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Summary - Organisational behaviour.
16.1 Forces of change
External forces for change:
- demographic characteristics
- technological improvements
- market changes
- social and political pressures
Internal forces for change:
- human resource problems and prospects = these problems stem from employee perceptions of how they are treated at work and the match between individual and organisation needs and desires.
- managerial behaviour and decisions = excessive interpersonal conflict between managers and their subordinates is a sign that change is needed.
16.2 Models and dynamics of planned change
Kurt Lewin's change model:
- Unfreezing = creating motivation to change
- Benchmarking = a process by which a company compares its performance with that of high-performing organisations and can be used to help 'unfreeze' an organisation.
- Changing = providing employees with new information.
- Refreezing = the change is stabilised by helping employees to integrate the changed behaviour or attitude into their normal ways of doing things.
Dimensions of change:
- Theory E = the creation of economic value is the main purpose.
- Theory O = the goal is to develop corporate culture through individual and organisational learning.
As theory E and O have both their disadvantagens and liabilities, it is the challenge to resolve the tension betwee theory E and O in a way the benefits are optimised and the liabilities limited.
16.3 Organisation Development
Organisational development can be defined as a set of techniques or tools that are used to implement organisational change through commitment, co-ordination and competence
- Advance organisational renewal
- Engage organisation culture change
- Enhance profitability and competitiveness
- Ensure health and well-being of organisations and employees
- Facilitate learning and development
- Improve problem-solving
- Increase effectiveness
- Initiate and/or manage change
- Strengthen system and process improvement
- Support adaption to change
There are three practiical implications:
- Planned organisation change works.
- Change programmes are more successful when they are geared towards meeting both short and long-term results.
- Organisational change is more likely to succeed when top management is truly committed to the change process and the desired goals of the change programme.
16.4 Challenges for understanding organisational change
- Conducted environmental assessment more intensely
- Led change
- Linked strategic and operational change
- Managed their human resources as assets and liabilities
- Managed coherence in the overall process of competition and change
Episodic change refers to change initiatives thare are infrequent, discontiniuous and intentional.
Continuous change, where organisations are emergent and self-organising.
16.5 Understanding and managing resistance to change
No matter how technically or administratively perfect a proposed change may be, people make or break it.
When innovative or radicallu different changes are introduced without warning, affected employees become fearful of the implications.
Climate of mistrust: Mutual mistrust can doom an otherwise well-conceived change to failure. Employees who trust management are more willing to expend extra effort.
Fear of failure: intimidating changes to a job van cause employees to doubt their capabilities.
Loss of status or job security: Administrative and techbological changens that threaten to alter power bases or eliminate jons generally trigger strong resistance.
Peer pressure: Someone who is not directly affected by a change may actively resist it to protect the interests of his or her friends and co-workers.
Non-reinforcing reward systems: Indivuduals resist when they do not foresee positive rewards for changing.
Before adapting a change, there are four conclusions that should be kept in mind:
- An organisation must be ready for change.
- Organisational change is less successful wehen top management fails to keep employees informed about the process of change.
- Do not assume that people are resisting change consciously.
- Employees' perceptions or interpretations of a change affect resistance significantly.
16.6 Creating a learning organisation
A learning organisation = a group of people working together to collectively enhance their capacities to create results that they truly care about.
A learning organisation is one that proactively creates, acquires and transfers knowledge and that changes its behaviour on the basis of new knowledge and insights
16.7 Defining knowledge management
Knowledge management can be described as the management of information, knowledge and experience available to an organistaion, its creation, capture, sotrage, availability abd utilisation, in order that organisational acitvities build on whats is already known and extend it further.
- Stocktaking of the knowledge available
- Developing or buying knowledge to fill knowledge gaps
- Sharing knowledge
- Applying knowledge
- Evaluating the process to keep up with changing demands
Knowledge exploitation: the use and in-depth development of knowledge existing in the organisation.
Knowledge exploration: the creation of new knowledge to expand the breadth of knowledge and to reconfigure existing knowledge.
16.8 Single and double loop learning
There are two types of learning:
- Single loop learning = reacting to responses, negative or positive feedback, from the environment.
- Double loop learning = questioning the underlying models. real objectives and habits of the action or decision.