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ORGANIZATIONAL DEVELOPMENT AND CHANGE

Lecture 19. ORGANIZATIONAL DEVELOPMENT AND CHANGE. Forces acting on organizations. Helriegel et al (1989):. Stewart (1991) - changes that effect managerial careers: Business structure Business functioning. External forces: Rapid product obsolescence Knowledge explosion

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ORGANIZATIONAL DEVELOPMENT AND CHANGE

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  1. Lecture 19 ORGANIZATIONAL DEVELOPMENT AND CHANGE

  2. Forces acting on organizations Helriegel et al (1989): • Stewart (1991) - changes that • effect managerial careers: • Business structure • Business functioning • External forces: • Rapid product obsolescence • Knowledge explosion • Demographics • Internal forces: • Efficiency • Fashion • Control • Internal pressure

  3. Forces acting on organizations: Adaptive change Fracturing change Planned change Unplanned change

  4. Organizational development – strands of theory and practice

  5. Organizational development – strands of theory and practice • Encounter or T Groups • Process consultation • Survey feedback • Action research • Planned approach to OD interventions • Quality of working life • Strategic change

  6. Organizational development – strands of theory and practice

  7. Power, politics and change • Two major ways in which power and politics interact with change: • Process • Purpose • Stephenson (1985) - tactics that are useful in the introduction of change: • Simple first • Adaptation • Incorporation • Structure • Ceremony • Assurances • Timescales • Support • Transition • Unexpected • Nadler and Tushman (1988) - three mechanisms: • Mobilizing political support • Encouraging supportive behaviour • Managing the transitional process

  8. Major constituent parts of an organization - all interact and change in any can cause change to occur in the others: People Task Structure Technology Leavitt’s organizational variables and change

  9. Mergers, acquisitions and change • Johnson and Scholes (1993) - development by acquisition occurs in waves • Change is an inevitable consequence • Important cultural blockages to change: • Routines • Control systems • Structures • Symbols • Power and dependency

  10. Re-engineering and quality approaches to change • Meeting the needs of the customers • Meeting the needs of the hierarchy • Process is fundamental to business process re-engineering • Hammer and Champy - ‘Individualism, self-reliance, a willingness • to accept risk and a propensity for change’ • Rapid identification and quick implementation • Total Quality Management (TQM): • Meet the needs of customers • Cover all parts of organization • Every person in organization • Examine all costs associated with quality • ‘Right first time’ • Systems and procedures to support quality improvement • Continuous improvement • Dale - ten years to implement TQM properly

  11. Lewin’s forcefield model of change • Stage 1 - Unfreezing • Stage 2 - Changing • Stage 3 - Refreezing

  12. Contingency perspectives on change: • Kotter and Schlesinger’s model • Education plus communication • Participation plus involvement • Facilitation plus support • Negotiation plus agreement • Manipulation plus co-option • Explicit plus implicit coercion

  13. Contingency perspectives on change: • Dunphy and Stace’s model • Developed a two dimensional matrix based on: • The scale of change • Style of management • The matrix produced four change strategies: • Participative evolution • Forced evolution • Charismatic transformation • Dictatorial transformation

  14. Contingency perspectives on change: Plant’s model

  15. Systems perspectives on change • Total systems intervention • Creativity • Choice • Implementation

  16. Chaos and change Relatively recent branch of science - chaos and complexity theory Marion (1999) Mathematically, Chaos happens when equations used to describe seemingly simple systems just won’t behave as expected. They will not yield a stable response, or the answers they give jump wildly when the quantity of an input variable is even lightly perturbed. These equations are called ‘nonlinear’ because their inputs are not predictably related to their output. Any organization is essentially a complex adaptive system (CAS) - forever perched on the edge of change

  17. The change agent • Change generators • Change implementers • Change adopters

  18. Group and organizational resistance to change

  19. Innovation as a change strategy • Pascale (1990) suggests that a number of organizational features restrict the • ability to innovate and change: • The pre-eminence of one function with a restricted perspective • Learned helplessness • Conformity as the basis of promotion • How conflict is resolved • Effect of privilege and reward • Lack of empowerment • Reinforcing folklore • Betz (1987) - three levels of innovative • activity: • Radical • Systems • Incremental • Schermerhorn (1993) - five elements of • innovation process: • Internal organizational sensitivity • Idea creation • Initial experimentation • Feasibility determination • Final application

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