BUS 370 AU Organizational Development & Transitional & Transformational Change Paper Text Bierema, L. (2020). An introduction to organizational development

BUS 370 AU Organizational Development & Transitional & Transformational Change Paper Text Bierema, L. (2020). An introduction to organizational development (2nd ed.). Bridgepoint Education. Wk 1 Discussion 1: Change Readiness Prior to beginning this discussion, complete the How to assess change readiness (Links to an external site.) assessment. Provide a summary of your results and a brief discussion stating if you agree with them, or not. Wk 1 Discussion 2: Organizational Change Select two change models in Chapter 2. Compare and contrast the models and, referencing this week’s lecture, discuss resistance, or how change could be embraced. Wk 1 Assignment: Intervention In a two- to three- page paper (not including the title and reference pages) select a, b, or c from the list below and compare and contrast the change interventions. a. Transitional and Transformational Change b. First and Second Order Change c. Operational and Strategic Change You must use at least two scholarly journal articles that reference the selected change interventions, in addition to the text, and format your paper according to APA style guidelines as outlined in the Ashford Writing Center. 2
Organization Change
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Learning Outcomes
After reading this chapter, you should be able to:
•
Categorize change according to rate of occurrence, how it comes about, and scale.
•
Discuss the systems approach to change.
•
•
•
Provide examples of personal and organizational interventions that represent developmental,
transitional, and transformational change; first- and second-order change; and operational
and strategic change.
Describe three levels of change, including individual, group or team, and organization
or system.
Compare and contrast five models of organization change.
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Write down the names of five highly successful companies today that were just as dominant 25
years ago. Are you able to think of five? Companies, like living organisms, tend to have a limited life span. Very few remain competitive for more than a decade or two. Instead, as Newman
(2010) pointed out, companies tend to lose their edge because they fail to innovate and change.
As he put it, they become obsessed with competing in the present and lose sight of the future.
Newman listed 10 examples: Blockbuster, Dell, Eastman Kodak, Motorola, Microsoft, Sears, Sony,
Sun Microsystems, Toys “R” Us, and Yahoo.
More recently, Aaslaid (2018) profiled 50 corporations that failed to innovate. Some new companies have been added to the defunct or nearly deceased list, including MySpace, Macy’s, Hummer, MapQuest, and Toys “R” Us. Kodak, a top film company in its day, is number one out of the
50, according to Aaslaid. Unfortunately, Kodak, which was dominant for more than a century,
denied that digital photography was a threat, even though one of its own engineers, Steve Sasson, invented the first digital camera in 1975! Kodak’s management chose to ignore the innovation because it was filmless, and Kodak sold film. The company was too fearful that releasing the
invention would kill its market in film. Yet, the innovation appealed to a small fringe market,
and it allowed the digital photography niche to become a disruptive innovation. Kodak filed for
bankruptcy in 2012.
Today, we hear about disruptive innovation, inventions or improvements made by a smaller
company that unsettle the status quo and create new markets for products and services that
were overlooked by larger, more established companies. Kodak even enlisted the help of the
scholar who invented the term, Clayton Christensen (2000). But even though Kodak followed
his advice to begin selling inexpensive digital cameras, the company had already fallen too far
behind. Ho and Chen (2018) described the downfall of Kodak in the following way: “The resistance to change among middle managers, the culture of the company dominated by a strong
belief as ‘Kodak meant film,’ and the hierarchical structure at Kodak led to failure in adopting
the disruptive digital technology” (p. 353). Today, most of us use our cell phone, iPad, digital
camera, and a variety of apps and websites to take, store, alter, print, and share photos—a reality Kodak failed to anticipate.
Blockbuster is another famous failure, and
perhaps forgotten in this age when streaming of entertainment is done from the comfort of your couch, no longer requiring a
video store with annoying late fees if you
returned the physical video late. Blockbuster
easily transitioned from VHS to DVD formats but failed to anticipate that content
would become available via mail, vending
machine rentals, video on demand, and
video streaming. Netflix anticipated and
adapted to this trend, however. Blockbuster
became obsolete, closing hundreds of stores,
accumulating debt, and struggling to regain
its competitive edge.
Photon-Photos/iStock Editorial/Getty Images Plus
Blockbuster failed to anticipate change and
could not compete with Netflix and other
digital movie sources.
The past few years have seen other significant changes in long-term products and services. The rise of Uber and Lyft has caused disruption in the traditional taxi service. Although Christensen does not view this change as disruptive,
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The Nature of Organization Change
Section 2.1
taxi drivers might disagree (Christensen, Raynor, & McDonald, 2015). Christensen, Raynor, and
McDonald defined disruptive innovation as a product or service that comes in at the low end of
the market and is not profitable, much like Amazon was when it first began distributing products. Once these lower-priced disruptors gain a foothold and improve the lower end of the market to evolve products and services that customers are willing to pay top dollar for, the product
eventually moves to the high end of the market, much like the Amazon Prime service offered
today.
It is challenging to convince an organization to change, particularly when things are going well,
as things did for many years for both Blockbuster and Kodak. Even when companies recognize
the need for change, the process is complex and challenging, and most efforts do not succeed.
In fact, change often fails to meet its intended outcomes (Griffith, 2002; Kogetsidis, 2012; Self,
Armenakis, & Schraeder, 2007). Some have estimated that 50% of all change efforts fail (Quinn,
2011), and others estimate the failure rate even higher, at nearly 70% (Balogun & Hope Hailey,
2004; Burnes & Jackson, 2011; Higgs & Rowland, 2000). Simply put, organizations are not very
good at planning and implementing change.
The purpose of this chapter is to explore organization change. We will identify a variety of types
of change, discuss the systems approach to change, examine levels of change, and compare and
contrast change models. Let us begin by considering the nature of change.
Consider This
The podcast Spectacular Failures, on American Public Media, features some of the most spectacular business failures in history and how organizations could have avoided them. Listen
to “Kodak Misses Its Moment”: https://www.spectacularfailures.org/episode/2019/07/15/
kodak-misses-its-moment. Analyze the episode based on whether or not the failure was
related to inability to innovate and change.
After listening to the podcast episode on Kodak’s failure, reflect on these questions:
1.
2.
Only a few decades ago, most people thought the idea of having personal computers in
their homes was unrealistic. Today, most homes have multiple devices that handle personal computing. Smartphones are a relatively new innovation, as are crowd-sourced
services such as Uber or Lyft or digital assistants such as Alexa. When have you been
resistant to a change that eventually became an innovation you depend on?
What could Kodak have done differently to avoid failure?
2.1 The Nature of Organization Change
Change is the alteration or complete transformation of people, processes, products, and
places. Change may be impermanent, transitional, and even reversible (such as moving to a
new city, then moving home again) or permanent and transformational (such as getting a college degree or experiencing the death of a loved one). Organizations, too, experience changes
that can be subtle or transformational, temporary or permanent. Managing change effectively
is considered a core competence of successful organizations (Burnes, 2004), yet it is difficult,
because the rate of change outpaces our ability to keep up with it (Cameron & Green, 2015).
Mastering change means you are learning (Hall & Hord, 2019).
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The Nature of Organization Change
Section 2.1
Three Categories of Change
There are several ways to classify change. Cao, Clarke, and Lehaney (2004) suggested change
may be sorted according to organizational function, process, culture, or power distribution.
Senior (2002) took a different approach, organizing types of change according to three categories: (a) rate of occurrence, (b) how it comes about, and (c) scale.
Rate of Occurrence
Change happens at varying paces. Often, it is discontinuous and episodic. There is only one
event or episode of change that makes a significant break from what has gone on before.
Examples of discontinuous or episodic change might include a natural disaster, economic
cycles of recession and expansion, or something more personal, like the onset of illness or a
one-time change in work.
The opposite of discontinuous or episodic change is continuous change—an ongoing process of shifts that can lead to significant alterations over time. People experience continuous change with technological innovations. Just a few years ago, the idea of a smartphone
seemed far-fetched, yet today they are widely owned worldwide. Today, a smartphone can
be used to monitor your home and pets, control your thermostat, track your fitness, locate
family members, give directions, make dinner reservations, and schedule your groceries
for delivery. Now, virtual, digital, or AI (artificial intelligence) assistants respond to natural
voice commands and can tell the weather, play music by request, give directions, and offer
advice. Robotics are also becoming more sophisticated with the rise of self-driving vehicles,
programmable vacuum cleaners, industrial robots, and military robots. Continuous change is
also prevalent in health care, where new drugs and treatments have prolonged life—at least
in industrialized countries.
How Change Comes About
Another way of describing change is the way in which it occurs. Planning is one way that
change comes about, particularly in OD. Change can also be unexpected, without planning.
This might also be considered evolutionary change, which happens gradually and amounts
to substantial shifts over time. Organizations may be involved in continuous improvement
projects that gradually result in the adoption of new technologies and improved management
practices such as participative management or organization learning.
Change may also come about due to contingency—when organizations are forced to respond
to unique, unanticipated variables that require special action and changes. For example, lacking a necessary raw material might require emergency alterations to product design. Another
way change comes about is via choice. Organizations can choose what changes to make, such
as deliberately deciding to change their leadership style.
Change According to Scale
The scale of change ranges from moderate ongoing changes at a department level to wholesale
transformation of the organization culture. Revolutionary change, although much less common than evolutionary change, represents a shock to the system that alters it permanently.
The terrorist attacks of September 11, 2001, created revolutionary change in Americans’
national identity and sense of safety, as well as significant changes in air travel. Economic
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Section 2.1
The Nature of Organization Change
downturns and their consequences are another type of revolutionary change. Almost every
generation has experienced these challenges, which force innovation and change on individual, organization, community, and national levels.
Developmental, Transitional, and Transformational Change
Change is one of those words that serves as a melting pot for scores of concepts and methods.
Like the Inuit expression for snow (of which there are 20 or more shades of meaning), change
means many different things to us (Ackerman, 1997, p. 45).
Ackerman (1986) characterized change as developmental, transitional, or transformational.
Developmental change is the growth and learning people experience as they acquire new
skills, manage relationships, and take on new challenges. This type of change might involve
problem solving, work assignments, conflict resolution, group dynamics, team building, meeting management, role negotiation, survey feedback, or training.
When people make incremental steps toward a preferred status over a specified period, they
are making a transitional change. Transitional change includes increasingly using a device
such as a smartphone or gradually reducing calorie intake in order to lose weight. On an organization level, transitional change might occur through reorganization, technology integration, new product development, mergers or acquisitions, or globalization.
Transitional change seeks to accommodate the new state while maintaining functionality
during the conversion. Employees usually view this change as a disruption in standard operating procedures. For example, a large public university recently switched the platform for its
online courses. The change began with an informational campaign. Then, over two semesters,
faculty could volunteer to be early adopters of the technology, using the new platform in
courses with their students. During this phase, the early adopters provided feedback to the
information technology department to help the entire organization fully transition to this
new technology, and students were actively engaged in sharing feedback on the process. This
strategy enabled the university to continue to deliver online learning in both the old and new
formats while the technology was still in development. The entire university was then able to
change to the new platform the following year, keeping the needs of learners and faculty at
the forefront.
A change that revolutionizes the organization and the ways its members think and
act is known as transformational change.
Transformational change is generally not
reversible, because processes, behaviors,
or beliefs become fundamentally different
from those that characterized the previous
state. Transformational change may be due
to crisis, leadership transitions, culture or
strategy alterations, dramatic shifts in markets, or executive coaching.
Some companies have managed to transform themselves and stand the test of time.
Nikada/iStock Unreleased/Getty Images Plus
Apple was able to transform itself into one of
the most important technology innovators of
our time.
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The Nature of Organization Change
Section 2.1
IBM transformed from a mainframe computer company into one that makes software, personal computers, and storage solutions. Apple started as a transformational company: In a
market dominated by large, unsightly computers with complex software and awkward user
interfaces, it introduced small, user-friendly Macintosh computers with aesthetically pleasing
designs. Apple gained an ardent fan base, but as its competition caught on, it almost faded
into obscurity. Then, under the leadership of Steve Jobs, the company underwent a series of
changes that transformed our relationship with personal digital assistants via the iPad,
iPhone, and iPod. Transformational change usually requires a charismatic leader who inspires
others with a vision to achieve the desired change and willingness to take risks.
Consider This
Can you recall a transformative leader who had charisma and inspired others? Who is this
person? What did he or she do?
First- and Second-Order Change
Change in OD has been historically classified as first order and second order. When individuals simply alter the intensity, frequency, or duration of a behavior but otherwise continue
doing more or less what they have already been doing, they are making a first-order change.
For instance, Jordan might decide to increase his exercise sessions from once to twice a week.
Or a management team might decide to communicate monthly instead of quarterly about
organization issues.
First-order change is considered easy to implement and readily reversible. It does not require
new learning, so it is usually impermanent. Jordan might decide to go back to once-weekly
exercise sessions or to slack off on his regimen all together. Or management may later decide
to communicate less frequently and implement that change easily.
Early OD focused on first-order change that involved moderate adjustments to the organization, people, and processes. These interventions were largely individualistic; that is, practitioners modified aspects of individuals’ behavior, believing that these individual changes would
translate into organization effectiveness. This mindset caused OD consultants to overlook
the big-picture, systemic issues affecting the organization. As a result, early OD often was
ineffective.
Radical change that alters thinking, behaviors, or processes in irreversible ways is known as
second-order change. This level of change requires a fundamentally different approach to
issues, as well as new learning. It is generally not reversible and tends to be revolutionary or
transformational. For example, rather than simply increasing his number of weekly exercise
sessions, Jordan might meet with his doctor to assess his overall health, get up earlier each
day to exercise, hire a personal trainer to work with him, consult a registered dietitian, take a
healthy cooking class, or otherwise alter his mindset about exercise and health. Or, management might restructure or fundamentally change how it communicates, altering not only the
frequency but also the content and delivery mode. The rise of online social networking offers
an example of how organizations have new platforms for communicating. Platforms such as
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Section 2.1
The Nature of Organization Change
instant messaging, Twitter, wikis, social networking, teleconferencing, email, and collaboration apps (e.g., Basecamp) have radically changed the way employers, employees, and customers communicate and have also made information timelier and more comprehensive.
Contemporary OD, in its quest to change
systems and cultures, focuses on secondorder change. Examples include executive
coaching that transforms a leader’s behavior, performance feedback that improves
individual and group performance, leadership development that shifts how leaders
think and act, group and team facilitation
that revolutionizes interpersonal dynamics,
diversity and multiculturalism initiatives
that make the organization more inclusive,
total quality management that improves
products and services, life–work balance
programs that reduce stress, or organization
restructuring that changes work processes.
Cathy Keifer/iStock/Thinkstock
Just as a caterpillar transforms into a butterfly,
so too is second-order change an irreversible
process that alters ways of being.
See Assessment: What Is Your Own Change
Leader Style? to evaluate your change leader style.
Assessment: What Is Your Own Change Leader Style?
What first- and second-order changes have you made in your life? How successful were you
at maintaining them? What changes have you noticed in your workplace? How effective are
you at helping others change? Take the change leader style assessment to evaluate yourself:
https://www.leadershipiq.com/blogs/leadershipiq/86843777-quiz-whats-your-style-of
-change-management.
Operational and Strategic Change
When an organization makes a shift that affects day-to-day functioning or operations, it
is making an operational change. Examples include shifting the production schedule to
accommodate supply of raw materials, hiring temporary workers to help cover a short-term
increase in product demand, adding overtime to meet production numbers, problem solving around a quality issue, or creating a newsletter to communicate more effectively with
employees. You might make operational shifts as a student to accommodate your studies during a particular semester such as adjusting your schedule to fit in more study time, hiring
someone to help you clean your house or mow your lawn, or hiring a tutor to help you with a
difficult statistics course.
When the organization sh…
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