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Change Management

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Change Management ­MGMT625
VU
LESSON # 2
BENEFITS AND SIGNIFICANCE OF CHANGE MANAGEMENT
Benefits and Significance
The subject matter holds a tremendous importance for both individual and organization. Let us
discuss some of the benefits from organization perspective.
1. Understanding environment (society, government, customers)
It is important for organization to understand, assess and gauge the dynamics in its external
environment in order to envisage and establish an appropriate relationship with various actors like
government, customers and society. Therefore managers by knowing the subject of change
management can better be prepared to understand whatever is going on in the environment.
2. Objectives, strategy formulation & implementation (to develop competitive advantage)
Second is consequent upon knowing the impact of change at extraneous level on its own internal
dynamics, and the foremost is objective setting and seeking competitive advantage.
3. Employees (trained, high performing work practices, reliable organisation)
The employees are the recipient of change plan. One such perpetual concern of senior managers is
to make organization highly reliable, therefore employees ought to be trained and high performing
one in today's hyper competitive world.
4. Technology Issues
Technology is considered the engine of growth in today's world. Perhaps the greatest challenge for
contemporary organizations is the acquisition and integration of technology in its strategy, structure
and process. As such the concern of top managers is how to avoid organization being obsolete and
how to cope and absorb the impact of changing information and communication technologies
which have decisively influencing production and consumption behaviour?
5. Globalization
The management of international economic and political forces what is today known as
internationalisation and globalisation is yet another important factor influencing decision making of
organization. No organization or nation can stay independent and indifferent to what ever is
happening at international (political) level. For instance the impact of September 11 events have
been tremendous on the economies and organizations of developing countries like Pakistan.
Similarly supra ­ national institutions are becoming more assertive over nation states not only in
political terms but also on social issues like child labour and gender issues. So government and
states are considered somewhat less sovereign in imposing their will over their subjects (individual
and organizations) against the ever increasing and complex interdependencies amongst states. For
example the compulsions and legal provisions of international treaties like WTO and ISO
certification regimes have decisively influenced the organizations and economies of the developing
world. Hence imperative for managers, CEOs and entrepreneurs from smaller or larger
organizations alike, of different sectors of economy, is to understand the complexities of
globalisation and its impact on organization' business.
The Relationship of Management with Change-Management
The relationship can be understood along the following lines. First, we have to consider that change
management is a subject with cross-cutting theme, applicable across various traditional functional
areas like management, marketing, production, finance and comprehensively with more recent
strategic management concepts. For instance, this is related with marketing where the concern
might be new product or market development, or can be related with production like the
introduction or acquisition of new technology or skills. Viz. the finance - budgetary allocations,
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Change Management ­MGMT625
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revisions and cost-cutting strategies, and for HR the concern is behavioural modification, formation
and accumulation of technical and managerial knowledge, skills and values.
Traditional management domain
Another way to look at the subject is from traditional management perspective and thinking of
organizational transformation. For instance change in the PODC techniques, thereby following
universal or benchmarked practices. Therefore change means variation in following techniques
Planning
- Setting objectives
- Implementation of policies
- Decision-making
Organizing
- Formal & informal organisation
- Departmentation
- Hierarchy
- Authority- responsibility relationship
- Span of control etc.
Directing
- Leading
- Leadership styles
- Motivation theories
Controlling
- Direct & formal control
- Indirect & informal control
Strategic management domain
Within the strategic domain we have two concerns: One is Strategy formulation, that is formulating
mission, vision and objectives after going through environmental assessment (a key feature of
strategic management), and second pertains to strategy implementation means organisation
structure, culture and politics. While the whole focus of the popular framework of strategic
management is the development and sustenance of competitive advantage of a firm or organization,
at multiple levels of strategy making ­ functional, business, corporate and societal levels.
McKinsey Seven S-Framework
One of the leading management consultants in America, and is widely quoted in management
literature, has following dimensions for change to make organization a highly productive one.
These are:
1. Strategy
- sustained competitive advantage
2. Structure
- who reports to whom or how work is divided
3. System
- operations & core processes
4. Style
- leadership style
5. Staff
- employees/ Human resources
6. Shared values
- beliefs, mindsets
7. Skills
- capabilities and competencies
Overview of the subject
Similarly, within the overall context of management, the subject matter can also be understood by
focussing on strategic, process, structural, cultural and political dimensions of organization. To
understand management one must know the dynamics of various approaches.
1. Strategy
2. Process
3. Structure
4. Culture
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Change Management ­MGMT625
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5. Politics
1. Organisation has an articulated purpose or objective
There is a kind of constant questioning, verifying, changing and re-defining of organization
objectives by interacting with environment. Once objectives are revised consequently lead to
modification of structure of roles & managerial process. For example the problem for entrepreneur
once organization survives (overcome the entrepreneurial problem) is how to achieve growth which
is problematic in the sense that he has to go for market development , overcome engineering
problem so as to produce at higher level without compromising quality and administrative problem
to manage and formalise role and relationship with increased number of employees. This is not only
a problem of entrepreneurship based organization only but even larger and older well established
organization like Multinational Companies (MNCs) tend to define and renegotiate their objectives.
This according to one author is identified as Strategic Renewal.
2. Organization process
The word process refers to the transformation input to out put. For e.g. production process means
conversion of raw material to finished goods. Such types of processes are technology-driven most
of the time. Broadly speaking viz. a process we have two types of changes; one is known as Total
Quality Management (TQM) which in essence means change on continuous and gradual basis, and
is of marginal or incremental nature while Business Process Restructuring (BPR) means drastic,
structural or fundamental change. The former is working `with in the system' while later is known
as `working on the system'. Similarly in context of organization there are other processes such as
decision making, objective setting, communicating, controlling & coordinating
3. Organisation structure
How authority and responsibility is distributed across the across the organization. Authority pattern
in organization shows who reports whom and who is answerable and accountable to whom. Other
dimensions of structure include departmentation or task grouping, hierarchy layers, span of control
and the extent of formalization (bureaucratic or participative one). Therefore structural change may
mean change in one or more dimension cited above. But most of the time organizations now a day
want to make organization structure more flatter instead of taller, decentralized, participative, and
humane or empowered as it is considered to be more productive and creative.
4. Organization Culture
- Values, beliefs and mind-set of a manager at work
- Cognitive style (thought process)
- Personality (MBTI)
- Behaviour
Hofstede Model
-
Individualism - Collectivism
-
Masculinity - Feminism
-
Power Distance - Low or High
-
Uncertainty Avoidance - Low or High
-
Time orientation - Low or High
·
Organisation Politics
­ Changes have political consequences
­ Change disturbs power-distribution in organisation
­ Organisation are like governments
­ Managers have interests & groupings
Therefore power may enable or resist change
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Table of Contents:
  1. COURSE ORIENTATION:Course objectives, Reading material, Scope of the subject
  2. BENEFITS AND SIGNIFICANCE OF CHANGE MANAGEMENT:Traditional management domain
  3. KURT LEWIN MODEL: ASSUMPTIONS AND IMPLICATIONS:Change Movement, Refreeze
  4. IMPLICATIONS OF KURT LEWIN MODEL:Sequence of event also matters, A Critical Look
  5. SOME BASIC CONCEPTS AND DEFINITIONS:Strategic change, Logical incrementalism
  6. TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP:Micro-changes, Organisation Development
  7. THEORIES OF CHANGE IN ORGANISATIONS
  8. LIFE CYCLE THEORY:Unit of Change, Mode of change, Organisation death
  9. TELEOLOGICAL THEORIES OF CHANGE:Unit of change, Mode of Change, Limitations
  10. DIALECTICAL THEORIES OF CHANGE:Unit of Change, Strategic planning
  11. A DIALECTICAL APPROACH TO ORGANISATIONAL STRATEGY AND PLANNING:
  12. LIMITATION OF DIALECTICS; DA AND DI:Overview of application of dialectics
  13. THEORIES OF CHANGE IN ORGANISATIONS
  14. APPLICATION OF EVOLUTIONARY THEORY:Managerial focus
  15. FURTHER APPLICATION OF EVOLUTIONARY THEORIES:Criticism
  16. GREINER’S MODEL OF ORGANISATIONAL– EVOLUTION AND REVOLUTION
  17. GROWTH RATE OF THE INDUSTRY:CREATIVITY, DIRECTION, DELEGATION
  18. COORDINATION:COLLABORATION, The Crisis
  19. ORGANISATION ECOLOGY:Structural Inertia, Internal Structural Arrangements, External Factors
  20. CLASSIFICATION OF ORGANIZATIONAL SPECIES:Extent of Environmental Selection, Determinants of Vital Rates,
  21. FOOTNOTES TO ORGANISATIONAL CHANGE:Stable Processes of Change, Rule Following, Conflict
  22. SOME COMPLEXITIES OF CHANGE:Superstitious Learning, Solution Driven Problems
  23. ORGANIZATIONAL ADAPTATION:The Entrepreneurial problem, The Administrative Problem
  24. PROSPECTORS:Analyzer, Reactors, Adaptation and Strategic Management
  25. SKELETAL MODEL OF ADAPTATION:Determinants of Adaptive ability, The Process of Adaptation
  26. STRATEGIC CHANGE:Nature of Change, The Importance of Context, Force field Analysis
  27. Management Styles and Roles:Change Agent Roles, Levers for managing strategic Change
  28. SYMBOLIC PROCESSES:Political Processes, COMMUNICATING CHANGE, Change Tactics
  29. STRATEGIC CHANGE:Pettigrew & Whipp’s Typology, Context on X-axis (Why of change)
  30. STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management
  31. STRATEGIC CHANGE:Flow of Information, Recruitment, SOC Process
  32. Determinants of a Successful Change Management:Environmental, Management Orientation, Management Orientation
  33. Higgins 08 S Model – An Adaptation from Waterman’s Seven S model:Strategy, Systems and Processes, Resources
  34. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  35. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  36. WHY IMPLEMENTING STRATEGIC CHANGE IS SO DIFFICULT?:Change Typology, Technical Change
  37. IMPLEMENTATION APPROACHES:Attributes of incremental change,
  38. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  39. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Definition of Leadership, Follower Work Facilitation
  40. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Recognize the challenge
  41. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  42. IMPLEMENTATION: PUNCTUATED EQUILIBRIUM MODEL:Features of Radical Change, Theory of P-E model
  43. CHANGE IMPLEMENTATION: OD MODELS:The Transactional Factors
  44. CULTURE, VALUES AND ORGANIZATIONAL CHANGE:Significance and Role of Values, Values Compete
  45. ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management