BUS503 MOD3 Case and SLP Papers

Module 3 - Home

The Four Change Antecedents: Culture, Capacity, Commitment, and Capability

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

•Case◦Assess the extent to which Culture, Commitment, Capability, and Capacity factor into the readiness for purposeful organizational change processes.

•SLP◦Following the administration of an adapted Organizational Climate questionnaire, determine the extent to which the organization’s culture was successfully prepared prior to embarking on a major organizational change or transformation.

•Discussion◦In light of the intangible nature of the “construct” of organizational Culture—one that is replete with metaphor, stories, and artefacts—state whether an organization’s culture be “managed” in the same sense as an organization’s people or budgets are managed.

Module Overview

In Module 3, following a brief discussion of why organizations must be willing to undergo change processes—whether such change is adaptive or transformative—we will examine the nature of Culture, Capacity, Commitment, and Capability, and the role that each of these factors plays in laying the groundwork for successful organizational change and transformation.

MUST USE VIDEOS AND READINGS BELOW:

Module 3 - Background

The Four Change Antecedents: Culture, Capacity, Commitment, and Capability

Required Reading

In Module 3, we will discuss the practical steps that should be taken before an organization seeks to undertake a major change.

Bear in mind that there are various forms of organizational change. Indeed, most organizational changes are barely noticeable, going undetected because they consist of non-complex, subtle adjustments (e.g., consider the small changes that organizations routinely make to procedures). Other changes are major, they are transformative. Often, organizations are required to undergo a major organizational change because of their need to adjust to significant external environmental threats (these events may stem from political, social, technological, and/or economic forces, for example, vastly increased governmental regulation, the entry of a new competitor into the industry, or an economic recession).

At other times, organizations actively choose to undergo some form of major organizational change because they are aware of opportunities in the external environment; such choices might include new product innovation, the acquisition of another company, or even a merger. Whether the organization is responding to threats or opportunities (or both), the organization is engaged in strategic planning—and changes in organizational strategy constitute major organizational changes. The important point to be made here is that major organizational changes and organizational transformation are events that place the organizations at the very highest of risk.

Read the following article about Organizational Transformation (as contrasted with other forms of organizational change, such as “developmental change” and “transitional change”):

Andersen, D., & Andersen, L. A. (2010). What is transformation, and why is it so hard to manage? Change Leader’s Network. Retrieved from

http://changeleadersnetwork.com/free-resources/what-is-transformation-and-why-is-it-so-hard-to-manage

As we learned in Modules 1 and 2, major organizational changes are often cause for resistance on the part of individuals and/or groups; for the sake of successful change, resistance to change must be managed. The extent to which the change is managed well (or not) is the key determinant of whether the change will succeed—or whether the change is doomed to failure. Because no organization wishes for a major change to fail; thus, proactive planning and communication are paramount.

Today, change is rapid, change is complex. Change management is thus made complex. As a matter of survival (let alone organizational success), organizations must be adept at change (recall from Module 1 how the best of organizations can fail when they neglect to change and/or adapt to changing environmental conditions). It is in this context that we turn to discover the steps that must be taken before a major organizational change is undertaken.

Read Sections 1 (“It’s Not Working!”) through Section 3.4 (“Capability to Change”) in the following text:

· Managing Organizational Change by Helen Campbell

· Campbell, H. (2014). Managing organizational change: A practical toolkit for leaders. Philadelphia, PA: Kogan Page. Retrieved from EBSCO—eBook Collection.

*****As noted by Campbell, organizations must have the following in order to change to be successful:

1.Culture “fit”

2.Capacity

3.Commitment

4.Capability

We have covered resistance to change (in the context of the organization’s need for commitment on the part of individuals and the organization as a collective) in Modules 1 and 2. To this extent, let’s review the other three key concepts – beginning with Organizational Culture in greater depth. To begin, watch this short video on the importance of culture in the organizational change process:

PWC’s Strategy. (2014, April 3). Culture is key: The 2013 culture and change management survey. Retrieved from

https://www.youtube.com/watch?v=54VpkDeMbfI

Now, watch the video “Building your capability to lead change.” Note how many of the characteristics discussed within the video are related to the organization’s culture:

Franklin, M. (2014, July 10). Building your capability to change. Agile CM. Retrieved from https://www.youtube.com/watch?v=dBBboMQxcqk

Organizations not only require the capability (or the competencies) to change, but they also require the capacity for change. Among other things, “capacity” refers to needed resources—people, capital, and money—as well as the ability of the organization to manage the change without adversely disrupting the organization’s existing operations. Read the section entitled “Change Capacity,” noting the authors’ assertion that organizations undergoing major change simultaneously require stability as well as change.

Meyer, C. B., & Stensaker, I. G. (2006). Developing capacity for change. Journal of Change Management, 6(2), 217–231. Retrieved from EBSCO—Business Source Complete.

Optional Reading

Read Chapter 2 (entitled “A Leader’s Guide to Understanding Organizational Culture”) for an excellent overview of the role that organizational culture plays in organizational change and organizational transformation processes:

Coming Even Cleaner About Organization Change by Patterson

Patterson, J. L. (2003). Coming even cleaner about organizational change. Lanham, MD: R&L Education. Retrieved from EBSCO—eBook Collection.

For an in-depth discuss of organizational capacity, read Chapter 11 of the Focusing on Organizational Change text:

Chapter 9 of the Focusing on Organizational Change text provides an excellent discussion of Organizational Culture (specifically, accountable cultures).

CASE ASSIGNMENT

ASSIGNMENT 1

Module 3 – Case ASSIGNMENT

The Four Change Antecedents: Culture, Capacity, Commitment, and Capability

Begin the Module 3 Case assignment by reading the following Case study:

· Burton, O., & Pope, D. (2012). Winds of change at Measurement Equipment Supply Co., Inc. Journal of Case Studies, 30(1), 51-57. Retrieved from EBSCO—Business Source Complete.

Then, in a well-written 5- to 6-page paper, respond to the following:

1.What do you believe are the most important 3-4 threats confronting the Measurement Equipment Co. Inc. (MESCO)? Hint: As you read the case, take note as to how events that have emerged in the company’s external environment, for example, increased regulation, economic, social, and technological—have created the need for the company to consider undergoing major changes.

2.In the Background section of this module, we reviewed the role of:

a.Culture

b.Commitment

c.Capacity

d.Capability

in determining the extent to which companies are prepared to successfully undertake major organizational changes. Your task is to rank each of these four factors from the highest (#1) to the lowest (#4) company need as they relate to MESCO’s readiness to change. Next, defend each of your rankings (for example, if you ranked “Commitment” as #1, explain specifically why you believe Commitment is the factor that the company has the greatest need to address; what circumstances or threats faced by the company cause you to rank this factor as being the most important need?).

3.Using the factors you ranked as #3 and #4, provide 2 or 3 recommendations for each concerning what you believe the company should do in order to sufficiently prepare the company to undergo a major organizational change. For example, assuming you have ranked the company’s “Capability” as #4 (the lowest of the four factors—and as the greatest need), what do you recommend Bill Smith should do to improve “Capability” before MESCO can successfully move forward with the company’s major organizational changes?

Assignment Expectations

1.Your paper must be at least 5-6 pages in length.

2.Be sure that you incorporate sources found at the Background page into your written analysis.

3.You may want to review information about the industry in the library’s IBISWorld resource.

4.Be sure that you properly cite all sources used in your paper (APA Style) in-text and in your end referencing.

5.Upload your Module 3 Case to the Dropbox before or on the assignment due date.