Unit 6: Managing Change
Change is a surprisingly difficult process for firms. When two large companies merge, it can take a couple of years to reorganize and many more years before the two respective cultures truly merge. This transition process can be especially challenging if the cultures are very different. For example, if a southern bank purchases a bank based in the northeast, the two different banking styles could wreak havoc within the organization, as the southern company may rely on customer service and slow growth, whereas the northern bank prefers an aggressive strategy. Such mergers happen regularly, and OB specialists are involved in the process from the start.
In cases like this one, the structure of a firm's management is just as important as its culture. Will the two banks continue to operate with a decentralized format, or will they have all of senior management in one location? What are the advantages and disadvantages of doing it one way or another? And of course, the most difficult aspect of managing change is implementing it in the first place. Humans are naturally resistant to change; making changes in an organization is no exception.
Completing this unit should take you approximately 14 hours.
Upon successful completion of this unit, you will be able to:
- define organizational structure;
- identify the basic types of organizational structure ;
- describe organizational change, methods for accomplishing change within an organization, and the skills necessary for implementing change;
- summarize resistance to change;
- articulate the meaning and importance of organizational culture; and
- relate how and why successful organizations manage their culture.
6.1: Business Cultures
Organizational culture refers to a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. Why is organizational culture so important for an organization? What dimensions make up an organization's culture? Finally, who is responsible for the creation and maintenance of an organization's culture? Consider these questions as you read the chapter.
6.1.1: Defining Culture in an Organization
Read this article to better understand the concept of and importance of organizational commitment. An interesting topic in the field of organizational behavior, organizational commitment is defined as the degree to which an employee identifies with the organization and wants to continue actively participating in it. Consider how organizational culture can influence organizational commitment.
Organizational communication focuses on building relationships within the organization. As you read this chapter, you will learn about organizational communication and communication research. The authors describe key elements of organizational culture. These elements have a direct influence on employee behavior, commitment, and an organization's success.
6.1.2: Managing Culture
Watch this talk for some examples regarding the impact of corporate culture on managing organizations and innovation. Think about your capacity for creative thinking and how you can bring this skill to the workplace.
Read this chapter for an in-depth look at how to manage demographic and cultural diversity. First, we will consider what constitutes diversity, as well as the benefits of managing it. We will attempt to describe the challenges of managing a diverse workforce, including multicultural work forces and those organizations with diverse demographics. We will conclude with a discussion on diversity and ethics, and how standards of ethics may vary depending on culture, age, gender, and other traits. While reading this chapter, think what you bring to the workplace. What unique demographic or cultural attributes do you possess? How do these characteristics affect your values and management style? What steps can you take to better understand, work with, and manage those who may have different characteristics than you?
Watch this video for an overview of three aspects of organizations which affect their functioning. Organizational culture is one of the three key aspects, along with the environment and technology.
6.2: Corporate Structure
What are the basic elements of organizational structure? The Toyota Motor Company case introduces you to the importance of organizational structure. By reading the first two sections of this chapter, you will be able to successfully define organizational structure and its basic elements. You will also be able to identify the basic types of organizational structure.
This video discusses organizational structure. See if you can determine which design makes the most sense for the main functions of the organization. How and why does the organization divide its tasks? How does the organization coordinate activities among these tasks? Consider the concepts of division of labor, hierarchy of authority, span of control, line versus staff positions, and level of centralization as the video progresses.
6.3: Changing the Organization
Watch this video to determine why organizations change, what can be changed, how organizations change, and how difficult it is to implement change within an organization. You will examine some methods and skills needed for accomplishing change. Finally, you will learn why many people within organizations resist change, and how you, as a manager, can utilize certain tactics to help overcome this common and widespread resistance.
Earlier in the unit, you read the first two units in this chapter. You learned about the elements of organizational structure and were able to identify several types of structures. Now, we will return to this chapter and read units 3 and 4. You will learn about organizational change and why resistance to change is prevalent in most organizations. Under what conditions do organizations tend to implement change? Is change always bad? How can you increase "buy-in" within your organization to successfully facilitate the needed change? Reflect on the Big Five Personality Trait of "openness to experiences". How might change resistance be related to personality?
Read this chapter to learn more about successful change implementation. As we learned, resistance to change is widespread. Organizational change often is met with discomfort and concern. Think about what strategies you can use to enable change within an organizational culture while mitigating resistance.
This article provides a real-world case study example of barriers to change and management of change. In the case, Brazilian manufacturing companies and their efforts to implement Continuous Improvement (CI) programs are studied. The case illustrates that despite considerable employee motivation to embrace change in the initial phases, change cannot be successful in the long term without management actively managing the changes. What important points about change management can you take away from this case study?
6.4: The Changing Landscape of Organizations
Earlier in the course, we touched upon several key research trends, including workplace bullying. This presentation also considers other current issues, such as generational differences in the workplace, workplace incivility, and work-life balance. As you review this presentation, think about your generation and the traits that describe it. Do you share these traits? Have you experienced incivility or bullying in your workplace? If so, how did this experience affect your performance? Finally, what is the responsibility of the organization to foster work-life balance? How well is your organization doing in this regard?
The previous presentation introduced you to one emerging trend in OB research: generational differences in the workplace. Read this article to get a closer look at the challenges of understanding and managing the multiple generations currently in many organizations. As you read, compare the workplace characteristics of each generation. Look for overlap, as well as for differences. What kind of experiences have you had with various generations? As a manager, how can you better manage the vast age and generational differences within your workplace in order to successfully meet organizational goals?
This chart provides a quick reference regarding the differences among the various generations in today's workforce. This a a great one-screen summary of what you've read in the previous article. Focus on the left-hand column to each factor that most people consider important in the workplace. Then, move across the grid to compare the different expectations and responses.
Unit 6 Assessment
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.
