SEYRAN ERDOGAN Sabanci University, Istanbul/Turkey [email protected].
Organizational Behavior Bauer & Erdogan Chapter 14 Organizational Structure & Change Rey Ty
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© 2012 Rey Ty Chapter 14 . Organizat ional Structure and Change
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Organizational Behavior Bauer & Erdogan Chapter 14 Organizational Structure & Change "Rey Ty"
Transcript of Organizational Behavior Bauer & Erdogan Chapter 14 Organizational Structure & Change Rey Ty
© 2012 Rey Ty
Chapter 14. Organizational Structure and
Change
© 2012 Rey Ty
Organizational Behavior
By Talya Bauer, Berrin Erdogan. (2010).
© 2012 Rey Ty
Organizational Structure1. formalization, centralization,
levels in the hierarchy, and departmentalization for employee attitudes and behaviors.
2. mechanistic and organic structures.
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Figure 14.4. An Example of a Pharmaceutical Company With
Functional Departments
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Figure 14.5. An Example of a Pharmaceutical Company With
Product Departments
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Contemporary Forms of Organizational Structures
1. Matrix organizations cross a traditional functional structure with a product structure. Specifically, employees reporting to department managers are also pooled together to form project or product teams.
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Contemporary Forms of Organizational Structures
2. Boundaryless organization is a term coined by Jack Welch of General Electric Company and refers to an organization that eliminates traditional barriers between departments, as well as barriers between the organization and the external environment. Many different types of boundaryless organizations exist. One form is the modular organization where all the nonessential functions are outsourced. The idea behind this format is to retain only the value-generating and strategic functions in-house, while the rest of the operations are outsourced to many suppliers. An example of a company doing this is Toyota. By managing relationships with hundreds of suppliers, Toyota achieves efficiency and quality in its operations. Strategic alliances constitute another form of boundaryless design. Here, similar to a joint venture, two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for both parties. In this form, the traditional boundaries between two competitors may be broken. As an example, Starbucks Corporation formed a highly successful partnership with PepsiCo Inc. to market its Frappuchino cold drinks.
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Contemporary Forms of Organizational Structures
3. A learning organization is one where acquiring knowledge and changing behavior as a result of the newly gained knowledge are part of an organization’s design. In these structures, experimenting, learning new things, and reflecting on new knowledge are the norms. At the same time, there are many procedures and systems in place that facilitate learning at the organizational level.
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Why Do Organizations Change?
1. Workforce Demographics
2. Technology
3. Globalization
4. Market Conditions
5. Organizational Growth
6. Poor Performance
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Figure 14.10. Reactions to change may take many forms.
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Resistance to Change
1.Active resistance
2.passive resistance
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Why Do People Resist Change?1. Disrupted Habits
2. Personality
3. Feelings of Uncertainty
4. Fear of Failure
5. Prevalence of Change
6. Perceived Loss of Power
7. Is All Resistance Bad?
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Figure 14.13. Planning and Executing Change Effectively
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Unfreezing Prior to Change1. Create a Vision for Change
2. Communicating a Plan for Change
3. Develop a Sense of Urgency
4. Building a Coalition
5. Provide Support
6. Allow Employees to Participate
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Executing Change1.Continue to Provide
Support
2.Create Small Wins
3.Eliminate Obstacles
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Kotter’s Eight-stage Process for Change • Harvard Business School professor John P. Kotter
proposed that companies should follow eight stages when instituting change. Here is a summary of his suggested steps.
1. Create a sense of urgency when introducing the change effort.
2. Build a coalition.3. Create a vision for change and make change a
part of the vision.4. Communicate a plan for change5. Eliminate obstacles to change6. Create small wins7. Build on change8. Make change a part of culture.
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Refreezing1. Publicize Success
2. Build on Prior Change
3. Reward Change Adoption
4. Make Change a Part of Organizational Culture
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OB Toolbox: Overcome Resistance to Your Proposals
1. Listen to naysayers. 2. Is your change revolutionary? 3. Involve those around you in planning the change. 4. Do you have credibility? 5. Present data to your audience. 6. Appeal to your audience’s ideals. 7. Understand the reasons for resistance. Is your audience
resisting because they fear change? Does the change you propose mean more work for them? Does it impact them in a negative way? Understanding the consequences of your proposal for the parties involved may help you tailor your pitch to your audience.
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Organizational Behavior
By Talya Bauer, Berrin Erdogan. (2010).
