12.1 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Understanding Organisational Context 2e Slides by Claire Capon Chapter 12 Managing a changing environment Sources and types of change The process of change Communicating change Greiner’s model

12.2 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Sources of change The demand for change can arise from: - the internal environment (e.g. employees and departments) - the external environment (e.g. competition, markets and customers)

12.3 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Types of change Types of change include alterations to size, structure, culture, leadership, tasks and activities The organisation can be reactive or proactive towards change

12.4 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.2 Lewin’s force field analysis

12.5 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 The process of change Change is the outcome of the impact of driving forces upon restraining forces Driving forces are often economic in nature

12.6 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 The process of change Change invokes uncertainty in the existing workforce Managers involved need to communicate strong justification for changes

12.7 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.3 The change process model

12.8 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 The change process model Stage 1 Unfreezing of current attitudes and behaviour Organisational anticipation

12.9 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 The change process model Stage 2 Moving to a new level Organisational flux Information building Experimentation

12.10 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 The change process model Stage 3 Refreezing attitudes and behaviour at the new level Highlight the positive outcomes of the changes

12.11 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Communicating change In communicating change consider: - the information which needs to be imparted - the best media to use

12.12 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Communicating change For communicating routine or minor change use: - circulars or newsletters - announcements on noticeboards - letters, memos and

12.13 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Communicating change For communicating complex information and significant changes use interactive media Examples: meetings, video- conferencing, team briefings

12.14 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Communicating change In communicating change aim to: - involve organisation members in planning and implementing the change

12.15 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Communicating change - have a two-way dialogue with those affected by the change - counter informal communication, such as rumours and gossip

12.16 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Greiner’s model Greiner’s model can be used to highlight the need: – for structural change – for development of key skills –to manage transfer from one phase to the next

12.17 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.6 Greiner’s model

12.18 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Five dimensions of organisational development Age Size Stages of evolution Stages of revolution Industry growth rate

12.19 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 1 - Growth through creativity Focus is product development and selling Crisis of leadership: –informal management style becomes inadequate –more expertise is needed

12.20 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 2 - Growth through direction Crisis of leadership is resolved by: –specialisation –functional structure –implementing control systems –formal communication –DM expands up the hierarchy

12.21 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 2 - Growth through direction Crisis of autonomy –over centralisation –no opportunity to exercise initiative

12.22 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 3 - Growth through delegation Crisis of autonomy is resolved by: –decentralisation –divisional structure –top management deal with strategic issues and middle manager competitive issues

12.23 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 3 - Growth through delegation Crisis of control: –top management feel a loss of control over the divisions

12.24 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 4 - Growth through co-ordination Crisis of control is resolved by: –formal planning –more staff concerned with control throughout the organisation –encourage managers to take a corporate perspective

12.25 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 4 - Growth through co-ordination Crisis of red tape: –lack of confidence in co- ordination between employees and HQ –proliferation of systems –innovation is stifled

12.26 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 5 - Growth through collaboration Crisis of red tape is resolved by social control and self discipline Crisis of collaboration - employees exhausted by teamwork and the need for innovation

12.27 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Phase 6 - Dual organisation structure Habit structure for routine work Reflective structure - personal development, e.g. flexible hours, revolving jobs, secondments, sabbaticals