Description Read module 5 (Organizational Change) from the book attached (Organizational Change 4th edition by Gene Deszca, Cynthia Inglos, and Tupper F. Cawsey) then please follow the file attached that has the instructions. References should be APA style 7th edition. You should cite the textbook and at least 3 scholarly peer review journal articles. You should add the in text citations Be 5 pages in length excluding the reference and cover page. I attached the assignment solved from my tutor please follow the same format but please don’t copy UNFORMATTED ATTACHMENT PREVIEW 1 Organizational Change Fourth Edition 2 This book is dedicated to Tupper Cawsey, our dear and wonderful friend, colleague, and extraordinary educator. He passed away, but his positive impact continues to reverberate in those he touched. Thank you, Tupper. Gene and Cynthia 3 4 Organizational Change An Action-Oriented Toolkit Fourth Edition Gene Deszca Wilfrid Laurier University Cynthia Ingols Simmons University Tupper F. Cawsey Wilfrid Laurier University Los Angeles London New Delhi Singapore Washington DC 5 Melbourne 6 FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: order@sagepub.com SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications Asia-Pacific Pte. Ltd. 18 Cross Street #10-10/11/12 China Square Central Singapore 048423 Copyright © 2020 by SAGE Publications, Inc. All rights reserved. Except as permitted by U.S. copyright law, no part of this work may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without permission in writing from the publisher. 7 All third party trademarks referenced or depicted herein are included solely for the purpose of illustration and are the property of their respective owners. Reference to these trademarks in no way indicates any relationship with, or endorsement by, the trademark owner. Printed in the United States of America Library of Congress Cataloging-in-Publication Data Names: Deszca, Gene, author. | Ingols, Cynthia, author. | Cawsey, T. F., author/ Title: Organizational change : an action-oriented toolkit / Gene Deszca, Wilfrid Laurier University, Canada, Cynthia Ingols - Simmons College, USA, Tupper F. Cawsey - Wilfrid Laurier University, Canada. Other titles: Organisational change Description: Fourth Edition. | Thousand Oaks : SAGE Publications, [2019] | Revised edition of Organizational change, [2016] | Includes bibliographical references and index. Identifiers: LCCN 2019013498 | ISBN 9781544351407 (paperback) Subjects: LCSH: Organizational change. Classification: LCC HD58.8 .C39 2019 | DDC 658.4/06—dc23 LC record available at https://lccn.loc.gov/2019013498 Acquisitions Editor: Maggie Stanley Editorial Assistant: Janeane Calderon Production Editor: Gagan Mahindra Copy Editor: Lynne Curry Typesetter: C&M Digitals (P) Ltd. Proofreader: Rae-Ann Goodwin Indexer: Mary Mortensen Cover Designer: Candice Harman Marketing Manager: Sarah Panella 8 9 Brief Contents 1. Preface 2. Acknowledgments 3. Chapter 1 • Changing Organizations in Our Complex World 4. Chapter 2 • How to Lead Organizational Change: Frameworks 5. Chapter 3 • What to Change in an Organization: Frameworks 6. Chapter 4 • Building and Energizing the Need for Change 7. Chapter 5 • Navigating Change through Formal Structures and Systems 8. Chapter 6 • Navigating Organizational Politics and Culture 9. Chapter 7 • Managing Recipients of Change and Influencing Internal Stakeholders 10. Chapter 8 • Becoming a Master Change Agent 11. Chapter 9 • Action Planning and Implementation 12. Chapter 10 • Get and Use Data Throughout the Change Process 13. Chapter 11 • The Future of Organizations and the Future of Change 14. Notes 15. Index 16. About the Authors 10 11 Detailed Contents Preface Acknowledgments Chapter 1 • Changing Organizations in Our Complex World Defining Organizational Change The Orientation of This Book Environmental Forces Driving Change Today The Implications of Worldwide Trends for Change Management Four Types of Organizational Change Planned Changes Don’t Always Produce the Intended Results Organizational Change Roles Change Initiators Change Implementers Change Facilitators Common Challenges for Managerial Roles Change Recipients The Requirements for Becoming a Successful Change Leader Summary Key Terms End-of-Chapter Exercises Chapter 2 • How to Lead Organizational Change: Frameworks Differentiating How to Change from What to Change The Processes of Organizational Change (1) Stage Theory of Change: Lewin Unfreeze Change Refreeze: or more appropriately Re-gell (2) Stage Model of Organizational Change: Kotter Kotter’s Eight-Stage Process (3) Giving Voice to Values: Gentile GVV and Organizational Change (4) Emotional Transitions Through Change: Duck Duck’s Five-Stage Change Curve (5) Managing the Change Process: Beckhard and Harris 12 (6) The Change Path Model: Deszca and Ingols Application of the Change Path Model Awakening: Why Change? Mobilization: Activating the Gap Analysis Acceleration: Getting from Here to There Institutionalization: Using Data to Help Make the Change Stick Summary Key Terms End-of-Chapter Exercises ? Case Study: “Not an Option to Even Consider:” Contending With the Pressures to Compromise by Heather Bodman and Cynthia Ingols Chapter 3 • What to Change in an Organization: Frameworks Open Systems Approach to Organizational Analysis (1) Nadler and Tushman’s Congruence Model History and Environment Strategy The Transformation Process Work The Formal Organization The Informal Organization People Outputs An Example Using Nadler and Tushman’s Congruence Model Evaluating Nadler and Tushman’s Congruence Model (2) Sterman’s Systems Dynamics Model (3) Quinn’s Competing Values Model (4) Greiner’s Model of Organizational Growth (5) Stacey’s Complexity Theory Summary Key Terms End-of-Chapter Exercises ? Case Study: Sarah’s Snacks by Paul Myers Chapter 4 • Building and Energizing the Need for Change Understanding the Need for Change Seek Out and Make Sense of External Data 13 Seek Out and Make Sense of the Perspectives of Stakeholders Seek Out and Make Sense of Internal Data Seek Out and Assess Your Personal Concerns and Perspectives Assessing the Readiness for Change Heightening Awareness of the Need for Change Factors That Block People from Recognizing the Need for Change Developing a Powerful Vision for Change The Difference Between an Organizational Vision and a Change Vision Examples of Visions for Change IBM—Diversity 3.0 Tata’s Nano: From Vision to Failed Project Change Vision for the “Survive to 5” Program Change Vision for “Reading Rainbow” Change Vision for a Large South African Winemaker Change Vision for the Procurement System in a Midsize Manufacturing Firm Summary Key Terms A Checklist for Change: Creating the Readiness for Change End-of-Chapter Exercises ? Case Study: Leading Change: The Pharmacy Team by Jess Coppla Chapter 5 • Navigating Change through Formal Structures and Systems Making Sense of Formal Structures and Systems Impact of Uncertainty and Complexity on Formal Structures and Systems Formal Structures and Systems From an Information Perspective Aligning Systems and Structures With the Environment Structural Changes to Handle Increased Uncertainty Making Formal Structural Choices Using Structures and Systems to Influence the Approval and Implementation of Change 14 Using Formal Structures and Systems to Advance Change Using Systems and Structures to Obtain Formal Approval of a Change Project Using Systems to Enhance the Prospects for Approval Ways to Approach the Approval Process Aligning Strategically, Starting Small, and “Morphing” Tactics The Interaction of Structures and Systems with Change During Implementation Using Structures and Systems to Facilitate the Acceptance of Change Summary Key Terms Checklist: Change Initiative Approval End-of-Chapter Exercises ? Case Study: Beck Consulting Corporation by Cynthia Ingols and Lisa Brem Chapter 6 • Navigating Organizational Politics and Culture Power Dynamics in Organizations Individual Power Departmental Power Organizational Culture and Change How to Analyze a Culture Tips for Change Agents to Assess a Culture Tools to Assess the Need for Change Identifying the Organizational Dynamics at Play Summary Key Terms Checklist: Stakeholder Analysis End-of-Chapter Exercises ? Case Study: Patrick’s Problem by Stacy BlakeBeard Chapter 7 • Managing Recipients of Change and Influencing Internal Stakeholders Stakeholders Respond Variably to Change Initiatives Not Everyone Sees Change as Negative Responding to Various Feelings in Stakeholders 15 Positive Feelings in Stakeholders: Channeling Their Energy Ambivalent Feelings in Stakeholders: They Can Be Useful Negative Reactions to Change by Stakeholders: These Too Can Be Useful Make the Change of the Psychological Contract Explicit and Transparent Predictable Stages in the Reaction to Change Stakeholders’ Personalities Influence Their Reactions to Change Prior Experience Impacts a Person’s and Organization’s Perspective on Change Coworkers Influence Stakeholders’ Views Feelings About Change Leaders Make a Difference Integrity is One Antidote to Skepticism and Cynicism Avoiding Coercion but Pushing Hard: The Sweet Spot? Creating Consistent Signals from Systems and Processes Steps to Minimize the Negative Effects of Change Engagement Timeliness Two-Way Communication Make Continuous Improvement the Norm Encourage People to Be Change Agents and Avoid the Recipient Trap Summary Key Terms Checklist: How to Manage and Minimize Cynicism About Change End-of-Chapter Exercises ? Case Study: Travelink Solutions by Noah Deszca and Gene Deszca Chapter 8 • Becoming a Master Change Agent Factors That Influence Change Agent Success The Interplay of Personal Attributes, Situation, and Vision Change Leaders and Their Essential Characteristics Developing into a Change Leader 16 Intention, Education, Self-Discipline, and Experience What Does Reflection Mean? Developmental Stages of Change Leaders Four Types of Change Leaders Internal Consultants: Specialists in Change External Consultants: Specialized, Paid Change Agents Provide Subject-Matter Expertise Bring Fresh Perspectives from Ideas That Have Worked Elsewhere Provide Independent, Trustworthy Support Limitations of External Consultants Change Teams Change from the Middle: Everyone Needs to Be a Change Agent Rules of Thumb for Change Agents Summary Key Terms Checklist: Structuring Work in a Change Team End-of-Chapter Exercises ? Case Study: Master Change Agent: Katherine Gottlieb, Southcentral Foundation by Erin E. Sullivan Chapter 9 • Action Planning and Implementation Without a “Do It” Orientation, Things Won’t Happen Prelude to Action: Selecting the Correct Path Plan the Work Engage Others in Action Planning Ensure Alignment in Your Action Planning Action Planning Tools 1. To-Do Lists 2. Responsibility Charting 3. Contingency Planning 4. Flow Charting 5. Design Thinking 6. Surveys and Survey Feedback 7. Project Planning and Critical Path Methods 8. Tools to Assess Forces That Affect Outcomes and Stakeholders 17 9. Leverage Analysis 10. Employee Training and Development 11. Diverse Change Approaches Working the Plan Ethically and Adaptively Developing a Communication Plan Timing and Focus of Communications Key Principles in Communicating for Change Influence Strategies Transition Management Summary Key Terms End-of-Chapter Exercises ? Case Study: Turning Around Cote Construction Company by Cynthia Ingols, Gene Deszca, and Tupper F. Cawsey Chapter 10 • Get and Use Data Throughout the Change Process Selecting and Deploying Measures 1. Focus on Key Factors 2. Use Measures That Lead to Challenging but Achievable Goals 3. Use Measures and Controls That Are Perceived as Fair and Appropriate 4. Avoid Sending Mixed Signals 5. Ensure Accurate Data 6. Match the Precision of the Measure With the Ability to Measure Measurement Systems and Change Management Data Used as Guides During Design and Early Stages of the Change Project Data Used as Guides in the Middle of the Change Project Data Used as Guides Toward the End of the Change Project Other Measurement Tools Strategy Maps The Balanced Scorecard Risk Exposure Calculator The DICE Model Summary 18 Key Terms Checklist: Creating a Balanced Scorecard End-of-Chapter Exercises ? Case Study: Omada Health: Making the Case for Digital Health by Erin E. Sullivan and Jessica L. Alpert Chapter 11 • The Future of Organizations and the Future of Change Putting the Change Path Model into Practice Future Organizations and Their Impact Becoming an Organizational Change Agent: Specialists and Generalists Paradoxes in Organizational Change Orienting Yourself to Organizational Change Summary End-of-Chapter Exercises Notes Index About the Authors 19 20 Preface to the Fourth Edition Difficult to see. Always in motion is the future.1 1 Spoken by Yoda in the movie The Empire Strikes Back The world has continued to churn in very challenging ways since the publishing of the third edition of this text. Uneven and shifting global patterns of growth, stubbornly high unemployment levels in many parts of the world, increasing income inequality, and serious trade disputes that threaten to transform trade patterns are severely stressing our highly interconnected global economy. The massive credit crisis of a decade ago was followed by unprecedented worldwide government stimulus spending and low interest rates to promote growth, which, in turn, have resulted in escalating public debt, exacerbated in some nations through tax cuts. These combine to threaten the capacity of national governments to respond to future economic difficulties. In addition, wars, insurrections and civil insurrections in parts of Africa, the Ukraine, the Middle East, and Asia have sent masses of people searching for safety in new places. Simultaneously, deteriorating international relationships involving major powers, fears of global pandemics (Ebola and MERS), and the staying power of radical Islamist groups such as al-Qaeda and ISIS affiliates, Boko Haram and Jemaah Islamiyah have shaken all organizations in affected regions—big or small, public or private. Escalating concerns related to global warming, species extinctions, and rising sea levels are stressing those who recognize the problems in governments and organizations of all shapes and sizes, as they attempt to figure out how to constructively address these emerging realities. Add to these elements the accelerating pace of technological change and it’s easy to see why we, at times, feel overwhelmed by the turbulence, uncertainty, and negative prognosis that seem to define the present. 21 But, all is not doom and gloom. Progress on human rights and gender equity, reductions in extreme poverty and hunger, declining rates of murder and violent crime, improving rates of literacy and life expectancy, and increasing access to information and knowledge through affordable digital resources provide evidence that progress is being made on some fronts. The growing public willingness to tackle very difficult environmental and social issues now, not later, are combining with innovative technologies, creative for-profit and not-for-profit organizations, and forward-thinking politicians and leaders from all walks of life. Supportive public policies are combining with public and private initiatives to demonstrate that we can make serious progress on these issues, if we collectively choose to act in constructive and thoughtful manners locally, regionally, and globally. These factors have also made us, your authors, much more aware of the extreme influence of the external environment on the internal workings of all organizations. As we point out in our book, the smallest of firms needs to adapt when new competitive realities and opportunities surface. Even the largest and most successful of firms have to learn how to adapt when disruptive technologies or rapid social, economic, political and environmental changes alter their realities. If they fail to do so, they will falter and potentially fail. Our models have always included and often started with events external to organizations. We have always argued that change leaders need to scan their environments and be aware of trends and crises in those environments. The events of the past two years have reinforced even more our sense of this. Managers must be sensitive to what happens around them, know how to make sense of this, and then have the skills and abilities that will allow them to both react effectively to the internal and external challenges and remain constant in their visions and dreams of how to make their organizations and the world a better place to live. A corollary of this is that organizations need a response capability that is unprecedented because we’re playing on a global stage of increasing complexity and uncertainty. If you are a bank, you need 22 a capital ratio that would have been unprecedented a few years ago, and you need to be working hard to understand the potential implications of blockchain technologies, regulatory changes, and changing consumer preferences on the future of banking. If you are a major organization, you need to design flexibility and adaptability into your structures, policies, and plans. If you are a public-sector organization, you need to be sensitive to how capricious granting agencies or funders will be when revenues dry up. In today’s world, organizational resilience, adaptability, and agility gain new prominence. Further, we are challenged with a continuing reality that change is endemic. All managers need to be change managers. All good managers are change leaders. The management job involves creating, anticipating, encouraging, engaging others, and responding positively to change. This has been a theme of this book that continues. Change management is for everyone. Change management emerges from the bottom and middle of the organization as much as from the top. It will be those key leaders who are embedded in the organization who will enable the needed adaptation of the organization to its environment. Managers of all stripes need to be key change leaders. In addition to the above, we have used feedback on the third edition to strengthen the pragmatic orientation that we had developed. The major themes of action orientation, analysis tied with doing, the management of a nonlinear world, and the bridging of the “knowing–doing” gap continue to be central themes. At the same time, we have tried to shift to a more user friendly, action perspective. To make the material more accessible to a diversity of readers, some theoretical material has been altered, some of our models have been clarified and simplified, and some of our language and formatting has been modified. As we stated in the preface to the first edition, our motivation for this book was to fill a gap we saw in the marketplace. Our challenge was to develop a book that not only gave prescriptive advice, “how-to-do-it lists,” but one that also provided up-to-date theory without getting sidetracked by academic theoretical complexities. We hope that we have captured the management 23 experience with change so that our manuscript assists all those who must deal with change, not just senior executives or organization development specialists. Although there is much in this book for the senior executive and organizational development specialist, our intent was to create a book that would be valuable to a broad cross section of the workforce. Our personal beliefs form the basis for the book. Even as academics, we have a bias for action. We believe that “doing is healthy.” Taking action creates influence and demands responses from others. While we believe in the need for excellent analysis, we know that action itself provides opportunities for feedback and learning that can improve the action. Finally, we have a strong belief in the worth of people. In particular, we believe that one of the greatest sources of improvement is the untapped potential to be found in the people of all organizations. We recognize that this book is not an easy read. It is not meant to be. It is meant as a serious text for those involved in change—that is, all managers! We hope you find it a book that you will want to keep and pull from your shelf in the years ahead, when you need to lead change and you want help thinking it through. Your authors, Gene, Cynthia, and Tupper Note on Instructor Teaching Site A password-protected instructor’s manual is available at study.sagepub.com/cawsey to help instructors plan and teach their courses. These resources have been designed to help instructors make the classes as practical and interesting as possible for students. PowerPoint Slides capture key concepts and terms for each chapter for use in lectures and review. A Test Bank includes multiple-choice, short-answer, and essay exam questions for each chapter. 24 Video Resources for each chapter help launch class discussion. Sample Syllabi, Assignments, and Chapter Exercises as optional supplements to course curriculum. Case Studies and teaching notes for each chapter facilitate application of concepts in real world situations. 25 26 Acknowledgments We would like to acknowledge the many people who have helped to make this edition of the book possible. Our colleagues and students and their reactions to the ideas and materials continue to be a source of inspiration. Cynthia would like to thank her colleagues at the School of Business, Simmons University, Boston, Massachusetts. In particular, she would like to thank Dr. Stacy Blake-Beard, Deloitte Ellen Gabriel Chair of Women and Leadership, and Dr. Paul Myers, senior lecturer, who each contributed a case to this fourth edition of the book. In addition, Paul graciously read and gave feedback on other cases and parts of the text, suggesting ways to bring clarity to sometimes muddled meanings. Alissa Scheibert, a Simmons library science student, conducted in-depth research for a number of chapters. Dr. Erin Sullivan, research director, and Jessica L. Alpert, researcher, Center for Primary Care, Harvard Medical School, contributed two cases to this edition of the book and I am very grateful for their contributions. Jess Coppla, a former Healthcare MBA student leader and author of one of the cases, will someday be CEO of a healthcare organization. . . . I’m just waiting to see which one. Colleagues Gary Gaumer, Cathy Robbins, Bob Coulum, Todd Hermann, Mindy Nitkin, and Mary Shapiro were wonderful cheerleaders throughout the many hours of my sitting, writing, and revising in my office: thank you all! Managers, executives, and front-line employees that we have known have provided insights, case examples, and applications while keeping us focused on what is useful and relevant. Ellen Zane, former CEO of Tufts Medical Center, Boston, is an inspiring change leader; her turnaround story at the Tufts Medical Center appeared in the second edition of this book and was published again in the third edition; it continues to be on the Sage website for use by faculty. Cynthia has also been fortunate to work with and learn from Gretchen Fox, founder and former CEO, FOX RPM: the story of how she changed her small firm appeared in the second edition of the book and the case continues to be available 27 through Harvard Business Publishing (http://hbr.org/product/foxrelocation-management-corp/an/NA0096-PDF-ENG). Noah Deszca, a high school teacher, was the prime author of the Travelink Solutions case, an organization that underwent significant changes while he was working there. Katharine Bambrick, a former student of Gene’s and the CEO of the Ontario Trillium Foundation and the former CEO of Food Banks Canada, is another of the inspiring leaders who opened their organizations to us and allowed us to learn from their experiences, and share it with you. The Food Banks case appeared in the third edition of this book and is one of the additional cases that are available on this book’s website. Special thanks to Paige Tobie for all her hard work on the instructors’ resources. She is a gem to work with. As with the previous editions, our partners Bertha Welzel and Steve Spitz tolerated our moods, our myopia to other things that needed doing, and the early mornings and late nights spent on the manuscript. They helped us work our way through ideas and sections that were problematic, and they kept us smiling and grounded when frustration mounted. Our editors at Sage have been excellent. They moved the project along and made a difficult process fun (well, most of the time). Thank you, Maggie Stanley, our acquisitions editor, for keeping us on task and on time (or trying to keep us on time…). We appreciate your style of gentle nudges. Thank you to Janeane Calderon, our editorial assistant who was constantly on top of the various parts of the book and helped us push through to the end. Copyeditor Lynne Curry found stray commas and inconsistencies throughout the book: thank you for fixing the problems. Gagan Mahindra, Production Editor, kept us wonderfully focused on the details of production: thank you! Finally, we would like to recognize the reviewers who provided us with valuable feedback on the third edition. Their constructive, positive feedback and their excellent suggestions were valued. We thought carefully about how to incorporate their suggestions into this fourth edition of the book. Thank you Mulugeta Agonafer 28 of Springfield College, Brenda C. Barnes of Allen College, C. Darren Brooks of Florida State University, Robert Dibie of Indiana University Kokomo, Jonathan E. Downs of MidAmerica Nazarene University, Alexander C. Heckman of Franklin University, Scott Elmes McIntyre of University of Houston – Clear Lake, Frank Novakowski of Davenport University, Pamela R. Van Dyke of Southern Methodist University, Jack Wilson of the United States Naval Academy, and Diana J. Wong-MingJi of Eastern Michigan University. In short, our thanks to all who made this book possible. 29 30 Chapter One Changing Organizations in Our Complex World Chapter Overview The chapter defines organizational change as “planned alteration of organizational components to improve the efficiency and effectiveness of organizations.” The orientation of this book is to assist change leaders—and potential change managers—in becoming effective in their change activities. The social, demographic, technological, political, and economic forces pushing the need for change are outlined. Four types of organizational change are discussed: tuning, adapting, reorienting, and re-creating. Four change roles found in organizations are described: change initiators, change implementers, change facilitators, and change recipients and stakeholders. The terms change leader and change agent are used interchangeably and could mean any of the four roles. The difficulties in creating successful change are highlighted, and then some of the characteristics of successful change leaders are described. Organizations fill our world. We place our children into day care, seek out support services for our elderly, and consume information and recreational services supplied by other organizations. We work at for-profit or not-for-profit organizations. We rely on organizations to deliver the services we need: food, water, electricity, and sanitation and look to governmental organizations for a variety of services that we hope will keep us safe, secure, well governed, and successful. We depend on health organizations when we are sick. We use religious organizations to help our spiritual lives. We assume that most of our children’s education will be delivered by formal educational organizations. In other words, organizations are everywhere. Organizations are how we get things done. This is not just a 31 human phenomenon as it extends to plants and animals: look at a bee colony, a reef, a lion pride, or an elephant herd and you’ll see organizations at work. And these organizations are changing—some of them declining and failing, while others successfully adapt or evolve, to meet the shifting realities and demands of their environments. What exactly is organizational change? What do we mean when we talk about it? 32 Defining Organizational Change When we think of organizational change, we think of major changes: mergers, acquisitions, buyouts, downsizing, restructuring, the launch of new products, and the outsourcing of major organizational activities. We can also think of lesser changes: departmental reorganizations, installations of new technology and incentive systems, shutting particular manufacturing lines, or opening new branches in other parts of the country—fine-tuning changes to improve the efficiency and effectiveness of our organizations. In this book, when we talk about organizational change, we refer to planned alterations of organizational components to improve the effectiveness or efficiency of the organization. Organizational components are the organizational mission, vision, values, culture, strategy, goals, structure, processes or systems, technology, and people in an organization. When organizations enhance their effectiveness, they increase their ability to generate value for those they serve. The reasons for change are often ambiguous. Is the change internally or externally driven? In July 2018, Tim Hortons (a Canada-based coffee restaurant chain) announced that it was aiming to open 1,500 new stores in China in the next decade.1 This is in addition to expansion efforts involving the United States, the Philippines, Britain, Mexico, the Middle East, and Spain. Tim Horton’s has a network of approximately 3,900 outlets in Canada and another 900 elsewhere. It has also been busy revising its menu to shore up flattening same-store sales, adding Wi-Fi access, undertaking major store remodeling, and making changes to its sustainability and corporate social responsibility initiatives. What is driving these changes? The executives reported that they were undertaking these actions in response to competitive pressures, customer needs, market opportunities, and the desire to align their efforts with their values. For Tim Hortons, the drivers of change are coming from both the internal and external environment. Dunkin’ Donuts, a much larger U.S.–based chain with similarities to Tim Hortons’ business model and competitive pressures, seems to have been pursuing similar adaptive 33 responses.2 It is essential for managers to be sensitive to what is happening inside and outside the organization and adapt to those changes in the environment.* * Tim Hortons and Burger King announced their $12.5 billion merger on August 26, 2014, forming the third largest quick-service restaurant in the world. They have maintained these two distinct brands post-merger, but have taken advantage of synergies by leveraging their respective strengths and geographic reach. Note that, by our definition and focus, organizational change is intentional and planned. Someone in the organization has taken an initiative to alter a significant organizational component. This means a shift in something relatively permanent. Usually, something formal or systemic has to be altered. For example, a new customer relations system may be introduced that captures customer satisfaction and reports it to managers; or a new division is created and people are allocated to that division in response to a new organizational vision. Simply doing more of the same is not an organizational change. For example, increasing existing sales efforts in response to a competitor’s activities would not be classified as an organizational change. However, the restructuring of a sales force into two groups (key account managers and general account managers) or the modification of service offerings would be, even though these changes could well be in response to a competitor’s activities rather than a more proactive initiative. Some organizational components, such as structures and systems, are concrete and thus easier to understand when contemplating change. For example, assembly lines can be reordered or have new technologies applied. The change is definable and the end point clear when it is done. Similarly, the alteration of a reward system or job design is concrete and can be documented. The creation of new positions, subunits, or departments is equally obvious. Such org
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