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Organizational Change. Chapter 14. IBUS 681, Dr. Yang. Learning Objectives. Define organizational change Learn why managing change is an important part of international management Understand the individual, group, and structural levels of change

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organizational change

Organizational Change

Chapter 14

IBUS 681, Dr. Yang

learning objectives
Learning Objectives
  • Define organizational change
  • Learn why managing 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

IBUS 681, Dr. Yang.

learning objectives cont
Learning Objectives (cont.)
  • Explain the role of national and organizational culture on organizational stability and change
  • Understand the processes involved in planning 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

IBUS 681, Dr. Yang

roberto c goizueta former chairman and ceo coca cola company
Roberto C. GoizuetaFormer Chairman and CEOCoca-Cola Company

There is no permanent organizational chart for the world… It is of supreme importance to be ready at all times to take advantage of new opportunities.

organizational change1
Organizational Change
  • Reconfigures components of an organization to increase efficiency and effectiveness
  • Including any alternations in people, structure, or technology

IBUS 681, Dr. Yang

levels of organizational change
Levels of analysis:

Structural change

Group change

Individual change

Cross-culture variation in restructuring

U.S.

Japan

Germany

China

South Africa

Levels of Organizational Change

IBUS 681, Dr. Yang

internal change factors
Technical Production Processes

Production

New Technologies

Quality

Political Processes

New Organizational Goals

Conflict

New Leadership

Organizational Culture

Values

Norms

New Member Socialization

Internal Change Factors

IBUS 681, Dr. Yang

external change factors
Immediate Environment

Domestic Competition

Population Trends

Social Trends

Government Actions

General Environment

Foreign Competition

Social Movements

Political-Economic Movements

Technology

Professionalization

Culture Contact

External Change Factors

IBUS 681, Dr. Yang

national culture and organizational change
Time Orientation:

Past

Present

Future

Short-term vs. long-term oriented

Resistance to Change

Tradition

Habit

Resource Limitations

Power and Influence

Fear of the Unknown

Values

National Culture and Organizational Change

IBUS 681, Dr. Yang

resistance to change in different clusters of countries
Resistance to Change in Different Clusters of Countries

Dimension Scores

Resistance level PD ID UA Country Clusters

Most of Latin America, Portugal,

Korea, the former Yugoslavia

Japan

Belgium,France

Spain, Argentina, Brazil, Greece,

Turkey, Arab Countries

Indonesia, Thailand, Taiwan,

Iran, Pakistan, African countries

high low high

med med high

high high high

high med high

high low med

4 (strongest)

3 (strong)

IBUS 681, Dr. Yang

resistance to change in different clusters of countries cont
Resistance to Change in Different Clusters of Countries (cont.)

Dimension Scores

Resistance level PD ID UA Country Clusters

high low low

low med high

med high med

med high low

low high low

2 (medium)

1 (week)

0 (weakest)

Philippines, Malaysia, India

Austria, Israel

Italy, Germany, Switzerland,

South Africa

Singapore, Hong Kong, Jamaica

Anglo countries, Nordic countries, Netherlands

IBUS 681, Dr. Yang

managing change
Managing Change
  • Organization development
  • Lewin’s model of change
  • Managing resistance to change
  • Impact of cultural values
    • OD model
    • Consulting
    • Power versus employee participation

IBUS 681, Dr. Yang

lewin s model of change
Lewin’s Model of Change
  • Phase 1 - Diagnosis
  • Phase 2 - Unfreezing
  • Phase 3 - Movement
  • Phase 4 - Refreezing
  • Phase 5 - Renewal

IBUS 681, Dr. Yang

managing resistance to change
Managing Resistance to Change
  • Education and communication
  • Participation and involvement
  • Negotiation and agreement
  • Manipulation and cooptation
  • Coercion

IBUS 681, Dr. Yang

the interaction of national and organizational cultures
The Interaction of National and Organizational Cultures
  • National culture
  • Organizational culture

IBUS 681, Dr. Yang

change strategies for different groups of countries
Change Strategies for Different Groups of Countries

Dimension Scores

Change

Strategy PD ID MA UA Country Clusters

5 (power)

4 (power,

manipulation/persuasion)

Columbia, Ecuador, Venezuela, Mexico

Rest of Latin America, Spain, Portugal, former Yugoslavia, Greece, Turkey, Arab countries, Korea

High low high high

High low med high

IBUS 681, Dr. Yang

change strategies for different groups of countries cont
Change Strategies for Different Groups of Countries (cont.)

Dimension Scores

Change

Strategy PD ID MA UA Country Clusters

med med high high

high high med high

high low med low

high low med low

med low high low

low med med high

med high high med

low high high low

low high low low

Japan

Belgium, France

Indonesia, Thailand, Taiwan,

Iran, Pakistan, African countries

Philippines, Malaysia, India

Singapore, Hong Kong, Jamaica

Austria, Israel

Italy, Germany,Switzerland,

South Africa

Anglo countries

Nordic countries, Netherlands

3 (manipulation/

persuasion)

2 (manipulation/

persuasion,

consultation)

1 (consultation,

participation)

IBUS 681, Dr. Yang

macro organizational change theories
Macro-organizational Change Theories
  • Life-cycle theory
  • Teleological theory
  • Dialectical theory
  • Evolutionary theory
  • Cultural implications

IBUS 681, Dr. Yang

12-17

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 as barriers to change

Cultural and legal conditions influence and limit change and methods for change.

Convergence or Divergence?

IBUS 681, Dr. Yang

12-18

implications for managers
Implications for Managers
  • Culture influences organizational change.
  • When formulating a change program, it is necessary to assess need for change, what changes are appropriate, nature of resistance to change, and how to implement planned changes.
  • Be aware of internal and external forces for change and how different cultures may respond to them.
  • Understand larger processes affecting organizational change and how they may limit change.

IBUS 681, Dr. Yang

12-19