Unit 10

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Questions and Answers

What principle suggests that individuals should give what they want to receive?

Scarcity

Authority

Reciprocity (correct)

Consistency

How can the Advocacy Effect influence an individual's beliefs?

By having them sell ideas to others, reinforcing their own belief. (correct)

By making them advocate for ideas they oppose.

By encouraging them to follow existing norms.

By requiring them to maintain silence about their views.

What is critical for ensuring that change is sustained within an organization?

Focusing solely on financial incentives.

Establishing a rigid hierarchical structure.

Implementing technology upgrades regularly.

Making change a part of the organizational culture. (correct)

Which of the following methods can help shape an organization's culture?

Socialization and training Signup and view all the answers

What is a benefit of establishing a sustainability culture in an organization?

Providing meaning beyond financial rewards. Signup and view all the answers

What is one major barrier to organisational change as described in the content?

Organisational inertia Signup and view all the answers

Which statement best explains the relationship between company size and the difficulty of implementing change?

Larger organisations face more challenges in successfully changing. Signup and view all the answers

What can be a negative effect of Red Queen Evolution in companies?

Prior adaptations become core rigidities when addressing new trends. Signup and view all the answers

What is one of the six persuasion principles mentioned in the content?

Linking Signup and view all the answers

Why might an organisation need to buy capabilities from outside sources?

To better meet sustainability trends and adapt to new markets. Signup and view all the answers

What emotional response can uncertainty provoke in individuals regarding organisational change?

Fear of loss Signup and view all the answers

Which of the following is NOT a suggested strategy for engaging with employees during change?

Encouraging competition among teams Signup and view all the answers

How can organisational politics obstruct change initiatives?

By incentivizing non-sustainable practices. Signup and view all the answers

Match the type of barrier to organizational change with its description:

Organizational Inertia = Self-perpetuating tendencies of organizational structure and culture Structural Barriers = Older and larger organizations find change harder Individual Resistance = Engagement and readiness of individuals to change Metrics and Organizational Politics = Managers pose barriers through monetized incentives Signup and view all the answers

Match the persuasion principle with its description:

Linking = Uncover real similarities and offer genuine praise Involvement = Engage individuals in the change process Reciprocity = Provide benefits to gain cooperation Consistency = Encourage commitment to align with prior beliefs Signup and view all the answers

Match the example of organizational change with the type of company response:

Kodak = Failed to adapt to digital photography Tesla = Bought a battery startup for capabilities German car companies = Created alliances for sustainability Established corporations = Struggled with path dependency Signup and view all the answers

Match the following statements about barriers to change with their corresponding types:

Self-perpetuating tendencies = Organizational Inertia Engagement of individuals = Individual Resistance Older organizational structures = Structural Barriers Incentives for sustainability = Metrics and Organizational Politics Signup and view all the answers

Match the concept with its potential negative impact on change initiatives:

Path Dependency = Core rigidity from prior adaptations Red Queen Evolution = Failure to adapt to new competition Organizational Politics = Incentivizes resistance to change Uncertainty = Provokes anxiety in employees Signup and view all the answers

Study Notes

Organisational Change for Sustainability

Failure to adapt to changing market demands can lead to extinction, as seen with Kodak's inability to transition to digital photography.
Organisational inertia, a resistance to change, is fuelled by:
- Self-perpetuating structures and cultures
- The requirement to "unlearn" unsustainable practices
- Lack of motivation to change as expertise becomes obsolete
- Uncertainty and fear of job losses

Barriers to Organisational Change

Structural barriers:
- Larger, older, and more complex organisations face greater challenges in implementing change.
- Path dependencies can prevent companies from adapting to new markets due to their deeply ingrained capabilities.
- Metrics and organisational politics can hinder sustainability efforts when managers prioritize financial gains over long-term environmental and social impacts.
Individual resistance:
- Persuading employees is crucial for successful change.
- Six principles of persuasion are:
  - Linking: finding common ground and praising individuals
  - Reciprocity: offering what you want to receive
  - Social proof: leveraging peer influence
  - Consistency: seeking active, public, and voluntary commitment
  - Authority: demonstrating expertise
  - Scarcity: highlighting unique benefits and exclusive information
- The advocacy effect encourages individuals to believe in an idea after publicly advocating for it.
- The Nixon in China effect demonstrates that even the most skeptical individuals can be swayed by influential figures who change their beliefs.

Overcoming Barriers

Focus on manageable portions of change, starting with pilot projects in specific areas.
Seek external expertise through acquisitions or partnerships.
Prioritize win-win initiatives to initially gain buy-in from employees, such as cost-saving measures through LED lighting.
Foster a culture of sustainability.

Embedding Change in Culture
- Recruit and select individuals aligned with sustainability goals
- Integrate sustainability principles into training and socialisation programmes
- Implement reward systems that recognize sustainable behaviours
- Culture cannot be designed like structure, it needs to be cultivated.

Benefits of Sustainability Culture

Creates a sense of identity and purpose beyond financial rewards.
Cultivates a sense of organisational commitment.
Increases employee motivation and dedication.

Organisational Inertia

Organisations are prone to inertia due to their self-perpetuating structure and culture.
Changing unsustainable practices requires unlearning, which can be challenging.
Existing expertise might become obsolete with change, leading to a lack of motivation.
Uncertainty about future positions creates anxiety and resistance.

Structural Barriers to Change

Larger and more complex organisations experience greater resistance to change.
Pilot projects can introduce change in manageable portions, focusing on specific parts of the company.
Pre-existing capabilities create path dependencies, making it harder to adapt to new markets and trends.
Kodak's failure highlights the risk of relying heavily on past successes, leading to rigidity in the face of new trends.
Acquiring capabilities from outside through acquisitions (Tesla buying battery startups) or alliances (German car companies) can help overcome these limitations.
Managers can resist change by prioritizing financial incentives over sustainability, leading to a need for leadership change and coalition building.

Individual Resistance to Change

Individuals need to be engaged and ready for change for organisational change to be effective.
Persuasion principles:
- Linking: Find common ground and offer genuine praise.
- Reciprocity: Give what you want to receive.
- Social Proof: Leverage the power of peers.
- Consistency: Make commitments public, active, and voluntary.
- Authority: Highlight your expertise explicitly, avoid assuming it's self-evident.
- Scarcity: Emphasize unique benefits and exclusive information.
The advocacy effect suggests that individuals become more convinced when advocating for a position. Encouraging resisters to promote the change can help them accept it.
The Nixon in China effect demonstrates the impact of unexpected actions by influential figures. Targeting the most sceptical individuals can create a ripple effect.

Keeping Up Motivation for Change

Plan for small wins and celebrate them.
Start with win-win initiatives (e.g., LED lights for financial savings).
After initial successes, move towards more systematic changes.

Embedding Change in Culture

Institutionalize change by integrating it within the organizational culture.
This ensures sustainability beyond initial implementation.
Cultural change is self-perpetuating, passed on to new employees.
Shaping organizational culture:
- Recruiting and selection: Hire individuals aligned with the desired culture.
- Socialization and training: Incorporate desired values in training programs.
- Reward and recognition: Acknowledge and reward behaviors that embody the new culture.
Culture is not designed like structures; it needs to be nurtured by rewarding desired behaviors.

Benefits of Sustainability Culture

Creates a sense of identity and belonging for members.
Enhances organizational commitment.
Generates employee dedication and motivation beyond financial rewards.

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Description

Explore the critical aspects of organisational change necessary for sustainability. This quiz delves into barriers to change, including structural issues and individual resistance, while highlighting the importance of adapting to market demands. Understand the consequences of failing to evolve and the role of organisational culture in facilitating progress.