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STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management

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Change Management ­MGMT625
VU
Lesson # 30
STRATEGIC CHANGE
This lesson is primarily based on the article written by Appelbaum, Steven H. Normand, St-Pierre and
William, Glavas, Title of the article is, "Strategic organizational Change: The Role of Leadership,
Learning, Motivation and Productivity," and it is published in the journal of Management Decision. In
it the model is given identified as Strategic Organizational Change (SOC). Here, in this lesson some
conceptual aspects of SOC are presented. But before we discuss this concept let us first know the
contextual aspects of management theories and models
The Context of Management Theories
Most of the theorist followed in post World War II era, the organizational efficiency model of Fredrick
Taylor with closed system approach, narrowly focussing control-oriented organizations with the
following traits:
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Complex organizational structure
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Simple, monotonous, routine tasks, while
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Ignoring environmental dynamics
In other words mechanistic approach was followed which dehumanised the work and organization. But
today's environment is different as worker/employee and consumer is flexible in its behavioural (or
choice). Imperative for change management student is to observe that most of the time research on the
given subject is oriented towards humanizing work, management techniques etc.
Attributes of SOC Model
The Strategic Organizational Change (SOC) will be referred to as a flexible strategic planning process
as opposed to a static form of strategic planning. Mintzberg talked in one sense about the same as of
intended ­ realised strategy debate. The intended strategy leads to or has two components; realised and
unrealised parts or strategies. The unrealised component is something which is unplanned and not
envisaged by planners is also known as emergent strategy. The emergent strategy gives us an idea that a
policy or strategy and strategy making phenomenon is not a one time phenomenon rather is a
continuously evolved process keeping in view the environmental change and on ground dynamics.
Therefore the strategy should be kept flexible enough to incorporate the emergent aspects.
Intended Strategy
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Realised Strategy
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Emergent (unintended) Strategy
Because organizational change has become an integral part of the planning and formulation of
organizational strategies, while in the classical strategic planning model planning came before
formulation (in isolation) does not apply anymore. It can therefore be suggested that strategic
organizational change encompass ongoing initiatives that are directed from the top to the bottom of the
organization and has a profound effect on the depth of the change effort.
The above perspectives may also imply that SOC in today's environment would involve organizational
transformations from mass production to lean production, the adoption of advance manufacturing
technologies and the implementation of total quality management systems (since demand or consumer
behaviour changes frequently)
Another feature of SOC is that it can be reactive or proactive as well. Similarly SOC can be directed,
intended or continuous, discontinuous, consequential and unconsciously creeping in organization
Sources of change
Strategic organizational change can emanate from two different sources: change can either originate
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Change Management ­MGMT625
VU
from the external environment such as changes in competitors' actions, government regulations,
economic conditions and technological advances.
Example of this change can be as government's policy to de-regulate or privatize industry. In other
words the trade liberalization policy of government and other variety of policies such as import
substitution and zero tariff regimes (opposite to each other) impacts business organization decisively for
change.
Similarly suppliers also have an impact on organizations. According to one scholar, organizations ...
take inputs from the environment (e.g. suppliers), transform some of these inputs, and send them back
into the environment as outputs (e.g. products) (Johns, 1983).
Similarly change can also originate from within an organization. These changes could be new corporate
vision and mission, the purchase of new technology, mergers and acquisitions and the decline in the
morale of the company.
Consequently, among the most common and influential forces of organizational change are the
emergence of new competitors, innovations in technology, new company leadership, and evolving
attitudes towards work
Implications for Management
Rise of uncertainty as was during Taylor's (1911) times, for which he reclined to scientific
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management, that was to discover one best way to do things and efficiency based routines. But in
present times rise of uncertainty in environment is dealt with the suggestion of doing best in
different and multiple ways. This is management is perhaps best explained by contingency school
of thought. The crux of this approach is that performance and productivity in organization is
contingent upon its size, location, nature of industry etc.
Another equally important approach which is now widely suggested is of equi-finality which
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believes that success can be achieved in following through multiple paths (instead of single path).
Therefore cultural way of doing and decentralized structure is preferred for getting best (higher
productivity) instead of recourse to generalised and universal ways of doing things.
So for managers the imperative is to work in teams and learn multi-disciplinary skills in order to
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become not only a functional specialist but also a generalist (cross-functionalist) as well. Hence
general management skills are required more in organisation from this perspective.
Organization should believe in contingency planning and to have an adaptive capacity to meet
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environmental challenges.
Dehumanized work place or mechanistic organization should be replaced with organic, open and
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interactive environment. Participative and democratization of work practices is suggested going by
this approach.
Appelbaum suggested some key management change variables which should include goals and
strategies, technologies, job design, organizational structure and people. Other focussed on the
intervention strategies that managers (organization) must know and apply. So here we will discuss the
followings:
1. Organizational vision: goals and strategies
The firms' internal capabilities to be evaluated, vision to be communicated with employees (e.g. about
quality and quantity of objectives- setting process). Unrealised goals and poor or lack of
communication, commitment from the top/seniors may impede the change management process. For
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Change Management ­MGMT625
VU
example this is stated to be the requirement of ISO certification that each and every member of
organization undergoing certification should know what their mission, vision and values are. This is
why one can observe that employees wear badges with inscribed quality statement of the company, and
every prominent place at factory and in offices also contain vision and mission statements for the
purpose of enhanced communicability.
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
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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