Chapter 5 - Organisational Change Flashcards
Strategy implementation
Takes place via organisational change processes, and can be understood as rational/ planned or processual.
Importance of Change Management
Economic crises in 190s, recessions in 80s and 90s, have shown constant change. Organisations that haven’t managed change effectively haven’t survived. e.g. Nokia, Blackberry. Hence, managing change effectively is crucial to survival and success of organisations.
External Drivers of Change
Political factors e.g. govt regulations, new laws enforced
Economic factors e.g. inflation, GFC, economic systems
Socio cultural factors e.g. changes in consumer tastes, new products, social attitudes
Technological changes eg. Digital world
Internal Drivers of Change
Performance problems e.g. dropping profits
Problems with internal processes e.g. slow decision making
Managerial philosophy/ styles or change in leadership e.g. new management
Changes can include
Strategy/structure e.g. introduction of teams Size e.g. downsizing/ growth Products/services Technologies e.g new systems/ software Human capital - more outsourcing Location of production Mergers and acquisitions Culture (organisational) Brand
Nature of organisational change
Evolutionary (small, slow)
Revolutionary (big, fast)
Planned
Unplanned
Evolutionary Change
Stays relatively stable
Change individual parts/ departments
Make the most of existing structure and management
Incrementally change existing production technology
Improve existing products
Revolutionary Change
Seek new equilibrium Transform entire organisation Create new structure and management Adopt radically new production technology Introduce path breaking new products
Planned change
Systemic e.g. new technology, privatisation, deregulation, entry into new market
Adaptive e.g. updating computer system, modifications to existing plans
Unplanned change
Chaotic e.g. terrorist attack, hostile take over
Transitory: strike, sudden change in commodity prices, loss of key personnel
Strategic change
Shift in vision/direction Operational change involves anything affecting day to day operations. Strategy implementation necessarily involves change.
Understanding and mangin strategic change:
Planned approaches to strategy: strategy drives change. Strategy formulation comes first, followed by implementation
Emergent approaches to strategy: change is strategy. Strategy formulation is in large part strategy implementation.
Operational change
Change involving anything affect day-to-day operations
Planned Approaches to Change
Field Theory
Force Field Analysis
3 step change model
Organisational Development
Field theory
Kurt Lewis. To understand human behaviour, we must understand the forces influencing it. To explain social behaviour, it is necessary to represent structure of total situation and distribution of forces within it. Behaviour is a function of individual and environment/field. If we can understand the forces which influence behaviour, we can understand which forces should be intensified and which weakened to drive a desired change.
Force Field Analysis
In any organisation, status quo is a function of balance between two sets of force (stability vs. change). if we can map the forces for stability and change, we can influence balances of forces then we can bring about change. Some forces cause change, others promote stability.
