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23 Cards in this Set
- Front
- Back
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External Triggers for Change |
General (Indirect) Environmental Factors - These can be identified using the PEST framework. Task (Direct) Factors - These can be identified/assessed using Porters Five Forces model. |
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Internal Triggers for Change |
Philosophy - New Ownership - New CEO - New Initiative/Management Style Reorganisation - Take Over/Merger - Divisional Restructure - Realisation/Cost Reduction Personnel - Promotions/Transfers - Rules/Procedures - Training/Development Conditions - Location Change - Outsourcing - Rosters/Flexible Working Technology - New Procedures/Systems - Changing Information Demands - Integration of Roles |
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Types of Organisational Change |
Incremental Transformation - Evolution Transformation change implemented gradually through inter-related initiatives; likely to be proactive change. Incremental Realignment - Adaptation Change undertaken to realign the way in which the organisation operates, implemented in a series of steps. Big Bang Transformation - Revolution Transformational change that occurs via simultaneous initiatives on many fronts. Big Bang Realignment - Reconstruction Change undertaken to realign the way in which the organisation operates with many initiatives implemented simultaneously. |
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The Cultural Process of Change |
Exiting culture can become "embedded" and hence resistant to change. Over coming resistance can be a major challenge. Existing culture can limit the types of strategy development and change that are considered. - Faced with forces for change, management will seek to minimise the extent to which they are faced with ambiguity and uncertainty by defining the situation in terms of that which is familiar. - Can explain why some firms adopt incremental strategies and, worse, why some fail to address the impact of environmental triggers resulting in strategic drift. |
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The Cultural Process of Change Management Reaction |
(1) First management will try to improve the effectiveness and efficiency if the existing strategy. (2) If this is not effective, then a change in strategy may occur but in line with existing strategy. (3) Even when managers know intellectually that more radical change is needed, they find themselves constrained by existing routines, assumptions and political processes. |
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Managing the Change Process Lewin's Three-Stage Model |
Unfreeze -> Change Behaviours -> Re-Freeze |
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Managing the Change Process Lewin's Three-Stage Model (Unfreeze) |
Managers need to make the need for change so obvious that most people can easily understand and accept it. Ways of destabilising the present stability could include: - Identifying and exploiting existing areas of stress or dissatisfaction - Creating or introducing additional forces to change - Increasing employee knowledge about markets. |
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Managing the Change Process Lewin's Three-Stage Model (Change Behaviours) |
The change process itself is mainly concerned with identifying what the new behaviour or norm should be. Will often involve: - Establishing new patterns of behaviour - Setting up new reward/incentive relationships. - Creating new reward/incentive schemes. - Introducing a new style of management |
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Managing the Change Process Lewin's Three-Stage Model (Re-Freezing) |
Involves ensuring that people do not slip back into old ways. As such it involves reinforcement of the new pattern of work or behaviour by: - Larger rewards for those employees who have fully embraced the new culture. - Publicity of success stories. |
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Managing the Change Process Force Field Analysis |
He argued that managers should consider any change situation in terms of: - The factors encouraging and facilitating change (Driving Forces) - The factors that hinder change (Restraining Forces) |
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Managing the Change Process Beer&Nohria (Theory E & Theory O) |
Theory E Strategies - These are based on measures where shareholder value is the main concern. Change usually involves incentives, lay-offs, downsizing and restructuring. Theory O Strategies - These are softer approaches to change, often involving cultural adjustment or enhancing employee capabilities through individual and organisational learning. |
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Resistance To Change |
Job Factors - Fear of technological unemployment - Fear of changes to working conditions - Fear of demotion or reduced pay Social Factors - Dislike need to break up current social environment. - Personal dislike of people implementing change - Lack of consultation leading to rejection of change. Personal Factors - Implied criticism of current methods of working - Feel less valued - Work becomes more monotonous. |
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Managing Resistance Kotter & Schlesinger (1979) - Four Reasons for Resistance |
(1) Parochial Self-Interest (2) Misunderstanding (3) Low Tolerance to Change (4) Different Assessments of the Situation. |
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Managing Resistance Kotter & Schlesinger (1979) - Considerations for Leadership Style |
- The speed at which change must be introduced - The strength of the pressure for change. - The level of resistance expected. - The amount of power you hold. - How much information you need before you can implement the change and how long it will take to get that information. |
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Managing Resistance |
Participation - Aims to involve employees, usually by allowing some input into decision making. Education & Communication - Used as a background factor to reinforce another approach. Power/Coercion - Involves the compulsory approach by management to implement change. Facilitation and Support - Employees may need to be counselled to help them overcome their fears and anxieties about change. Manipulating and Co-operation - Involves covert attempts to sidestep potential resistance. Negotiation - Often practised in unionised companies. |
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Change Agents |
Define the problem and its causes - The change agent should be able to identify restraining forces or potential resistance. Diagnose solution and select appropiate courses of action - The change agent will be responsible for proposing ways in which problems can be overcome. Implement change - Change agent will be well informed about the proposed change and reasons behind it, therefore likely to lead it. Transmit the learning process to others and the organisation overalls - The change agent should document the learning process and discussions which the company has undergone during the change process. |
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"Power Skills" of Change Agents |
- Ability to work independantly - Ability to collaborate effectively - Ability to develop relationships based on trust - Self-confidence, tempered with humility - Being respectful of the process of change - Ability to work across different business functions and units. - A willingness to stake personal reward on results. |
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Managing Decline |
Likely strategic priorities - Reduce costs to improve efficiency - Improve competitiveness in order to increase revenue. Most obvious starting point is labour costs which could ultimately mean redundancies. Danger that staff cuts are too severe, could lead to reduction in quality, impact on morale, loss of skilled staff, increased conflict. |
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Managing Decline 4 Options |
Retrenchment - This involves doing the same as before, but drastically cutting costs. Turnaround - The organisation repositions itself within the market for competitive advantage. Divestment - Involves external sale of part of the organisation or the internal closure of units. Liquidation - Sold to one or more buyers. This is an admission of failure and normally last resort. |
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The Importance of Adaptation and Continuous Change Change-Adept Organisations (Kanter) |
Attitudes of companies that manage change successfully. - The imagination to innovate - The professionalism to perform - The openness to collaborate Skills of the manager - Communicating a compelling aspiration - Building coalitions - Transforming ownership to the work team - Making everyone a hero - Learning to persevere - Challenging the prevailing organisational wisdom - Tuning into the environment. |
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The Importance of Adaptation and Continuous Change Thriving on Chaos (Tom Deters) |
- Incremental change is the enemy of true innovation, because it makes an organisation less willing to be truly innovative. - Excellent firms don't believe in excellence, only in constant improvement and constant change. - A constantly changing environment does not necessarily mean chaos, instead it may mean that companies can handle the introduction of change successfully. |
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The Importance of Adaptation and Continuous Change Thriving on Chaos (Tom Deters) -Advantages & Disadvantages |
Advantages - Innovation and introduction of new products and new methods are actively sought and welcomed. - People who are used to change tend to accept it without resistance. - Employees develop and external viewpoint, and are less insular and defensive in their outlook. Disadvantages - With a climate change morale might be damaged. - Staff might become involved in office politics because of their concerns about the possible changes that might occur in the organisation. |
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The Importance of Adaptation and Continuous Change Learning Organisations (Peter Senge) |
(a) Systems Thinking - Ability to see particular problems as part of a wider whole and apply appropriate solutions to them. (b) Personal Learning and Growth - Individuals should be encouraged to acquire skills and knowledge. (c) Mental Models - Deeply ingrained assumptions that determine what people think. (d) A Shared Insight That Does Not Filter Knowledge Which Undermines Learning. (e) Team Learning - Teams must be training to learn because there are factors in group dynamics that impede learning. |
