© 2005 Prentice-Hall, Inc. 14-1 Chapter 14 Organizational Change.
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Transcript of © 2005 Prentice-Hall, Inc. 14-1 Chapter 14 Organizational Change.
© 2005 Prentice-Hall, Inc.
14-1
Chapter 14
Organizational Change
© 2005 Prentice-Hall, Inc.
14-2
Learning Objectives
Define organizational change and understand why managing organizational change is an important part of international management
Understand the individual, group, and structural levels of change
Know what internal and external factors influence organizational change
Explain the role of national and organizational culture on organizational stability and change
© 2005 Prentice-Hall, Inc.
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Learning Objectives
Understand the processes involved in planned organizational change, including sources of resistance to change and ways to overcome them
Understand how macro level theories of organizational change influence the management of change
© 2005 Prentice-Hall, Inc.
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Organizational Change
Reconfigures components of an organization to increase efficiency and effectiveness
© 2005 Prentice-Hall, Inc.
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Levels of Organizational Change
Individual Change Behavior of a person is different as a result
of new information, training, experience, or rearrangement of an organization's structure
Group Change Can take several forms including new
leadership, increased or diminished cohesiveness, transition into a team
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Levels of Organizational Change
Structural ChangeDeliberate rearrangement of
positions, departments, or other major units of organization
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Internal Change Factors
Technical production processesProductionNew technologiesQuality
Political processesNew organizational goalsConflictNew leadership
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Internal Change Factors
Organizational cultureValuesNormsNew member socialization
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External Change Factors
The immediate environmentDomestic competitionPopulation trendsSocial trendsGovernment actions
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External Change Factors
The general environmentForeign competitionSocial movementsPolitical-economic movementsTechnologyProfessionalizationCulture contact
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Change Variables and Culture Relationship between values and
behavior may vary with culture so in some cultures individuals can change behavior without changing their values
Internal and external variables exist in context of national and organizational culture; simultaneously influence culture and are influenced by it
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National Culture and Organizational Change
Time orientation Resistance to change
TraditionHabitResource limitationsPower and influenceFear of the unknownValues
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Resistance to Change in Different Clusters of Countries
Dimension Scores
Resistance level PD ID UA Country Clusters
4 (strongest)
3 (strong)
high low high
med med highhigh high highhigh med high
high low med
Most of Latin America, Portugal,Korea, the former Yugoslavia
JapanBelgium, FranceSpain, Argentina, Brazil, Greece,Turkey, Arab Countries
Indonesia, Thailand, Taiwan,Iran, Pakistan, African countries
© 2005 Prentice-Hall, Inc.
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Resistance to Change in Different Clusters of Countries
Dimension Scores
Resistance level PD ID UA Country Clusters
2 (medium)
1 (week)
0 (weakest)
high low lowlow med highmed high med
med high low
low high low
Philippines, Malaysia, IndiaAustria, IsraelItaly, Germany, Switzerland, South Africa
Singapore, Hong Kong, Jamaica
Anglo countries, Nordiccountries, Netherlands
© 2005 Prentice-Hall, Inc.
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Organizational Culture and Change
Managing change Top-down vs. bottom-up Which components to change and how
Organization development Tries to improve organizational efficiency
and effectiveness, create organizational "health," build capacity for continuous change
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Lewin’s Model of Change
Phase 1 - Diagnosis Phase 2 - Unfreezing Phase 3 - Movement Phase 4 - Refreezing Phase 5 - Renewal
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Managing Resistance to Change
Education and communication Participation and involvement Negotiation and agreement Manipulation and co-optation Coercion
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The Interaction of National and Organizational Cultures
Determining extent to which national values resist change and fit a change strategy to them
More technologically- and knowledge-oriented organizational cultures less likely to resist change
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Change Strategies for Different Groups of Countries
Change Strategy PD ID MA UA Country Clusters
5 (power)
4 (power,manipulation/persuasion)
high low high high
high low med high
Columbia, Ecuador, Venezuela,Mexico
Rest of Latin America, Spain,Portugal, former Yugoslavia,Greece, Turkey, Arabcountries, Korea
Dimension Scores
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Change Strategies for Different Groups of Countries
Change Strategy PD ID MA UA Country Clusters
Dimension Scores
3 (manipulation/persuasion)
2 (manipulation/persuasion,consultation)
1 (consultation,participation)
med med high highhigh high med highhigh low med low
high low med lowmed low high low
low med med highmed high high med
low high high lowlow high low low
JapanBelgium, FranceIndonesia, Thailand, Taiwan,Iran, Pakistan, African countriesPhilippines, Malaysia, IndiaSingapore, Hong Kong, Jamaica
Austria, IsraelItaly, Germany,Switzerland,South Africa
Anglo countriesNordic countries, Netherlands
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Macro-Organizational Change Theories
Life-cycle theoryImplies organizations have
developmental patterns that managers have to recognize and adapt to
Teleological theoryRelies on philosophical
doctrine that purpose or goal is final cause for guiding movement of organization
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Macro-Organizational Change Theories
Dialectical theory Change product of conflict
Evolutionary theory Views change as proceeding
through a continuous cycle of variation, selection, and retention
Cultural implications Theories useful for analyzing
organizational change in societies with different cultural orientations
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Convergence or Divergence?
Competitive pressures Attempts to standardize
product quality on a worldwide basis
Diffusion of advanced management techniques
Transfer of technological innovations
Problems with diffusion of organizational innovations
Culture and local conditions act as barriers to change
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Implications for Managers
Culture influences organizational change When formulating a change program, assess
need for change, what change appropriate, nature of resistance to change, success of planned change
Be aware of internal and external forces for change and how different cultures respond to them
Understand larger processes affecting organizational change and how they limit change
