1. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 1 ORGANIZATIONAL DEVELOPMENT AND CHANGE Lecture 19

2. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 2 Forces acting on organizations Helriegel et al (1989): External forces: Rapid product obsolescence Knowledge explosion Demographics Internal forces: Efficiency Fashion Control Internal pressure Stewart (1991) - changes that effect managerial careers: Business structure Business functioning

3. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 3 Forces acting on organizations: Adaptive change Fracturing change Planned change Unplanned change

4. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 4 Organizational development – strands of theory and practice

5. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 5 Organizational development – strands of theory and practice Encounter or T Groups Process consultation Survey feedback Action research Planned approach to OD interventions Quality of working life Strategic change

6. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 6 Organizational development – strands of theory and practice

7. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 7 Power, politics and change Two major ways in which power and politics interact with change: Process Purpose Stephenson (1985) - tactics that are useful in the introduction of change: Simple first Adaptation Incorporation Structure Ceremony Assurances Timescales Support Transition Unexpected Nadler and Tushman (1988) - three mechanisms: Mobilizing political support Encouraging supportive behaviour Managing the transitional process

8. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 8 Leavitt’s organizational variables and change Major constituent parts of an organization - all interact and change in any can cause change to occur in the others: People Task Structure Technology

9. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 9 Mergers, acquisitions and change Johnson and Scholes (1993) - development by acquisition occurs in waves Change is an inevitable consequence Important cultural blockages to change: Routines Control systems Structures Symbols Power and dependency

10. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 10 Re-engineering and quality approaches to change Meeting the needs of the customers Meeting the needs of the hierarchy Process is fundamental to business process re-engineering Hammer and Champy - ‘Individualism, self-reliance, a willingness to accept risk and a propensity for change’ Rapid identification and quick implementation Total Quality Management (TQM): Meet the needs of customers Cover all parts of organization Every person in organization Examine all costs associated with quality ‘Right first time’ Systems and procedures to support quality improvement Continuous improvement Dale - ten years to implement TQM properly

11. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 11 Lewin’s forcefield model of change Stage 1 - Unfreezing Stage 2 - Changing Stage 3 - Refreezing

12. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 12 Contingency perspectives on change: Kotter and Schlesinger’s model Education plus communication Participation plus involvement Facilitation plus support Negotiation plus agreement Manipulation plus co-option Explicit plus implicit coercion

13. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 13 Contingency perspectives on change: Dunphy and Stace’s model Developed a two dimensional matrix based on: The scale of change Style of management The matrix produced four change strategies: Participative evolution Forced evolution Charismatic transformation Dictatorial transformation

14. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 14 Contingency perspectives on change: Plant’s model

15. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 15 Systems perspectives on change Total systems intervention Creativity Choice Implementation

16. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 16 Chaos and change Relatively recent branch of science - chaos and complexity theory Marion (1999) Mathematically, Chaos happens when equations used to describe seemingly simple systems just won’t behave as expected. They will not yield a stable response, or the answers they give jump wildly when the quantity of an input variable is even lightly perturbed. These equations are called ‘nonlinear’ because their inputs are not predictably related to their output. Any organization is essentially a complex adaptive system (CAS) - forever perched on the edge of change

17. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 17 The change agent Change generators Change implementers Change adopters

18. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 18

19. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 19 Group and organizational resistance to change

20. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning 20 Innovation as a change strategy Pascale (1990) suggests that a number of organizational features restrict the ability to innovate and change: The pre-eminence of one function with a restricted perspective Learned helplessness Conformity as the basis of promotion How conflict is resolved Effect of privilege and reward Lack of empowerment Reinforcing folklore Betz (1987) - three levels of innovative activity: Radical Systems Incremental Schermerhorn (1993) - five elements of innovation process: Internal organizational sensitivity Idea creation Initial experimentation Feasibility determination Final application