Week 1 Discussion 1

1 Organizational Change Management: An Introduction

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Learning Objectives

After reading this chapter, you should be able to do the following:

1. Explain planned organizational change and analyze Kotter’s eight-step change process.

2. Compare and contrast the fields of organizational development and change management.

3. Examine Lewin’s force-field analysis and how it can be used to overcome resistance to change.

4. Describe the forces for change and organizational responses to these forces.

5. Summarize the various types and models of organizational change.

6. Differentiate between the balanced scorecard, contingency alignment framework, and stakeholder approach.

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Introduction

Everybody has accepted by now that change is

unavoidable. But that still implies that change is like

death and taxes—it should be postponed as long as

possible and no change would be vastly preferable.

But in a period of upheaval, such as the one we are

living in, change is the norm.

—Peter Drucker

Pretest Questions

1. True/False: Planned organizational change is a process that shields an organization from external legal and technological changes.

2. True/False: The fields of organizational development (OD) and change management are similar in that both are based in the discipline of operations management.

3. True/False: Change is the result of opposing forces that move with and against an organization’s status quo.

4. True/False: As a force for change, competitive advantage means advancing within an industry while maintaining some degree of organizational stability.

5. True/False: Tactical models of organizational change seek to address short-term issues and opportunities.

6. True/False: The stakeholder approach to change suggests that an organization can- not be socially responsible and seek profitability at the same time.

The Chinese international commerce company Alibaba was founded in 1999 by Jack Ma, a visionary businessman with a knack for change in his DNA. He launched Alibaba.com—an e-commerce platform that focused on small export firms—from his Hangzhou apartment. It has since grown to an estimated market cap of $223 billion and has more than 24,000 employees (Alibaba Group, n.d.; China Internet Watch Team, 2014; Pearlman, 2014; Reeves, Zeng, & Venjara, 2015).

This company is a good example of how organizations in complex, uncertain environments must continually change to remain competitive. This is especially true of technology-driven firms that rapidly expand in size and scope to gain and maintain market dominance. Alibaba, like Amazon, Google, and Netflix, uses automatic algorithms (a decision-making form of artificial intelligence) to routinely change, adjust, and leverage product choices for millions of customers in real time, a process known as self-tuning (Reeves et al., 2015). The company then extends this type of practice into its business plan by utilizing current consumer behavior to influence its vision, strategy, structure, and culture, as well as product offerings. As researchers Reeves et al. (2015) stated, “Self-tuning is related to the concepts of agility (rapid adjustment),

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Introduction

adaptation (learning through trial and error), and ambidexterity (balancing exploration and exploitation)” (p. 78).

A quick examination of Alibaba’s brief history demonstrates how the company has used self- tuning concepts to adjust to—and even create—customer demand. The company moves quickly to diversify its product offerings and markets by creating spin-off companies. This practice characterizes Alibaba’s successful change and evolution—at least to date. For example, in 2003 Alibaba launched Taobao Marketplace to test China’s consumer demand. It then rapidly created yet another spin-off, Aliwangwang, in 2004 that enabled instant messaging on the Taobao website. Enlarging the company’s business model, Alipay was also started in 2004, creating an infrastructure that experimented with and strengthened consumer confidence in online business transactions. It worked. In 2008 Taobao was renamed TMall, which included a business-to- customer platform and e-commerce ecosystem.

In 2009 Alibaba Cloud Computing was started to keep up with bleeding edge storage and retrieval technology. AliExpress was launched in 2010, which moved the company into a global position and provided it with an online international consumer website. In 2011 TMall and eTao (a shopping comparison website) became independent platforms in order to enable Alibaba to explore the future of customer demand and e-commerce in China. Cainiao, China Smart Logistics, was then launched in 2013, further enlarging the company’s scope from e-commerce to emphasizing infrastructure. In 2014 Ant Financial Services Group was formed, which further enlarged the scope of the company. In 2015 Alibaba’s innovative adaptation to Chinese customers surpassed Baidu’s (the Chinese version of Facebook) mobile ad revenue in China.

The company’s leadership has and is likely to continue to balance experimentation with innovation and real-time data algorithmic analysis to form self-adjusting organizational systems ( for example, vision, strategy, culture, business models, and product offerings).

Critical-Thinking Questions

1. Traditionally and currently, planned organizational change has been characterized by solving problems or crises that have arisen. Alibaba and other industry-leading technology-driven firms have employed organizational change to gain and expand market share and dominance. Briefly explain how Alibaba has used organizational change, and offer a few examples.

2. How would you feel about working within a fast-paced, ever-evolving company like Netflix, Alibaba, or Google? Explain your reasoning.

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Introduction

Introduction: Importance of Organizational Change The prevalence of organizational change management is growing exponentially. Three decades ago, most university curricula did not include courses on change management. Now such courses are commonplace (Worren, Ruddle, & Moore, 1999; see also Project Manage- ment Institute, 2015). A McKinsey & Company study of 189,000 employees from 81 diverse organizations found that championing desired change was one of the most important leader- ship behaviors (as cited in McKeown, 2015). The growing popularity and need for organiza- tional change management is due in large part to the rapid and pervasive amount of change we regularly face.

The world has changed dramatically over the past 30 years, as have how we think, what we think, and how we communicate. Globalization and technology have made the world far more interconnected, so what affects one business sector or one part of the world invariably affects everyone. Economic uncertainty in Europe and Asia affects exports in the United States. An oil spill in the Gulf of Mexico affects the restaurant industry in every corner of the country, from Boston to Seattle. Decades ago, events could be isolated; today change is everywhere and can occur at any time. To be effective in such a marketplace, it is essential to manage change. Lead- ing and managing organizational change has become a core competency for business profes- sionals. Companies not only need to manage change to survive, but to create a competitive advantage.

Rival Internet companies Google and Facebook are good examples of the importance of using change to gain a competitive advantage. Although Facebook is the leading social network- ing website and has overtaken websites like Friendster and Myspace, larger competitors like Google, Microsoft, and Apple are not waiting for their territory to be encroached on—they are therefore continually moving forward with technological breakthroughs. In the words of David Rowan, editor of Wired magazine, Facebook and Google are “in the ultimate battle for control of the Internet” (Rowan, 2010). He asserts that Google hires the world’s smartest soft- ware engineers, and this, along with algorithm-based computing power, has helped them dominate the desk- top-Internet era for a decade. On the other side, he suggests that Facebook strives to know all of what society is thinking, doing, and purchasing, and this helps it play a critical role in all of its members’ big and small life deci- sions (Rowan, 2010; see also Nagarkar, 2015).

As Facebook’s scope and reach con- tinues to grow, Google’s executives are taking note and ensuring they follow suit. Both companies are extending into markets that no one ever antici- pated. As this trend unfolds, more companies will no doubt implement change to maintain their competitive advantage as well.

Christoph Dernbach/picture-alliance/dpa/AP Images

Companies like Google and Alibaba continually scan their environment, buying and integrating new and innovative companies to stay ahead of rivals. Some of Google’s main revenue streams and major com- petitors include the Google website (versus Yahoo! and AOL) and total advertising (versus the Walt Disney Company, Facebook, and Twitter).

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Section 1.1 Kotter’s Eight-Step Approach

Change is not an issue for only giant corporate firms. Universities, hospitals, nonprofits, and small businesses (with 250 employees or less) across all industries must also plan for change. The U.S. Small Business Administration estimates that more than 50% of small businesses fail in the first year and 95% fail within the first 5 years (Scuteri, 2015). Note that 7 out of 10 new firms survive just 2 years. A major challenge for small businesses in general is competitiveness (the ability of a business or organization to succeed in meeting the owners’ broad business goals to serve customers). In particular, small firms fail for many reasons, which include being unable to gain access to needed capital and effectively innovate and market; failing to adequately control growth; demonstrating poor accounting and operational inefficiencies; not enabling employees to work smarter (using technology); and failing to address regulations (U.S. Small Business Administration, 2015; see also All Business, 2015).

Not all changes are dramatic, or even involve the entire organization. Some divisions, busi- ness units, departments, teams, and individuals may require varying amounts of change to increase effectiveness and obtain desired results. As we discuss in a later section, experts in change management offer particular knowledge in diagnosing and addressing issues. Although we focus on large-scale change here, we also acknowledge and discuss different types, scales, and scopes of organizational change, grounded in models and skills with which to plan and implement these strategies.

In large and small organizations, significant changes are typically not easy or linear to imple- ment. Larger changes tend to become overly complicated, especially if an organization lacks a realistic plan. Because organizational change involves people and their emotions, resistance is natural. Who wants to change jobs and routines they know? A survey of 3,199 executives worldwide found that only 1 in 3 transformational organizational change programs succeeds. Other experts estimate that between 50% and 70% of major organizational change efforts fail (All Business, 2015; Salim, 2015).

Organizational change efforts could avoid failure if leadership followed different strategic and tactical plans and implementation steps. Leadership is particularly crucial to executing an effective change program. Effective change projects call for leaders and managers who are emotionally intelligent and mindful. Such leaders need to be flexible, creative, and good com- municators who work well with people. Also, companies must not only know what types of change to watch for, but how to implement effective strategies to survive and thrive. This chapter will provide a broad overview of types of changes, the forces that induce change, and organizational frameworks for dealing with change. We begin with two of the most well- known frameworks for planned organizational change.

1.1 Kotter’s Eight-Step Approach Broadly speaking, planned organizational change is a process that moves companies from a present state to a desired future state with the goal of enhancing their effectiveness. Ultimately, the goal of planned organizational change is to improve an organization’s capabilities, thus enhancing its value to stakeholders and stockholders (Beer, 1980). Organizational leaders, managers, and employees who do not—or cannot—use change to their strategic and opera- tional advantage may see change as threatening and may resist efforts to alter a problematic situation. Those leaders and professionals who work with change specialists are more likely to view change as a competitive advantage if change is conscientiously planned and implemented.

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Section 1.1 Kotter’s Eight-Step Approach

One of the most widely used planning methods is John Kotter’s (1996, 1998, 2008) eight-step change process. This approach is used as a planning diagnostic and implementation method:

�Step 1. Establish a sense of urgency. �Step 2. Form a powerful guiding coalition. �Step 3. Develop a vision and strategy. �Step 4. Communicate the change vision. �Step 5. Empower others to act on the vision. �Step 6. Generate short-term wins. �Step 7. Consolidate gains and produce more change. �Step 8. Anchor new approaches in the culture (Kotter International, 2006).

These eight steps are vital to producing change. Each step is discussed in detail in the follow- ing sections.

Step 1. Establish a Sense of Urgency

Kotter (2008) argued that significant change generally fails if a sense of urgency is not first cre- ated and realized. The sense of urgency refers to the “pressing importance” of action needed to address critical issues—those that are essential to a group’s success, survival, or failure (Lohr, 2015). This goes against conventional wisdom, which assumes that planning processes start with a vision or goal. However, Kotter believes that individuals are not motivated with- out an initial sense of urgency. Creating one involves examining markets and competitive realities and identifying and discussing crises, potential crises, or major opportunities. Small companies and start-ups usually have a greater sense of urgency to change than do large organizations, because their very existence is at stake.

Kotter (2007) has found that more than 50% of companies fail during this first phase because executives (a) either underestimate the difficulty of moving people out of their comfort zones or overestimate their own ability to create a sense of urgency; (b) lack patience—or as some say, “Enough with the preliminaries, let’s get on with it”; or (c) become paralyzed by the pos- sible drawbacks, which can include defensiveness among employees, lack of morale among senior employees, or an overarching fear that things will spin out of control, business will suffer, stocks will sink, and they will be blamed for these and other mistakes. Kotter states the urgency rate is high enough when 75% of a company’s management actually believe that “business as usual” is no longer acceptable.

Step 2. Form a Powerful Guiding Coalition

According to Kotter (2007), the second stage of planning change is to form a powerful guiding coalition. This is accomplished by assembling a group with enough power to lead the change effort and encouraging the group to work as a team. The team can consist of top-level officers and/or involve other key influential people in the organization. Starting with one or two and including up to five people may be sufficient in large and small companies. A critical mass in this coalition is later needed for the effort to succeed.

The highest top-level executives are needed for an enterprise change initiative, with another 15 to 50 leadership members (including senior managers), depending on the size of the

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Section 1.1 Kotter’s Eight-Step Approach

company and the scope of the change. The coalition can include board members, important customers, and union leaders. Without a powerful guiding coalition, the change will likely incur opposition and fail.

Step 3. Create a Vision

This coalition next creates a vision that directs the change effort and presents a picture of the organization’s future envisioned state once the change is achieved. Not only is the vision articulated, but strategies for achieving it are clearly laid out and communicated later in the process, based on this step. The process of creating a sensible, realistic statement and strate- gies can take 3 to 12 months. Large-scale change efforts that fail either have several plans and programs but no vision or a vision that is overly complicated and “blurry.”

Step 4. Communicate the Vision

Kotter (2008) states that the coalition must actively communicate the vision, which involves using every vehicle possible to ensure that employees understand the new vision and strategies for achieving it. Communication also involves teaching new behaviors, which the guiding coali- tion should model and exemplify. Vision should be simple, crisp, and concise: A vision that can- not be communicated to someone in 5 minutes will usually not work. Effectively communicating the vision can make or break the buy-in from employees, who may be required to make signifi- cant sacrifices if the change is to succeed. Kotter notes that employees will not make sacrifices if they do not believe the change is possible. Therefore, credible communication must win so- called hearts and minds if employees are to accept the changes. Moreover, a successful vision typically includes a plan for growth and certain assurances, such as if employees are laid off, they will be treated justly.

The guiding coalition should use words and actions to communicate the vision. Leaders and coalition members must “walk the talk” rather than sim- ply “talk the talk.” They become exam- ples of the new corporate culture (an organization’s shared behaviors and values) and of its change. To that end, all types of communication channels are featured in successful transfor- mations. Messages contain essential information about business problems and the new vision and are framed and delivered to employees in interesting, exciting, and engaging ways.

Step 5. Empower Others to Act on the Vision

Communication alone, however, will not empower employees to adopt and adapt to the required changes. Enlisting competent and willing individuals to enact change is important

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If change is to be successful, the guiding coalition must effectively communicate the new vision to employees.

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Section 1.1 Kotter’s Eight-Step Approach

and is critical for success. The more people involved in trying new behaviors and changes, the better. It is therefore important to remove obstacles that hinder change. Organizational structures, compensation and performance criteria, or outdated technologies may have to be removed or altered. Obstacles can also be individuals, such as department heads or managers who do not believe in the change and/or refuse to adjust their attitudes, behaviors, and prac- tices. However, whether someone accepts or resists the change, everyone should be treated equally and in a manner that reflects the new vision (Kotter, 2007).

Step 6. Plan for and Create Short-Term Wins

Next, Kotter (2008) advises planning for and creating short-term wins, which involves estab- lishing visible and tangible performance improvements. Once these improvements are evi- dent, it is important to recognize and reward the employees that facilitated them. Change efforts are unsuccessful when executives do not systematically plan for or create short-term wins. Since large-scale transformations take time, employees need to see results around 12 to 24 months into the change; otherwise, resistance may set in.

Step 7. Consolidate Improvements and Produce More Change

After planning and celebrating short-term wins, Kotter (2008) says change leaders must con- solidate improvements and produce still more change. They can do this by using the credibility they have accrued from their expertise and experience to change systems, structures, and policies that do not fit together or with the new vision. They can also hire, promote, and train employees who can implement the vision and reinvigorate the process. It is important to note that Kotter warns about declaring victory too soon into a major change initiative and empha- sizes that real change takes time. As he says:

In one of the most successful transformations that I have ever seen, we quanti- fied the amount of change that occurred each year over a seven-year period.… The peak came in year five, fully 36 months after the first set of visible wins. (Kotter, 2008)

Step 8. Institutionalize New Approaches in the Culture

Finally, it is important to anchor and institutionalize new approaches in the culture. This means making the change accepted and established in the organization’s culture. Organizations accomplish this by increasing their performance through customer- and productivity-related behaviors. It is also important to articulate and reinforce productive and empowering rela- tionships between the new behaviors and organizational successes so that employees do not misinterpret the effects of the change. This is the first step toward institutionalizing the new approach in the company’s culture. The second step is to cultivate the means to ensure leader- ship development and succession so that future leaders understand and embody the changes.

Therefore, according to Kotter (2008), succession planning (that is, setting the next chief executive officer [CEO] and other leaders in place) is a worthy goal and one that helps an orga- nization anchor and institutionalize effective changes. When a strong leader guides an organiza- tion through an effective change but fails to select and ready a successor, the changes may not be sustained. However, finding a strong successor is easier said than done, especially for those who must follow superstars like Apple’s Steve Jobs and General Electric’s (GE’s) Jack Welch.

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Section 1.2 Organizational Development and Change Management

For example, Jeff Immelt, who replaced Welch as GE’s chair and CEO in 2001, has won over many critics who originally disapproved of Immelt’s leadership. During one of the worst economies in U.S. history, Immelt had to meet many unexpected difficulties in reshaping the company. As Immelt commented of his journey, “The trick, if you follow someone famous, is that you’ve got to drive change every day without ever pretending anything was ever wrong. It takes confidence and it takes time” (Lohr, 2015, para. 3).

Tim Cook, Jobs’s successor, has his own share of challenges in maintain- ing Apple’s dominance (see Chapter 2). Cook has effectively transitioned into his role as CEO, sustaining the innova- tions Jobs created and moving on to newer ones. Anchoring and institu- tionalizing effective transformational changes from one CEO or management team to another is not easy, but effec- tive succession planning allows compa- nies to continue approaches that have worked in the past and plan new ones to meet future environmental challenges.

Let’s now turn our attention to how planned organizational change is developed, by whom, and how an understanding of two types of change

specialists can help organizations negotiate and manage changes that occur both internally and externally.

Check Your Understanding

1. The first step in Kotter’s eight-step model is to establish a sense of urgency. How do you think companies like Apple, Amazon, and Google can create a sense of urgency when they are already leaders in their industries?

2. Kotter believes it is necessary to create short-term wins when establishing change. Why do you think this is important?

1.2 Organizational Development and Change Management

Who plans and helps architect planned organizational changes? The larger the planned change, the more top-level leaders and human resources (HR) staff are involved, especially if the change affects most, if not all, of the enterprise. Organizational consultants and change specialists are generally called in to partner with internal staff to diagnose and implement changes. Depending on the organization’s size, high-level leaders may not be heavily involved if a change involves a division, a department, or work units.

AP Photo/Eric Risberg

Steve Jobs’s successor at Apple, Tim Cook, has a dif- ficult task in living up to Jobs’s legacy and in helping Apple stay strong and competitive—but so far, he is succeeding.

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Section 1.2 Organizational Development and Change Management

In this section, we compare and contrast the two fields that created the modern principles of planned change: organizational development and change management. The approaches used by specialists in these fields are essential for achieving planned change in organizations, and these specialists are in high demand.

Organizational Development

The field of organizational development (OD) is “the practice of changing people and orga- nizations for positive growth” (OD Portal.com, n.d., para. 1). OD is the planned, organization- wide improvement of business processes to increase a company’s effectiveness and overall health. The planned changes are managed by executive leadership and based on behavioral science knowledge.

OD was the first professional field in management/organizational behavior and development to establish social science–based strategies and tools to diagnose, plan, and help business leaders implement organizational improvement changes. OD as a specialized area has been described as a “data-based process supported by survey feedback, a sociotechnical approach that is centered on job tasks and characteristics, and an interpersonal process approach led by group dynamics” (Waclawski & Church, 2002; see also Burke & Noumair, 2015, p. 16). This field differs from those such as accounting, law, or politics, because it overlaps with other fields such as organizational behavior, change management, and consulting processes. Other disciplines have a focused sense of purpose, whereas OD is always evolving and does not yet have basic boundaries or parameters, despite discussion and debate from OD practitioners regarding the nature of the field (Church, Hurley, & Burke, 1992; Friedlander, 1976; Greiner, 1980; Weisbord, 1982; Waclawski & Church, 2002).

Pioneers and those active in OD pride themselves on the inclusivity and diversity of their pro- fession’s values and methods. Organizational development specialists, many of whom are academics and organizational behavior professionals, are a major source of organizational change expertise, both theoretical and applied.

OD differs from change management in several ways. OD is based on humanistic, egalitar- ian, and process-oriented values; in short, it is grounded more in the “people side” of things. Change management, on the other hand, is based on the content-based disciplines of busi- ness, finance, strategic, and operations management. Both fields have expanded to include parts of each, while still maintaining certain subject matter expertise. Leaders and consul- tants from both fields are important and complementary to planning organizational change. We use the term specialists for both OD and change management experts. This term encom- passes consultants, practitioners, and others with expertise in these areas.

Specialists use organizational development methods that focus mainly on people and the human dimensions of organizations, such as culture, climate, leadership, and communication. These methods involve team building, survey feedback, quality of work life, restructuring work and positions, and job satisfaction (French & Bell, 1978). As the field of OD has evolved, it has incorporated change planning and interventions that also focus on structural, work process, and organizational design changes for top-level leaders as well as the entire organization.

Consider the following example of an OD specialist’s work. Suppose the leaders of a mid- size firm need to identify objective criteria for the outputs of key goals of a major division.

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Section 1.2 Organizational Development and Change Management

The CEO and the division manager want to hold employees accountable for the stated goals, the criteria underlying the goals, and the desired results from the goals. However, no one at the company has this expertise.

An OD consultant is hired to identify the criteria of each goal and articulate the goals that match those criteria. The consultant meets with the hiring manager to clarify the desired work and outcomes. She submits a proposal outlining the work to be done, how it will be done, and the anticipated deliverables. This type of project requires interviewing, examining goals and documents, and constructing criteria that support the goals. After the consultant successfully completes this project, she may be asked to train teams in that division on how to effectively implement these goals. During her work with this division, she may discover that the goals do not connect well with the company’s overall strategy. When reporting her findings to the hiring manager, she shares this discovery and perhaps extends the contract to address larger related issues in the organization.

OD specialists rely on a variety of theories, concepts, and practical applications that are dis- cussed in more detail in the following chapters. For example, specialists use systems theory. This is the idea that organizations are a system comprising interdependent subsystems that have individual components that include people, technology, work, and culture, all of which operate together to respond to external environmental changes such as competitors, custom- ers, or government regulations (Katz & Kahn, 1978).

OD specialists also conceptualize organizational systems using contingency theory, which views organizational dimensions (strategy, structure, people, work, rewards) as parts of a whole that “fit” together. Issues emerge when one of these dimensions is out of sync with the others. When all subsystems function together and fit into the external environment, the organization has a higher probability of fulfilling its goals (Burke & Bradford, 2005).

OD specialists use a wide array of skills and tools in their change work, including intraper- sonal (self-management and emotional intelligence) skills; interpersonal skills; one-on-one coaching and mentoring; group facilitating; interviewing and surveying; collecting, analyz- ing, and diagnosing data and information; problem solving; assessing; program planning; and implementing. Specialists need to look at an organizational problem in a number of differ- ent ways to accurately diagnose what is wrong and to implement the most effective strategy. Major approaches that OD specialists may take include:

• A long-term change approach that focuses on lasting effects through cultural norms; these changes include interventions that alter attitudes, behaviors, processes, knowledge, and structures.

• A top-down approach that seeks to gain top management commitment and involve- ment in order to have the authority and legitimacy to significantly effect intended changes. Although change begins at the top, it is implemented throughout the organization.

• A collaborative approach that involves professionals who are affected by the changes and support them.

• An analytical approach that examines data, diagnoses problems, and motivates change to resolve issues. Accurate diagnostic skills are a core competency of OD change agents.

• A facilitation approach that uses skilled dialogue and discussion, listening, and feedback when helping professionals identify the organization’s weaknesses and

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Section 1.2 Organizational Development and Change Management

strengths. It also involves planning for change; managing the change process; and employs implementing, coaching, and problem solving during the change.

• A design approach that helps leaders and managers develop meaningful work cli- mates in which organizational members can accomplish their goals and objectives in healthy ways (Cummings & Worley, 2015; Church, Burke, & Van Eynde, 1994).

An OD specialist may choose to join the Organization Development Network (http://www .odnetwork.org), an OD international professional association. The OD Network has commit- ted to expanding the practice and theory of OD by supporting and developing individuals who wish to practice it. It pledges to represent the discipline by promoting visibility, credibility, and influence for all members and has clearly defined core values, principles of practice, and ethics by which its members must abide.

There are several notable trends in the field of OD. One involves ensuring that process inter- ventions in organizational change are “transparent, possess integrity, treat people with dignity, and serve diverse stakeholders,” and have a primary goal of “help[ing] organizations create such processes; whether they subsequently lead to performance outcomes is of secondary import” (Cummings & Worley, 2009, p. 694). Another pragmatic trend calls for increased pro- fessionalization and the need to provide relevant expertise to organizations (Church, 2001). Management consulting in general, and change consulting specifically, is an unregulated indus- try, which means almost anyone can claim to be an expert in these fields. Certification and degrees or concentrations in these fields should be a minimum requirement for practitioners.

Finally, trends in the “context of Organizational Development” (Cummings & Worley, 2010, p. 697) indicate that the field is becoming more focused on “driving effectiveness in a broader range of organizations.” It is also helping both technical and managerial innovation, support- ing cultural diversity, and is more centered on ecological sustainability. As global, regional, national, and local economies, industries, and organizations change and evolve, so too will some change management and OD skills and practices. In many ways we are all involved in organizational change—as drivers and recipients. Hopefully, the readers of this text will become more informed and knowledgeable about change processes as a result.

Change Management

To review, OD emphasizes an organization’s human and behavioral dimensions organiza- tion (that is, explores ways to enhance motivation and productivity, which in turn enhances the organization as a whole) while, at the same time, improves the overall alignment of its systems (that is, large-scale changes are more acceptable when they are congruent with the organization’s strategy, culture, and reward system and meet employee satisfaction and effec- tiveness). We will now focus on a complementary field called change management, which has more recently expanded its domain to include both business and behavioral aspects of organizational change.

Change management encompasses the approaches used by business content and behav- ioral process specialists to help leaders move entire organizations, or units, from a present to a desired state. Whereas OD specialists focus on process (how leaders, managers, and

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Section 1.2 Organizational Development and Change Management

employees communicate, relate, strategize, sell, and solve problems) and general systems- oriented interventions (how strategy, culture, structure, accounting, and HR systems work together to meet goals), change management specialists address issues and areas such as:

• competitive business strategy; • strategic firm (HR benefits, budgeting, profit sharing) planning; • information technology (IT) and engineering solutions design and development; • IT infrastructure support; • business process engineering and reengineering; • marketing planning; • financial analysis, inventory control and analysis, work-flow analysis, and design

solutions; and • project management methods.

Part of a change management specialist’s role is to align a business’s objectives and practices with the new or desired strategy, structure, and system. To do this effectively, change special- ists must focus on both the content and process; for example, they must be concerned with how organizational leaders commu- nicate business strategy to IT teams, although this may not be their primary expertise. Change management con- sultants usually specialize in particular content areas such as strategy, manu- facturing and operations, marketing, and IT, whereas OD consultants deal with identifying and solving broader organizational integration issues—for example, structuring organizational units for effectiveness, coaching and advising leaders on communication and relational skills, working with teams to improve their project man- agement processes, and other organi- zational behavior topics.

One expert in the field noted that technical experts such as manufacturing engineers focus on how to standardize and regulate tasks, so these can be consistently repeated. Such is the role of a change management specialist. In contrast, OD specialists find that these regulations and procedures suppress creativity and cause dissatisfaction in an organization (Worren et al., 1999).

In larger organizations it is common to find change management teams from different con- sulting companies that are composed of people with complementary skills. For example, members may come from entirely different segments of a business, such as IT, marketing, engineering, and organizational design.

michaeljung/iStock/Thinkstock

Change management specialists often work in teams and must coordinate many facets of an organization to effectively execute a change plan.

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Section 1.3 Lewin’s Force-Field Analysis and Resistance to Change

Check Your Understanding

1. List five of the major skills or tools that OD specialists must use in their change work and explain why they are important.

2. Describe the major differences between OD and change management specialists. Provide an example of when each type of specialist is needed.

1.3 Lewin’s Force-Field Analysis and Resistance to Change The term resistance to change was first introduced by Kurt Lewin in his field theory and work on group dynamics (Lewin, 1947; Gravenhorst, 2003). Lewin’s force-field analysis is such a widely used method that its use has become commonplace. When used systematically, the method can help individuals, groups, and organizations understand and overcome resistance to specific changes.

Force-Field Analysis

Lewin views change as the result of opposing forces that move with and against the status quo at any given time. Change comes to a standstill when the opposing forces are of equal strength. To move the state of change in one direction or the other, one set of forces must be increased, decreased, or both. This model is based on the law of physics that holds that an object at rest will remain so unless the forces exerted on the object (to move it) are greater than the forces working against it (to keep it at rest). Therefore, behavioral change will occur if (a) the forces for change are strengthened, (b) the forces against change are weakened, or (c) a combination of the two is applied.

Lewin’s method is also used to diagnose and develop strategies to alter the dynamics of change at any stage of a change process. It is an excellent method for engaging employees and managers in identifying hidden assumptions, issues, and perceived opportunities related to a desired end state to be achieved, a plan to be implemented, or an initiative to be tested.

The following steps can be used to identify the forces for and against a particular situation, problem, or opportunity:

1. Describe the opportunity, problem, or issue. 2. Identify the desired end state. 3. List the potential benefits derived from having achieved the end state. 4. Identify the driving forces, strategies, and tactics for change toward the end state. 5. Identify the resisting forces against change toward the end state. 6. Identify tactics that can be used to weaken the forces against change. 7. List tactics to strengthen the forces for change to reach the desired end state. 8. Develop an action plan.

Figure 1.1 uses an initiative to implement a new software program to illustrate Lewin’s force- field analysis. In this situation, a consultant collaborates with an organization’s leadership team to interview and survey a work group whose support is needed to implement the soft- ware. Their opinions of the change are indicated in this figure. Those who supported the change indicated that the new software would provide added capability, while those who opposed it countered with their fear and hesitancy of the change.

Forces for change

Equilibrium Forces resisting

change

• Added capability

• Perform work more quickly

• Maintain technological edge

• Network everyone on same system

• Fear of change

• Resistance to new training

• Old habits

• No benefits of change identified

Organizational initiative:

Implement a new software

program organization wide

+ −

Figure 1.1: Force-field analysis

This chart shows the ways in which forces for change and its resistance meet in the middle at equilibrium.

Source: Lewin, K. (1997). Field theory and learning. In D. Cartwright (Ed.), Field theory in social science: Selected theoretical papers (pp. 212–230). Washington, DC: American Psychological Association.

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Forces for change

Equilibrium Forces resisting

change

• Added capability

• Perform work more quickly

• Maintain technological edge

• Network everyone on same system

• Fear of change

• Resistance to new training

• Old habits

• No benefits of change identified

Organizational initiative:

Implement a new software

program organization wide

+ −

Section 1.3 Lewin’s Force-Field Analysis and Resistance to Change

Check Your Understanding

1. List five of the major skills or tools that OD specialists must use in their change work and explain why they are important.

2. Describe the major differences between OD and change management specialists. Provide an example of when each type of specialist is needed.

1.3 Lewin’s Force-Field Analysis and Resistance to Change The term resistance to change was first introduced by Kurt Lewin in his field theory and work on group dynamics (Lewin, 1947; Gravenhorst, 2003). Lewin’s force-field analysis is such a widely used method that its use has become commonplace. When used systematically, the method can help individuals, groups, and organizations understand and overcome resistance to specific changes.

Force-Field Analysis

Lewin views change as the result of opposing forces that move with and against the status quo at any given time. Change comes to a standstill when the opposing forces are of equal strength. To move the state of change in one direction or the other, one set of forces must be increased, decreased, or both. This model is based on the law of physics that holds that an object at rest will remain so unless the forces exerted on the object (to move it) are greater than the forces working against it (to keep it at rest). Therefore, behavioral change will occur if (a) the forces for change are strengthened, (b) the forces against change are weakened, or (c) a combination of the two is applied.

Lewin’s method is also used to diagnose and develop strategies to alter the dynamics of change at any stage of a change process. It is an excellent method for engaging employees and managers in identifying hidden assumptions, issues, and perceived opportunities related to a desired end state to be achieved, a plan to be implemented, or an initiative to be tested.

The following steps can be used to identify the forces for and against a particular situation, problem, or opportunity:

1. Describe the opportunity, problem, or issue. 2. Identify the desired end state. 3. List the potential benefits derived from having achieved the end state. 4. Identify the driving forces, strategies, and tactics for change toward the end state. 5. Identify the resisting forces against change toward the end state. 6. Identify tactics that can be used to weaken the forces against change. 7. List tactics to strengthen the forces for change to reach the desired end state. 8. Develop an action plan.

Figure 1.1 uses an initiative to implement a new software program to illustrate Lewin’s force- field analysis. In this situation, a consultant collaborates with an organization’s leadership team to interview and survey a work group whose support is needed to implement the soft- ware. Their opinions of the change are indicated in this figure. Those who supported the change indicated that the new software would provide added capability, while those who opposed it countered with their fear and hesitancy of the change.

Forces for change

Equilibrium Forces resisting

change

• Added capability

• Perform work more quickly

• Maintain technological edge

• Network everyone on same system

• Fear of change

• Resistance to new training

• Old habits

• No benefits of change identified

Organizational initiative:

Implement a new software

program organization wide

+ −

Figure 1.1: Force-field analysis

This chart shows the ways in which forces for change and its resistance meet in the middle at equilibrium.

Source: Lewin, K. (1997). Field theory and learning. In D. Cartwright (Ed.), Field theory in social science: Selected theoretical papers (pp. 212–230). Washington, DC: American Psychological Association.

After analyzing the number and strength of supporters and resisters, the consultant and orga- nizational HR professional might conclude that support for change outweighs the resistance. Also, evidence from interviewing and surveying the work group may also indicate that the consultant needs to educate individuals who doubt the new software’s additional capability and technological advantages. Doing so may encourage those who were initial dissenters to embrace the change and carry it out.

The Three Stages of Change: Unfreezing, Moving/Changing, Refreezing in the Force Field

Lewin’s force-field analysis also argues that there are three stages of change: unfreezing, moving/changing, and refreezing.

The unfreezing stage focuses on creating an emotional need for change by increasing the motivation to change. Individuals are encouraged to abandon old behaviors and attitudes and become open to accepting new ones. Managers can participate in this stage by reducing barriers to change, creating incentives to change, and introducing rewards for new behaviors. Individuals begin to unfreeze old behaviors and attitudes when they can see and experience their uselessness.

For example, imagine that directors of an organization have been required to use a new finan- cial reporting system that tracks their expenses. Most do so and immediately see its benefits, which include helping them make more objective decisions about activities and resources. However, those who refuse to use the new system start to fall further behind in their work.

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Section 1.3 Lewin’s Force-Field Analysis and Resistance to Change

They feel discouraged and helpless. A few leave, whereas others realize it is time to change— that is, their attitudes and old behaviors start to unfreeze.

In the moving/changing stage, employees experience changes in their attitudes and behaviors. New information, attitudes, and skills are introduced. A new organizational vision, mission, strategy, structure, and technology facilitate new directions for change. Mentors, role models, and training assist employees in the transition from old to new attitudes and behaviors.

In the example of the new financial reporting system, responsible managers design and assign a training program with mentors to help the directors learn and adapt to the new system. The man- agers begin the training by relating the new financial system to the company’s new vision, mis- sion, and direction. This alignment process—linking the need to use the financial system to the company’s larger vision and goals—motivates the directors to change old attitudes and habits.

Finally, the refreezing stage focuses on reinforcing and institutionalizing new behaviors and attitudes. Enabling employees to practice new behaviors with appropriate rewards helps stabilize changes during this phase. Managers must ensure that the culture, structure, and reward system support the new behaviors.

The managers meet frequently with the directors and others in the company who have been positively affected by the new system. They discuss its issues and benefits. The managers also introduce bonuses and other perks to the directors and employees who have increased their productivity by using the system. An overall feeling of accomplishment and pride takes hold, and the company’s culture is revitalized.

Managing Change

Confronting Resistance

Rather than reduce a large number of staff members, a financial services company chose cost-cutting measures to weather the financial crisis. These included consolidating its office space, renting out one of its floors, and overhauling employee health insurance options. The traditional health maintenance organization was still available, but at a much higher price, which offset the company’s rising cost of providing the benefit. A new high-deductible plan was also put into place. Open enrollment usually took place every year in November, and e-mails were sent out to employees notifying them of the changes at the end of September.

Employees complained that as part of the high-deductible plan, they were required to pay more out of pocket to meet the deductible before any insurance benefits kicked in. Company executives explained the complicated process and pointed out that the company would contribute half of each employee’s deductible responsibility in a health reimbursement account and that employees could draw the other half from pretax dollars in a flexible spending account.

Serious discontent flowed through the office; groups were meeting to discuss their dissatisfaction with the company and go to HR with complaints. Some employees even left

(continued)

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Section 1.4 Driving Change in Organizations

Check Your Understanding

1. Explain why so many people resist organizational change. 2. Use Lewin’s concepts to explain how planned change can be better understood and accepted.

1.4 Driving Change in Organizations Organizational change is generally triggered by external and/or internal forces. Such forces could include special industry events, an unforeseen opportunity for company growth, indus- try trends, or any myriad of pressures from inside or outside the company. Detecting signs of external change is important, since failure to do so could cause an organization to miss oppor- tunities or fail to see impending threats. Planned change begins with learning to interpret and respond to trends that are triggered in external environments.

Macro-level external sources of change are depicted in Figure 1.2. These include government and political, economic, technological, sociocultural, and natural- and human-related forces. When planning a change, this broader level of analysis is completed before identifying more specific operational dimensions of change—that is, the particular industry and the niche of the organization in that industry.

From a change perspective, these environmental forces can have many effects on an organiza- tion’s internal systems—that is, its leaders and employees, its strategy and operating systems (IT, HR, and so on), and even its very culture. See Figure 1.3 for a depiction of the external influences on an organization’s internal systems.

To understand how organizational leaders and change specialists analyze environments, try this exercise. Think of an organization in which you work or have worked, or one you’ve learned about from the media. Then, answer these questions as you read this section.

the company because of a perceived devaluation of health insurance benefits.

Discussion Questions

1. What are some of the naturally occurring reasons to generally oppose this change? 2. Imagine you are an employee at the company who understands that these changes

are being made to avoid layoffs. You therefore accept the change wholeheartedly. How could you help other employees advance to the moving/changing stage?

3. How could the unfreezing, moving/changing, and refreezing stages be applied to this situation?

(See the end of the chapter for possible answers.)

Managing Change (continued)

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Sociocultural Forces • Demographic trends • Lifestyle changes • Availability skills • Attitudes toward work • Gender issues • Willingness to move • Ethics

Technological Forces • Information technology/the Internet • New production processes • Computerization of processes • How technology is sold and serviced

Economic Forces • Globalization • Competitors/suppliers • Currency exchange rates • Employment and wage rates • Government economic policies • Lending policies of financial institutions

Government & Political Forces • Government legislation • International law • Wars • Local regulations • Taxation • Trade unions activities

Organization

Natural Disasters & Human-Induced Forces • Weather • Extreme storms (hurricanes, tsunamis, volcanoes, earthquakes) • Pollution • Health, food, stress

Political–Legal Forces

Sociocultural Forces

Technological Forces

Internal Environment The Organization

External Environment

Informal Subsystem Managers, Culture, Norms, Relationships, Politics, Leadership

Formal Subsystem Leadership, Strategy, Management, Goals, Marketing, Operations, Technology, Structure

Economic Forces

Section 1.4 Driving Change in Organizations

Figure 1.2: Macro forces and organizational change

The five macro-level, external forces of change are economic, technological, sociocultural, natural and human-induced, and government and political. These forces produce potential opportunities or critical issues for an organization.

Source: Senior, B., & Fleming, J. (2006a). The leadership of change. In B. Senior & J. Fleming (Eds.), Organizational change (3rd ed.). Essex, UK: Prentice Hall, Figure 1.3, p. 17.

Sociocultural Forces • Demographic trends • Lifestyle changes • Availability skills • Attitudes toward work • Gender issues • Willingness to move • Ethics

Technological Forces • Information technology/the Internet • New production processes • Computerization of processes • How technology is sold and serviced

Economic Forces • Globalization • Competitors/suppliers • Currency exchange rates • Employment and wage rates • Government economic policies • Lending policies of financial institutions

Government & Political Forces • Government legislation • International law • Wars • Local regulations • Taxation • Trade unions activities

Organization

Natural Disasters & Human-Induced Forces • Weather • Extreme storms (hurricanes, tsunamis, volcanoes, earthquakes) • Pollution • Health, food, stress

Figure 1.3: Environmental influence on internal organization

The external forces of change influence an organization’s formal and informal subsystems.

Source: Senior, B., & Fleming, J. (2006a). The leadership of change. In B. Senior & J. Fleming (Eds.), Organizational change (3rd ed.). Essex, UK: Prentice Hall, Figure 1.4, p. 32.

Political–Legal Forces

Sociocultural Forces

Technological Forces

Internal Environment The Organization

External Environment

Informal Subsystem Managers, Culture, Norms, Relationships, Politics, Leadership

Formal Subsystem Leadership, Strategy, Management, Goals, Marketing, Operations, Technology, Structure

Economic Forces

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Section 1.4 Driving Change in Organizations

1. Identify an influence (or influences) from Figure 1.2 that has affected the way an organization markets, produces, sells, and delivers its goods and/or services (also see Figure 1.3).

2. Can you think of a particular way the organization changed (Figure 1.2) or must change to compete as a result of any of the environmental influences in Figure 1.3?

3. Do you buy or avoid buying any products because of how the company that makes them does business? If so, what product, what company, and what do you admire or dislike about the way it does business?

Your answers to these questions indicate changes that organizations need to make or plan for in order to meet new market and customer demands.

External Forces of Change

Let’s look more closely at Figure 1.2 to see how external forces and influences can create threats and opportunities for organizations.

Technology Forces Technology is a primary driver of innovation and change. Organizations use information technologies in their strategies and operations to gain speed, scale, scope, and reach with customers and stakeholders around the world. IT has enabled the creation of new industries, business models, professions, products, and services.

Take, for example, Google, Facebook, YouTube, and Amazon, to name just some of the promi- nent companies that have dramatically shifted customer-to-customer as well as business-to- customer relationships. Websites like Google have practically replaced the Yellow Pages and traditional map-printing companies like Rand McNally. Facebook created not only networks of friends but also those of clustered, self-promotional buyers. YouTube became an enter- tainment, educational, and journalistic resource center. Amazon took consumers from sifting through bookshelves in bookstores to online web pages—and then to Kindle.

These companies, along with PayPal, have changed the practices surrounding payment for services and products, marketing, advertising, sales, and delivery. These firms and their many uses of technology have helped shift power to customers, since they can now select from a wider and more differentiated set of websites and digital stores.

Technology not only drives changes within companies but has the ability to change industries worldwide. An example of the influence of technology on global health care comes from Zhu Ling, a Chinese student who became strangely ill in 1994. Her friend posted a description of the student’s medical condition on the Internet. After reading about her symptoms, doctors in the West diagnosed her with thallium poisoning and saved her life. Having the ability to receive diagnoses using technology is beneficial, since China had 1 general medical practitio- ner for every 10,000 individuals in 2013.

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Section 1.4 Driving Change in Organizations

Mobile technology like smartphones and iPads has profoundly impacted the way we think about and do business, as well as how we conceive of personal time in relation to work time. Mobile technology has greatly diminished the need for physical office space and face-to-face business time, and it has drastically increased the speed at which business communication and transac- tions are conducted. Because people can be reached almost anywhere and at any time, tradi- tional work hours are falling by the wayside. The print media industries—newspapers, maga- zines, and books—have also been significantly impacted by the availability of digital e-readers like the Nook and Kindle. Moreover, blogs and YouTube now complement and replace network news. Hulu and Netflix complement and may one day replace the movie theater.

Social networking technologies are changing politics and the way lead- ers interact with their constituents. It has become standard for an elected official or political figure to maintain a Facebook page and Twitter account to post updates, convey messages, and organize events. Moving forward, we can expect many social and politi- cal events—from election campaigns to grassroots social movements—to achieve their goals via social net- working technologies.

Social media is also well used in are- nas outside politics. In a 2014 report on social media marketing, 92% of marketers surveyed agreed that social media is important for their business, up from 86% in 2013. Sixty-eight per- cent of marketers plan to increase their use of blogging, which was the top investment area for marketers in 2014. Fifty-four percent of marketers use Google+, and Facebook (54%) and LinkedIn (17%) were considered the two most important social net- works (Stelzner, 2014).

Organizations, regardless of their size, are becoming more effective, efficient, connected, and “globalized” because of the Internet and related technologies. Real-time production that serves customized demand is the norm (Intuit, 2010). Many large firms with global supply chains are now networked to their suppliers, customers, and vendors through extranets and integrated internally through intranets, which are information networks that operate much like the Internet but are restricted to an organization’s employees. Extranets are intranets that also allow people outside of the business to access an organization’s system. According to Information Week, most IT managers expect a positive return on investment on these types of network infrastructure (“Intranets and Extranets,” 2011). Innovation in this field will lead to more widespread use by companies big and small.

Organizations that lag behind in their use of technology—either for production processes or to get products and services to customers in timely and efficient ways—are usually in need of

Rostislav_Sedlacek/iStock/Thinkstock

Mobile technology and devices such as the smart- phone have changed the ways we do business and consume information. To remain viable and competitive, organizations must effectively plan for how technology will continue to evolve in the future.

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Section 1.4 Driving Change in Organizations

organizational change. Changing a major production process affects other parts of an organi- zation’s internal system, from leadership to company culture, as indicated by Figure 1.3.

Economic Forces Sharing or collaborative economy companies like Uber and Airbnb offer a digital way for buy- ers and sellers to exchange products and services. This enables people to buy what they need from one another, rather than solely from corporations (Owyang, 2013). Although there are regulatory and competitive issues among rivals in this growing and changing industry, these firms are changing the ways business is done and adding to economies in the process.

As we discussed earlier, the world has become flatter, and what affects one region has direct and immediate consequences everywhere else. Previously, a troubled economy in a particu- lar country could be isolated to that region, but now it can quickly drag down economies the world over. This was evident during the Great Recession of 2008–2009. No country was spared in the fallout from the housing market crash in the United States. Likewise, uncertainty in the European Union (EU) from 2011 to the present has created economic instability in Asia and the United States. Economies and the governments that manage them are interconnected as in no other time in human history. Monitoring governmental decisions and economic con- ditions around the world has become a critical necessity for businesses of any size.

A variety of economic conditions predicted through 2020 are expected to impact both organi- zations and consumers, including an increase in consumer spending in developing countries, depleted savings in the United States, and continuing debt and deficits throughout the West- ern world that will restrain spending rates. However, global economic growth is predicted, with more than a billion new middle-class consumers who will increase spending. The information technologies discussed in the previous section will grow in demand. Both large and small compa- nies will need new businesses and business models that can meet the demands of the new mid- dle-class consumers (Etsy, 2013, 2014; Intuit, 2010) and, at the same time, meet the demands of diminishing economies.

Environmental Forces Environmental issues present another factor that drives change. Chronic smog and air pol- lution in cities throughout the world are major health hazards that must be addressed. Climate change and sustainability considerations (“green” initiatives) also present chal- lenges for organizations, but managing these forces is no longer a choice; it is becom- ing a competitive requirement, especially as companies try to dig their way out of the Great Recession or to compete in the new so-called purpose economies, in which consum- ers are interested in companies that “bring value to their lives and to society at large” (Fields, 2014).

Consider Havas Media’s Meaningful Brands Index, a ranking of consumer-conscious compa- nies. The index measures various areas of customer well-being and ranks brands accordingly. The Meaningful Brands 2015 top global performers were Samsung, Google, Nestlé, Bimbo, and Sony. A Havas Media survey of 134,000 participants in 23 countries showed that they would not care if 70% of brands disappeared because they are “ultimately meaningless” (Fields, 2014).

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Section 1.4 Driving Change in Organizations

Some companies—such as household products manufacturer Method, funding platform Indi- egogo, and media company Participant Media—are seeing higher profits resulting from the fact that they exhibit a clear purpose. This effect resonates with employees and customers throughout the value chain. Prices and resource supplies put pressure on a company’s growth, however, and influence, and are influenced by, regulation, taxes, and other restrictions that seek to reduce companies’ carbon footprints. In addition, consumers expect businesses to incorporate sustainable practices into their operations, products, and services (Fields, 2014; Watson, n.d.).

In response to these pressures, some companies are taking the lead not only to manage these changes but also to make sustaining a healthy and clean environment a goal of change man- agement. For example, Apple, Starbucks, and Procter & Gamble are committed to powering all their factories with renewable energy within the next 10 years. FedEx committed to improve vehicle fuel efficiency by 20% by 2020. Walmart has pledged to sell $1 billion of fresh produce that was sourced from 1,000 small- and medium-sized farms (Ceres, n.d.). In 2013 Hasbro (2014) obtained 85% of its paperboard packaging from recycled materials; the company ranked second in Corporate Responsibility Magazine’s 100 Best Corporate Citizens 2015 list (http://www.thecro.com/files/100BestList2015.pdf) (Hasbro, 2015; Watson, n.d.).

Corporations and organizations will be pressured to plan, budget, and implement green logic into their business strategies, production, and manufacturing. They will need to factor con- cern for the environment, sustainable energy use, and responsible waste disposal into all their strategies using the three Rs: reduce, reuse, and recycle. As technology allows for more ways to meet these environmental concerns, companies will be well served to remain on the innovative forefront by seeking cost-effective ways to implement such technologies. Manag- ing change in this regard will help companies become more efficient and appeal to a growing consumer base.

Some industries and companies do not practice sustainable clean air and water strategies in their operations. Supporters of environmental sustainability contend that industries and firms that use coal particularly contribute to pollution (Johnson, 2011). It can be expensive to convert to clean energies and sustainable business practices, and pollution and other unhealthy consequences can result when governments do not offer industries and companies incentives to change.

Health Care Forces With an aging population, ever-evolving medical innovations, and consumer demand for the highest quality medical products and services, the cost of health care has continued to rise at an alarming rate, with no end in sight. Globally, health spending is estimated to have cost $7.2 trillion in 2013, or 10.6% of the global gross domestic product (GDP). It is estimated that this spending will rise approximately 5.2% per year from 2014 to 2018, up to $9.3 trillion (Deloitte, 2015).

These costs will likely increase the national debt in the United States and compete with funding for other government programs. Likewise, businesses are saddled with escalating insurance premiums for their employees, which contributes to a flattening of real wages and handcuffing what companies can offer in terms of compensation and benefits packages. It has

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Section 1.4 Driving Change in Organizations

yet to be determined what ultimate effects the Affordable Care Act, passed in 2010, will have on these issues.

However, one thing is certain: Companies will have to manage change on this front better than ever before. Health care expansion will present business growth opportunities, but it will also present potential dangers. Change management will be critical in determining these outcomes.

Government and Political Forces Organizations and companies will also continue to cope with and respond to external politi- cal and governmental changes. Such uncertainty stems from regime changes, wars, terrorism, and global economic instability. Political unrest can have the same effect as economic unrest. A Harvard report on competitiveness illustrates business leaders’ opinions of actions they would like to see the government take to cope with uncertainty, including controlling fed- eral spending, reforming the tax code, and streamlining regulations. Divisive politics that do not address the root causes of lack of competitiveness prevent productive change (Denning, 2013).

In this volatile era, the U.S. government waivers between a lowered and less-than-acceptable credit rating from the Standard & Poor’s credit rating agency. This signals a need to continue to decrease unemployment and increase job creation—particularly in critical sectors such as engineering, manufacturing, and technology; decrease the national debt; rebuild infra- structures; restructure the education system; and balance regulation with innovation in the financial, banking, and investment industries. At the same time, EU countries must absorb the soaring debts of several member countries like Greece and Italy. Corporate leaders must think innovatively to move their economies forward; this will involve investing in new industries and creating new jobs.

Generating positive change in such unstable political and economic times is not easy. Accord- ing to the Global Competitiveness Report 2014–2015 (Schwab, 2014–2015), the United States ranked third in competitiveness, behind Switzerland (first) and Singapore, and was followed by Finland, Germany, Japan, Hong Kong, Netherlands, Sweden, the United Kingdom, and Norway. The United States rose to third from its fifth-place ranking in 2013, while Japan climbed from ninth place to sixth. Increasing global competitiveness will require innova- tive and bold organizational strategies and structures to meet external opportunities and demands. Transformational change is needed, which is discussed in a later section.

Sociocultural Forces Brainpower and talent are the keys to reigniting corporate and economic growth and pro- viding opportunities for a new generation of students. At the same time, companies must provide meaningful and challenging work to employees who value learning, ethics, and flex- ible working conditions. Work/life and work/family issues are also major sources of work- force and workplace change. The increasing number of women (single with children and married with children) in the U.S. workforce has pressured management to rethink work schedules. Male and female employees from the “sandwiched generation”—so called because they are tasked with caring for both their children and their aging parents while working full

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Section 1.4 Driving Change in Organizations

time—will require and benefit from flextime, telecommuting, and other forms of virtual work arrangements.

The modern workforce features aging workers and the physically chal- lenged, highly skilled and unskilled international entrants, and dual- career couples with children. All of these changing demographics pres- sure management to think outside the box in terms of what organizational changes are needed to attract and retain an increasingly diverse and, in many instances, technologically savvy workforce.

Globalization Forces With China’s quest for competitive research and its excellence in its man- ufacturing development growth, and

India’s presence as a high-volume, low-cost labor manufacturer, Western countries are being pressured to find even more ways to innovative and compete. China is now the second largest economy. The Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan) have emerged as advanced economies that serve as financial centers and IT innovators. This change, along with new technology, has enabled low-cost international competitors to drive down business costs and thus force companies to streamline structures and change strategies and business practices.

The firm PricewaterhouseCoopers estimates that China will overtake the United States as the largest economy in purchasing power parity (PPP) terms by 2017 and in market exchange rate terms by 2027 (Hawksworth & Danny, 2015). It has been estimated that by 2050, India will become the third global economic giant and Brazil will rise to fourth. Russia may become the largest European economy in PPP by 2020 and in market exchange rates by 2035 (Simha, 2014).

Although there are many negative aspects of globalization, there are many positive aspects too. As discussed earlier, international economies are more interrelated than ever before. International investments and movements in the U.S. stock markets affect American pension funds, corporate earnings, and market forecasts. Industry regulation and deregulation (espe- cially in telecommunications, banking, financial services, and the airlines) continue to stir large-scale downsizing and company restructuring. Mergers, acquisitions, and consolidations within and across industries have also created significant organizational change. Competition remains an important driver of organizational change on the global stage, as well as in local communities. Because of the Internet and information technologies, local communities are now global in reach.

Monkeybusinessimages/iStock/Thinkstock

Telecommuting and flexible schedules are among the ways companies are adapting to sociocultural forces.

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Section 1.4 Driving Change in Organizations

Organizational and Managerial Responses to Change

Companies have responded to the external forces of change in a number of ways. Some firms have surrendered. For example, Borders closed because its brick-and-mortar book- stores could not compete with the handheld, Internet-connected devices and services pro- vided by companies such as Amazon. Other organizations like Ford, Sun Microsystems, International Business Machines Corporation (IBM), Mitsubishi, and GE have strategically responded to external changes with innovative organizational structures, including net- works, strategic alliances, and virtual corporations. Solutions and pathways to navigat- ing change will definitely involve different information and communication technologies (Grajek, 2015).

Businesses understand that they must change in order to survive and succeed in today’s envi- ronment and are thus working to become more streamlined, ecologically sustainable, and responsive to external demands. They are striving to be more proactive and taking the initia- tive in managing change (Cummings & Worley, 2015).

It is important to point out that not all organizations will or should respond to external environmental change, and not in the same way. The external environment is not always a completely objective phenomenon. The ways in which the environment is perceived and responded to depend on individual interpretations—in this case, the interpretations of orga- nizational leaders and managers. How leaders and managers perceive pressures and forces in their environments affects whether and how they develop change strategies to respond (Smircich & Stubbart, 1985).

Type 1 and 2 Errors Boyd, Dess, and Rasheed (1993) identified two types of errors that leaders and managers can make in perceiving and acting on change. A type 1 error occurs when the environment is stable, but leaders and managers perceive it as turbulent and take unnecessary actions in response. A type 2 error happens when leaders and managers perceive the environment as stable when in actuality it is turbulent, and they fail to take necessary actions, thus threaten- ing the survival of their organizations.

An example of a type 1 error occurred in 2003 when President George W. Bush and his cabinet, with congressional approval, hastily declared war on Iraq based on the belief that its regime possessed weapons of mass destruction and intended to use them against its neighbors and the United States. This was shortly following the terrorist attacks of September 11, 2011, a time of high anxiety and upheaval. After years of war it was ultimately found that Iraq had no weapons of mass destruction; the costs from this misperception were and continue to be substantial.

An example of a type 2 error occurred when U.S. auto manufacturers perceived the environ- ment in the 1980s as stable and failed to design and manufacture four-cylinder fuel-efficient cars, as opposed to the Japanese, who later won and maintained a sizable market share in the U.S. auto industry as a result of their first-move advantage with quality cars. The lesson is that trends and forces in the external environment must not only be monitored but also carefully scrutinized in conjunction with governments and companies. Individuals can also learn from type 1 and 2 errors when perceiving and planning a change.

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Section 1.4 Driving Change in Organizations

Balancing Forces for Change and Stability Organizational leaders and change specialists must consider the interaction and balance between the forces for change and for stability. The need or drive for change can sometimes be exaggerated or romanticized. In their consideration of hypercompetitive environments, Leana and Barry (2000) argued that there are forces for stability and for change, and both are essential for an organization’s long-term functioning. Table 1.1 lists these forces and the balancing effects of each in organizations.

Table 1.1: Change and stability forces

Forces for change Forces for stability

Competitive advantage: flexible and responsive to changing markets

Predictability and uncertainty reduction: stability enables, rather than impedes change

Control: less hierarchy and more power through management performance targets

Organizational social capital: trust among employ- ees is created as an asset

Impatient capital markets: short-term investments favored over long-term ones

Sustained advantage: created through stable inter- actions over time

Cost containment: Human resources seen as a cost, not an asset

Transaction costs: stability creates rational invest- ment in employee development

Environment adaptability: stability impedes adapt- ability; flexibility adapts to change

Institutionalism: power structures self-perpetuate, solidify relationships and practice

Source: Leana & Barry, 2000; Palmer, Dunford, & Akin, 2009.

Whether organizations need to change, and to what extent, involves the need to balance per- ception and decisions with wisdom and experience. As Figure 1.1 shows, performing a force- field analysis is one way that leaders, managers, and individuals can address if and to what extent it is helpful to move forward with a change to part or all of an organization. Table 1.1 shows the forces at play that can help decision makers weigh the benefits and costs of a change.

Note in Table 1.1 that competitive advantage as a force for change is counterbalanced by the need to achieve predictability and reduce uncertainty. Competitive advantage requires organi- zational flexibility and responsiveness, but effective organizations also require stability and cer- tainty to thrive. Although control as a force for change means less hierarchy and more emphasis on performance targets, organizational social capital requires employers to develop and nourish coworker trust, which is an invisible force for stability. Impatient capital markets that demand immediate, short-term investment are indeed a force for change, but organizations also need to have sustained advantage that is gained over time through stable organizational relationships and interactions. Finally, organizations that wish to become competitive must adapt to multiple environments, but at the same time, organizations need to rely and draw on institutionalized best practices of what worked well in the past, including sound relationships.

In summary, macro external forces affect organizations’ operational and internal environ- ments. Trends, events, and crises that occur in the global, technological, economic, govern- mental, political, and demographic/social environments influence organizations. These influences are felt by organizations through changing markets, laws and regulations, finances, natural disasters, and so on. Leaders and managers must create and change visions, strategies,

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Section 1.5 Types of Organizational Change

structures, systems, and talent to compete and survive in their industry sectors. Organiza- tions that excel in changing environments have become more streamlined and nimble, more responsive to external and customer demands, and more ecologically sustainable. They have also adopted information technologies in their marketing and operations to enhance speed, scale, and reach.

It is important to consider those dimensions of an organization that need to be balanced with change forces. As a student of organizational change, your skills include the ability to identify which environments are exerting changes on organizations and, as this course progresses, to suggest different types of changes and change strategies that organizations can use to respond to environmental opportunities and threats. In the next section, we present specific types of organizational change that are used, depending on relevant criteria.

Check Your Understanding

1. Find an example of a company that changed due to one of the external forces discussed in this section. What was the force, and how did the company change?

2. Explain why forces for stability and forces for change are essential to organizational functioning.

1.5 Types of Organizational Change Not all changes are the same. The nature of change and change frameworks presented here illustrate these differences. Some frameworks overlap and are complementary, whereas oth- ers have dissimilar change philosophies and approaches. However, all illustrate the multiple perspectives change specialists can use to understand change and gain insight into the types of interventions and strategies for effectively responding to it.

At the most general level, Ackerman and Anderson (2010) identified three types of change: developmental, transitional, and transformational.

Developmental change involves improving what already exists. For example, an organization may improve on a previously established process, such as an HR policy regarding employee leave time or a marketing department’s procedure for sharing expertise on certain projects. The change does not have to be large or complex. Consequently, little stress is created with this type of small-scale change.

Transitional change involves achieving a known desired state that is different from the existing one. Examples of this more intrusive, larger change include organizational mergers or replacing an established process with a new one, such as installing a new technology sys- tem. Such changes can shake up an organization’s culture, disturb relationships, unsettle jobs, and require retraining and hiring.

Finally, transformational change involves the emergence of a new, unknown state for the organization. Examples of such changes include a shift in radically different markets that require a new strategy and skills, a move to incorporate bleeding edge technologies, or a new CEO and top-level team that change the company’s structure and culture.

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Section 1.5 Types of Organizational Change

This model differentiates among the three types of change, each of which has a distinct pur- pose, requires different change interventions, and presents unique risks. The following mod- els expand on these three fundamental change types.

Dunphy and Stace’s Four Levels of Change

After determining whether the desired change is developmental, transitional, or transforma- tional, it is helpful to refer to Dunphy and Stace’s (1993) four levels of change.

Level 1—fine tuning. This involves an ongoing process of matching and fitting an organiza- tion’s strategy, structure, people, and processes with the environment. This type of change occurs more at a divisional and departmental level, although for some firms like Alibaba, the enterprise is involved. It includes such activities as refining policies, methods, and pro- cedures; developing personnel; fostering group and individual morale; and commitment to the organization’s mission and departments. Fine tuning has traditionally required minimal effort and resources.

Level 2—incremental adjustments. These are predictable changes within the organization that evolve slowly and systematically at a constant rate over time to fit the external environ- ment. No radical changes are needed, but modifications are made, such as shifting emphasis among products, expanding a sales territory, and modifying a mission statement to employ- ees. Incremental adjustments and fine tuning are comparable to developmental change. As Ashkenas (2015) observes, change management refers to implementing predetermined ini- tiatives that may or may not affect the entire organization; focus is placed on making a well- defined change to a process or procedure.

Ashkenas (2015) provides an example that illustrates how a large technology company integrated specialized engineers into regional sales teams, which involved changes in roles, client assignments, compensation, goals, and teamwork. Hundreds of people were affected, but well-known change management principles and tools were used, including (a) making a case for the business change, (b) building a coalition of leaders, (c) showing early results, (d) involving stakeholders, and (e) executing by plan and with discipline. The new sales approach was effectively implemented and showed improved results.

Level 3—modular transformation. Organizational change is radical in modular transforma- tion, but it is focused on subparts rather than on the entire organization. Examples of this level of change include restructuring departments or divisions, changing key executives’ and managers’ responsibilities, and introducing a new business process. This type of change is related to transitional change.

Level 4—corporate transformation. Like transformational change, corporate trans- formation involves a radical shift in the business strategy and changes to the company’s vision, mission, culture, and systems—the company may essentially be reinvented. The plan and projected outcomes are more unpredictable, and there is experimentation and risk. New executives and key management positions are often recruited from the outside. Most, if not all, of the organization’s internal systems and dimensions are affected. Kot- ter’s eight-step change process addresses this type of planned change. At this level of

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Section 1.5 Types of Organizational Change

change, “a portfolio of initiatives, which are interdependent or intersecting” (Ashkenas, 2015) are involved, and the change may not produce the desired outcomes.

For example, when Meg Whitman became CEO of Hewlett-Packard (HP) in 2011 and then chair in 2014, she realized she would be leading a transformational turnaround for one of the world’s largest computer and printer firms. With stocks trending downward and the company operating according to a seemingly confused strategy, she moved forward with her predecessor’s plan to divide HP into two companies: an enterprise-computing technologies company and a consumer products company, which sells products such as personal comput- ers and printers (Chenmay, 2015). The journey is not over, and though industry analysts have mixed reviews, Whitman remains in charge for now.

Managing Change

Organizational and Managerial Response to Change

Suppose you oversee marketing and communications for a consumer bank. The business environment in the banking industry has undergone remarkable changes in recent years, given the merging and acquisition of companies, the effect of the economic recession on consumers, and the reputational impacts of corporate misconduct by banking executives, which in some cases has required extensive publicity campaigns and rebranding. In addition, the proposal of many national banks to charge fees on accounts is challenging customer attitudes about your bank.

In a reactive decision, you and top leadership have decided to implement a new website with rapid-response online customer service functions. The goals are to strengthen competitive advantage, increase customer loyalty, and respond to growing consumer demands for adequate attention to customer needs.

Technology frequently drives the need for organizational change, and IT is an integral part of change management within companies. Not only is the proposed change IT based, but technology can also be used to manage the change internally. In addition, the change will not only involve the IT department, but should be integrated with many other departments so that everyone embraces the goals of the plan and the firm overall—a mark of an effective organization.

Discussion Questions

1. How do you get employees on board, both regarding the planned change’s urgency and the skill sets needed to implement it?

2. How will you communicate this change to employees and stakeholders? 3. What areas of the company will you direct the change management team to align in

order to achieve this objective? 4. Which levels of change are involved in this type of initiative?

(See the end of the chapter for possible answers.)

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Transformation Realignment

Nature of Change

End Result

Revolution Reconstruction

Evolution AdaptationIncremental

Big Bang

Section 1.5 Types of Organizational Change

Balogun and Hope-Hailey’s Change Model

Balogun and Hope-Hailey’s (2004) model includes four types of change that combine into four strategies. Figure 1.4 illustrates these different types, which are organized along two axes: “nature of change” on the vertical axis and “end result” on the horizontal axis. The two clas- sifications of change under nature of change are incremental and big bang (a sudden change that occurs all at once). Such change can be significant in size, scope, and impact, depending on the situation. The two classifications of change under the end result perspective include transformation and realignment. Transformational change, as discussed earlier, has a sig- nificant impact on organizations, including their culture, people, and systems. Realignment types of change involve adjustment but do not generally entail a fundamental reassessment of the central assumptions and beliefs in an organization’s culture. Still, a major restructuring can have a large impact on an organization (Balogun, 2001).

The four strategies for estimating the nature of a change and the desired end result are as follows:

1. Evolution: when the change is incremental but the end result is transformation. This strategy suggests proceeding in a progressive way by analyzing the internal and external environments while implementing the change. An example would be imple- menting a new software system in a division over a 2-year period.

2. Adaptation: when the change is incremental and the end result is realignment. This has the least intrusive impact on the organization and is the most commonly used. Examples include installing software applications, revising job descriptions, and using online training.

3. Revolution: when the change is big bang and transformational. For example, sup- pose a company is acquired by another firm. The new owner might request that the current leaders and managers change the vision and mission, and then replace a majority of the workforce.

Figure 1.4: Balogun and Hope-Hailey’s change model

Balogun and Hope-Hailey’s change model demonstrates the end results of immediate changes and those that occur over a longer period of time.

Source: Balogun, Julia; Hope Hailey, Veronica; Johnson, Gerry; Scholes, Kevan. Exploring Strategic Change, Third Edition. Fig. 2.2, p. 20. Copyright © 2008. Reprinted by permission of Pearson Education, Inc., New York, New York.

Transformation Realignment

Nature of Change

End Result

Revolution Reconstruction

Evolution AdaptationIncremental

Big Bang

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Section 1.5 Types of Organizational Change

4. Reconstruction: when the change is big bang combined with realignment. Recon- struction change strategies include cost cutting and sometimes downsizing. Focus will also shift to external markets but is also used symbolically to manage how change is perceived. For example, a university may start hybrid courses that combine online and in-class sessions. The strategy is to move more to online students but at the same time send the message that traditional courses are intact. The organization may experience turmoil as in a turnaround or large expansion, although the basic business model may remain intact.

These strategies allow change to be classified based on its extent and how quickly it should be accomplished.

Proactive Versus Reactive Changes

Organizational change can occur by choice or by force—in other words, it can be proactive or reactive. Proactive change occurs when an organization changes the workplace and its practices so as to avoid possible issues or to capitalize on a future opportunity. Reactive change is imple- mented in response to an issue or opportunity that has occurred (Williams, 2005).

Whether a change is proactive or reactive change can depend on a lead- er’s style in responding to change. Although change can be a disaster or crisis, it can also be less dramatic. Orga- nizational leaders deliberately choose proactive responses for different motivations, such as when the leader thinks there will be more gain than loss by actively responding to change; believes the risk taken by respond- ing can lead to even greater gains; or chooses to proactively respond even if losses will be incurred. Promis- ing market share growth, increased resources, and gaining ground with competitors are factors that encour- age proactive change responses. For example, in 2010 leaders of Groupon declined a $6 billion offer to be bought by Google.

Groupon’s owners and investors judged its short track record and potential to be of more value than Google’s offer. Groupon’s business model, which is more recognized now than a few years ago, is unique:

Groupon takes the old Entertainment Coupon Books that your mom used to buy and brings it to the social web. Groupon sells a “Deal of the Day” in each of its now 52 supported cities offering significant savings for local restaurants, service providers, activities and memberships, and takes a commission. The

AP Photo/Mark Lennihan

Andrew Mason, founder and CEO of Groupon, saw the company’s stock climb by nearly a third after rejecting Google’s offer to buy it in 2010. Since then, however, the company’s revenue from its “daily deals” has not grown, and investors are mixed on whether refusing to sell was the right decision.

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Section 1.5 Types of Organizational Change

trick is that the deal is only “triggered” once enough people buy in. This cre- ates the incentive to share the deal with friends and family, until “the deal is on.” It’s great for local businesses because they can set the parameters for the offer and they know a minimum for how many offers they will have sold in advance. (Carpenter, 2010)

Although the company started with a bang, especially with its initial public offering, its rev- enue from daily deals has not grown since 2011. The company launched Groupon Goods, in which it sells an array of discounted items, from iPhones to jelly beans. This business earns the majority of Groupon’s income, but the margins are only 20% for goods, in comparison to 88% for daily deals (Griffith, 2015). In the spring of 2015, the company was valued at an estimated $4.9 billion. Therefore, analysts and investors are divided over whether Groupon should have sold to Google for $6 billion.

Reactive change often occurs when external or internal influences pressure organizational leaders to respond. British Petroleum (BP) was slow to assume responsibility for its role in a disastrous oil spill in 2010. Similarly, Exxon avoided responsibility in 1989 when its tanker, the Valdez, hit a reef in Alaska, causing the largest oil spill in American history. Exxon’s CEO was hesitant to address the crisis directly, and afterward in court the company attempted to lay the blame on the ship’s captain, an Exxon employee. In a different example, Bill Gates chose not to go to court when Microsoft was charged with antitrust violations in early 1991 and continued responding to legal inquiries and lawsuits until 2001, and later with the Euro- pean Union from 2004 to 2008. He and his leadership team reacted defensively but eventually responded by making several technical changes to products.

All of these companies have since recovered, although great damage was done to the environment, some competitors, and communities. When responding to crises, many corpo- rate executives are cautious about admitting blame, so as to avoid costly liability. However, it is interesting to note that crisis management experts advise corporate leaders to actively respond, face the facts, and communicate honestly and directly with all involved— including victims—and then act responsibly to help resolve a crisis. Acting with deliberation and com- passion can sometimes decrease the costs—emotional, reputational, and financial—it takes to resolve crises.

Reactive leadership styles to change based on studies of crises indicate that the consequences to stakeholders are neither positive nor beneficial in the short or long term (Markovich, 2015). However, proactive leadership is more often preferred, since being proactive is more likely to herald solutions while decreasing stakeholder reactions. Reactive leaders act in fran- tic ways, since they are affected by constant activity while striving to meet company goals as best they can. Proactive leaders try to champion company missions and meet organization goals mindfully and with greater ease. Reactive leaders respond—or react—with events as they occur and often without a big-picture perspective; proactive leaders anticipate and plan accordingly. Proactive leaders also often show good citizenship, which increases a company’s social and reputational capital (Markovich, 2015).

Strategic Change Versus Tactical Change

Strategic versus tactical changes relate to the models presented earlier. Level 1 of Dunphy and Stace’s model and developmental changes are more likely to require tactical (hands-on)

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Section 1.5 Types of Organizational Change

specialist and managerial knowledge and expertise than changes that are transitional, trans- formational, or level 3 and 4 changes. Transformational, transitional, and level 3 and 4 changes require leadership styles that feature long-term thinking and vision, excellent people skills, and strong problem-solving skills.

Two organizations that have effectively handled strategic change are EMC Corporation and IBM. In the 1980s both companies were forced to change their direction, strategies, and mar- ket niches to survive and remain competitive. EMC, a leading information storage firm head- quartered in Massachusetts, decided to extend its direction and strategy into the software business. Based on the anticipation that the storage business had a lot of competition, EMC decided to spread its risk and venture potential gain.

When IBM extended its strategy from being a hardware firm to also becoming a global e-services technology company, it recruited new leadership and successfully expanded its vision, mission, and sales strategies. In 2015 IBM ranked 5th on Forbes’s World’s Most Valu- able Brands list and 44th on Forbes’s Global 2000 list (Forbes, 2015). EMC is ranked 222nd on the latter list, with a market capitalization of $52 billion. Both companies continue to effec- tively change according to their environments and the competition.

Tichy’s Three Types of Change

Tichy’s (1982) framework explains change from a combination of external forces (technical, political, and cultural) that affect internal organizational systems. Figure 1.5, based on Tichy’s work, summarizes his views from a change specialist perspective.

The technical system refers to external changes that influence an organization, such as tech- nological and economic pressures. Many of these external influences include IT systems such as enterprise resource planning and systems, applications, and products software that helps improve the enterprise’s operational efficiency and productivity of its business processes, to accommodate the external changes.

The political system includes pressures for change that relate to power, influence, and resource distribution. This dimension also refers to the organization’s internal system, in terms of who the new sources of authority and power are and who will distribute rewards and allocate resources. The cultural system includes the norms and values shared by the members of an organization. Cultural forces for change also include the demographic com- position and cultural diversity of the labor pool, and societal values. Internally, the organiza- tion’s employees, cultural values, relationships, and norms must align to the change.

Tichy (1982) argued that organizational leaders can successfully adapt to external change by strategically aligning their three basic organizational areas to specific pressures from these three systems of change. The three organizational areas include (a) the mission and strategy, which define the organization’s purpose, goals, and strategies, and the managerial processes used to implement them; (b) the organizational structure, which includes the means by which tasks are arranged, the employees who are coordinated to do the work, and the managerial processes that align structure and people; and (c) HR management, which refers to recruit- ing, selecting, hiring, training, evaluating, and developing people and systems to fit employees with other organizational systems.

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Section 1.5 Types of Organizational Change

Figure 1.5 demonstrates that when considering particular pressures from the technical sys- tem, leaders must be prepared with a change plan that addresses the following questions regarding the management area of their mission and strategy: Do the change plan and its accompanying interventions accommodate the new mission and strategy? Has an objective analysis been conducted inside and outside the organization to determine the new fit? The change plan should also address the following political pressures exerted on the organiza- tion: Have key stakeholders been informed of, and are they aligned with, the change’s strat- egy and direction? Finally, the change plan should address the key cultural question—that is, has the new vision, mission, and strategy been defined with the organization’s values?

Figure 1.5 also describes key questions that can be asked about a particular change plan by the organizational structure and the HR management system, as well as technical, political, and cultural forces that pressure an organization to change.

Managerial Areas Mission, vision, and strategy

Organizational dimensions: structure and systems

Human Resource management system

Change Forces

Technical system Does the change strat- egy accommodate these dimensions: new vision? Mission? Strategy? Has an objective analysis been conducted inside and out side the organiza- tion to determine the new fit?

Does the change strategy, invention fit with the new culture? Values? Structure? Systems? Have new roles been integrated into division, regions, departments?

Have performance crite ria been designed into new roles? Do people understand and accept their new roles and responsibilities? Is there training available for these adjustments?

Political system Have key stakehold- ers been informed and aligned to the new strat egy and direction of the change?

Has power been dis- tributed across func- tions, departments, business units, and roles?

Have reward, appraisal, and promotion sys tems been rede- signed, updated, and realigned? Are new reporting sys tems in place?

Cultural system Has the new vision, mission, and strategy been defined with regard to the values of the organization?

Are new leadership and managerial styles defined and aligned with the new culture, structure, and systems?

Have the right people been selected to develop and embed the new values and culture? Will people be rewarded for new behaviors?

Figure 1.5: Tichy’s change framework

Tichy believed that leaders who adapt to external change are successful because they align their mission and strategy, organizational structure, and HR management to pressures from technical, political, and cultural forces.

Managerial Areas Mission, vision, and strategy

Organizational dimensions: structure and systems

Human Resource management system

Change Forces

Technical system Does the change strat- egy accommodate these dimensions: new vision? Mission? Strategy? Has an objective analysis been conducted inside and out side the organiza- tion to determine the new fit?

Does the change strategy, invention fit with the new culture? Values? Structure? Systems? Have new roles been integrated into division, regions, departments?

Have performance crite ria been designed into new roles? Do people understand and accept their new roles and responsibilities? Is there training available for these adjustments?

Political system Have key stakehold- ers been informed and aligned to the new strat egy and direction of the change?

Has power been dis- tributed across func- tions, departments, business units, and roles?

Have reward, appraisal, and promotion sys tems been rede- signed, updated, and realigned? Are new reporting sys tems in place?

Cultural system Has the new vision, mission, and strategy been defined with regard to the values of the organization?

Are new leadership and managerial styles defined and aligned with the new culture, structure, and systems?

Have the right people been selected to develop and embed the new values and culture? Will people be rewarded for new behaviors?

Source: Based on Tichy’s Strategic Management Mix; from Tichy, N. (1982). Managing change strategically: The technical, political and cultural keys. Organizational Dynamics, 11(Autumn), 59–80.

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Section 1.6 Organizational Effectiveness Frameworks

Managing Change

Becoming a Truly Global Organization

As the strategic planning leader of a midmarket heating, ventilation, and air-conditioning manufacturing company, you are facing increased competition with emerging market manufacturers of very similar products. Your company weathered the Great Recession based on customer loyalty and a strong organizational structure built on a history of good performance and efficiency. You are predominantly U.S.-based but have some international customers. You must keep costs stable to generate growth, but you recognize the scale of business has enlarged and demands change.

The solution agreed on in the organization is to go global. Although this effort will incur up- front costs, the consensus is that it is a worthwhile long-term investment. But how do you become global? Your company decides to send unit managers to Brazil, Russia, India, and China (the BRIC nations), as well as Indonesia, Taiwan, and Thailand, to assess the business environments and leading companies active in these countries. However, it is important to keep regulatory issues and differences in mind, as well as the risks associated with third- party suppliers of companies with whom you will potentially do business. Also key to doing business abroad is a clear understanding of the labor markets in those companies’ headquarter countries.

Discussion Questions

1. As you embark on this initiative, how will you manage costs? 2. To achieve the goal of the needed change, what changes will you propose

in the technical system, political system, and cultural system in your organization?

3. How will you utilize the four strategies in the change model to anticipate the effects of this change?

4. Since there are risks associated with doing business in emerging markets, how will you be proactive in your dealings with new companies?

(See the end of the chapter for possible answers.)

Check Your Understanding

1. Describe Ackerman’s three types of change. Have you experienced any of these types of change in a company that you have worked for? If so, please describe the change and its implementation. If not, find an example of one of these types of change and describe the change and its implementation.

2. List the advantages and disadvantages of proactive change and reactive change. Which type of change do you feel is more beneficial to organizations?

1.6 Organizational Effectiveness Frameworks What criteria determine an organization’s effectiveness, especially if the leaders decide a planned change is needed? For-profit organizations—which are publicly traded on the stock exchange and have obligations to shareholders—and privately held firms are driven by

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Section 1.6 Organizational Effectiveness Frameworks

revenues and profits, market share, growth, product quality, competitiveness, customer satis- faction, and social (as well as financial) responsibility to the stakeholders and communities in which they operate, pay taxes, and do business. Public organizations that serve the interests of stakeholders and society are driven to fulfill their missions and responsibilities to those who fund and support them, as well as to those whom they serve.

An important part of this field of practice is understanding what motivates organizations— and their owners, leaders, and teams—to change (or not change). Not all constituencies in organizations seek, promote, and sustain change for the same reasons, if at all. This concern is considered in some of the following frameworks.

There are many effectiveness frameworks and models that apply to both private, for-profit, and nonprofit, public organizations. The three classic and contemporary approaches pre- sented here and referred to throughout the book are: (a) the balanced scorecard (Kaplan & Norton, 1992, 2004); (b) the contingency approach (Fiedler, 1967; Weisbord, 1987); and (c) stakeholder theory (Freeman, 1984).

Balanced Scorecard

Kaplan and Norton’s (1992) balanced scorecard is one of the most popularly used align- ment frameworks. Corporations from around the globe use it to track and align performance at the individual, team, and division levels to the enterprise’s overall vision and strategy. Bain & Company reported that by 2002 the balanced scorecard was used by 50% of the Global 1000 companies (Calabro, 2001; Norton, 2010). Another survey showed that 62% of organizations used the balanced scorecard’s approach and strategy maps as their main orga- nizational framework (Balanced Scorecard Institute, 2011).

The scorecard is a contemporary, electronic version of contingency theory. As Figure 1.6 shows, the balanced scorecard adds “strategic non-financial performance measures to tra- ditional financial metrics to give managers and executives a more ‘balanced’ view of orga- nizational performance” (Balanced Scorecard Institute, 1998–2011). The idea dates back to the 1950s with the work of French engineers and to GE’s measurement system in the 1990s.

As the Balanced Scorecard Institute (n.d.) notes, this approach evolved from a simple per- formance measurement model to a complete strategic planning and management system. The framework is currently used to transform organizations’ strategies into implementation guidelines. It is a management system, not just a measurement system.

Kaplan and Norton (1992) state that though the balanced scorecard still contains traditional financial measures, these measures alone are not enough. They cannot help leaders guide and evaluate the process of creating future value by investing in customers, suppliers, employees, processes, technology, and innovation (Kaplan, 2010).

Four Perspectives The four perspectives of the balanced scorecard, illustrated in Figure 1.6, include the finan- cial, customer, learning and growth, and internal business processes. The scorecard uses these perspectives to view organizations, develop metrics, and gather data for analysis.

Figure 1.6: Balanced scorecard

The balanced scorecard incorporates performance measures relating to financial, customer, learning and growth, and internal business processes with financial metrics to provide a balanced view of the organization’s performance.

Source: Balanced Scorecard Institute. http://www.balancedscorecard.org/ Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a strategic management system,” Harvard Business Review (January–February 1996): 76.

Financially “To succeed financially, how should we appear to our shareholders?”

Internal Business Processes “To satisfy our shareholders and customers, what business processes must we excel at?”

Vision and Strategy

Customer “To achieve our vision, how should we appear to our customers?”

Learning and Growth “To achieve our vision, how will we sustain our ability to change and improve?”

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Financially “To succeed financially, how should we appear to our shareholders?”

Internal Business Processes “To satisfy our shareholders and customers, what business processes must we excel at?”

Vision and Strategy

Customer “To achieve our vision, how should we appear to our customers?”

Learning and Growth “To achieve our vision, how will we sustain our ability to change and improve?”

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Section 1.6 Organizational Effectiveness Frameworks

revenues and profits, market share, growth, product quality, competitiveness, customer satis- faction, and social (as well as financial) responsibility to the stakeholders and communities in which they operate, pay taxes, and do business. Public organizations that serve the interests of stakeholders and society are driven to fulfill their missions and responsibilities to those who fund and support them, as well as to those whom they serve.

An important part of this field of practice is understanding what motivates organizations— and their owners, leaders, and teams—to change (or not change). Not all constituencies in organizations seek, promote, and sustain change for the same reasons, if at all. This concern is considered in some of the following frameworks.

There are many effectiveness frameworks and models that apply to both private, for-profit, and nonprofit, public organizations. The three classic and contemporary approaches pre- sented here and referred to throughout the book are: (a) the balanced scorecard (Kaplan & Norton, 1992, 2004); (b) the contingency approach (Fiedler, 1967; Weisbord, 1987); and (c) stakeholder theory (Freeman, 1984).

Balanced Scorecard

Kaplan and Norton’s (1992) balanced scorecard is one of the most popularly used align- ment frameworks. Corporations from around the globe use it to track and align performance at the individual, team, and division levels to the enterprise’s overall vision and strategy. Bain & Company reported that by 2002 the balanced scorecard was used by 50% of the Global 1000 companies (Calabro, 2001; Norton, 2010). Another survey showed that 62% of organizations used the balanced scorecard’s approach and strategy maps as their main orga- nizational framework (Balanced Scorecard Institute, 2011).

The scorecard is a contemporary, electronic version of contingency theory. As Figure 1.6 shows, the balanced scorecard adds “strategic non-financial performance measures to tra- ditional financial metrics to give managers and executives a more ‘balanced’ view of orga- nizational performance” (Balanced Scorecard Institute, 1998–2011). The idea dates back to the 1950s with the work of French engineers and to GE’s measurement system in the 1990s.

As the Balanced Scorecard Institute (n.d.) notes, this approach evolved from a simple per- formance measurement model to a complete strategic planning and management system. The framework is currently used to transform organizations’ strategies into implementation guidelines. It is a management system, not just a measurement system.

Kaplan and Norton (1992) state that though the balanced scorecard still contains traditional financial measures, these measures alone are not enough. They cannot help leaders guide and evaluate the process of creating future value by investing in customers, suppliers, employees, processes, technology, and innovation (Kaplan, 2010).

Four Perspectives The four perspectives of the balanced scorecard, illustrated in Figure 1.6, include the finan- cial, customer, learning and growth, and internal business processes. The scorecard uses these perspectives to view organizations, develop metrics, and gather data for analysis.

Figure 1.6: Balanced scorecard

The balanced scorecard incorporates performance measures relating to financial, customer, learning and growth, and internal business processes with financial metrics to provide a balanced view of the organization’s performance.

Source: Balanced Scorecard Institute. http://www.balancedscorecard.org/ Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a strategic management system,” Harvard Business Review (January–February 1996): 76.

Financially “To succeed financially, how should we appear to our shareholders?”

Internal Business Processes “To satisfy our shareholders and customers, what business processes must we excel at?”

Vision and Strategy

Customer “To achieve our vision, how should we appear to our customers?”

Learning and Growth “To achieve our vision, how will we sustain our ability to change and improve?”

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The financial perspective includes traditional financial and related data such as risk assess- ment and cost-benefit data. The customer perspective refers to metrics from leading indica- tors such as how customers evaluate the company’s performance and their satisfaction with the company, which reflects both the types of customers attracted to a company and the pro- cesses used to provide services and products.

The learning and growth perspective includes information on individual and corporate atti- tudes related to self-improvement. Resources and metrics refer to employee training and funds to support a knowledge–worker organization. This perspective also includes mentors and tutors and technological tools for “high performance work systems” (Balanced Score- card Institute, 1998–2011). The business process perspective incorporates customized metrics on internal business processes that update managers on the status of their businesses and whether products and services meet customer requirements.

From a change management perspective, the balanced scorecard offers a real-time auto- mated monitoring system for tracking and integrating an entire organization around its core

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Section 1.6 Organizational Effectiveness Frameworks

strategy and mission. We will return to this and the other frameworks to examine applica- tions of these approaches as they relate to change management.

Critique of the Balanced Scorecard Because of its broad contemporary appeal and widespread use, this framework has both critics and supporters. Like any organizational methodology, this approach is not perfect. Salterio and Webb (2003) provide a mixed review, stating that it may help organizations to express their strategy, measure performance indicators, and determine which strategy is best, but it has the same challenges as other performance-based compensation systems, namely associating the scorecard to performance evaluation and compensation.

The Balanced Scorecard Performance Management group (2011) reported that the most conclusive evaluative study of the scorecard’s effectiveness was performed by Crabtree and DeBusk (2008). Their study compared 57 companies that used the balanced scorecard with 107 firms that did not. The comparison was based on three key performances that were eval- uated 2 years preadoption and 3 years postimplementation of the framework. The results showed that over a 3-year period beginning with the year of adoption, firms that used the framework significantly outperformed those that did not. However, widespread evidence of such efficacy is still scarce, and more research and evaluation needs to be done.

Contingency Alignment Framework

Contingency theory was developed in an organizational leadership context by Fiedler (1967), followed by Weisbord (1987). The theory has since been applied to numerous dis- ciplines and fields. Figure 1.7 illustrates a version somewhat related to the open-systems, resource-based approach. This contingency alignment approach (framework) is also similar to Tichy’s matrix, though it has several additional dimensions and also includes an internal input dimension.

In this framework, the internal organizational dimensions (vision and strategy, struc- ture, people, measurement systems, nature of work, culture, and technology) should all fit and be integrated to add value and synergy to the organization’s output. When any of the dimensions do not cohere, or fail to create value through shared resources, a number of problems (human, technical, performance, team, leadership, environmental resource, and so on) could arise. Organizational leaders and change specialists could use this frame- work to anticipate how a change strategy and plan would affect the different dimensions’ interrelationships.

An example of how this model has been used comes from the U.S. intelligence community, including the Central Intelligence Agency (CIA) and Federal Bureau of Investigation (FBI). With regard to the 9/11 terrorist attacks, the input-transformation-output phases were used to identify and assess the processes and outcomes of the organizations’ use of resources (products/services), which in this case was information about and actions leading to the fail- ure to detect and prevent the attacks.

Figure 1.7: Contingency model

The contingency model explains the integration and interrelationships of an organization’s internal dimensions (vision and strategy, structure, people, measurement systems, nature of work, culture, and technology) with its environment. Problems may arise if these dimensions do not fit together.

Source: Developed by Joseph W. Weiss (2001) based on Weisbord, M. (1987). Productive workplaces: Organizing and managing for dignity, meaning, and community. San Francisco: Jossey-Bass; and W. Burke in Howard, A. (ed.). (1994). Diagnosis for organizational change. New York: Guilford Press.

Customer Partnership

Transformation

Current to Future State

Customer Satisfaction

Outputs

Customer Requirements

Inputs

Vision and Strategy

Culture

Nature of Work

Structure

Technology

People

• Leadership • Environment • History • Resources

Organizational Level • Competitiveness • Market share • Product and service quality • Responsibility (environment and community)

Group Level • Synergy • Performance • Effectiveness • Satisfaction

Individual Level • Performance • Satisfaction • Development and growth

Measurement Systems

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Customer Partnership

Transformation

Current to Future State

Customer Satisfaction

Outputs

Customer Requirements

Inputs

Vision and Strategy

Culture

Nature of Work

Structure

Technology

People

• Leadership • Environment • History • Resources

Organizational Level • Competitiveness • Market share • Product and service quality • Responsibility (environment and community)

Group Level • Synergy • Performance • Effectiveness • Satisfaction

Individual Level • Performance • Satisfaction • Development and growth

Measurement Systems

Section 1.6 Organizational Effectiveness Frameworks

strategy and mission. We will return to this and the other frameworks to examine applica- tions of these approaches as they relate to change management.

Critique of the Balanced Scorecard Because of its broad contemporary appeal and widespread use, this framework has both critics and supporters. Like any organizational methodology, this approach is not perfect. Salterio and Webb (2003) provide a mixed review, stating that it may help organizations to express their strategy, measure performance indicators, and determine which strategy is best, but it has the same challenges as other performance-based compensation systems, namely associating the scorecard to performance evaluation and compensation.

The Balanced Scorecard Performance Management group (2011) reported that the most conclusive evaluative study of the scorecard’s effectiveness was performed by Crabtree and DeBusk (2008). Their study compared 57 companies that used the balanced scorecard with 107 firms that did not. The comparison was based on three key performances that were eval- uated 2 years preadoption and 3 years postimplementation of the framework. The results showed that over a 3-year period beginning with the year of adoption, firms that used the framework significantly outperformed those that did not. However, widespread evidence of such efficacy is still scarce, and more research and evaluation needs to be done.

Contingency Alignment Framework

Contingency theory was developed in an organizational leadership context by Fiedler (1967), followed by Weisbord (1987). The theory has since been applied to numerous dis- ciplines and fields. Figure 1.7 illustrates a version somewhat related to the open-systems, resource-based approach. This contingency alignment approach (framework) is also similar to Tichy’s matrix, though it has several additional dimensions and also includes an internal input dimension.

In this framework, the internal organizational dimensions (vision and strategy, struc- ture, people, measurement systems, nature of work, culture, and technology) should all fit and be integrated to add value and synergy to the organization’s output. When any of the dimensions do not cohere, or fail to create value through shared resources, a number of problems (human, technical, performance, team, leadership, environmental resource, and so on) could arise. Organizational leaders and change specialists could use this frame- work to anticipate how a change strategy and plan would affect the different dimensions’ interrelationships.

An example of how this model has been used comes from the U.S. intelligence community, including the Central Intelligence Agency (CIA) and Federal Bureau of Investigation (FBI). With regard to the 9/11 terrorist attacks, the input-transformation-output phases were used to identify and assess the processes and outcomes of the organizations’ use of resources (products/services), which in this case was information about and actions leading to the fail- ure to detect and prevent the attacks.

Figure 1.7: Contingency model

The contingency model explains the integration and interrelationships of an organization’s internal dimensions (vision and strategy, structure, people, measurement systems, nature of work, culture, and technology) with its environment. Problems may arise if these dimensions do not fit together.

Source: Developed by Joseph W. Weiss (2001) based on Weisbord, M. (1987). Productive workplaces: Organizing and managing for dignity, meaning, and community. San Francisco: Jossey-Bass; and W. Burke in Howard, A. (ed.). (1994). Diagnosis for organizational change. New York: Guilford Press.

Customer Partnership

Transformation

Current to Future State

Customer Satisfaction

Outputs

Customer Requirements

Inputs

Vision and Strategy

Culture

Nature of Work

Structure

Technology

People

• Leadership • Environment • History • Resources

Organizational Level • Competitiveness • Market share • Product and service quality • Responsibility (environment and community)

Group Level • Synergy • Performance • Effectiveness • Satisfaction

Individual Level • Performance • Satisfaction • Development and growth

Measurement Systems

In the contingency model, the throughput (or transformational) phase shows that an organi- zation’s vision, strategy, people, structure, and other dimensions should fit and interact with the culture to produce desired outcomes for customers—or in this case, the American people and system.

Using the model to analyze The 9/11 Commission Report by the National Commission on Ter- rorist Attacks Upon the United States, which made recommendations regarding the intelli- gence agencies’ performance in response to the 9/11 attacks, would involve selecting one or more organizations in that community (such as the FBI, CIA, executive or congressional branches of the federal government, or the State Department). Then, information from the input phase would be identified and used in the evaluation. These inputs would include what organizational leaders did and did not know about the threats; the organization’s available resources for handling terrorist threats; and the organization’s recent history.

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Section 1.6 Organizational Effectiveness Frameworks

At the transformational phase, all of the dimensions (vision and strategy, culture, structure, people, and technology) would be examined to determine how any information that was available about the terrorist threat was communicated, with whom, and how it was processed. Then, conclusions would be used to make decisions leading to the output phase.

It is interesting to note that The 9/11 Commission Report is critical of the overly bureaucratic and closed way the intelligence organizations and leaders handled the available informa- tion. Moreover, the culture of most of the intelligence organizations seemed rather helpless and somehow stymied, preventing responsible action from being taken. As the report noted, the government and management showed “symptoms of a broader inability to adapt the way government manages problems to the new challenges of the twenty-first century” (National Com- mission on Terrorist Attacks Upon the United States, 2004). Had the leader- ship—at the executive levels of gov- ernment in particular, and at the FBI and CIA—taken the threats seriously, been prepared, used resources wisely, and acted more responsibly and aggressively in designing strategies and mobilizing structures, cultures, and people to detect and prevent terrorists attacks at the input and transformation stages of the contingency model, 9/11 may never have taken place.

A decade after the attacks, Thomas (2011) stated:

Among governmental institutions, the U.S. intelligence community was one of the most deeply scarred by the events of September 11, 2001. It was the intelligence agencies’ job, after all, to detect and intercept attacks on Ameri- can interests at home and abroad. The intervening 10 years has seen major changes at both the U.S. spy agencies and the terrorist groups they track. (para. 1)

The National Counterterrorism Center was later created to increase information shar- ing and analyses among the CIA, FBI, National Security Agency, and all the other govern- ment intelligence agencies. Some experts knowledgeable about the agencies said that it was not lack of information sharing, but rather information overload, that hindered the agencies’ effectiveness (National Commission on Terrorist Attacks Upon the United States, 2004). This is a complicated example, and the analysis here does not include all of the fac- tors involved—politics, budgets, competition over resources, and other factors were and remain at play.

Richard Gunion/iStock/Thinkstock

Even government organizations such as the FBI and CIA must continually plan for change to keep up with national security threats, both domestically and abroad.

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Partners; alliances

Owners shareholders

Customers

Government

Vendors

Suppliers

Creditors

Community

Employees

Organization (board of directors,

top-level team)

Section 1.6 Organizational Effectiveness Frameworks

Still, the contingency model offers additional dimensions and information for studying how organizations prepare, plan, and respond to the threats and opportunities in their environ- ments. This model serves as another approach that specialists in organizational change can use to understand dimensions of effectiveness and efficiency. The last approach in this section—the stakeholder approach—adds yet another popular and useful perspective for analyzing organizational effectiveness and change.

The Stakeholder Approach

The stakeholder approach is discussed here because of its capacity to enable users to iden- tify groups, their stakes and interests in a situation, their ethics, and how each affects and is affected by an organization’s change (see Figure 1.8). Stakeholder theory originated as a strategic management approach to address the “principle of who or what really counts” (Freeman, 1984) when focusing on an organization’s strategic interactions with different groups. It emphasizes the morals and values that are involved when managing an organiza- tion. Freeman’s classic definition of a stakeholder is any group or individual that can affect or is affected by the achievement of organization’ objectives. The term stakeholder has become commonplace in organizations.

The stakeholder ap proach is a popular and useful method for organizational leaders and change spe- cialists who wish to antic- ipate how a particular strategy will affect stake- holders before, during, and after a change plan is implemented. It has been used across disciplines such as IT, public admin- istration, hospital care, and bioethics (Esmail, Moor, & Rein, 2015; Yates, Weiss, & Gulati, 2010; Hardwig, 2010; Heath & Norman, 2004). More recently, the approach has been used to examine the values and ethics at play between the orga- nization and its different stakeholder groups. It requires that managers vocalize how they want to do business—particularly, the types of relationships they need to have with stakeholders— as well as a shared sense of value and what brings the organization’s stakeholders together. It is imperative that managers see the explicit connection between ethics and business (Freeman, Wicks, & Parmar, 2004).

The steps used to begin this process include the following:

1. Who is currently our stakeholders in this situation, controversy, or opportunity? (See Figure 1.8 for possible stakeholders.)

Figure 1.8: Stakeholder map

This map demonstrates the stakeholders who influence the organization.

Partners; alliances

Owners shareholders

Customers

Government

Vendors

Suppliers

Creditors

Community

Employees

Organization (board of directors,

top-level team)

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Section 1.6 Organizational Effectiveness Frameworks

2. Who will possibly be our new or different potential stakeholders? 3. How does each stakeholder affect us? 4. How do we affect each stakeholder? 5. What strategies can we anticipate each stakeholder implementing with us? 6. What is the best strategy to implement with each stakeholder to accomplish our

goal? 7. What are the ethics of each stakeholder’s strategy toward us? 8. What ethics do we choose to adopt when interacting with these stakeholders? 9. How can we achieve a win–win outcome with our stakeholders (Weiss, 2014)?

Whether explicitly or implicitly acknowledged, ethics are part of the change management process. Simply stated, ethics involve saying and doing the right thing. Generally, ethical behavior is principle-based—that is, people think, speak, and act from principles such as hon- esty, integrity, causing no harm, openness, and concern for others. We can use a stakeholder approach to perceive different individual and group ethics by observing the values embedded in and underlying their goals, needs, and skills. People tend to act from some principle(s), regardless of whether they claim to.

Managing Change

Adapting Company Strategy to Consumer Demands

Suppose your health care company faces continually rising costs for services and strained consumer budgets but increased demand for top-notch service. Insurance companies are contracting for lower payments to providers and their companies, which adds to the pressure. However, customers often need to utilize in-network benefits, so it behooves your company to participate in insurance plans. It is more important than ever to optimize resources.

The management team decides on several measures of change to deliver on this, while keeping costs in check. These include:

• a new scheduling system that enables the company to see more patients, which requires transitional change management;

• a new payment plan system that allows customers flexibility in out-of-pocket expenses, which requires development change to the existing billing structure; and

• employing top health care providers on a part-time basis, maximizing the level of care given without paying full-time expenses and without responding to the work/ life considerations of these individuals, which requires transformational change management.

The management team is aware that cross-functional consideration will have to be given to these changes. It is critical that they be aligned to the company objectives, and they will impact all corners of the company. Therefore, several theories are used to implement the changes effectively.

(continued)

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Section 1.6 Organizational Effectiveness Frameworks

Because planned organizational changes can involve a wide range of both internal and exter- nal organizational stakeholders, there is a high probability of an ethical issue and dilemma occurring at any or all of a change program’s phases, depending on the type and scope of change. Figure 1.9 illustrates the types of ethical dilemmas that can occur, episodically or over time, in any change project. These dilemmas can occur among stakeholders and, in this case, between or among change agents (specialists) and the client organization.

As shown, ethical antecedents, or precipitating experiences, involve the values, goals, needs, skills, and abilities of the change specialist and the client system (the organizational leaders, managers, or employees working with the change specialist). For example, change specialists may hold such professional—and personal—values as hon esty, integrity, and openness. On the other hand, a representative from the client system may place value on expediency (completing the job quickly regardless of the costs). Role conflicts and ambigu- ity are likely to occur during the change implementation process and can involve dif- ferences between a change specialist and the client orga- nization over values in goals, needs, skills, and abilities.

Figure 1.9 illustrates some of the common ethical dilem- mas that occur over such differences, including mis- representations, misuses of data, coercion, value and goal conflict, and technical

ANTECEDENTS PROCESS CONSEQUENCES

Values Goals Needs Skills

Abilities

Role of the change agent

Role episode Role conflict Role ambiguity

Ethical dilemmas

• Misrepresentation • Misuse of data • Coercion and

manipulation • Value & goal conflict • Technical ineptness

Role of the client system

ANTECEDENTS PROCESS CONSEQUENCES

Values Goals Needs Skills

Abilities

Role of the change agent

Role episode Role conflict Role ambiguity

Ethical dilemmas

• Misrepresentation • Misuse of data • Coercion and

manipulation • Value & goal conflict • Technical ineptness

Role of the client system

Figure 1.9: A role episodic model of ethical

dilemmas

This model demonstrates a three-stage process of solving an ethical issue based on values, goals, needs, skills, and abilities.

Source: White, L., & Rhodeback, M. (1992). Ethical dilemmas in organizational development: A cross cultural analysis. Journal of Business Ethics, 11, 665, Figure 1. Reprinted with permission.

Discussion Questions

1. Using the stakeholder approach, identify the shared values of different departments in the company. Evaluate how the proposed changes will affect all stakeholder groups.

2. How do the company’s different units fit together? Use the contingency theory to illustrate how the change will affect these interdependencies.

3. How would the balanced scorecard approach benefit the change initiative? 4. How do the four perspectives in the balanced scorecard play into the

implementation of the proposed changes?

(See the end of the chapter for possible answers.)

Managing Change (continued)

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Summary and Resources

ineptness. A misrepresentation could occur for any number of reasons. For example, a change specialist may exaggerate claims about the outcome of an intervention process. Misuse of data could occur if the organization uses client data collected by a change specialist to punish an employee.

Coercion and manipulation refer to situations in which members of the client system are forced to participate in an OD or change management intervention against their will—for example, to take a survey that violates their rights. Value and goal conflict between change specialists and the client can occur when the goal of the change is ambiguous and/or when there is lack of agreement over how to achieve a goal. Technical ineptness may occur when there is a lack of certain knowledge or skills, and change strategies cannot be effectively implemented.

In this text, we will explore how specific ethical principles can and should be part of all change management engagements. When different stakeholders practice fairness, honesty, and truthfulness (as depicted in Figure 1.9), everyone’s welfare and common good can be honored. Organizational change engagements are more likely to be conducted ethically and professionally when the leaders, managers, and members of both the client organization and the change specialist team:

1. are aware of their own values and obligations and are guided by values and practices that serve the interests of the common good as well as their own short-term needs;

2. act with integrity, honesty, and openness in all communications and transactions, focusing on delivering the contracted goods and services with the highest level of skill and professionalism; and

3. honor and respect the legal, human, and moral rights of all persons in the change engagement process.

The code of ethics for the project management profession, http://www.pmi.org/about-us /ethics/code-of-ethics.aspx, is also an excellent ethical guide for students and professionals of organizational change.

Check Your Understanding

1. Review the balanced scorecard (see Figure 1.6). Why do you think it is one of the most popularly used frameworks?

2. Explain the role that ethics play in the change management process.

Summary and Resources

Chapter Summary Planned change has become a constant for most organizations and companies in the 21st century. Hypercompetition combined with weakened economies has created the need for innovation, creative thinking, and change expertise. Alibaba, Netflix, Amazon, Apple, and Facebook are some of the leading technology companies that have reinvented themselves to survive and thrive. However, there are many other less prominent companies and leaders who not only meet the external challenges they face, but also create value by anticipating and leading change.

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Innovators welcome change, whereas those less prepared for it often fear it. One thing is certain—we all must deal with change. Like consumers, local and national organizations are now facing an international environment of competitors. Lessons learned from those who have used cutting-edge technologies and practices globally can be used and modified by those operating locally.

People in the workforce can learn organizational change. The fields of OD and change management provide theories, models, skills, and lessons for all. Seasoned change leaders, professionals, and students will at some point be called on not only to accept some type of organizational change but also to help diagnose, plan, and implement it.

Understanding the source of change is the first step. Dominant forces that drive change stem from new technologies and elements in economic, governmental, legal, political, sociocultural, environmental, and globalization contexts. The three general types of change that character- ize ways organizations respond are: developmental (small-scale improvements to part of an organization); transitional (larger, more intrusive changes that can involve several parts of an organization); and transformational (significant changes that affect the entire organization).

Organizational responses to change can be strategic, tactical, proactive, reactive, political, technical, and cultural. Knowing the elements of each dimension offers those planning a change more options for how to respond. Finally, there are three big-picture organizational effectiveness frameworks that can be used to align the internal organization to changing external markets and industry environments: the balanced scorecard, the contingency align- ment framework, and the stakeholder approach.

Posttest Questions 1. According to John Kotter’s eight-step approach to organizational change, what must

initially be established among an organization’s employees? a. a change vision b. a sense of urgency c. the organization’s future hierarchy d. the rules of organizational change

2. What does John Kotter most likely mean by the step in his model that says, “Anchor new approaches in the culture”? a. Communicate the need for change among workers. b. Convince management that the changes made will make their jobs easier. c. Institutionalize changes and ensure that future leaders embody them. d. Create visible and tangible short-term improvements.

3. Which of the following terms is LEAST associated with organizational development (OD)? a. marketing strategy b. team building c. survey feedback d. quality of work life

4. Which of the following jobs most likely falls within the field of change management? a. behavioral scientist b. group dynamics expert c. life coach d. accounting consultant

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5. Lewin’s force-field model is primarily based upon a law of __________. a. physics b. chemistry c. mathematics d. thermodynamics

6. According to Lewin’s model, which among the following steps most directly results in overcoming resistance to change? a. describing the company’s problem or opportunity b. identifying tactics that weaken the forces against change c. pinpointing the company’s desired end state d. identifying the driving forces toward change

7. Organizations that successfully respond to forces for change are typically all of the following EXCEPT __________. a. more streamlined b. more responsive to customer demands c. less ecologically sustainable d. less vulnerable to crises

8. A type 2 error occurs when the external environment is perceived as __________. a. unstable when it is stable b. unstable when it is unstable c. stable when it is stable d. stable when it is unstable

9. Dennison Company’s new HR policy adds paternity leave to the existing policy of maternity leave. This scenario best describes a __________ organizational change. a. transformational b. developmental c. reactive d. proactive

10. Which model for organizational change includes the concept of “fine tuning”? a. Balogun and Hope-Hailey’s change model b. Lewin’s force field c. Tichy’s framework d. Dunphy and Stace’s four levels of change

11. Which effectiveness framework measures and aligns a work team’s performance to organizational goals and vision? a. a balanced scorecard b. a satisfaction survey c. an external versus internal alignment d. a stakeholder approach

12. The contingency alignment framework is most similar to __________, although it has additional dimensions. a. Lewin’s force field b. Kotter’s eight-step approach c. Tichy’s matrix d. Balogun and Hope-Hailey’s change model

Answers: 1 (b), 2 (c), 3 (a), 4 (d), 5 (a), 6 (b), 7 (c), 8 (d), 9 (b), 10 (d), 11 (a), 12 (c)

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Summary and Resources

Learning Objectives Recap

1. Planned organizational change is a process that moves companies from a present state to a desired future state with the goal of enhancing their effectiveness. Ulti- mately, the goal of planned organizational change is to improve an organization’s capabilities. Organizations must change to survive and remain competitive by meet- ing customer needs and demands and other external requirements (for example, legal, technological, and cultural). Kotter’s eight-step change process is one of the most widely used planning methods. The eight steps are: (a) establish a sense of urgency, (b) form a powerful guiding coalition, (c) develop a vision and strategy, (d) communicate the change vision, (e) empower others to act on the vision, (f) generate short-term wins, (g) consolidate gains and produce more change, and (h) anchor new approaches in the culture.

2. OD is an effort—planned, organization-wide, and managed from the top—that uses behavioral science knowledge to increase organizational effectiveness and health. Change management encompasses approaches used by business content and behav- ioral process specialists to help leaders move entire organizations, or units, from a present to a desired future state. OD change specialists focus on organizations’ human dimensions, such as culture, climate, leadership, and communication. Meth- ods involve team building, survey feedback, quality of work life, restructuring work and positions, and job satisfaction. They deal with strategy, structure, and other organizational dimensions but focus less on technical areas. Change management specialists deal with technical management, strategy, finance, marketing, engineer- ing, IT, and other functional content expertise areas, as well as with process.

3. Lewin’s force-field analysis enables change agents, planners, and individuals to iden- tify the forces for and against change. A force-field analysis enables people to better see options that may have a higher probability of working with a particular change strategy. Lewin identifies three general stages of change—unfreezing, moving/chang- ing, and refreezing—which help change specialists and those affected by a change see the bigger picture and prevent and overcome unnecessary resistance.

4. Technological, economic, political–legal, and sociocultural forces; natural disas- ters; and human-induced forces all affect organizations (see Figure 1.2). Figure 1.5 illustrates major forces for change (competitive advantage, control, impatient capital markets, cost containment, and environmental adaptability) and forces for stability (predictability, organizational social capital, sustained advantage, transaction costs, and institutionalism).

5. Three major types of change that affect organizations are developmental, transi- tional, and transformational. The models discussed include Dunphy and Stace’s four levels of change; Balogun and Hope-Hailey’s change model; proactive ver- sus reactive responses to change; strategic versus tactical changes; and Tichy’s framework. Dunphy and Stace’s four levels of change are fine tuning, incremental adjustment, modular transformation, and corporate transformation. Balogun and Hope-Hailey’s change model demonstrates the results of immediate changes and those that occur over a long period of time. Proactive responses to change are delib- erate and planned and involve actively attempting to alter the workplace and its practices. Reactive responses occur after a change has taken place and may involve less thoughtful and responsible actions. Strategic change responses seek to address more long-term opportunities and issues that require planning, whereas tactical change responses are more immediate and hands-on. Tichy’s framework explains

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Summary and Resources

change from political, technical, and cultural systems that affect internal organiza- tional systems.

6. Three approaches address how organizations address effectiveness in responding to external requirements and demands. The balanced scorecard measures and aligns individual, team, and division performance to the organization’s vision and strategy. A contingency alignment approach deals with the way an organization’s internal dimensions fit together to meet external requirements. (The balance scorecard is also one form of contingency theory.) The stakeholder approach addresses all relevant stakeholders as well as stockholders’ interest and needs when dealing with change. Being socially responsible as well as seeking profitability is part of this approach.

Discussion Questions

1. Identify an organization in which you are now working or are a member. If you par- ticipated in or observed a planned change, describe it; then apply a framework from the chapter to analyze the outcomes. If you were not involved, interview someone (a friend or family member) about a planned change he or she experienced using the questions here. You can analyze the experience using concepts from this chapter. What worked? What didn’t, and from whose point of view? Explain.

2. Describe how you (or the person you interviewed) felt before, during, and after the change. Did you (or the person you interviewed) resist? Why or why not? Explain. Describe how the human element of the resistance was managed using concepts from the chapter.

3. Explain why organizations must change, given the nature of the environments in which they operate. Then select a real organization that underwent or is undergoing a major change and analyze why it had to change.

4. In what ways do the fields of OD and change management differ and overlap? 5. What skills and knowledge do OD and change management specialists employ? 6. In which of the two fields do you feel you would work best, and why? 7. Describe a specific element of change that can be found in each of the following envi-

ronments that affect organizations: economic, technological, sociocultural, govern- ment, and political.

8. What are the differences between type 1 and type 2 errors that leaders and manag- ers can make in perceiving change? Describe a perception and decision that you made that resulted in a type 1 or 2 error. In hindsight, what could you have done to prevent the error?

9. Describe some ways that Dunphy and Stace’s four levels of change can apply to and fit with Balogun and Hope-Hailey’s change model.

10. What are some differences and values that Tichy’s framework (see Figure 1.5) offers compared to other models discussed in this chapter?

11. Explain what you find interesting and different about each of the three change approaches presented in Section 1.6 (the contingency alignment, balanced score- card, and stakeholder approach).

12. Do you believe ethics matters for those who lead and implement planned organiza- tional changes? Why or why not? Explain.

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Summary and Resources

Key Terms

adaptation This process occurs when the change is also incremental and the end result is realignment.

balanced scorecard One of the most popularly used alignment frameworks by corporations globally to track and align per- formance at the individual, team, and divi- sion levels to the overall enterprise vision and strategy.

change management This process encompasses approaches used by business content and behavioral process specialists that help leaders move entire organiza- tions, or units, from a present to a desired future state.

competitiveness The ability of a busi- ness or organization to succeed in meeting the owners’ broad business goals to serve customers.

contingency theory A theory that views organizational dimensions (strategy, struc- ture, people, work, rewards) as parts of a whole that “fit” together.

corporate transformation This type of change, like the transformational change model, involves a radical shift in the busi- ness strategy and changes in the vision, mis- sion, culture, and systems.

cultural system A system that includes the norms and values shared by mem- bers in an organization in Tichy’s change framework.

developmental change This process involves an improvement of what already exists; for example, an organization improv- ing a previously established process or procedure.

evolution A process that occurs when the change is incremental but transformation is the result.

fine tuning This type of change involves an ongoing process of matching and fitting an organization’s strategy, structure, people, and processes with the environment.

incremental adjustment Adjustments are predictable changes that evolve slowly and systematically at a constant rate over time within the organization to fit the external environment.

modular transformation A type of change in which organizational change is radical but is focused on subparts rather than the entire organization.

organizational development An effort that is planned, organization-wide, and managed from the top to increase an organization’s effectiveness and health through planned interventions in the organization’s processes, using behavioral science knowledge.

organizational development methods A dimension of OD that focuses mainly on people and the human dimensions of organi- zations, such as culture, climate, leadership, and communication.

organizational development specialists A major source of organizational change expertise, both theoretical and applied. Many are academics or organizational behavior professionals.

planned organizational change A process that moves companies from a present state to a desired future state with the goal of enhancing their effectiveness; ultimately, the goal of planned organizational change is to improve an organization’s capabilities.

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Summary and Resources

political system A system that includes pressures for change that relate to power, influence, and resource distribution in Tichy’s change framework.

proactive change A type of change that involves actively attempting to make altera- tions to the workplace and its practices.

reactive change A type of change that occurs when an organization makes changes in its practices after some threat or oppor- tunity has already occurred; such responses may be less thoughtful and responsible.

realignment A type of change that involves adjustment but does not generally entail a fun- damental reassessment of the central assump- tions and beliefs in an organization’s culture.

reconstruction A type of change that is big bang combined with realignment.

revolution A type of change that is big bang and transformational.

stakeholder Any group or individual who can affect or is affected by the achievement of the organization’s objectives. The use of the term stakeholder(s) has become com- monplace in organizations.

stakeholder theory A theory that origi- nated as a strategic management approach to address the “principle of who or what really counts” when addressing an organization’s strategic interactions with different groups. As a change approach, it addresses the interests and needs of all stakeholders and stockholder.

systems theory The ability to comprehend the whole and examine the interrelationship between parts in order to identify and solve problems accurately.

technical system External changes that influence an organization and include tech- nological and economic pressures in Tichy’s framework.

transformational change A type of change that involves the emergence of a new, unknown state for the organization.

transitional change A type of change that consists of an implementation to achieve a known desired state that is different from the existing one.

type 1 error An error that happens when the environment is actually stable, but lead- ers and managers perceive it as turbulent and proceed to take unneeded actions to respond.

type 2 error An error that happens when leaders and managers perceive the environ- ment as stable when in actuality it is turbu- lent, and they fail to take necessary actions, thus possibly threatening the survival of their organizations.

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Summary and Resources

Additional Resources Worksheet for identifying types of change http://www.viha.ca/NR/rdonlyres/DFF67823-3989-489A-84E3-4F3502F3EC78/0 /TypesofChangeinOrganizations.pdf An interview with a human resources OD consultant, from DrKit.org http://www.youtube.com/watch?v=X7QrV1Ng8uo The International Organization Development Code of Ethics http://www.theodinstitute.org/od-library/code_of_ethics.htm

Managing Change Sample Answers

Managing Change—Confronting Resistance 1. When the human factor is neglected, the change initiative can result in derailment. In

this case the communication plan was not put into effect with a reasonable amount of time for employees to adapt. Loss of the familiar and fear of the unknown play a significant psychological role as well.

2. It is important to properly plan and prepare such a proposition. Effective communi- cation and disclosure is paramount, so that employees feel included in the decision. It is helpful to let employees know they have a choice in plans, to listen to their con- cerns, and to provide ample opportunities for information and understanding. Invite a plan representative to host meetings with employees, and incentivize resistant employees to go to meetings by making it a positive experience, such as a brown bag lunch environment. While involving employees in the change may not be possible in the current year, the company can learn from its mistakes and involve employees in the plan changes and offerings for the following year. In addition, allowing leaderto own responsibility for their role in the debacle and show visible commitment to the new direction will help quell discontent.

3. Unfreezing refers to softening those resistant to change by motivating them for it. This stage involves clearly communicating the benefits of the new plan; reducing barriers by providing heightened customer service from plan representatives to shepherd employees through the change; and introducing rewards and incentives for participation. Incentivize employees to go to plan meetings, and perhaps reward to employees who embark on wellness initiatives that have proven to reduce com- pany health care costs. In the moving/changing stage, employees start to feel the change and put new information and practices into effect. The heightened customer service has made the transition less painful for employees trying to learn the new process of getting health care and submitting claims under the new financial struc- ture. Employees can put the change into context and see how the company has adapted to survive the economic downturn, and start to accept the plan change as part of that process. In the refreezing stage, managers can positively reinforce the new sense of community that has resulted from employees banding together, and implement various activities designed to reward employees for participating in the lower cost plan that overall helped the company meet its financial objectives.

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Summary and Resources

Managing Change—Organizational and Managerial Response to Change

1. When managing change, it is important to communicate the planned change thor- oughly throughout the organization and provide plenty of opportunities for training. Doing so can increase understanding and promote feelings of individual employee empowerment.

2. Studies have shown that people need to receive messages repeatedly for ideas to sink in. Ideally, give at least 6 months’ notice of the change. Communicate about it clearly and reinforce the message repeatedly over that period of time. Possible meth- ods for delivering messages include posting a Q&A on the company intranet, holding town hall–style meetings to open the floor to employee responses and concerns, and sending direct and down-to-earth e-mail communication from top leadership.

3. Employees are more engaged when they feel their daily tasks directly contribute to the positive outcome. Involve them actively in the change. Bring them into the process and make them an integral part of the transformation. This will not only benefit them in terms of fulfillment and career development, it will also benefit the company’s efforts. Leaders need their direct reports on board to achieve com- pany objectives. Show them how their new responsibilities will impact company objectives.

4. Modular transformation is most likely applied in this circumstance—the organiza- tion’s overall goals and function are not changing, but the ways to achieve them are. The change is focused on the several departments affected by the change and will affect the processes and daily responsibilities of managers and employees. Incremental adjustments and fine tuning could also occur to strengthen employee support of and commitment to the new initiative. Fine tuning can be applied from a micro standpoint to affected individuals, and incremental adjustment would be ben- eficial from a macro standpoint over time to positively communicate and reinforce the change.

Managing Change—Becoming a Truly Global Organization

1. Many companies will immediately cut staff to reduce costs in the face of investing in a new part of the business. However, cutting staff can adversely affect productiv- ity and output, which are necessary for maintaining growth. To break into emerging markets, seek partnerships with local manufacturers and shared services organiza- tions to get the job done. This can result in other structural changes that will require management at headquarters. In addition, monitor supply chain costs and close gaps in efficiency to make the most of the supply chain.

2. Consider altering the mission statement to support tapping into new markets and engendering a global focus. Propose a change in organizational structure to support new partnerships and product sources and transport of items manufactured over- seas. Train human resources management to seek the necessary skill sets to trans- form your company into a global firm. Align all of these and all affected departments with the company’s new overall goals.

3. Although this transformational change can be described as “big bang,” meaning revo- lution and reconstruction would occur, it is not necessarily cost-effective to replace a majority of the workforce, which can incur huge expenses relating to onboarding and, in some cases, higher salaries and benefit levels to attract new talent. Instead, utilizing current leaders and managers and implementing principles of change

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Summary and Resources

management to lead through the planned business enhancement can strengthen the company from within. It is important, however, to oversee realignment so that all areas of the company are functioning toward the common goal in the new structure.

4. With the risk management department, review the business processes and partner- ships of the companies you are doing business with. Continuously monitor political and labor market situations in those countries to proactively assess any potential risks. Have a contingency plan in place in case of a natural disaster or other disrup- tion that could interfere with your supply chain.

Managing Change—Adapting Company Strategy to Consumer Demands

1. In a health care company, as in many service organizations, customer service is paramount—especially when customers’ welfare and health are concerned. While customer-facing members of the company embody this value, departments from financial to legal to operations help keep the company at its most efficient and allow it to continue to deliver good care. The changes proposed will require extra effort on the part of those who schedule customer appointments and those who sched- ule provider hours. The billing department will also have to upgrade tracking and correspondence structures to make sure that customers are meeting their payment responsibilities.

2. Internal organizational dimensions should ideally fit together and function in sync with each other. The various departments in this company are already intercon- nected, but when the proposed changes are implemented, the following relation- ships will be most important: The front office must communicate with the billing office on customers served and collect any possible dues owed at the time of service. The billing office needs to correspond clearly with customers and give them plenty of notice to remit payments. The billing office also needs to process insurance pay- outs not only to customer accounts but toward the compensation of the providers. The scheduling department must weigh the multiple circumstances of each provider that affect availability, while giving consideration to work/life needs. The operations department supports all functions by making sure the facility is stocked and ready, while controlling for cost.

3. The balanced scorecard model measures individual and unit performance and com- pares it with the unit’s and the company’s financial performance. When the change is implemented, change in company revenue can be analyzed and productivity can be measured to draw relationships to the improvement. While this model cannot neces- sarily be a determinant of compensation, it can identify areas where improvement is needed and where successful efforts need to be maintained.

4. Financial perspective: A cost–benefit analysis can be performed prior to implemen- tation to assess the anticipated benefit, and then financial measures can be per- formed after implementation to benchmark against actual progress. The customer perspective involves overall customer satisfaction, comments, complaints, positive interactions, and success in payment collection. The learning and growth perspec- tive comes into play as employees become engaged in the change initiative and learn new skills to support it, relying on each other for guidance through the change process. The business process perspective measures the efficacy of internal business processes and tracks performance of individual units, as well as the progress overall of the change initiative meeting customer requirements and generating increased revenue.

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Summary and Resources

Answers and Rejoinders to Chapter 1 Pretest 1. False. Planned organizational change is a process that enhances an organization’s

effectiveness by moving it from its present state to a desired, better future state. Planned organizational change subscribes to the theory that organizations must change to survive and compete.

2. False. The fields of OD and change management are similar in that they both aim to help move an organization from a present to a desired state. However, change man- agement is more content oriented (strategies to improve business, finance, market- ing, and operations management), while OD is more people oriented (strategies to enhance motivation, culture, and productivity).

3. True. Kurt Lewin’s force-field analysis states that change is the result of opposing forces that move with and against an organization’s status quo. When opposing forces are equal at any given time, change does not occur.

4. True. Competitive advantage as a force for change means advancing within an indus- try while maintaining some degree of stability and certainty. Competitive advantage requires both flexibility and stability for an organization to thrive.

5. True. Tactical models of organizational change seek to address short-term issues and opportunities. These models are more immediate and hands-on than strategic models.

6. False. In the stakeholder approach to change, an organization can consider rel- evant stakeholders’ and shareholders’ needs and still be socially responsible and profitable.

Rejoinders to Chapter 1 Posttest 1. According to John Kotter’s eight-step approach to organizational change, in the first

step, a sense of urgency must be established among an organization’s employees. Kotter feels that people are not motivated without an initial sense of urgency and the pressing importance of change.

2. Step eight of Kotter’s eight-step change process, “anchor new approaches in the culture,” means “institutionalize changes and ensure that future leaders embody them.” In Kotter’s system, reinforcing changes among employees, along with succes- sion planning (training and naming future company leaders), are vital components of successful, sustained change.

3. The terms team building, survey feedback, quality of work life, and job satisfaction are most associated with OD. Conversely, marketing strategy, technical management, IT, and other functional content expertise areas and their processes are most associated with change management.

4. An accounting consultant most likely belongs to the field of change management, working with functional content and strategy; in this case, accounting principles and best practices.

5. Lewin’s force-field model is primarily based upon the law of physics that says that an object at rest will remain at rest until the forces exerted to move it are greater than the forces working against its movement. Consequently, behavioral change occurs only when the forces for change are strengthened, the forces against change are weakened, or both.

6. According to Lewin’s model, the step (among those listed) that most directly leads to overcoming resistance to change is identifying tactics that weaken the forces against change, and then implementing them.

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Summary and Resources

7. Organizations that successfully respond to forces for change are typically more responsive to external and customer demands, more streamlined, and more ecologi- cally sustainable.

8. In analyzing the need for organizational change, a type 2 error occurs when the external environment is perceived by organizational leaders as stable when in real- ity it is turbulent. They then fail to make necessary changes in order to survive.

9. The Dennison Company scenario best describes a developmental organizational change. This kind of change improves something that already exists and does not have to be large-scale or complex.

10. Dunphy and Stace’s four levels of change include 1) fine tuning, 2) incremental adjustments, 3) modular transformation, and 4) corporate transformation. Incre- mental and fine tuning are comparable to developmental change.

11. The balanced scorecard measures and aligns an individual’s, a team’s, or a division’s performance to organizational goals and vision. Balanced scorecards are used in at least 50 percent of Global 1000 companies.

12. The contingency alignment framework is most similar to Tichy’s matrix, although it has additional dimensions. The contingency alignment approach explains the interrelationships of an organization’s external forces with its internal dimensions (vision and strategy, structure, people, measurement systems, nature of work, cul- ture, and technology). Tichy’s matrix explains change from external forces (techni- cal, political, and cultural) on internal organizational systems.

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Hazardous Materials

1.Describe some ways that the Emergency Response Guidebook is used when responding to incidents involved the release of hazardous materials.

Your response must be at least 75 words in length.

2.  Describe how the chemical characteristics, production methods, uses, and associated unique hazards of sulfur can affect the safety of an environmental health and safety (EHS) and fire science (FS) professional.

Your response must be at least 75 words in length

3.  A nursing home is installing their own bulk oxygen system due to their large volume of consumption. OSHA regulation 29 CFR 1910.104(b)(2)(iii) requires owners of bulk oxygen systems to provide noncombustible surfacing in areas where liquid oxygen might leak during operation of the system or during the filling of a storage container. If the nursing home provides an asphalt surface in areas where oxygen could potentially leak, will it be in compliance with the workplace regulation regarding oxygen? Explain your answer.

Your response must be at least 75 words in length.

5.  Although coal is no longer the favored energy source, U.S. coal mines still produced close to a billion short tons of coal. Detail 5 different forms of coal, including activated carbon, and chemical products and health hazards related to each different form. Describe DOT recommended response actions to incidents involving a release of coal and/or carbon.

Your response must be at least 75 words in length.

 
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Plastic Pollution

Step 1: Describe the social issue, background, purpose, and focus of your social campaign

v Briefly identify the social issue, sometimes referred to as the “wicked problem,” your plan will be addressing (e.g., tobacco use, air pollution, water contamination, literacy, homelessness, etc.).

v Identify any sponsoring organizations you plan to collaborate with in developing and implementing your campaign. These may be local or national organizations.

v Summarize key background information leading to the development of this plan, ideally using reliable statistics (e.g., percent of unplanned teen pregnancies)

v What is the campaign purpose, the intended impact (e.g., reduced teen pregnancies by 25% by 2020)?

v What is the campaign focus, the approach you will be using to contribute to your plan’s purpose? Areas of focus may be behavior-related, population-related, or product-related strategies.

Step 2: Conduct a situational analysis (SWOT)

v What organizational strengths will your plan maximize?

v What organizational weaknesses will your plan minimize?

v What environmental opportunities will your plan take advantage of?

v What environmental threats will your plan prepare for?

v What prior and similar campaign efforts are noteworthy?

Steps 1-5 of your social marketing plan needs to be completed & uploaded onto Canvas. Expected length is 3-4 pages. 

 
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Safety And Accident Prevention

Your assignment for this unit is to complete a case study of the incidents at the Hoeganaes Corporation in 2011. Review the pages 1–24 of the summary report from the Chemical Safety Board (CSB) concerning the Hoeganaes Corporation by clicking here. Include the components listed below in your case study.

  • Perform a risk assessment of fire hazards at this type of manufacturing facility. Describe the major variables that you believe were responsible for causing the fires and explosions that occurred at the facility.
  • List the OSHA standards that you believe would apply to the fire hazards at the facility.
  • If you were hired as the safety officer at the facility immediately following the third incident in the report, recommend the approach you would take to mitigate the risks associated with the fire hazards and combustible dust, including any standards published by agencies other than OSHA that would be helpful in establishing your program.
  • How would the NFPA Life Safety Code apply to this facility?

Your case study should be a minimum of two pages in length, not counting the title and reference pages. You are required to use at least three outside sources, one of which may be your textbook. You must also cite the CSB report. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying APA citations.

 
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Lab

Name:___________________________

Coevolution Models

Coevolution is where two or more species reciprocally influence each other and their evolution of various adaptations. Coevolution is similar to an arms race: as one species develops a dense against another species, the other species adapts to that other species adaptations. Evolution can be driven by a number of factors, biotic, abiotic, and luck. The survival of a species coevolving with another is dependent on the population size, the mutation rate, and the pressure on the population to adapt. This class activity will use NetLogo to mimic coevolution between bugs and birds in various scenarios.

Link to model: http://netlogoweb.org/launch#http://netlogoweb.org/assets/modelslib/Curricular%20Models/BEAGLE%20Evolution/Bug%20Hunt%20Coevolution.nlogo

Video explaining a famous coevolution example:

https://oeta.pbslearningmedia.org/resource/tdc02.sci.life.evo.leaf/ancient-farmers-of-the-amazon/

 

1) Open netlogo

2) Find “Bug Hunt Coevolution” in the Models Library under Beagle Evolution Folder.

3) Click on the Info tab at the bottom of the pate and read about the model

a. What does this model show? (in your own words)

b. What is the INITIAL-BIRD-VISION AND INITIAL-BUG-VISION?

c. How does vision help in a predator-prey relationship?

4) Click on the “Code” tab and scroll through it. What do the different colors of the bugs indicate?

5) For initial setup, these are the original settings for future reference:

a. Number-bugs: 30

b. Number-birds: 10

c. Wiggle? On

d. Show-vision-cone? On

e. Bug-flee-strategy: nearest

f. Bug-pursuit-strategy: nearest

g. Initial-bug-speed: 2

h. Bug-speed-mutation: 1

i. Initial-bug-vision: 0

j. Bug-vision-mutation: 0

k. Initial-bird-speed: 2

l. Bird-speed-mutation: 1

m. Initial-bird-vision: 0

n. Bird-vision-mutation: 0

6) Go back to the Interface tab. Click “Setup”, then click “go”.

a. Let the model run for 10,000 ticks

b. Screen shot the results and paste it here.

c. How many bugs were caught?

d. What happened in the plot “Avg. Speed vs. Time? (to see what the indicate, right click on the plot and select Edit. This will define the variables.)

i. Why?

e. What happened in the plot “Avg, Vision vs. Time”? Why? (hint, look at your settings.)

7) Using the sliders, change the “initial-bug-vision”, “initial-bird-vision”, “bug-vision-mutation”, and “bird-vision-mutation” to 0.5. Click “Setup” and “Go”

a. Run the model for 15,000 ticks.

b. Screen shot the results and paste it here.

c. How many bugs were caught?

d. What happened to the bug vision compared to the bird vision?

i. Why do you think this happened?

e. How did the speed of both species change over time?

8) Using the sliders, change the “”bug-speed-mutation” and “bug-vision-mutation” to 0. Click “Setup” and “Go”

a. Run the model for 15,000 ticks

b. Screen shot the results and paste it here

c. How many bugs were caught?

d. What happened to the bug vision compared to the bird vision?

i. Why do you think this happened?

e. Comparing the results to #5, what does this tell you about mutation rate and coevolution?

9) Let’s move to exploring mutation rates about speed. Reset everything to the original setting as stipulated in #5. Now change the bug-speed-mutation to 0 and bird-speed-mutation to 0

a. Run the model for 15,000 ticks (remember to click setup before running the model)

b. Screen shot the results and paste it here

c. How many bugs were caught?

d. Based on the color of the bugs after 15,000 ticks, what speed were they at?

e. Will the speed ever change if you run the model for longer than 15,000 ticks?

10) Now change bug-speed-mutation to 0.5.

a. BEFORE RUNNING THE MODEL: What do you think will happen to the bug speed evolution if bugs have a speed mutation rate and birds don’t?

b. Click setup and go.

c. Run the model for 15,000 ticks (remember to click setup before running the model)

d. Screen shot the results and paste it here

e. How many bugs were caught?

f. Based on the color of the bugs after 15,000 ticks, what speed were they at?

g. What happened to the bugs evolution? Why did this happen? Was it what you predicted?

11) On your own, develop your own scenario:

a. Number-bugs:

b. Number-birds:

c. Wiggle?

d. Show-vision-cone?

e. Bug-flee-strategy:

f. Bug-pursuit-strategy:

g. Initial-bug-speed:

h. Bug-speed-mutation:

i. Initial-bug-vision:

j. Bug-vision-mutation:

k. Initial-bird-speed:

l. Bird-speed-mutation:

m. Initial-bird-vision:

n. Bird-vision-mutation:

o. What is your prediction for how the bugs and birds evolve?

p. How long did you run the model?

q. Screen shot your results and paste here:

r. How many bug were eaten?

s. Explain what happened to your populations and their mutations.

12) Save this document and upload it to blackboard for grading.

 
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Powerpoint

This unit has assessed engineering principles applicable to industrial and hazardous waste management. Steps were evaluated for an adsorption system design using engineering principles and presenting engineering calculations for waste treatment.

The steps in the lesson were accomplished by the required reading of an article describing laboratory adsorption tests for lead and zinc removal. The lesson used the article’s data combined with engineering principles to design a prototype lead treatment system, and a required article presented a novel method for reducing leather tanning waste.

For this assignment, prepare a PowerPoint presentation that assesses engineering principles applicable to industrial and hazardous waste management by evaluating steps for an adsorption system design using engineering principles and presenting engineering calculations for waste treatment.

Specifically address the following items in your PowerPoint presentation.

· Provide a title and introduction.

· Summarize the Durga, Ramesh, Rose, and Muralidharan Required Unit Resources article.

· List the steps required for design of a prototype adsorption system.

· From Required Unit Resources, use the Yusuff and Olateju article’s equation (7) for the Radke-Prausnitz isotherm to evaluate qe for a Ce lead concentration of 10 mg/L. Show your calculation.

· Explain how your value of qe determined from the equation compares to the value in Yusuff and Olateju’s article exhibit 10a. Do you think there is an error in the equation? Explain.

· In the unit lesson, if the prototype’s wastewater flow is 500 gpd instead of 100 gpd and the influent lead concentration is still 10 mg/L, what would be the lead inflow rate in units of grams per day? Show your calculation.

· Provide a summary of your PowerPoint information.

Your PowerPoint presentation must be at least 15 slides in length with a title slide and reference slide (title and reference slides do not count toward the minimum slide count). You should utilize at least the two Required Unit Resources: the Durga et al. and the Yusuff and Olateju articles. Ensure you refer to the unit lesson as you are creating your PowerPoint presentation.

Please adhere to APA Style when creating citations and references for this assignment. Do not include slide notes in your presentation. Be sure to use fonts that are large enough to view from a distance. This includes any fonts within images that you use. Be sure to cite and reference all information and images.

 
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Environmental Issues And The Industrial Revolution

Assignment 3: Environmental Issues and the Industrial Revolution

The Industrial Revolution, which began in the eighteenth century, has had an ongoing influence on society as well as the relationship between humans and their environment. With the onset of industrialization came the drastic increase in urbanization, setting up of factories in places which were once biomes, and the rapid development of land. All this occurred without assessing the long-term impact to the environment. Recognizing the importance of the Industrial Revolution era and the ongoing impact it has had on the environment is essential to learning how to help the environment and correct the damage of that era.

Using the readings for this module, the Argosy University online library resources, and the Internet, complete the following:

  • Identify three of the most environmentally negative impacts of the Industrial Revolution and justify your choices. For example, the invention of the automobile revolutionized travel in a positive manner. However, this invention is causing some of the biggest environmental problems as a result of the extensive use of oil extracted from the earth.
  • Examine how these three negative impacts changed the environment; list the mechanisms through which this happened. For example, factories caused an increase in pollution through the release of toxic waste, which led to diminished and lost fish populations in rivers.
  • Explain the effect of the environmental movement on the process of industrialization in the United States during the 1970’s.
  • Identify the laws passed to help ameliorate the environmental issues in the U.S. or around the world related to these three impacts. Have any laws been passed since this movement in the 1970’s? If there have been laws implemented, summarize the spirit of the law and comment on the effectiveness of the law.
  • Based on your research, examine whether the state of the environment has become worse or has improved as a result of these laws. If you think conditions have not improved, suggest solutions or steps that must be done to improve the situation.

Support your statements with appropriate examples and scholarly references. Be sure to include an additional page for references.

Write a 4–5-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M1_A3.doc. For example, if your name is John Smith, your document will be named SmithJ_M1_A3.doc.

By Wednesday, June 5, 2013, deliver your assignment to the M1: Assignment 3 Dropbox.

Assignment 3 Grading Criteria
Maximum Points
Adequately examined the impact of three of the most environmentally negative impacts of the industrial revolution.
28
Explained the effectiveness of the environmental movement in the U.S. and the laws that were created to combat the environmental problems created by the industrialization.
28
Suggested solutions to address these environmental problems.
24
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.
20
Total:
100

For assistance with any problems you may have when completing this assignment—OR—to offer your assistance to classmates, please use the Problems and Solutions Discussion area located through the left side navigation link.

 
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Steel Takeoff Quantity From The Project Plan

Sheet1

Estimating Work Sheet
STEEL Takeoff
project: Class Assignment Estimate NO. 1
Location none Sheet NO. 1 of 1
Architect: None Date. 3 \ 25 \ 2014
Item: None BY —– checked —–
Description Designation Count L(ft.) SF. Pounds/ft Sq. Quantity
Beams uint
B1 W14X22 20 28 22 12320.00 Pounds
B2 W14X20 4 18 20 1440.00 Pounds
B3 W14X26 4 28 26 2912.00 Pounds
B4 W14X26 2 24 26 1248.00 Pounds
Columns
C1 W20X32 2 12 32 768.00 Pounds
C2 W20X30 2 12 30 720.00 Pounds
C3 W20X28 2 12 28 672.00 Pounds
C4 W20X26 1 12 26 312.00 Pounds
C5 W20X24 2 12 24 576.00 Pounds
C6 W20X22 2 21 22 924.00 Pounds
C7 W20X20 4 21 20 1680.00 Pounds
Spandrel Beam
SB1 W16X28 8 28 28 6272.00 Pounds
SB2 W16X22 8 28 22 4928.00 Pounds
Girder
G2 W16X26 4 32 26 3328.00 Pounds
G4 W16X30 2 32 30 1920.00 Pounds
G6 W16X28 6 32 28 5376.00 Pounds
Spandrel Girder
SG1 W18X30 2 32 30 1920.00 Pounds
SG3 W18X36 2 32 36 2304.00 Pounds
SG5 W18X22 4 32 22 2816.00 Pounds
Joists
1 18K10 24 28 11.7 7862.40 Pounds
2 18K11 4 18 11.7 842.40 Pounds
Decking Corragatated Steel Roof Area 7168 = 71.68
Total Quantity of Steel 61140.80 Pounds

Sheet2

Sheet3

 
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Science Lab

Name:

 

Date:

 

Instructor’s Name:

 

Assignment: Lab Report

 

Title: Analysis of Energy Sources

 

Instructions: You will write a 1-page lab report using the scientific method.

 

When your lab report is complete, post it in Submitted Assignment files.

 

Part I: Using the lab animation, fill in the data table below to gather your data, and use it to help you generate your hypothesis, outcomes, and analysis.

 

 

  Energy Source Fuel (Coal)/Uranium Needed (tons) CO2 Emissions
(tons)
Sulfur Dioxide and Other Emissions (tons) Radioactivity mSv (millisievert) Solid Waste (tons) Accidents
Quarter 1 Coal            
Nuclear            
Quarter 2 Coal            
Nuclear            
Quarter 3 Coal            
Nuclear            
Quarter 4 Coal            
Nuclear            

 

 

Part II: Write a 1-page lab report using the following scientific method sections:

  • Purpose
    • State the purpose of the lab.
  • Introduction
    • This is an investigation of what is currently known about the question being asked. Use background information from credible references to write a short summary about concepts in the lab. List and cite references in APA style.
  • Hypothesis/Predicted Outcome
    • hypothesis is an educated guess. Based on what you have learned and written about in the Introduction, state what you expect to be the results of the lab procedures.
  • Methods
    • Summarize the procedures that you used in the lab. The Methods section should also state clearly how data (numbers) were collected during the lab; this will be reported in the Results/Outcome section.
  • Results/Outcome
    • Provide here any results or data that were generated while doing the lab procedure.
  • Discussion/Analysis
    • In this section, state clearly whether you obtained the expected results, and if the outcome was as expected.
    • Note: You can use the lab data to help you discuss the results and what you learned.

Provide references in APA format. This includes a reference list and in-text citations for references used in the Introduction section.

Give your paper a title and number, and identify each section as specified above. Although the hypothesis will be a 1-sentence answer, the other sections will need to be paragraphs to adequately explain your experiment.

When your lab report is complete, post it in Submitted Assignment files.

 

Introduction

There are many perceived concerns with using nuclear energy as a primary energy source to generate electricity. Possibly, when you think of nuclear energy, one of the main thoughts that might pop into your heads is unstoppable destruction. If you link that thought along with the high costs of building nuclear power plants and the difficulties in radiation waste management, the hesitation about using nuclear energy as a resource for electricity production is understandable. However, with no definitive reliable and renewable energy sources being used in the world, what are your choices when you consider the needs for human sustainability? Fossil fuels, despite their description as being nonrenewable and an important source of pollution, still provide the world with about two thirds of its electricity, with the fossil fuel coal making up the greatest contribution.

Below you will see two graphic that represent the addition of coal or uranium that is mined as a fuel source for either a coal-fired or nuclear power plant, respectively. A data table will be displayed below each graphic to quantify pollutants associated with coal-fired and nuclear power plants. Use this information to complete your lab worksheet and help you accept or reject your hypothesis.

Coal Plant

Coal Plant Pollutants

Note on Radioactivity: A coal plant releases 100 times more radioactivity than a nuclear power plant because of the natural presence of radioactive compounds (uranium, thorium) in the coal. Millisievert (mSv) is a high-level radiation unit, and 1 mSv = 1/1,000 of a sievert. This is used to express the level of radiation exposure, which indicated an individual’s increased risk of developing cancer.

Nuclear Plant

Nuclear Plant Pollutants

Note on Radioactivity: A coal plant releases 100 times more radioactivity than a nuclear power plant because of the natural presence of radioactive compounds (uranium, thorium) in the coal. Millisievert (mSv) is a high-level radiation unit, and 1 mSv = 1/1,000 of a sievert. This is used to express the level of radiation exposure, which indicated an individual’s increased risk of developing cancer.

Reference

Nebel, B.J., & Wright, R. T. (2008). Environmental science: Toward a sustainable future. (9th ed.). Upper Saddle River, NJ: Prentice Hall.

 
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GENV 205 WEEK 5 Chapter 9 QUIZ

GENV 205 week 5 chapter 9 quiz

Week 5 Chapter 9 Quiz
1) Freshwater accounts for ____ percent of total water in the world.
(1pts)

1

3

10

20

33
2) The water table is
(1pts)

anywhere water is visible on the surface.

where streams and lakes intersect.

the uppermost level at which water fully saturates rock or soil.

synonymous with groundwater.

where water under pressure rises.
3) Places where water from aquifers naturally percolates up to the ground surface are known as
(1pts)

wells.

springs.

cones of depression.

water tables.

recharges.
4) Saltwater intrusion into freshwater aquifers may be a problem in
(1pts)

coastal areas.

mountainous areas.

the midwestern United States.

forested areas.

areas with many freshwater lakes.
5) The purpose of aqueducts is
(1pts)

to protect river channels.

to store water.

to move water from one place to another.

to create wells.

obsolete because they were created by the Romans.
6) Half of the amount of desalinated water is produced in ____.
(1pts)

the Middle East.

Asia.

South America.

Central America.

Singapore.
7) Of the world’s freshwater, roughly ____ percent is used for agriculture, ____ percent is used for industry, and ____ percent is for household use.
(1pts)

10; 20; 70

70; 20; 10

70; 10; 20

40; 20; 40

33; 33; 31
8) Overall, the greatest percentage of household water use in the United States is for
(1pts)

flushing toilets.

watering lawns.

drinking.

outdoor vegetable gardens.

laundry.
9) Nearly ____ percent of the world’s population lacks access to safe drinking water.
(1pts)

5

10

15

20

25
10) A method that has been implemented to reduce water use in dry climates such as Nevada is to
(1pts)

prohibit people from planting grass on their lawns.

pay people to plant native vegetation instead of grass on their lawns.

prohibit use of washing machines during the day, when energy use is at a peak.

prohibit garden stores from selling vegetation that doesn’t naturally grow in dry climates.

require watering lawns at night to reduce water loss from evaporation.
11) Tests on water can be used to indicate the likelihood of human wastewater contamination by testing for indicator species such as
(1pts)

Cryptosporidium.

fecal coliform bacteria.

Vibrio Cholerae bacteria.

Influenza.

Salmonella Typhi bacteria.
12) The most prevalent way to treat human waste in rural areas where a large amount of land is available is
(1pts)

septic systems.

sewage-treatment plants.

manure lagoons.

stormwater drainage systems.

collective ponds.
13) Primary treatment in a sewage treatment plant is designed to
(1pts)

remove pathogens from wastewater.

remove solids from wastewater.

create sludge for use as fertilizer.

move water from municipalities to the plant.

recycle water.
14) A low pH in water bodies can result from all of the following EXCEPT
(1pts)

passing water through limestone treatment facilities.

acid rain.

flooded, abandoned underground mines.

mountaintop mining.

acid snow.
15) Concerns over the wide use of synthetic pesticides include all of the following unintended effects EXCEPT
(1pts)

the pesticide may be lethal to non-target species as well as target species.

pesticide use leads to an altered species composition of the community.

the chemistry of the inert ingredients.

physiological side effects on pest and non-pest species.

acidification of nearby streams.
16) Methods used to remove spilled oil from the surface of the ocean include

I. containment booms and oil vacuums.
II. chemical dispersants.
III. large screens.
(1pts)

I only

II only

I and II only

I and III only

I, II, and III
17) The Clean Water Act

I. protects surface waters.
II. protects groundwater.
III. protects the diversity of aquatic species.
(1pts)

I only

II only

I and II only

I and III only

I, II, and III
18) The United States legislation that empowers the EPA to establish maximum contaminant levels in drinking water is the
(1pts)

Clean Water Act.

Superfund Act.

Clean Air Act.

MCL Act.

Safe Drinking Water Act.

 
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