizations.

Front 48

Sense-Making Approach

Back 48

• It challenges three key assumptions of change:
– Inertia: assumes that organizations reach a point in which there is a gap between environmental change & organizational adaptation
– The need for a standardized change program
– Unfreezing: as organizations are in a constant state of flux, they require freezing to analyze change – not unfreezing to begin the process of change

Front 49

Change Management Approach

Back 49

1. Focuses on strategic, intentional & usually large-scale change
2. Entails following a variety of steps; the exact steps vary depending upon the model used (n-step models)
3. Belief that achieving organizational change is possible through a coordinated & planned approach

Front 50

Kotter’s Eight-Step Model

Back 50

1. Establish the need for urgency
2. Ensure there is a powerful change group to guide the change
3. Develop a vision
4. Communicate the vision
5. Empower the staff
6. Ensure there are short-term wins
7. Consolidate gains
8. Embed the change in the culture

Front 51

N-Step Model Issues

Back 51

1. The sequences of steps
2. The number of steps
3. The timing of steps
4. The resourcing of steps
5. The involvement in each step
6. Managing multiple steps
7. Revisiting different steps
8. “Are all steps needed for particular changes?”