Summary Organizational Change: Theory and Practice – Burke All Chapters
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Rijksuniversiteit Groningen (RuG)
Bachelor Psychology
Organizational change
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Summary organisational change
Chapter 1 – sources for understanding organization
change
Organizatinns change all he tiee each and every day. The change ha iccurns in irganizatinns inse fir
he iins par e unplanned and gradual. Planned irganizatin changee enspecially in a large nscalee
affectng he entre nsyns eie ins ununsual ni exac ly an everyday iccurrence.
Revilutinary change – a iajir iverhaul if he irganizatin rensultng in a iidified ir entrely new
iinsnsiine a change in ns ra egye leadernship and cul ure.
Organizatinal change can be planned ir unplanned and i can be evilutinary ir revilutinary. Bu
he eiphansins if irganizatinal change ins iire ficunsed in planned and revilutinary change.
Organizatinns are crea ed and develiped in an ansnsuiptin if cintnui ye i cintnue nsurviving and
i lans . The ex ernal envirinien ins ni cintnuiuns in he nsaie nsennse ha irganizatinns are. ircens
in he ex ernal envirinien can caunse dens ructine bu can caunse creatvi y ans well. Thins ins called he
cintnuiuns-dinscintnuiuns heie.
Jihn Kiter declarens ha leading change cinnsins ns if an eigh -ns age pricensns:
1. Ens ablinshing a nsennse if urgency
2. Creatng he guiding cialitin
3. Develiping a vinsiin and ns ra egy
4. Ciiiunicatin he change vinsiin
5. Eipiwering eipliyeens fir briad-bansed actin
6. Generatng nshir - eri winns
7. Cinnsilidatng gainns and priducing iire change
8. Anchiring new appriachens in he cul ure
Principlens regarding he irganizatinal change pricensns:
Ex ernal envirinien
o We ypically begin an irganizatin change effir by cinnsidering wha ins happening in
he irganizatin’ns ex ernal envirinien . Bu we need i be aware if he evidence
ha he ex ernal envirinien ins changing iire rapidly han ever befiree iaking i
iugher fir irganizatinns i change heinselvens rapidly eniugh i keep up and ns ay
ciipettve.
Exprensnsing he need
o Organizatinal ieiberns iuns nsee he need fir change fir hei i be willing i
eibrace i . Ciupled wi h hins exprensnsed need ins a way firwarde wha will addrensns he
neede wha iigh be he gialns
o There are wi actinns ha are required ha can be exprensnsed ans:
Creatng a nsennse if urgency
Prividing a vinsiin fir he fu ure
Cinnsequencens
o The paradix if planned change. We plan a change in a linear fanshiine bu quickly
realize ha change i nself ins ninlinear. There are unin ended cinnsequencens ha we
didn’ antcipa e. Mireivere he change will be experienced ans iensnsye if ni chaitc.
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, Rensins ance
o While ni everyine ins likely i be rensins an i changee nsiie will be warning if
dangerns ahead. There are individual differencens regarding rensins ance and all
rensins ancens are ni he nsaie.
Change leader rile
o Changee cer ainly planned changee ins ni likely i iccur wi hiu leadernship. The
change leader needns i be rannsparen e nindefennsivee pernsins en ye paten .
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,Chapter 2 – rethinking organization change
Change nsignifican ly – urn he irganizatin in ani her directine i fundaien ally iidify he ‘way
we di hingns’e i iverhaul he ns ruc ure and i privide irganizatinal ieiberns wi h a while new
vinsiin fir he fu ure.
75% fail a change nsignifican ly. Exaiplens if nsignifican and nsuccensnsful irganizatin change are
exceptinal. Mins irganizatin change ins ni nsignifican ir nsuccensnsful. Organizatinal iipriveien ns
di iccure even frequen lye and di wirke bu large-nscale fundaien al irganizatin change ha wirkns
ins rare. Why ins hins he canse?
Deep irganizatin changee enspecially ateiptng i change he cul ure if an irganizatine ins
very difcul
I ins ifen hard i iake a canse fir changee partcularly when he irganizatin appearns i be
diing well
Our kniwledge fir hiw i plan and iipleien irganizatin change ins liii ed
The paradix if planned irganizatin change – when planning irganizatin changee he pricensns ins
unsually lineare bu i ins every hing excep linear. Privided he change gialns are clear and change
leaderns are willing i ns ay he ciurnsee he pricensns iay end up being nsiiewha lineare ir a leans a
patern iay eierge. Bu lineari y ins ni wha anyine experiencens during he iipleien atin
pricensns i nself. We iuns plan change ye underns and ha hingns never urn iu qui e ans plannede i ’ns a
paradix.
In hins pic urens yiu nsee a li if liipns backe hinse liipns are fir exaiple when yiu hiugh ha he
new nsifware prigrai wirkns giide and i urnns iu i win’ e ha yiu have i invens in a new
nsifware prigrai and ha cins ns tiee iiney and i alnsi ennsurens irri atinns frii eipliyeens.
Making the case for organization change
irbens ip 100 ciipaniens lins – firied in 1917e and irbens publinshed i ns iriginal lins again in 1987.
Thene 61 if he iriginal 100 ni linger exins ed. And if he reiaining 39 ciipaniense inly 18 reiained
in he ip 100. Thense 18 ciipaniens nsurvived bu did ni perfiri.
S andard & Piir’ns (S&P) 500 – ciiparing he 500 in 1957 wi h hinse in 1998e inly 74 reiained in
he lins e wi h a iere if 12 if hinse 74 iu perfiriing he S&P index i nself.
Hiw can i be ha nsi iany ciipaniens di ni nsurvive and ha hinse ha di nsurvivee wi h few
exceptinnse perfiri beliw average?
Pace-if-change pheniienin (ins a par if he annswer)
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, o In 1917 he pace if change wans nsliwer han i ins iday. In hinse dayns change wans ni
a iajir cincerne cintnui y wans he gial and he way if iperatng. Tiiens have
changede and we are living in he age if dinscintnui y fir cirpiratinnse ni
cintnui y.
Cirpiratin’ns ex ernal envirinien (a lager annswer)
o Any irganizatin’ns ex ernal envirinien cinnsins ns if iany fac irnse ine if he iins
piwerful fac irns ir fircens fir bunsinensnse enspecially hinse ha are publicly iwnede ins
he capi al iarke .
o Capi al iarke – infirial aggregatinnse ni highly irganized and ns ruc ured ans are
cirpiratinns. Cinnsins if buyernse nsellerns and i herns whi in erac fir he purpinse if
eciniiic exchange. Thense bunsinensnspeiple are lian ifcerns in banknse invens ien
bankernse ns ickbrikernse ns ick analyns nse ven ure capi alins ns and anyine elnse whi hans
iiney i invens e and hinse peiple decide whe her yiur ciipany ins wir hy if
invens ien . They are a piwerful firce in he irganizatin’ns envirinien e
de eriining in par he ling- eri nsurvival and nsuccensns if a ciipany.
o Capi al iarke ns change far iire rapidly han di cirpiratinns.
o Bu e critcal piin in he ende i ins he cinnsuier iu here in de irganizatin’ns
ex ernal envirinien whi de eriinens he fa e if any bunsinensns.
Points of view about organization change
We can underns and irganizatin hriugh a varie y if ie aphirnse hinse can help bu can alnsi liii
iur pernspectve and ultia e underns anding. In hins biik here ins chinsen fir a ie aphir if ‘ he
irganinsi’. I eiphansins in he in eractinns be ween an irganizatin and i ns ex ernal envirinien and
i ins ficunsed in nsurvival. Bu e an irganinsi ins cincre e and an irganizatin insn’ e irganinsins have highly
in erdependen par ns and irganizatinns din’ ipera e hins way & he ie aphir iigh beciie an
ideiligy: ha irganizatinns nshiuld be hariiniiunse ha in erdependence ins alwayns a giid hinge ir
ha individualns nshiuld ge heir needns ie in he jib.
Open nsyns ei heiry - here ins an envirinien and he irganizatin ins wi hin hins envirinien . Yiu
have inpu (raw ia erialnse huian rensiurcense capi ale echniligye infiriatin) and hins ins hriughpu
he irganinsatin (eipliyee wirk actvitense ianageien actvitense echniligy and iperatinal
ie hidns) and i beciiens iu pu (priduc and nservicense financial rensul nse infiriatin and wans e
ia erialns). And hinse iu pu giens back i he inpu (wi h a feedback liip). Thuns: de irganizatin ins
ipen!
Differen firins ha irganizatin change can ake (ns atng hins language in erins if ine vernsuns he
i her ins fir purpinsens if clari y and underns andinge ni i nsuggens ha he cinditinns hey denscribe
are iu ually exclunsive):
Revilutinary vernsuns evilutinary
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