ZeePedia buy college essays online


Change Management

<<< Previous STRATEGIC CHANGE:Flow of Information, Recruitment, SOC Process Next >>>
 
img
Change Management ­MGMT625
VU
Lesson # 31
STRATEGIC CHANGE
This lesson will be in continuity with the previous theme that is to discuss the Strategic Organizational
Change (SOC) Model.. Before going forward I want to recap the last lecture in which we have
discussed:
1. Context of Management Theories
2. Sources of Change
3. Key change management variables in the context of organization or SOC (Strategic
Organizational Change Management paradigm)
Previously we have opened-up our discussion on SOC by highlighting some key variables that
configure the change. First variable discussed was restructuring of vision, mission, goals and in fact
whole strategy of the organization. Whenever as a result of change the restructuring of the organization
occurs that produces a strategic reorientation or resetting of direction for the organization
Further variables of the SOC models are followings:
1. Organizational design and technology
An important note is whenever there is change in organizational strategy that instantly changes the
organization design and follows a new technological logic. So the question is what type of changes is
required in organization design as a result of change in organizational strategy. The important point is
that the change processes progress better only when the organizational structure is `organic' rather then
`mechanistic'.
Organizational design consists of the decisions about ...
·  Formal structures
·  Processes
·  Systems
·  Roles and
·  Relationships
For instance we have two scenarios for change in strategy and organization design and
technology:
1. Change in strategy (goals and objectives of growth or of technology acquisition) will lead to
change in structure ­ functional, divisional or matrix type of structures, hierarchical levels,
degree of centralization and delegation, formal planning and control systems, job
specialization, education and training
2. Flexibility of structure is an important variable comprises - flow of information (old paradigm-
that top managers are most informed), rewards (performance linkage) and recruitment (internal
or external. The point here is here what Prof. Stevens suggested for incorporating any change in
organizational strategy is that the organization must have a flexible or organic unit in terms of:
A) Flow of information
B) Performance-Reward Linkage
C) Recruitment
Therefore the point whole focus here is that "Change in strategy goals will lead to change in
Organizational Design." Now if we classify various organizational designs then broadly we have
two sets of organizational design:
78
img
Change Management ­MGMT625
VU
(a) Tangible Designs
Functional Design
Divisional Design
Matrix Design
(b) Intangible Designs
Hierarchical Levels
Degree of Centralization
Control systems and Formal Planning
Job Specialization
Flow of Information:
For instance, if we go for growth strategy then the nature of information flow could not be control
oriented or bureaucratic which is the only top-to-bottom arrangement in communication between
hierarchical levels. The top-to-bottom information flow arrangement is historically oldest or traditional
arrangement and practiced until 1960s, 70s and in early 80s in consonance with the OD model. It is a
highly conservative, single channel and mechanistic approach. On the other hand, modern researches on
information flows and on organizational modelling revealed that information intrude or invade in an
organization from multiple channels and its sources just can not be restricted to limited number of top
executive. Therefore the modern structures belief rather more on information sharing and consultancy
and valued as the critical success factor or competitive edge over the others. The Knowledge
Management Paradigm is the example of highly successful, real time and more informed models which
believe on lower level and more operational segment of information of an organization particularly in
job creation and implementations processes.
Performance-Reward Linkage
Similarly, if we want to implement a revised strategy then it is evidently necessary to account the
micro-level structure of an organization by creating, for instance, the performance-reward linkage and
other motivational tools. The reason for this linkage is the direct relationship of organizational
productivity with the motivation or incentives.
Recruitment
Recruitment is the next phenomena which can cause a change in organizational strategy. In recruitment
two sorts of policies normally practiced in organizations:
·  whether to hire from within
·  or hire from without (from market or industry)
Hire from within is a policy best fit when the nature of the organization is quite conservative or cultural
sensitivities are involved in organizational functioning. These things make an organizational structure
stagnant in terms of learning, mechanistic and more bureaucratic. On the other hand hiring from market
policy opens horizon of creativity, new values, and styles and, of course, new conventions. Therefore
we see that structure-strategy compatibility depends on choices which possess both the advantages and
the disadvantages.
Extent of readiness
Within the context of design we have to see people's behaviour towards technology, because in today's
world technology plays a decisive role in the design of job. Therefore it is important to see how people
use technology and willing to learn newer production technologies is crucial in the job design ­ because
readiness for change depends on this(or readiness of change). Extents of technology promotion itself
depend on how people are socially linked to each other and to the technical system of an organization.
Of particular interest is how the knowledge of work procedures (software) are synchronized with the
79
img
Change Management ­MGMT625
VU
mode of production (e.g. small batch process), the physical layout of the facilities (e.g. line activities
versus station layout) and means of transformation (e.g. specialized versus multipurpose)
3. Management Practices and Organization Culture
How day to day practices are conducive for making organization's mission and vision effective for
organization change and productivity. Therefore routines, procedures, rules, principles and SOPs, and
how people do work provide a connect to organizations long term efficacy and health. There will be
system disconnect if practices are not related with mission of organization. Or in other words people are
unable to give meanings to rules and regulations of organizations and larger goals of the organizations.
If this is the case then people turn out to be least motivated to do their jobs. And hence there will be no
perceived linkage between performance and reward linkage.
In practice the imperative is to strike an appropriate relationship amongst the three variable of job
design; authority, responsibility and accountability. The failure to do so can lead to either over-
organization or under-organization. Authority but not accountability is built in job-design most of the
time which is problematic for good management. Some other personal sorts of reason that can cause an
organizational disconnect. One is people are least motivated to their jobs. Second, there might not be a
practical linkage between organization performance and reward.
Unwritten rules, conventions and other psychologically implied things or organization culture in any
organization can cause distrust and anarchy because of the lack of trust-deficit, indiscipline, and
intolerance for ambiguity, which also leads to culture-strategy compatibility. On the other hand
innovative, trustworthiness and socially acceptable environment can produce efficient results in
improving organizational efficiency
SOC Process
Two types of models are generally there within the context of strategic change:
·  OD models
·  Behavioural modifications
1. OD model - OD is a distinct area within the field of organizational science that focuses on the
planned and controlled change of organizations in desired directions. In essence, OD attempts to change
an organization as a totality by changing the organization's structure, technology, people, and/or tasks
(changing people or changing tasks, structure and technology to be focused) Organizational
Development is a distinct subject with in the field of organizational science that focuses on the planned
and controlled change of organizations in desired directions. It is based on close system and only
focuses on the internal aspects and mostly ignores the external aspect of environmental studies. One
such popular model is Kurt Lewin's model and force field analysis
2. The behavior modification (BM) intervention is the normative essence of the wider concepts of
motivation, reward, learning and organizational culture (Wilson, 1992). It is an attempt to understand
and reduce complex change processes in the organizations to explicit rules, procedures and strategic
actions to deal with all possible contingencies.
This second school of thought has its roots in the practices of behavior modification and is an attempt to
understand and reduce complex change processes in the organization to explicit rules, procedures, and
strategic actions to deal with all possible contingencies
Leadership and Strategic Organizational Change
It is the leadership which mediates between the two change management models cited above.
Leadership is the only element which can bridge the gap between desired change and the behavior
aspect of the organization According to Hitt, "senior management must articulate a clear vision of the
80
img
Change Management ­MGMT625
VU
future "ideal" organization in order to successfully implement organizational change.
Leadership is also considered responsible for the creation of an organizational identity (who we are? &
for what we exist) which leads to build up of organizational commitment then culminates in better
organization communication. By and large change management or organizational transformation is
considered the responsibility of senior leadership.
References:
Appelbaum, Steven H. Normand, St-Pierre and William, Glavas, "Strategic organizational Change: The
Role of Leadership, Learning, Motivation and Productivity," and published in the journal Management
Decision Vol. 36 No 5, (1998), pp: 289-301
81
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