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Change Management

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Change Management ­MGMT625
VU
LESSON #18
PHASE 4: COORDINATION
This evolutionary phase is characterized by the use of formal system for achieving greater
coordination, and by top executives taking responsibility for the initiation and administration of
new systems. For e.g. decentralized units are merged into product-group-formal planning
procedures are established and intensely reviewed. Other features of this phase are:
·  Numerous staff managers are hired at headquarters (HQ) to initiate company wide
programs of control and review for line managers.
·  Capital expenditure related decisions are carefully made.
·  Each product group is treated as an investment centre where return on investment (ROI) is
an important criterion for funds allocation.
·  Stock options and profit-sharing schemes used to encourage identity with the firm as a
whole. HO-subsidiary dynamics (HQ- branch relationship) come to play as a factor in
organization growth or performance
4. Red Tape Crisis
Lack of confidence and trust between line and staff, and between HQ and field; systems, program
and procedures go beyond their utility, and become end in itself. Line managers resent heavy
directions by staffs, which are unaware of local conditions. Staffs on the other hand complain about
uncooperative and uninformed line managers. Therefore procedure takes precedence over problem
solving, and innovation is dampened
Lawrence & Lorsch highlighted this in their study as the problem of differentiation and integration.
As organizations become large, vertical and horizontal differentiation becomes pronounced. The
problem at this stage is higher the differentiation, higher will be the need for integration.
PHASE 5: COLLABORATION
To overcome crisis of red-tape crisis ­ strong inter-personal collaboration is suggested in this
phase. Now the question is; what is the difference between Phase 4 of Coordination and Phase 5 of
collaboration? The difference is that Coordination phase was managed more through formal system
and institutional procedures while Phase 5 (collaboration emphasises greater spontaneity in
managerial actions through teams and the skilful confrontation of interpersonal differences.
Social control and self discipline take over from control. This transition is very difficult for those
who create and believe on the formal methods of report and answers. The phase evolution builds
more flexible and behavioural approach to management. Here are some of its features:
·  The focus is on problem-solving quickly through team-thinking and team-actions
·  Teams are combined across-functions
·  HQ-staff experts are reduced in numbers-combined in cross-functional teams to consult
(not to direct) field units
·  Formal systems and procedures are simplified to focus on tasks
·  Conference of key managers are held on major organizational issues
·  Reliance on educational and training programs for conflict-resolution and better team work
·  Real-time information system are integrated into daily decision-making
·  Rewards are geared more towards team performance than individual achievement
·  Experiment with new practices are tolerated and encouraged
The Crisis
What will be the revolution in this stage of evolution?
42
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Change Management ­MGMT625
VU
Many large and mature multinational (MNCs) are in this phase.
Any way whatever the answer is, the sole focus is that each evolutionary period culminates into a
revolutionary period, which is short and spasmodic and transformative for the existing managerial
system, and the processes are never ending and perpetual ones.
For Compulsory and Further Readings
1.
Miles Raymond E., Organization Development Reading 8.1
2.
_________ Developing an Organization that contribute to long run effectiveness Ch 8
3.
Greiner, Larry E., Evolution and Revolution as Organizations Grow Reading 8.2
4.
Also published in HBR July ­ Aug 1972 (can be accessed through J-Store HEC Digital
Library)
5. Drucker, Peter F, The Need to Prepare for Growth, Reading 8.3
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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