1. 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

2. 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)

3. 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

4. 12.4 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.2 Lewin’s force field analysis

5. 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

6. 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

7. 12.7 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.3 The change process model

8. 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

9. 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

10. 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

11. 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. 12.12 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 e-mail

13. 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

14. 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

15. 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

16. 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

17. 12.17 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Figure 12.6 Greiner’s model

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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