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Chapter 13: Organizational Change
Organizational Change
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Chapter 13Organizational Change
There are 3 Dimensions of organizational change
- Organizational change – Is the substantive modification of some aspects of an organization
through components such as structure, culture, environment technology and strategy
(mission and vision).
1. Scope of change – transformational Vs Incremental
▪ Transformational – occurs when an Org shifts form one type of Org to another.
• This change is more difficult to manage than incremental.
▪ Incremental – occurs when an existing Org design is fine tuned
• Most organizations engage in this type of organizational change where
characterized by incremental changes that fine tune an existing orgs
design to maintain periods equilibrium. When the equilibrium is distorted
by changes in the environment, it’s time for a transformational change
where the org adopts a new design.
• Organizational life cycle – suggest that as it grows in age and size, the org
moves into a predictable progression from one generic org design to
another
o From Simple – Defender – Prospector – Analyzer.
o Simple – New orgs, it starts to increase in size and become more
stablished, then starts to experience incremental change.
(administrative Misfit) facing pressures to become a defender
o Defender – Org culture becomes predictable and internally
focused, decision making is so centralized, specialization so
narrow and standardization so prescribed that members
creativity is stifled and orgs fail to respond to changing need of
its customers (stifled misfit) Unless it transforms
o Prospector – Diffused decision-making authority and a lack of
standardization across departments leads to failure. Unless it
transforms (scattered misfit)
o Analyzer – Ambiguity created leads to psychological stress and a
difficulty to cope among members (stress-out misfit). The org
needs to be divided into smaller units or get reborn
2. Preparedness – Proactive Vs Reactive
▪ Proactive change – is designed and implemented in an orderly and timely
fashion. Seizing and opportunity to improve and orgs performance
▪ Reactive Change – Involves making ad hoc or Piece-meal responses to
unanticipated events or cries as they occur. Mostly prompted by unexpected
threats facing the Org but many times, managers fail to anticipate or respond to
changing circumstances.
3. The Source of change – Innovation Vs Imitation
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