Johns 10e Irm ch15 PDF

CHAPTER 15
ORGANIZATIONAL CHANGE, DEVELOPMENT,

AND INNOVATION
CHAPTER LEARNING OBJECTIVES
After reading Chapter 15, students should be able to:

LO15.1 Explain the environmental forces that motivate organizational change and
describe the factors that organizations can change.
LO15.2 Explain how organizations learn and what makes an organization a learning
organization.
LO15.3 Describe the basic change process and the issues that require attention at various
stages of change.
LO15.4 Explain how organizations can deal with resistance to change.
LO15.5 Define organizational development and discuss its general philosophy.
LO15.6 Discuss team building, survey feedback, total quality management, and
reengineering as organizational development efforts.
LO15.7 Define innovation and discuss the factors that contribute to successful
organizational innovation.
LO15.8 Understand the factors that help and hurt the diffusion of innovations.
CHAPTER OUTLINE AND TEACHING NOTES
The Concept of Organizational Change
Common experience indicates that organizations are far from static. They change and
these changes have a strong impact on people. In and of themselves, such changes are
neither good nor bad. Rather, it is the way in which the changes are implemented and
managed that is crucial to both customers and organizational members.
Why Organizations Must Change

All organizations face two basic sources of pressure to change — external sources and
internal sources. Organizations are strongly influenced by their external environments
because they are open systems that take inputs from the environment, transform some of
these inputs, and send them back into the environment as outputs. Although organizations
try to stabilize their inputs and outputs, environmental changes occur, and they must be
matched by organizational changes if the organization is to remain effective. External
sources include the global economy, deregulation, and changing technology.
Change can also be provoked by forces in the internal environment of the organization
such as low productivity, conflict, strikes, sabotage, high absenteeism, and turnover. As
environments change, organizations must keep pace and internal changes often occur in
Copyright © 2017 Pearson Canada Inc.

15-2 Johns/Saks, Organizational Behaviour, Tenth Edition
response to organizational changes that are designed to deal with the external
environment.
Sometimes, when threat is perceived, organizations “unfreeze,” scan the environment for
solutions, and use the threat as a motivator for change. Other times, though, organizations
seem paralyzed by threat, behave rigidly, and exhibit extreme inertia. Without an
investment of resources and some modification of routines and processes, inertia will
occur.
Internal and external environments of various organizations will be more or less dynamic.
As a result, organizations will differ in the amount of change they should exhibit.
Organizations in a dynamic environment must generally exhibit more change to be
effective than those operating in a more stable environment. Change in and of itself is not
a good thing and organizations can exhibit too much change as well as too little.
What Organizations Can Change

Organizations can change virtually any aspect of their operations. Some of the
possibilities include changes in goals and strategies, technology, job design, structure,
processes, culture, and people.
Goals and strategies. Organizations frequently change the goals and the strategies they
use to reach these goals.
Technology. Technological changes can vary from minor to major.
Job design. Companies can redesign individual groups of jobs to offer more or less
variety, autonomy, identity, significance, and feedback.
Structure. Organizations can be modified from a functional to a product form or vice
versa. Traditional structural characteristics of organizations such as formalization and
centralization can also be changed.
Processes. The basic processes by which work is accomplished can be changed.
Culture. One of the most important and difficult changes that an organization can make is
to change its culture. Changing an organization’s culture is considered to be a
fundamental aspect of organizational change.
People. The membership of an organization can be changed either through a revised
hiring process or by changing the skills and attitudes of existing members through
training and development.
Two important points should be made about the various areas in which organizations can
introduce change. First, a change in one area often calls for changes in others. Failure to
recognize the systematic nature of change can lead to severe problems. Second, changes
in goals, strategies, technology, structure, processes, job design, and culture usually
require that serious attention be given to “people” changes. As much as possible,
necessary skills and favourable attitudes should be fostered before these changes are
introduced.

Chapter 15 Organizational Change, Development, and Innovation 15-3
The Change Process

Change involves a sequence of organizational events or a psychological process that
occurs over time. There are three stages to the change process: unfreezing, changing, and
refreezing.
Unfreezing. Unfreezing occurs when recognition exists that some current state of affairs
is unsatisfactory. Crises are especially likely to stimulate unfreezing. Employee attitude
surveys, customer surveys, and accounting data are often used to anticipate problems and
to initiate change before crises are reached.
Change. Change occurs when some program or plan is implemented to move the
organization or its members to a more satisfactory state. Change efforts can range from
minor (a simple skills training program) to major (extensive job enrichment). In order for
change to occur, people must have the capability and the opportunity and the motivation
to change. In other words, some degree of all three factors must be present for successful
change.
Refreezing. Refreezing occurs when the newly developed behaviours, attitudes, or

structures become an enduring part of the organization. The effectiveness of the change
program can be examined and the desirability of extending it further can be considered.
In recent years there has been much debate about whether Lewin’s simple model of
change, especially the refreezing component, applies to firms in so called hyper-turbulent
environments, where constant, unpredictable, non-linear change is the norm. While the
model probably applies, there is little doubt that organizations in hyper-turbulent
environments face special challenges that require them to be constantly acquiring,
assimilating, and disseminating information so that they are ready for rapid change.
Ideally, this permits something that looks like seamless “morphing” rather than the step-
like process described by Lewin.
The Learning Organization

Organizational learning refers to the process through which organizations acquire,
develop, and transfer knowledge throughout the organization. There are two primary
methods of organizational learning. First, organizations learn through knowledge
acquisition. This involves the acquisition, distribution, and interpretation of knowledge
that already exists but which is external to the organization. Second, organizations also
learn through knowledge development. This involves the development of new knowledge
that occurs in an organization primarily through dialogue and experience. Organizational
learning occurs when organizational members interact and share experiences and
knowledge, and through the distribution of new knowledge and information throughout
the organization.
A learning organization is an organization that has systems and processes for creating,
acquiring, and transferring knowledge in order to modify and change its behaviour to
reflect new knowledge and insights. As a result, organizational change is much more
likely to occur in a learning organization.

There are four key dimensions that are critical for a learning organization:
• Vision/support. Leaders must communicate a clear vision of the organization’s

strategy and goals, in which learning is a critcial part and key to organizational
success.
• Culture. A learning organization has a culture that supports learning.
• Learning systems/dynamics. Employees are challenged to think, solve problems,
make decisions, and act according to a systems approach by considering patterns
of interdependencies and by “learning by doing.”
• Knowledge management/infrastructure. Learning organizations have established
systems and structures to acquire, code, store, and distribute important
information and knowledge so that it is available to those who need it, when they
need it. This requires integration of people, processes, and technology.
Learning organizations have been found to be almost 50 percent more likely to have
higher overall levels of profitability than those organizations not rated as learning
organizations, and they are also better able to retain essential employees. Learning
organizations are better able to change and transform themselves because of their greater
capacity for acquiring and transferring knowledge. Learning is an important prerequistie
for organizational change and transformation.
Issues in the Change Process
There are several important issues that organizations must confront during the change
process. These issues represent problems that must be overcome if the process is to be
effective. These problems include diagnosis, resistance, evaluation, and
institutionalization.
Diagnosis
Diagnosis is the systematic collection of information relevant to impending
organizational change. Accurate organizational diagnosis serves two functions.
Diagnosis can provide information that contributes to unfreezing by showing that a
problem exists. Once unfreezing occurs, further diagnosis can clarify the problem and
suggest what changes should be implemented.
For complex, non-routine problems, a change agent might be useful. Change agents are
experts in the application of behavioural science knowledge to organizational diagnosis
and change. The change agent brings an independent, objective perspective to the
diagnosis while working with those who are about to undergo change. Proper diagnosis
clarifies the problems and suggests what should be changed and the appropriate strategy
for implementing change without resistance.
Resistance
People are creatures of habit, and change is frequently resisted by those at whom it is
targeted. It occurs because organizational members fear that the costs of change will
outweigh the benefits. Both unfreezing and change may be resisted. At the unfreezing

stage, defence mechanisms may be activated to deny or rationalize the signals that change
is needed. Even if there is agreement that change is necessary, any specific plan for
change may be resisted.
Causes of Resistance. Resistance to change occurs when people either overtly or covertly
fail to support the change effort. Common reasons for resistance include the following:
• Politics and self-interest. People feel they might lose status, power, or even their
jobs with the advent of the change.
• Low individual tolerance for change. Some people are just uncomfortable with
changes in established routines.
• Lack of trust. People might not trust the motives of those proposing the change.
• Different assessments of the situation. The targets of the change might feel that
the situation does not warrant the proposed change and the advocates of change
have misread the situation.
• Strong emotions. Change has the capacity to induce strong emotions that often
make people feel helpless and resistant.
• A resistant organizational culture. Some organizational cultures have stressed and
rewarded stability and tradition and as a result advocates of change are viewed as
misguided deviants or aberrant outsiders.
Underlying these various reasons for resistance are two major themes: (1) change is
unnecessary because there is only a small gap between the organization’s current identity
and its ideal identity; (2) change is unobtainable (and threatening) because the gap
between the current and ideal identities is too large. Therefore, a moderate identity gap is
probably the most conducive to increased acceptance of change because it unfreezes
people while not provoking maximum resistance.
Dealing with Resistance. Low tolerance for change is mainly an individual matter, and it
can often be overcome with supportive, patient supervision. Dealing with resistance
requires an understanding of the causes for resistance. If politics and self-interest are at
the root of resistance, it might be possible to co-opt the reluctant by giving them a
special, desirable role in the change process or by negotiating special incentives for
change. Resistance to change can often be reduced by involving the people who are the
targets of change in the change process and ensuring good communication. Finally,
transformational leaders are particularly adept at overcoming resistance to change. One
way they accomplish this is by “striking while the iron is hot”. The other way is to
unfreeze current thinking by installing practices that constantly examine and question the
status quo. One research study of CEOs who were transformational leaders found that
they used a number of unfreezing practices to create a revised vision for followers about
what the organization can do or be. Often, a radically reshaped culture is the result.
Evaluation and Institutionalization

Organizations are notorious for doing a weak job of evaluating “soft” change programs
that involve skills, attitudes, and values. It is possible to do a thorough evaluation by
considering the following variables:

Reactions — did participants like the change program?

Learning — what knowledge was acquired in the program?
Behaviour — what changes in job behaviour occurred?
Outcomes — what changes in productivity, absence, and so on occurred?
Many evaluations of change efforts never go beyond the measurement of reactions, partly
because those who propose the change effort fear reprisal if failure occurs. However, if
the outcome of change is evaluated favourably, the organization may make the change a
permanent part of the organizational system, a social fact that persists over time despite
possible turnover by the members who originally experienced the change. Because
change programs often go unevaluated or are only weakly evaluated, the hard proof of
success that is necessary for institutionalization is often lacking. As a result, it is easy for
institutionalization to be rejected by disaffected parties. This is a special problem for
extensive, broad-based change programs that call for a large amount of commitment from
a variety of parties.
A number of factors can inhibit institutionalization. Promised extrinsic rewards may not
be developed to accompany changes. Initial changes may provide intrinsic rewards that
create higher expectations which cannot be fulfilled. New hires might not be carefully
socialized to understand the unique environment of the changed organization. Key
management supporters of the change effort may resign or be transferred. Environmental
pressures may cause management to regress to more familiar behaviours and abandon
change.
Organizational Development: Planned Organizational Change
Organizational development is a planned, ongoing effort to change organizations to be

more effective and more human. It uses the knowledge of behavioural science to foster a
culture of organizational self-examination and readiness for change. A strong emphasis is
placed on interpersonal and group processes. OD seeks to modify cultural norms and
roles so that the organization remains self-conscious and prepared for adaptation. A focus
on interpersonal and group processes recognizes that all organizational change affects
members and that their cooperation is necessary to implement change. A joint concern
with both people and performance has become the credo of many contemporary OD
change agents.
Some Specific Organizational Development Strategies
There are a wide variety of specific techniques for organizational development including
job enrichment, management by objectives, diversity training, self-managed and cross-
functional teams, and empowerment. Four additional strategies include team building,
survey feedback, total quality management, and reengineering.
Team Building
Team building attempts to increase the effectiveness of work teams by improving
interpersonal processes, goal clarification, and role clarification. It can facilitate
communication and coordination. The term team can refer to intact work groups, special

task forces, new work units, or people from various parts of an organization who must
work together to achieve a common goal.
Team building usually begins with a diagnostic session often held away from the
workplace. The team might use several sources of data to accomplish its diagnosis. The
team explores its current level of functioning with the goal of painting a picture of the
current strengths and weaknesses of the team. The ideal outcome is a list of the needed
changes to improve team functioning. Subsequent meetings focus on how to implement
the changes. A change agent acts as a catalyst and resource person. When team building
is used to develop new work teams the preliminary diagnostic session attempts to clarify
expected role relationships and additional training to build trust among team members.
Survey Feedback
Survey feedback involves the collection of data from organizational members and the
provision of feedback about the results in a series of meetings in which members explore
and discuss the data. Organizational members generate data that is fed back to them in a
series of meetings in which the data is discussed. The purpose of the meetings is to
formulate changes based on the data.
The data generally consists of questionnaires completed by organizational members.

Before the data are collected, a number of critical decisions must be made by the change
agent. The change agent must decide who should participate in the survey and what
questions the survey should ask. All members of a target group should be surveyed.
Feedback seems to be most effective when it is presented to natural working units in

face-to-face meetings. Many change agents prefer the manager of the working unit
conduct the feedback meeting. Surveys have the most beneficial effects when the results
are reviewed with employees and when action is taken in response to the survey.
Total Quality Management

Total quality management (TQM) involves a systematic attempt to achieve continuous
improvement in the quality of an organization’s products or services. Typical
characteristics of TQM programs include an obsession with customer satisfaction; a
concern for good relations with suppliers; continuous improvement of work processes;
the prevention of quality errors; frequent measurement and assessment; extensive
training; and high employee involvement and teamwork.
Prominent names associated with the quality movement include W. Edwards Deming,
Joseph Juran, and Philip Crosby. All three were concerned with using teamwork to
achieve continuous improvement to please customers. Each of these principles is
associated with certain practices and specific techniques that typify TQM and is shown in
Exhibit 15.7. TQM is mainly about achieving small gains over a long period of time. A
continuum of continuous improvement exists which extends from reactive strategies such
as responding to product or service problems to more proactive strategies like preventing
errors, upgrading performance, and creating new products and services.

Continuous improvement can come from small gains over time or from more radical
innovation. The goal is long-term improvement not a short-term fix. Improvement
requires knowing where we are in the first place and so TQM is very concerned with
measurement and data collection. TQM also stresses teamwork among employees and
with suppliers and customers. Finally, TQM relies heavily on training to achieve
continuous improvement.
TQM is particularly known for using specialized training in tools that empower
employees to diagnose and solve quality problems on an on-going basis. Some of these
tools include:
• Flowcharts of work processes. Flowcharts illustrate graphically the operations and
steps in accomplishing some task, noting who does what, and when.
• Pareto analysis. Pareto analysis collects frequency data on the causes of errors
and problems, showing where attention should be directed for maximum
improvement.
• Fishbone diagrams. Fishbone (cause-and-effect) diagrams illustrate graphically
the factors that could contribute to a particular quality problem.
• Statistical process control. Statistical process control gives employees hard data
about the quality of their own output that enables them to correct any deviations
from standard. TQM places particular emphasis on reducing variation in
performance over time.
These tools to improve the diagnosis and correction of quality problems will not have the
desired impact if they fail to improve quality in the eyes of the customer. Organizations
with a real commitment to TQM make heavy use of customer surveys, focus groups,
mystery shoppers, and customer clinics to stay close to their customers.
TQM programs reveal a large number of successes in many firms. TQM is mainly about
achieving small gains over a long period of time which can be hard to maintain. This
long-term focus can be hard to maintain, especially if managers or employees expect
extreme improvements in the short term.
Reengineering
Reengineering involves the radical redesign of organizational processes to achieve major
improvements in factors such as time, cost, quality, or service. It is one of the most
fundamental and radical of all forms of change. It asks basic questions such as “What
business are we really in?” and “If we were creating this organization today, what would
it look like?” Then, jobs, structure, technology, and policy are redesigned around the
answers to these questions.
A key part of reengineering is processes. Organizational processes are activities or work

that the organization must accomplish to create outputs that internal or external customers
value. In theory, the gains from reengineering will be greatest when the process is
complex and cuts across a number of jobs and departments. By comparison, TQM
usually seeks incremental improvements in existing processes rather than radical
revisions of processes.

Reengineering has been stimulated in organizations where “creeping bureaucracy” has

become a problem, and as a result of new advanced information technology that allows
organizations to radically modify important organizational processes.
Reengineering is oriented toward one or both of the following goals:
• The number of mediating steps in a process is reduced, making the process more
efficient.
• Collaboration among the people involved in the process is enhanced.
Reengineering can include the following practices:

• Jobs are redesigned and usually enriched.
• A strong emphasis is placed on teamwork.
• Work is performed by the people most logically suited to the task.
• Unnecessary checks and balances are removed.
• Advanced technology is exploited.
Because reengineering has the goal of radical change, it requires strong CEO support and
transformational leadership qualities. Strategic clarification is also important before
reengineering begins. Strong CEO support and a clear strategy are important for
overcoming resistance. Reengineering must be both broad and deep to have long-lasting,
bottom-line results. It should span a large number of activities that cut costs or add
customer value, and it should affect a number of elements, including skills, values, roles,
incentives, structure, and technology. Half-hearted attempts do not pay off.
Does Organizational Development Work?
Although most OD efforts are not carefully evaluated, two large-scale reviews of a wide
variety of OD techniques reached the following conclusions:
• Most OD techniques have a positive impact on productivity, job satisfaction, or
other work attitudes.
• OD seems to work better for supervisors or managers than for blue-collar
workers.
• Changes that use more than one technique seem to have more impact.
• There are great differences across sites in the success of OD interventions.
Exhibit 15.8 shows the effects of organizing arrangements, social factors, technology,
and physical setting interventions. In general, a high percentage of studies have reported
positive changes following an OD effort. However, many studies also reported no
change. This underlines the difficulty of introducing change, and it also suggests that
variations in how organizations actually implement change may greatly determine its
success. Weak methodology sometimes plagues research evaluations of the success of
OD interventions. Some specific problems include:

• OD efforts involve a complex series of changes making it difficult to know which

of these changes produce changes in processes or outcomes.
• Novelty effects or special treatment might produce short-term gains that do not
persist.
• Self-reports of changes after OD might be unconscious attempts to please the
change agent.
• Organizations may be reluctant to publicize failures.
The Innovation Process
The innovation process can help us to understand the ability of some individuals and
organizations to think up and exploit innovative ideas.
What Is Innovation?
Innovation is the process of developing and implementing new ideas in an organization.
An essential point is a degree of creativity. Innovations can be classified as product
(including service) innovations, process innovations, or managerial innovations. Product
innovations have a direct impact on the cost, quality, style, or availability of a product or
service. Process innovations are new ways of designing products, making products, or
delivering services. New technology is a process innovation. Managerial innovations are
new forms of strategy, structure, human resource systems, and managerial practices that
facilitate organizational change and adaptation.
Innovation is often conceived of as a stage-like process that begins with idea generation
and proceeds to idea implementation. For some kinds of innovations, it is also hoped that
the implemented innovation will diffuse to other sites or locations:
IDEA GENERATION ’ IDEA IMPLEMENTATION’ IDEA DIFFUSION
Several interesting themes underlie the process of innovation. First, much idea generation
is due to serendipity. Second, the beginning of innovation can be pretty haphazard and
chaotic. The conditions necessary to create new ideas might be very different from the
conditions necessary to get these ideas implemented and the innovation process is
frequently a highly political process. Both the champions of innovation and the resisters
might behave politically to secure or hold onto critical organizational resources. The
generation of good ideas is no guarantee that they will be implemented and diffused.
Generating and Implementing Innovative Ideas

Generating and implementing innovative ideas requires someone to fight for these ideas,
good communication, and the appropriate application of resources and rewards.
Individual Creativity. Creative thinking by individuals and groups is at the core of the
innovation process. Creativity is the production of novel but potentially useful ideas.
Creative people are technical experts in their own domains and have creativity-relevant
skills such as the ability to tolerate ambiguity, withhold early judgment, see things in new
ways, and be open to new and diverse experiences. Creative people tend to be socially

skilled but lower than average in need for social approval. Many creativity-related skills
can be improved by training people to think in divergent ways and to withhold early
evaluation of ideas. Creativity is more responsive to intrinsic rather than extrinsic
motivation.
Idea Champions. Idea champions are people who see the kernel of an innovative idea and
guide it through to implementation. The role of idea champion is often an informal
emergent role. Champions often have a real sense of mission about the innovation. Their
function is one of sponsorship and support. For complex and radical innovations, it is
common to see more than one idea champion emerge during the innovation process.
Idea champions have been found to have very broad interests and to see their role as
being broad. They often exhibit transformational leadership qualities and use a wide
variety of influence tactics to gain support for the new system. Some idea champions feel
compelled to engage in creative deviance, which means they defy orders by management
to stop work on a creative idea.
External Communication. Effective communication with the external environment and

effective communication within the organization are vital for successful innovation. The
most innovative firms seem to be those that are best at recognizing the relevance of new,
external information, importing and assimilating this information, and then applying it.
Communication with the environment can be enhanced by gatekeepers who span
organizational boundaries to import new information, translate it for local use, and
disseminate it to project members. They tend to have well-developed communication
networks with other professionals outside the organization and with the professionals on
their own team or project. Gatekeeping is essentially an informal, emergent role. In
addition, many successful innovative firms excel at going directly to users, clients, or
customers to obtain ideas for product or service innovation. Information can also be
extracted from the environment by hiring employees with multicultural experience or
providing opportunities for such experience, which has been shown to enhance creativity.
Firms that put R&D activities in several geographic locations exhibit higher levels of
imitative innovation.
Innovative ideas can also be extracted from the external environment by holding design
competitions and/or using crowdsourcing to broadcast design problems to a large
audience of potential innovators. Such strategies are often termed open innovation in that
they eschew the secrecy frequently associated with the process and invite input from a
wide variety of external sources.
Internal Communication. Internally, organic structures facilitate innovation more easily

than mechanistic structures. Mixing people with a variety of backgrounds together can
also stimulate cross-fertilization of ideas. Inter-division communication is a driver of
innovation. Internal communication can be stimulated with in-house training, cross-
functional transfers, and varied job assignments. The physical location of gatekeepers is
important for conveying new information to co-workers. R&D project groups seem to
communicate best and perform best when group members have been together a medium

length of time. Although organic structures seem best in the idea-generation and design
phases of innovation, more mechanistic structures are often better for actually
implementing innovations.
Resources and Rewards. Money, time to pursue new ideas, and autonomy from tight
organizational controls are critical for innovation. Abundant resources greatly enhance
the chances of successful innovation. Resources also serve as a strong cultural symbol
that the organization truly supports innovation. Funds for innovation are seen as an
investment not a cost. Time can be an even more crucial factor for some innovations.
Reward systems much match the culture that is seeded by the resource system. One study
of research scientists found that freedom and autonomy were the most cited
organizational factors leading to creativity. Many firms now offer career ladders that
enable scientists and engineers to be extrinsically rewarded while still doing actual
science or engineering. Extensive research evidence indicates that extrinsic rewards that
are clearly tied to creativity increase creative behaviour, especially when accompanied by
autonomy and feedback.
In summary, we can conclude that innovation depends on individual factors (creativity),

social factors (a dedicated champion and good communication), and organizational
factors (resources and rewards).
Diffusing Innovative Ideas

Diffusion is the process by which innovations move through an organization. A study of
eight major process innovations found that substantial diffusion occurred in only one of
the observed firms (Volvo). Factors associated with this poor record of diffusion include:
• Lack of support and commitment from top management.
• Significant differences between the technology or setting of the pilot project and
those of other units in the organization.
• Attempts to diffuse particular techniques rather than goals that could be tailored
to other situations.
• Management reward systems that concentrate on traditional performance
measures and ignore success at implementing innovation.
• Union resistance to extending the negotiated “exceptions” in the pilot project.
• Fears that pilot projects begun in non-unionized locations could not be
implemented in unionized portions of the firm.
• Conflict between the pilot project and the bureaucratic structures in the rest of the
firm.
These problems can lead to a “diffuse or die” situation such that if diffusion does not
occur, the pilot project and its leaders become more and more isolated from the
mainstream of the organization and less and less able to proceed alone. Some research
suggests that innovations are especially difficult to diffuse in organizations dominated by
professionals. A number of factors have been found to be critical determinants of the rate
of diffusion:

• Relative advantage. Diffusion is more likely when the new idea is perceived as
truly better than the one it replaces.
• Compatibility. Diffusion is easier when the innovation is compatible with the
values, beliefs, needs, and current practices of potential new adopters.
• Complexity. Complex innovations that are fairly difficult to comprehend and use
are less likely to diffuse.
• Trialability. If an innovation can be given a limited trial run, its chances of
diffusion will be improved.
• Observability. When the consequences of an innovation are more visible,
diffusion will be more likely to occur.
Also important is adaptability, since innovations often have to be custom-tailored to

diffuse effectively. In combination, these determinants suggest that there is
considerable advantage in thinking about how innovations are “packaged” and “sold”
so as to increase their chances of widespread adoption. They also suggest the value of
finding strong champions to sponsor the innovation at the new site.
A Footnote: The Knowing-Doing Gap
Despite the need for organizations to change, develop, and innovate, they often exhibit
considerable inertia. It seems that many managers know what to do, but have
considerable trouble implementing this knowledge in the form of action. In a very
insightful book, Jeffrey Pfeffer and Robert Sutton describe this situation as the knowing-
doing gap.
Pfeffer and Sutton cite a number of reasons for the knowing-doing gap including the
tendency for some organizational cultures to reward short-term talk rather than longer-
term action; many changes require cooperation between organizational units, but many
organizations foster internal competition that is not conducive to such cooperation; and
when managers do manage to make changes, these changes sometimes fail because
techniques are adopted without understanding their underlying philosophy.
SAMPLE ANSWERS TO DISCUSSION QUESTIONS
1. You have been charged with staffing and organizing an R&D group in a new high-
tech firm. What will you do to ensure that the group is innovative?
In terms of staffing, you might look for people with very high technical expertise in their
specialty. A record of past creativity (showing the presence of creativity-related skills)
would be helpful. Also, people who are likely to be truly intrinsically motivated by the
particular kinds of projects the group is going to be involved in is also important. A
diversity of experience would be good, as would be an interest in learning from others.
Some people with active outside technical interests and connections would be good for
their potential as technical gatekeepers. You should support them with generous funds for
phones, databases, journal subscriptions, and so on. Finally, you should try to develop a

succession and transfer plan so that the group does not get stale, reducing communication
and productivity over time. Try to serve as an idea champion for the group and/or to
cultivate line managers in this role as appropriate to the development of the idea. Keep
the group small, informal, and organic to stimulate the free flow of information.
2. What qualities would the ideal gatekeeper possess to facilitate the communication of
technical information in his or her firm?
He or she would possess strong technical credibility inside and outside of the
organization. Also, strong social skills are necessary to obtain and transmit new ideas. He
or she would also be well read, creative, and able to tolerate ambiguity.
3. Suppose a job enrichment effort in one plant of a manufacturing firm is judged to be

very successful. You are the corporate change agent responsible for the project, and
you wish to diffuse it to other plants that have a similar technology. How would you
sell the project to other plant managers? What kinds of resistance might you
encounter?
In selling the project, it would be useful to stress the objective benefits that should accrue
to the manager and his or her own plant. In some cases, these benefits might be by-
products of enrichment (such as reduced absenteeism), even if the original program was
established to meet loftier, “softer” goals (such as humanizing the organization). It would
also be useful to cite examples of the relative ease of implementing the program to show
that worker resistance can be overcome. Management resistance might cite a different
production process, a more militant union local, or some other factor that seems to differ
from the pilot plant. Also, plant management might feel that it will not receive the top
management support or the rewards for success that were offered to the management of
the pilot plant.
4. Discuss: The best organizational structure to generate innovative ideas might not be
the best structure to implement those ideas.
Generating innovative ideas is usually thought to occur best under organic structures. A
lack of bureaucracy, little red tape, and informality (not to mention small size) seem to
stimulate communication and cross-fertilization. Implementing innovative ideas may
sometimes proceed best under a somewhat more mechanistic structure because the basic
task is more routine. Of course, this doesn’t obviate the use of participation.
5. Debate: Survey feedback can be a problematic OD technique because it permits

people who are affected by organizational policies to generate data that speak
against those policies.
Although the response is a matter of opinion, the statement makes some assumptions that
are worthy of attention. One assumption is that the responses collected by surveys will
always be negative. Clearly, this is untrue, and surveys enable the organization to see
what are considered its positive, as well as negative, points. Furthermore, the feedback
mechanism publicizes these positive points to all employees. A second assumption is that
negative responses will be wrong or problematic rather than constructive and useful.
Third, the statement assumes that surveys are a poor mechanism for gathering data about
organizational policies. On the contrary, a scientific survey would seem to be much more

useful than hearsay, and employees will have developed views about policy whether or
not they are surveyed. Finally, the statement assumes that the organization must react in a
knee-jerk fashion to survey results. In fact, the results should guide, rather than dictate,
organizational policy.
ADDITIONAL DISCUSSION QUESTIONS AND ANSWERS
1. Describe an example of resistance to change that you have observed. Why did it
occur?
A young man with a recent M.B.A. was hired to head an important branch of a
government agency. He was the first of several “new look” executives the government
had hired to upgrade the administrative skills and practices in the agency. The young man
was sure that the long-time bureaucrats that staffed the branch could improve its
operations and efficiency if they pooled their efforts. To this end, he established a
program of Management by Objectives and participation that was to extend throughout
the branch. After a year, the manager was dismayed to find that the program was not
working — his employees were simply “going through the motions,” and the programs
were considered something of a joke by the bureaucrats. The lower level managers had
resisted the programs because they found them a threat to their power. They had
implemented the programs in a way that would be sure to result in their failure.
2. What personal qualities and skills would be useful for an OD change agent to
possess? Describe the relative merits of using an internal staff change agent versus
an external consultant.
It would be most helpful for the change agent to be perceived by all parties as expert,
unbiased, and trustworthy. These qualities should minimize resistance, help provoke
unfreezing, and establish a favourable climate for change. Perceived expertise means that
the change agent has “something to give,” while trustworthiness and lack of bias mean
that the agent has no “hidden agenda” behind his or her expertise. Internal change agents
know the organization well and have a long-term stake in the success of change efforts.
External change agents bring a fresh perspective to the organization and may be less
susceptible to internal political pressures.
3. Discuss some of the things that an organization can do to improve organizational

learning and to become a learning organization. What should organizations know
about the linkages between organizational learning and change and innovation?
Organizational learning refers to the process through which organizations acquire,
develop, and transfer knowledge throughout the organization. There are two primary
methods of organizational learning. First, organizations learn through knowledge
acquisition. This involves the acquisition, distribution, and interpretation of knowledge
that already exists but which is external to the organization. Second, organizations also
learn through knowledge development. This involves the development of new knowledge
that occurs in an organization primarily through dialogue and experience. Organizational
learning can be improved by stimulating and encouraging knowledge acquisition and
knowledge development.

A learning organization is an organization that has systems and processes for creating,
acquiring, and transferring knowledge in order to modify and change its behaviour to
reflect new knowledge and insights. In order to become a learning organization, leaders
must communicate a clear vision of the organization’s strategy and goals in which
learning is a critical part and key to organizational success; the culture must support
learning; employees need to be challenged to think, solve problems, make decisions, and
act according to a systems approach by considering patterns of interdependencies and by
“learning by doing”; there needs to be systems and structures to acquire, code, store, and
distribute important information and knowledge so that it is available to those who need
it, when they need it.
Organizations should know that learning is a key requirement for change and innovation.
In other words, it is not possible to change or innovate without first learning. Recall that
effective communication with the external environment and effective communication
within the organization are vital for successful innovation. What is communicated is
largely a function of knowledge acquisition and development. Therefore, organizations
must improve their learning and ideally become a learning organization in order to
facilitate change and innovation.
EXTRA DISCUSSION QUESTIONS
1. Give three reasons why change might be resisted and in each case give a tactic for
overcoming resistance.
2. Describe sources of external and internal pressures to change.
3. Discuss the factors that organizations can change and the implications of them.
4. What are the stages of the change process and what kinds of problems can occur at
each stage?
5. Discuss the effectiveness of organizational development techniques. What are some
of the problems associated with evaluating organizational development interventions?
6. Differentiate between creativity and innovation.
7. Discuss the qualities of creative people. Can people be trained to be creative?
8. What are the factors that contribute to the diffusion of innovations?
9. Differentiate between survey feedback and team building.
10. Differentiate between organizational learning and learning organizations and describe
how they are related. Why is organizational learning important for organizational
change and innovation?

SAMPLE ANSWERS TO INTEGRATIVE DISCUSSION QUESTIONS
1. Do leadership, organizational culture, and communication influence the effectiveness

of organizational change programs? Discuss the effect that leadership behaviour,
strong cultures, and personal and organizational approaches to communication have
on the change process and change problems. What should organizations do in terms
of leadership, culture, and communication to overcome problems and ensure that the
change process is effective?
Leadership, organizational culture, and communication are all important in organizational
change. To begin with, leadership is required to provide strong support for a change
program and throughout the change process. The success of a change program is highly
dependent on the way that change is implemented and managed. Transformational
leadership is particularly relevant for organizational change and for overcoming
resistance to change. Transformational leaders are effective because they unfreeze current
thinking and initiate new practices that constantly examine and question the status quo.
Transformational leaders have been found to use a number of unfreezing practices to
create a revised vision of what the organization can do or be.
Organizational culture is also an important factor. In fact, one of the most important
changes that an organization can make is to change its culture. Culture is so critical to
change that the main reason reported for the failure of organizational change programs is
the failure to change an organization’s culture. In fact, as noted in Chapter 8, one of the
liabilities of a strong culture is resistance to change. As a result, a strong culture can
damage an organization’s ability to innovate and change. Therefore, a change in culture
must be considered as part of a change program.
Finally, communication is a key factor for the success of organizational change. As noted
in the section on dealing with resistance, communication is a key mechanism for dealing
with resistance. It is critical that lower-level managers understand the diagnosis
underlying an intended change and the details of the change so that they can accurately
convey this information to employees. Management needs to take the time to
communicate with employees about a change program and the change process by using a
number of mediums. Particularly important is the use of information rich media given the
importance of change and the emotional nature of change programs.
2. How can organizational learning practices, pay, and socialization influence

organizational learning and innovation in organizations? Design a program to
improve an organization’s ability to learn or generate and implement innovative
ideas; the program should combine organizational learning practices (Chapter 2),
pay systems (Chapter 6), and socialization methods (Chapter 8). What effect does
organizational culture have on an organization’s ability to learn and innovate?
Innovation is the process of developing and implementing new ideas in an organization.
In order to influence innovation in organizations, there a number of things that
organizations can do. First, learning practices such as organizational behaviour
modification and employee recognition programs can be designed to reward and
reinforce innovative behaviour. Second, pay systems can be designed to provide

incentives to employees who develop and implement innovative ideas. Third,

socialization programs can be designed so that new hires learn the importance of
innovation during their socialization. In effect, a rigorous socialization program can
ensure that new hires understand that innovation is a core organizational value. An
organizational culture that encourages and supports innovation is also likely to be an
important factor in an organization’s ability to develop and implement new ideas.
Organizational learning is the process through which organizations acquire, develop, and
transfer knowledge throughout the organization. There are two primary methods of
organizational learning. First, organizations learn through knowledge acquisition. This
involves the acquisition, distribution, and interpretation of knowledge that already exists
but which is external to the organization. Second, organizations also learn through
knowledge development. This involves the development of new knowledge that occurs in
an organization primarily through dialogue and experience. Organizational learning can
be improved by stimulating and encouraging knowledge acquisition and knowledge
development. This can be aided by learning practices such as organizational behaviour
modification and employee recognition programs that reward, reinforce, and recognize
employees’ for their acquisition and development of knowledge. Second, pay and
incentives can be tied to knowledge acquisition and development. Third, socialization
programs can be designed so that new hires are made aware of the importance of learning
and their role in knowledge acquisition and development. A rigorous socialization
program can ensure that new hires understand that learning is a core organizational value.
An organizational culture that encourages and supports learning is also likely to be an
important factor in an organization’s ability to learn.
3. Review the chapter opening vignette on Microsoft and identify some of the most
relevant issues that have been covered in previous chapters. In particular, consider
the vignette in terms of some of the following topics: (1) Learning (Chapter 2), (2)
Perceptions (Chapter 3), (3) Groups and teamwork (Chapter 7), (4) Culture (Chapter
8), (5) Leadership (Chapter 9), (6) Communication (Chapter 10), (7) Organizational
structure (Chapter 14), and (8) Strategy (Chapter 14).
The Chapter opening vignette provides a great example of the need for change and
innovation. However, it is much more. The issues associated with the Microsoft story
touch upon many other topics in organizational behaviour that have been covered in the
text. As a result, it is a great way to review and conclude the course. You might ask
students to reflect on some of the things they have learned about organizational behaviour
in your course that are evident and relevant in the Microsoft vignette.
Here are some of the things that might be worth discussing in each of the eight topic
areas:
1. Learning. At the core of Microsoft’s struggle has been the company’s inability to
identify important trends and tolerate, let alone nurture, disruptive innovation.
2. Perceptions. CEO Steve Ballmer dismissed the best-selling Apple iPhone and iPad as
inconsequential when they were introduced. This perception turned out to be incorrect
and contributed to Microsoft’s problems.

3. Groups and teamwork. The brutal “stack ranking” performance review system led to
a severe lack of teamwork and to short-term political activity, rather than motivating
attention to the longer-term big picture that can foster real innovation.
4. Culture. The company’s engineering-focused culture was described as insular and it
clashed with consumer culture.
5. Leadership. Steve Ballmer’s reign as CEO was described by an award-winning writer
as Microsoft’s lost decade. In early 2014, Satya Nadella was named CEO.
6. Communication. It was slow to identify the core importance of mobile, touchscreen,
and web-based technologies. More effective communication might have helped with
this and to realize what consumers wanted.
7. Organizational structure. Microsoft was known for meetings, red tape, and
bureaucracy, all of which work against innovation.
8. Strategy. Microsoft was unable to keep up with Apple’s strategy of putting a
smartphone in everyone’s pocket.
SAMPLE ANSWER TO ON-THE-JOB CHALLENGE QUESTION: THE

HACKER WAY AT FACEBOOK
Given that Facebook itself is the frequent target of malicious hacking, Zukerberg’s use of
the term and glorification of the spirit of hacking is ironic. Why does he extol the Hacker
Way? How is it connected to the concept of organizational learning? What does it signal
to organizational insiders and outsiders about change and innovation?
Mark Zukerberg most likely extols the Hacker Way as a means of reinforcing an
organizational culture predicated on the need for continuous change directed toward
innovation. This need is dictated by rapid change in technology and evolving norms
concerning communication and the role of social media. Espousing the Hacker Way is
also a motivational device that supports innovation, persistence, and perfection. The
Hacker Way supports organizational learning by encouraging information sharing as a
means for improvement. Hackathons are positive status contests that showcase the
collective nature of innovation. The espousal of the Hacker Way has symbolic as well as
instrumental aspects. It says that even though Facebook is now a large publically traded
company, it is true to its roots, a good place to work that fosters self-expression, thus
attracting and retaining bright talent.
TEACHING NOTES FOR THE MEASURING TOLERANCE FOR AMBIGUITY

EXPERIENTIAL EXERCISE
The purpose of this exercise is for students to learn about their tolerance for ambiguity.
The survey asks about personal and work-oriented situations that involve various degrees
of ambiguity. Before discussing the exercise, you might ask students how well they
respond to and cope with change and how creative and innovative they are. Ask them to
provide examples of change situations they have been in and how they responded and
coped. Also ask students to give examples of creative and innovative work-related

experiences. This provides a nice lead into the exercise Measuring Tolerance for
Ambiguity.
Follow the instructions provided in Chapter 15 of the text for Measuring Tolerance for
Ambiguity. For each of the 16 statements, indicate the extent to which each statement
describes you. Once you have completed all 16 questions, follow the scoring instructions
provided. To score the survey, add 8 to each of your responses to the odd numbered
items. Then, add up the renumbered odd items. From this total, subtract your score from
the sum of the even numbered items. Your score should fall between 16 and 112. People
with lower scores are tolerant of and even enjoy ambiguous situations. People with high
scores are intolerant of ambiguity and prefer more structured situations. In research
conducted by Paul Nutt who adapted the scale, people typically scored between 20 and
80 with a mean around 45. People with a high tolerance for ambiguity respond better to
change. They also tend to be more creative and innovative than those with low tolerance
for ambiguity.
The following questions can be used with the exercise for class discussion. You might
have students discuss their scores and these questions in groups and then have each group
discuss their answers in a class discussion.
1. What is tolerance for ambiguity? What is your tolerance for ambiguity score and how
does it compare to the average reported in the text (p.588)?
2. What role does personality play in organizational change? What role does tolerance
for ambiguity play in organizational change?
3. What role does personality play in creativity and innovation? What role does
tolerance for ambiguity play in creativity and innovation?
4. Based on your tolerance for ambiguity score, what does it say about how you respond
to and cope with change? What does it say about how creative and innovative you
are?
5. Should organizations be concerned about employees’ tolerance for ambiguity? What
are the implications of this and what can organizations do when they embark on a
change program or want to enhance innovation?
TEACHING NOTES FOR DANDY TOYS CASE INCIDENT
1. Comment on the change process at Dandy Toys. What advice would you give the
president about how to improve the change process? What are some of the things that
might be changed at Dandy Toys as part of the change process?
The change process at Dandy Toys can be understood by examining the three basic stages
of unfreezing, changing, and refreezing and the issues in the change process. First, the
surprise and shock of the managers in response to the new direction suggested by George
Reed indicates a lack of unfreezing. In other words, there is no recognition among the
managers that the current situation or state of affairs is unsatisfactory. After all, there
does not appear to be any serious problem or threat facing the organization. Second, there
does not appear to be any program or plan to move the organization to a more satisfactory

state. Although George Reed suggests that a more satisfactory state would be the
manufacture of new in-house quality toys, no program or plan is suggested as a way to
achieve this. Third, there is no refreezing. That is, although some of the managers made
suggestions for new toys, business continued as always and nothing really changed.
There were not any new behaviours, attitudes, or structures to speak of.
To improve the change process, George Reed needs to first ensure that unfreezing takes
place. He might be more successful if a diagnosis is performed to clarify the need to
change and suggest some courses of action. He should then develop a clear program or
plan to move the organization to a new satisfactory state. This should involve a
consideration of resistance to change as well as ways to deal with resistance such as good
communication and involving those who are the targets of the change process. Third, he
needs to ensure that any newly developed behaviours, attitudes, or structures are
subjected to refreezing. This can be aided by evaluation and institutionalization.
Finally, some of the things that might be changed at Dandy Toys as part of the change
process include goals and strategies, technology, structure, processes, culture, and people.
2. Why wasn’t the innovation process more successful at Dandy Toys, and what can be
done to improve it?
The innovation process at Dandy Toys was unsuccessful for a number of reasons. First,
there might have been a problem in terms of creative thinking and creativity. Creativity
involves the production of novel but potentially useful ideas. The lack of creative ideas
could be due to a lack of creativity on the part of management at Dandy Toys. Given that
creativity-related skills can be improved by training, the company might want to invest in
creativity training. Second, idea champions are required to recognize an innovative idea
and guide it to implementation. Although some of the managers did suggest some ideas
for new toys, the problem might have been a lack of idea champions. Therefore, perhaps
the company needs to assign people to be champions as part of their regular job duties.
Innovation also requires effective communication with the external environment and
within the organization. The lack of communication from outside the organization and
within might also be a problem. Along these lines, the company might assign some
people the role of gatekeeper to span the boundary between the organization and the
environment to import new information, translate it for local use, and disseminate it
within the organization. In this way, relevant information might be useful for coming up
with new and innovative product ideas. Internal communication can be stimulated with
in-house training, cross-functional transfers, and varied job assignments.
Finally, resources and rewards are also important for successful innovation. Thus, the
company needs to provide funds as an investment for innovation as well as providing
managers with time to work on innovations. Reward systems can also be helpful,
although freedom and autonomy have been found to be among the most important
organizational factors leading to creativity. Rewards and incentives can also be used to
stimulate managers to sponsor new ideas and then push them into the implementation
stage and to turn them into real products.

3. Consider the relevance of organizational learning for change and innovation at

Dandy Toys. What should the company do to improve learning? Will this help to
create change and improve innovation?
Organizational learning is the process through which organizations acquire, develop, and
transfer knowledge throughout the organization. There are two primary methods of
organizational learning. First, organizations learn through knowledge acquisition. This
involves the acquisition, distribution, and interpretation of knowledge that already exists
but which is external to the organization. Second, organizations also learn through
knowledge development. This involves the development of new knowledge that occurs in
an organization primarily through dialogue and experience. Organizational learning is an
important factor for change and innovation. Without learning, it is difficult for
organizations to change or innovate. In order for innovation to occur at Dandy Toys,
employees need to learn about the innovations by other organizations and in the market,
and then develop their own innovations. This requires knowledge acquisition and
knowledge development. Therefore, organizational learning needs to be stimulated and
facilitated first by training and then an incentive program that rewards and recognizes
employees for knowledge acquisition and development. Cross-functional teams might
also help as well as other changes that enable employees to interact and communicate.
Learning and knowledge are important prerequisites for innovation.
TEACHING NOTES FOR IONS CONSULTING: THE MP^2 TRAINING

PROGRAM CASE STUDY
1. How does the MP^2 program relate to the concept of organizational learning, and
why is organizational learning a particular issue for consulting firms?
The MP^2 program is designed in part to pass knowledge from experienced senior
consultants to less seasoned associate consultants in a more systematic manner than
was previously used. Secondarily, it might also offer some fresh insights to the senior
consultants. The MP^2 program is most related to the following dimensions of a
learning organization as noted in the text: Learning systems/dynamics and knowledge
management/infrastructure. Consulting firms typically have dozens of clients, some
of whom have similar problems and issues. In addition, not every consultant
participates in every client project. These two facts mean that 1) solutions that worked
(or did not work) for one client might work (or not work) for another, and 2) there is a
good chance that many consultants do not know this because they did not work on the
project in question. In addition, as alluded to in the case, employee turnover is
common in consulting firms. This is because consulting follows the economic
cycle—in good times client firms hire consultants; in bad times outside consultants
are the first cost to be cut. In addition, there is an occupational culture in consulting
(hinted at in the case) that tends to encourage mobility to gain new ideas and
exposure. Together, all of these factors mean that it is very easy for important
information to get “lost” in such professional services firms because they have not put
in place the systems and processes needed to retain this information and put it to
future use to adapt to new client problems. In other words, the knowledge does not

get institutionalized. Not having it passed on to less experienced associate consultants

is one way this happens.
2. Some specific examples of resistance to change are given in the case. How would you
summarize these? That is, what are the core factors that provoke resistance to the
new program?
It is claimed that 1) the program inefficiently deploys consultants, removing the
associates from income-generating roles, 2) the problem involves hiring and
retention, not training, 3) the program demands too much time from senior
consultants, 4) the program will encourage turnover, and 5) the program reduces
positive challenges for the associate consultants who want to run projects. We can
summarize these as reflecting self-interest, different assessments of the situation, and
a belief that Clark Loon has misdiagnosed the problems facing Ions Consulting. On
the self-interest front, senior management is concerned with cash flow, the
experienced consultants are worried their work will be slowed down, and the
associates fear “grunt” work and lack of exposure to managing projects.
3. The MP^2 program is a combination of a process innovation with a managerial

innovation. Should Clark Loon have proceeded differently to institutionalize and
diffuse the innovation? If so, how?
This is a managerial innovation in that it comprises a new human resources approach,
and it is a process innovation in that it constitutes a new way of delivering client
services. This was actually a good situation for a pilot project, as the board desired,
so. The consulting projects are essentially self-contained, so a few could be isolated
and trialed without exposing the entire organization to the innovation. As noted in the
text, this is one condition that can enhance diffusion. However, as noted in the case,
reactions to the MP^2 program pilot project were very mixed. In some instances,
initial biases were confirmed. In others, reactions to the program differed from
expectations. This might have been a situation where only employing volunteers
would have made sense. This mentor-mentee approach is not for everyone, and
showing more successes early on might have convinced the more skeptical of the
merits of the program. Also, Clark might have tried to get more support from the top
management of the firm. The comment by Senior VP of Operations Dale Ellis
indicates that such support was lacking. An employee survey concerning the proposed
new program might have given Clark some data on which to better ground the
intervention.
4. What should Clark do now? Be sure to consider the issues raised in the last
paragraph of the case.
Responses will vary. Here’s one scenario: Candidly share information about the
apparent successes and failures of the trial. Then, ask for senior and junior volunteers
to continue with the program, acknowledging that one size does not fit all. Use survey
data and turnover data to track the performance and satisfaction of the “new” project

teams and attempt to compare it to the status quo. Getting clear support from top
management for this revised program would be a clear plus.

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CHAPTER 15

ORGANIZATIONAL CHANGE, DEVELOPMENT,

CHAPTER LEARNING OBJECTIVES

After reading Chapter 15, students should be able to:

CHAPTER OUTLINE AND TEACHING NOTES

The Concept of Organizational Change

Why Organizations Must Change

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What Organizations Can Change

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The Change Process

Refreezing. Refreezing occurs when the newly developed behaviours, attitudes, or

The Learning Organization

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• Vision/support. Leaders must communicate a clear vision of the organization’s

Issues in the Change Process

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Evaluation and Institutionalization

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Reactions — did participants like the change program?

Organizational Development: Planned Organizational Change

Organizational development is a planned, ongoing effort to change organizations to be

Some Specific Organizational Development Strategies

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The data generally consists of questionnaires completed by organizational members.

Feedback seems to be most effective when it is presented to natural working units in

Total Quality Management

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A key part of reengineering is processes. Organizational processes are activities or work

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Reengineering has been stimulated in organizations where “creeping bureaucracy” has

Reengineering is oriented toward one or both of the following goals:

Reengineering can include the following practices:

Does Organizational Development Work?

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• OD efforts involve a complex series of changes making it difficult to know which

The Innovation Process

IDEA GENERATION ’ IDEA IMPLEMENTATION’ IDEA DIFFUSION

Generating and Implementing Innovative Ideas

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External Communication. Effective communication with the external environment and

Internal Communication. Internally, organic structures facilitate innovation more easily

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In summary, we can conclude that innovation depends on individual factors (creativity),

Diffusing Innovative Ideas

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Also important is adaptability, since innovations often have to be custom-tailored to

A Footnote: The Knowing-Doing Gap

SAMPLE ANSWERS TO DISCUSSION QUESTIONS

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3. Suppose a job enrichment effort in one plant of a manufacturing firm is judged to be

5. Debate: Survey feedback can be a problematic OD technique because it permits

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ADDITIONAL DISCUSSION QUESTIONS AND ANSWERS

3. Discuss some of the things that an organization can do to improve organizational

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EXTRA DISCUSSION QUESTIONS

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SAMPLE ANSWERS TO INTEGRATIVE DISCUSSION QUESTIONS

1. Do leadership, organizational culture, and communication influence the effectiveness

2. How can organizational learning practices, pay, and socialization influence

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incentives to employees who develop and implement innovative ideas. Third,