slide 8.1 bernard burnes, managing change, 5 th edition, © pearson education limited 2009 lecture 2...

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Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Lecture 2 Learning OutcomesLecture 2 Learning Outcomes

The organisation as a system in uncertain The organisation as a system in uncertain timestimes

The planned approach to change managementThe planned approach to change management The emergent approach to change The emergent approach to change

management management Organisational Development (OD) and change Organisational Development (OD) and change Models of Organisational ChangeModels of Organisational Change

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Organizational ChangeOrganizational Change

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A view of organizationsA view of organizations

Organizations are individuals and groups that Organizations are individuals and groups that interact within a formal structure. Structure is interact within a formal structure. Structure is created by management to establish created by management to establish relationships between individuals and groups, relationships between individuals and groups, to provide order and systems and to direct to provide order and systems and to direct efforts to carry out goal seeking activities.efforts to carry out goal seeking activities.

Mullins (2005, p. 32)Mullins (2005, p. 32)

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The organisation as a systemThe organisation as a systemSource : Senior & Fleming Source : Senior & Fleming Organisational ChangeOrganisational Change

Informal Subsystems

Formal Subsystems

Inputs• Materials• Resources

* Goal achievement* Employee Satisfaction

Outputs

ENVIRONMENT

The Organization

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Change throughout the agesChange throughout the ages

As we approach the 21st century the pace and scale of the change demanded of organizations and those who work within them are enormous. Global competition and the advent of the information age, where knowledge is the key resource, have thrown the world of work into disarray. Just as we had to shed the processes, skills and systems of the agricultural era to meet the demands of the industrial era, so we are now having to shed ways of working honed for the industrial era to take advantage of the opportunities offered by the information age……Organizations are attempting to recreate themselves and move from the traditional structure to a dynamic new model where people can contribute their creativity, energy and foresight in return for being nurtured, developed and enthused.

Jones, Palmer, Osterweil and Whitehead (1996)

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An uncertain futureAn uncertain future

The pace of change is quickening and the future becomes more The pace of change is quickening and the future becomes more unpredictableunpredictable

An increasingly competitive environment for businessAn increasingly competitive environment for business

Changes in employment trendsChanges in employment trends

Makes planning for the future increasingly difficultMakes planning for the future increasingly difficult

An increased need to understand the environment in which an organization An increased need to understand the environment in which an organization operates, to be able to analyze the factors that trigger organizational changeoperates, to be able to analyze the factors that trigger organizational change

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Environmental turbulenceEnvironmental turbulence

Level 1 – Level 1 – predictable predictable – characterized by the stability of markets– characterized by the stability of markets Level 2 – Level 2 – Forecastable by exploitationForecastable by exploitation – complexity of the – complexity of the

environment increasesenvironment increases Level 3 – Level 3 – Predictable threats and opportunitiesPredictable threats and opportunities – Even more – Even more

complex as the organization’s ability to respond becomes more complex as the organization’s ability to respond becomes more problematicproblematic

Level 4 – Level 4 – Partially predictable opportunitiesPartially predictable opportunities – Turbulence increases – Turbulence increases with the addition of global and socio-political changeswith the addition of global and socio-political changes

Level 5 – Level 5 – Unpredictable surprisesUnpredictable surprises – Turbulence increases further – Turbulence increases further with unexpected events and situations occurring more quickly than with unexpected events and situations occurring more quickly than the organization can respondthe organization can respond

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Change Management Change Management

Two dominant approaches :-Two dominant approaches :-

The Planned Approach – 1940sThe Planned Approach – 1940s

The Emergent Approach – 1980s.The Emergent Approach – 1980s.

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The Planned ApproachThe Planned ApproachKurt LewinKurt Lewin

There is little question that the intellectual There is little question that the intellectual father of contemporary theories of applied father of contemporary theories of applied behavioral science, action research and behavioral science, action research and planned change is Kurt Lewin. His seminal planned change is Kurt Lewin. His seminal work on leadership style and the experiments work on leadership style and the experiments on planned change which took place in World on planned change which took place in World War II in an effort to change consumer War II in an effort to change consumer behaviour launched a whole generation of behaviour launched a whole generation of research in group dynamics and the research in group dynamics and the implementation of change programsimplementation of change programs..

(Schein, 1988: 239)(Schein, 1988: 239)

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Lewin’s philosophyLewin’s philosophy

The resolution of social conflictThe resolution of social conflict The problems of minority or disadvantaged The problems of minority or disadvantaged

groupsgroups A strong belief that only the permeation of A strong belief that only the permeation of

democratic values into all facets of society democratic values into all facets of society could prevent the worst extremes of social could prevent the worst extremes of social conflict.conflict.

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The main elements of Planned changeThe main elements of Planned change

Field Theory Field Theory

Group Dynamics Group Dynamics

Action Research Action Research

The Three-Step model.The Three-Step model.

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Force Field analysis

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Group DynamicsGroup Dynamics

… … the word ‘dynamics’ … comes from a Greek the word ‘dynamics’ … comes from a Greek word meaning force. … ‘group dynamics’ word meaning force. … ‘group dynamics’

refers to the forces operating in groups. … it refers to the forces operating in groups. … it is a study of these forces: what gives rise to is a study of these forces: what gives rise to

them, what conditions modify them, what them, what conditions modify them, what consequences they have, etc.consequences they have, etc.

(Cartwright, 1951: 382)(Cartwright, 1951: 382)

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Action Research

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The Three-Step modelThe Three-Step model

Unfreezing (create dissatisfaction) Unfreezing (create dissatisfaction)

Moving (implementation) Moving (implementation)

Refreezing (stabilisation).Refreezing (stabilisation).

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Figure 8.3 Lewin’s Three-Step model of change

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Figure 8.4

The Coping Cycle

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Three-Step model and the Coping Cycle

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The Coping CycleThe Coping Cycle

Stage 1 – Denial:Stage 1 – Denial: When faced with the need to make or When faced with the need to make or accept significant changes, the first reaction by many accept significant changes, the first reaction by many people or groups is to deny there is a need for change. people or groups is to deny there is a need for change.

Stage 2 – Defence:Stage 2 – Defence: Once people realise that change is Once people realise that change is taking place and they cannot stop it, they may feel rejected taking place and they cannot stop it, they may feel rejected and depressed. This can turn into defensive behaviour and depressed. This can turn into defensive behaviour whereby people will defend their past practices and whereby people will defend their past practices and behaviours and deny that the new ways are suitable to behaviours and deny that the new ways are suitable to them and their jobs. them and their jobs.

Stage 3 – Discarding:Stage 3 – Discarding: If people realise that the change If people realise that the change will take place whether they like it or not, and that it does will take place whether they like it or not, and that it does affect them and that they need to adjust to the new affect them and that they need to adjust to the new situation, they begin the process of discarding past situation, they begin the process of discarding past behaviour – recognising that what was suitable in the past behaviour – recognising that what was suitable in the past is no longer suitable for the current situation.is no longer suitable for the current situation.

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The Coping Cycle (Continued)The Coping Cycle (Continued)

Stage 4 – Adaptation:Stage 4 – Adaptation: No proposed change is ever likely No proposed change is ever likely to be 100% suitable at the outset. Therefore, for change to to be 100% suitable at the outset. Therefore, for change to be successful, not only must those affected by it adapt to be successful, not only must those affected by it adapt to the new ways, but the new ways must also be adapted to the new ways, but the new ways must also be adapted to fit in with the existing people and circumstances. fit in with the existing people and circumstances.

Stage 5 – Internalisation:Stage 5 – Internalisation: The is the stage of the Coping The is the stage of the Coping Cycle where change becomes fully operational, and new Cycle where change becomes fully operational, and new ways of working and behaving have been developed. ways of working and behaving have been developed. People reach the point where, psychologically, they see People reach the point where, psychologically, they see the changes not as the changes not as newnew but as but as normalnormal – they way things – they way things should be. should be.

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Organisation Development (OD)Organisation Development (OD)

The standard-bearer for Planned changeThe standard-bearer for Planned change It is an industryIt is an industry It regulates itselfIt regulates itself It has its own qualificationsIt has its own qualifications It has approved tools and techniques.It has approved tools and techniques.

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OD (Continued)OD (Continued)

Organization development is a unique organizational Organization development is a unique organizational improvement strategy that... has evolved into an improvement strategy that... has evolved into an integrated framework of theories and practices integrated framework of theories and practices capable of solving or helping to solve most of the capable of solving or helping to solve most of the important problems confronting the human side of important problems confronting the human side of organizations. Organization development is about organizations. Organization development is about people people andand organizations and people organizations and people inin organizations organizations and how they function. OD is also about planned and how they function. OD is also about planned change, that is getting individuals, teams and change, that is getting individuals, teams and organizations to function betterorganizations to function better..

((French and Bell, 1995: 1–2)French and Bell, 1995: 1–2)

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OD – core valuesOD – core values

The needs and aspirations of human beings The needs and aspirations of human beings provide the prime reasons for the existence of provide the prime reasons for the existence of organisations within society.organisations within society.

Organisational prioritisation is a legitimate part Organisational prioritisation is a legitimate part of organisational culture.of organisational culture.

Change agents are committed to increased Change agents are committed to increased organisational effectiveness.organisational effectiveness.

OD places a high value on the democratisation OD places a high value on the democratisation of organisations through power equalisation. of organisations through power equalisation.

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Main approaches to ODMain approaches to OD

Empowering employees to actEmpowering employees to act Creating openness in communicationsCreating openness in communications Facilitating ownership of the change process Facilitating ownership of the change process

and its outcomesand its outcomes The promotion of a culture of collaborationThe promotion of a culture of collaboration The promotion of continuous learning.The promotion of continuous learning.

Hurley Hurley et alet al (1992) (1992)

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Greiner’s red flagsGreiner’s red flagsFlag 1: Putting the individual before the organizationFlag 1: Putting the individual before the organization. The obsession . The obsession

of OD with individual behavior change caused less focus on the of OD with individual behavior change caused less focus on the formal formal organization — its strategy, structure, controls, and so on. organization — its strategy, structure, controls, and so on.

Flag 2: Informal before formal organizationFlag 2: Informal before formal organization. There was also an . There was also an overemphasis on interpersonal values (e.g., openness, trust, etc, overemphasis on interpersonal values (e.g., openness, trust, etc,

hierarchy, and accountability). Again, an opportunity was missed to hierarchy, and accountability). Again, an opportunity was missed to produce a wider impact. produce a wider impact.

Flag 3: Behavior before diagnosisFlag 3: Behavior before diagnosis. OD was preoccupied with . OD was preoccupied with behavior behavior change along the lines of OD’s core values, not on change along the lines of OD’s core values, not on diagnosing diagnosing whether the existing behaviour was compatible with the whether the existing behaviour was compatible with the strategic strategic thrust or culture of the organization. thrust or culture of the organization.

Flag 4: Process before taskFlag 4: Process before task. With its emphasis on how one person . With its emphasis on how one person should relate to others, OD became enamored with the human should relate to others, OD became enamored with the human dynamics of working together, assuming that team building was the dynamics of working together, assuming that team building was the preferred alternative. preferred alternative.

(Greiner and Cummings, 2004: 378–379)(Greiner and Cummings, 2004: 378–379)

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Greiner’s red flags (Continued)Greiner’s red flags (Continued)Flag 5: Experts before the managerFlag 5: Experts before the manager. OD programs were designed . OD programs were designed

and and conducted by expert consultants. NTL had become an elitist conducted by expert consultants. NTL had become an elitist organization of trained experts. organization of trained experts.

Flag 6: Package before the situationFlag 6: Package before the situation. Potential clients for OD . Potential clients for OD activities activities usually preferred packaged change programs — formal usually preferred packaged change programs — formal activities that activities that were structured, tangible, and easy to explain to were structured, tangible, and easy to explain to employees. The employees. The unfortunate result was that organizations were unfortunate result was that organizations were frequently shoehorned frequently shoehorned to fit the OD program’s characteristics rather to fit the OD program’s characteristics rather than customizing the than customizing the program to fit the uniqueness of the client program to fit the uniqueness of the client organization.organization.

(Greiner and Cummings, 2004: 378–379)(Greiner and Cummings, 2004: 378–379)

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The expansion of ODThe expansion of OD

OD has adopted an Open Systems perspective which OD has adopted an Open Systems perspective which allows it to look at organisations in their totality and allows it to look at organisations in their totality and within their environments.within their environments.

This organisation-wide perspective caused OD This organisation-wide perspective caused OD practitioners to broaden out their perspective in two practitioners to broaden out their perspective in two interrelated ways. Firstly, they developed an interest in interrelated ways. Firstly, they developed an interest in managing organisational culture. Secondly, they managing organisational culture. Secondly, they developed an interest in organisational learning.developed an interest in organisational learning.

OD practitioners have become involved in OD practitioners have become involved in transforming organisations in their totality rather than transforming organisations in their totality rather than only focusing on changes to their constituent parts.only focusing on changes to their constituent parts.

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OD dilemmasOD dilemmas

Over the years, OD practitioners have sought to focus more Over the years, OD practitioners have sought to focus more on organisational transformation initiatives and less on group on organisational transformation initiatives and less on group behaviour change. This has led to two fundamental behaviour change. This has led to two fundamental dilemmas.dilemmas.Dilemma One: OD Expertise Dilemma One: OD Expertise The group behaviour focus is well-understood, accepted and The group behaviour focus is well-understood, accepted and supported by tried and tested tools and techniques.The supported by tried and tested tools and techniques.The organisational transformation focus is unclear, less organisational transformation focus is unclear, less developed and more contentious.developed and more contentious.Dilemma Two: OD ValuesDilemma Two: OD ValuesThe group behaviour focus promotes humanistic and The group behaviour focus promotes humanistic and democratic values through participative learning.The democratic values through participative learning.The organisational transformation focus is more autocratic, less organisational transformation focus is more autocratic, less participative and less about individual and group learning.participative and less about individual and group learning.

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Planned changePlanned changeSummary Summary

Moving an organisation from one stable state to Moving an organisation from one stable state to anotheranother

Top-downTop-down Finite objectivesFinite objectives Must be self-sustainingMust be self-sustaining Is a collaborative processIs a collaborative process Is a cyclical process:Is a cyclical process:

DiagnosisDiagnosis ActionAction EvaluationEvaluation Further actionFurther action Further evaluation. Further evaluation.

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Planned changePlanned changeCriticismsCriticisms

Assumes environmental stability Assumes environmental stability Ignores power and politicsIgnores power and politics Too reliant on managersToo reliant on managers Not applicable to situations that need rapid, Not applicable to situations that need rapid,

directive transformational changedirective transformational change It is a ‘one best way’ approach It is a ‘one best way’ approach Limited applicability.Limited applicability.

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Models of organisational changeModels of organisational change

IncrementalIncremental

Punctuated Equilibrium Punctuated Equilibrium

Continuous Transformation. Continuous Transformation.

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Figure 8.6 Incremental change

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Figure 8.7 Punctuated Equilibrium

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Figure 8.8 Continuous Change

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Comment and conclusionComment and conclusion

Organizations operate in multiple environments (temporal, external and Organizations operate in multiple environments (temporal, external and internalinternal

Schein (1988) suggests that that organizations have to continually achieve Schein (1988) suggests that that organizations have to continually achieve external adaptation and internal integrationexternal adaptation and internal integration

Organizations need to be able to anticipate, where possible, opportunities Organizations need to be able to anticipate, where possible, opportunities and threats and react with knowledge to the ‘unpredictable surprises’and threats and react with knowledge to the ‘unpredictable surprises’

There needs to be an understanding of formal aspects of organizational life There needs to be an understanding of formal aspects of organizational life and how to respond to pressures from the environments in which the and how to respond to pressures from the environments in which the organization operatesorganization operates

Change is leveraged through strategy, structure and operational processesChange is leveraged through strategy, structure and operational processes

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Case StudyCase Study

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Activity ( Senior & Fleming)Activity ( Senior & Fleming)

1.1. List factors that you can think, of which could affect what or how an List factors that you can think, of which could affect what or how an organization chooses to produce or sell, how the goods and services might organization chooses to produce or sell, how the goods and services might be marketed, and the way in which work might get done.be marketed, and the way in which work might get done.

2.2. Has your organization, or one with which you are familiar, changed in the Has your organization, or one with which you are familiar, changed in the areas highlighted above?areas highlighted above?

3.3. Have you personally changed how you choose or buy your products and Have you personally changed how you choose or buy your products and services over the last few years? If so, identify some examples and think services over the last few years? If so, identify some examples and think why this might be the case.why this might be the case.

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