chapter 8 Flashcards
(20 cards)
• Large-scale change occurs as a result of the following disruptions:
–Industry discontinuities: revolutionary changes in political,
economic, or technological conditions.
–Product life cycle shifts: requiring different business strategies
or models.
–Internal company dynamics: changes in the size, strategy, or
turnover.
• A typical definition of an organisation is that it is a:
–social entity, that has
–a specific purpose, with a
–set boundary (inside vs. outside),
–governed by patterns of processes and activities, resulting in a
–recognisable structure.
Forces for change Volatile forces
• Unpredictable economic and
business environment.
• Challenges and opportunities
presented by globalisation.
• Governmental intervention in the
economy.
• Demanding labour union agendas.
• Divergent political interests.
• Fight for scarce, limited resources.
• Rapid advances in technology
Forces for change General forces
• Consumers are becoming
more knowledgeable.
• More flexible work
structures.
• Change in the composition
of the workforce.
• Internal organisational
conflict.
Forces for change Systemic forces
• A variety of outsourcing models
are available.
• A consistent struggle of
determining the “core business” of
the organisation.
• Fragmentation of work and its
subsequent impact.
• Managing the negative impact of
technology on employmen
Forces for change Internal organisational force
• The challenge of ageing
organisations.
• Inadequate human resource
planning.
• The temptation of “doing more
with less”.
• Change fatigue in the absence of
change flexibility.
Types of organisational change
• Strategic change – the changing market
conditions
• Structural change – e.g. downsizing or creating
department
• Technological change – new manufacturing
equipment or new computer system
• Behavioural or people change – optimising the
organisational talent
• An integrated approach
Approaches to managing the change process Lewin model
• About the interaction of dynamic forces which result in stable systemic
behavior.
• Two sets of behavioral forces are always at play:
− Those working against change to maintain the status quo.
− Those working against the status quo to bring about change – a
“quasi-state equilibrium” is achieved when these forces are equal in
strength.
• Change is therefore effected by the following:
− Enhancing the forces pushing for change.
− Undermining the forces maintaining the status quo.
OR
− A combination of both.
• Assumption is that an increase in the pushing forces would result in
higher levels of resistance to change.
Lewin’s fundamental contribution to organisational change is his three-step
model:
• STEP 1: UNFREEZING
• Involves reducing the forces in favour of the current situation – current
way of operating is no longer viable.
• STEP 2: MOVING
• Alteration of organisational behaviour to new behaviours in line with the
desired state – unlearning and relearning new sets of thinking and
behaving.
• STEP 3: REFREEZING
• Involves the stabilisation of the organisation at the new level –
management must set the example through their behaviour; recognising
and rewarding new behaviours.
Lewin model (cont.)
1
Extension of Lewin’s three-step model is Kotter’s eight-step
process which involves the following:
unfreezing
• Establishing a sense of urgency
• Creating a guiding coalition
• Developing a vision and strategy
• Communicating the change vision
moving
• Empowering broad-based action
• Generating short-term wins
refreezing
• Consolidating gains and producing more change
• Anchoring new approaches in the culture
Approaches to managing the change process Action research model
• It involves a collective, collaborative, yet iterative process with
all stakeholders – from data collection and analysis to action
planning, implementation, and evaluation.
• There are eight main steps to action research:
• STEP 1: PROBLEM IDENTIFICATION
• STEP 2: CONSULTATION WITH A RELEVANT EXPERT
• STEP 3: DATA COLLECTION AND INITIAL ASSESSMENT
• STEP 4: FEEDBACK TO CLIENT
• STEP 5: JOINT PROBLEM DIAGNOSIS
• STEP 6: JOINT ACTION PLANNING
• STEP 7: ACTION
• STEP 8: POST ACTION DATA COLLECTION
Approaches to managing the change process The positive model
• Lewin’s model and the action research approach are primarily
deficit-based, i.e., they focus on what is wrong.
• The positive model emphasises what is going right in the
organisation.
• Appreciative Inquiry (AI) process is an application of the positive
model.
• The five phases of the AI process:
• PHASE 1: INITIATE THE INQUIRY
• PHASE 2: INQUIRE INTO BEST PRACTICES
• PHASE 3: DISCOVER THE THEMES
• PHASE 4: ENVISION A PREFERRED FUTURE
• PHASE 5: DESIGN AND DELIVER WAYS TO CREATE THE FUTURE
Criticism of planned approaches
• Planned approaches to change have been
criticised because of their questionable
application to organisations within a rapidly
changing environment.
• Newer perspectives on change, such as
continuous improvement and organisational
learning, have been suggested.
Criticism of planned approaches Actions to introduce effective change
1 Analyse the organisation and its need for change. Stakeholders need to understand the nature and rationale for the change.
2 Create a shared vision and a common direction. A credible, competent team must provide inspirational leadership in support of the change.
3 Separate from the past. Stakeholders need to move out of, and away from, their comfort zone. It cannot be business as usual.
4 Create a sense of urgency. What is in it for me? What are the consequences of not changing?
5 Support a strong leader role.
6 Line up political sponsorship. One of the critical contributors to successful change is effective sponsorship.
7 Craft an implementation plan. Adopt a project management approach to change.
8 Develop enabling structures. In the absence of structures to contain anxieties and support during this uncertain phase, people will tend to return to the familiarity of the comfort zone.
9 Communicate, involve people, and be honest.
10 Reinforce and institutionalise change. Make change stick, by celebrating successes and rewarding positive behaviours
Individual resistance
• Change uncertainty.
• Selective perception.
• Fear of the unknown.
• Attraction of habit and the
disruption of routine.
• Loss of freedom and other
benefits.
• Threat to power, social
networks, or security
Organisational resistance
• Political resistance: threats
to power, influence, and
stability.
• Cultural resistance:
organisational norms and
culture.
• Technical resistance: mutual
trade, working
arrangements, and
agreements.
• Dynamic resistance: longterm investments.
Organisational resistance
2
Overcoming resistance to change
• Motivate commitment.
• Understand the human response
to change.
• Show empathy and support.
• Ensure consistent
communication.
• Foster individual involvement.
• Management must play a
containing role.
Creating a learning organisation Core values and norms
• It supports the firm belief that every member in the organisation
has untapped human potential.
• It values the diverse forms of knowledge and learning styles.
• It supports explicit development of creative thinking.
• It adopts a non-judgemental approach to others and their ideas.
• It actively breaks down traditional barriers.
• It reduces distinctions made between organisations and
members (leaders versus followers).
• It encourages dialogue between stakeholders with different
perspectives.
• It supports the firm belief that everyone is a leader. Lead from
where you stand.
Creating a learning organisation Core processes
• The relationship between organisational learning and
performance also reflects the interrelated activities that are at
the core of organisational learning.
• These activities are:
–Discovery is when a discrepancy between the actual and the
desired state is detected.
–An invention (intervention) is then devised to address this
discrepancy.
–Solutions are implemented through the process of production.
–The beauty of learning organisations is that lessons learnt from
specific initiatives are reflected upon and applied to similar
situations in other areas throughout the organisation – known
as generalisation.
Core processes
2
Creating a learning organisation
Distinguishing features of learning organisations
• There is consistent, deliberate collaboration throughout the
organisation and across all boundaries.
• There is constant action and structured reflection, and modifications
are made, informed by evaluations.
• There is active thinking, collective contribution, and improvised
implementation.
• There is access to real-time data and, therefore, the best possible
knowledge, to effect relevant changes.
• There is continuous planning, re-examination of planning, and the
changing of plans, which is made known to all throughout the
organisation.
• There is value in learning, so all employees are encouraged to learn
