Organizational Behaviour
Understanding and Managing Life
at Work, 12th Edition (Pearson
Canada) By Gary Johns, Alan Saks
(All Chapters 1-15, 100% Original
Verified, A+ Grade)
All Chapters Arranged Reverse: 15-1
This is the Original Instructor Manual
for 12th Edition, All Other Files in the
Market are Wrong/Old Questions.
, 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—such as resistance to
change—that require attention at various stages of change.
LO15.4 Define organizational development, and discuss its general philosophy.
LO15.5 Discuss team building, survey feedback, total quality management, and
reengineering as organizational development efforts.
LO15.6 Review the evidence and controversies concerning the effectiveness of
organizational development.
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
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,15-2 Johns/Saks, Organizational Behaviour, Twelfth 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.
Branding. Rather than looking internally to change culture, or in addition to culture
change, an organization might have strategic reasons to change its externally viewed
identity or brand.
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.
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