3. Organisational change Flashcards
First order or incremental change
frequent, purposeful adjustments that are small but ongoing and cumulative in effect
Second order or transformational change
“An individual’s subjective perception that organisational change has resulted in modifications to the core systems of an organisation including traditional ways of working, values, structures and strategy.” (Rafferty and Griffin, 2006)
reactive organisational change
Reactive changes occur when forces compel organization to implement change without delay.
proactive organisational change
Proactive changes occur when some factors make the organization think over and finally decide that implementation of a particular change is necessary. Then, the change is introduced in a planned manner.
episodic organisational change
infrequent, discontinuous, and intentional. The presumption is that episodic change occurs during periods of divergence when organizations are moving away from their equilibrium conditions.
continuous organisational change
ongoing, long-term approach to improve processes, products and services. Continuous improvement occurs gradually and aims to make small incremental changes over time.
what are the targets of change?
structure, objective and goals, strategy, culture, people, technology
What is the goal of changing structure?
change how people are organised and related
What is the goal of changing Objectives and goals?
change the aims an organisation/group is trying to achieve
What is the goal of changing strategy?
change the approaches used to achieving goals
What is the goal of changing culture?
change core values
What is the goal of changing people?
change personnel or change levels/types of skills
What is the goal of changing technology?
change operating systems/practices to include new technology
what are the reasons for change?
competition, social trends/cultural change, economic shocks, politics, technology
What is the COMPETITION reason for change?
Competitors more successful or innovating more
What is the SOCIAL TRENDS/CULTURAL CHANGE reason for change?
Changing market or social preferences
What is the ECONOMIC SHOCK reason for change?
Change products, reduce output, “lean” organisations
What is the POLITICS reason for change?
Changing regulations
What is the TECHNOLOGY reason for change?
New ways of working, pursuit of efficiency, quality and effectiveness
How successful is major organisational change?
47% of Australian employees agreed or strongly agreed that change was not handled effectively in their organisation
Failure is seldom solely attributed to technical issues; it is more often considered to be a result of personnel and human characteristics (Kotter and Cohen, 2002)
Why are we interested in change?
Health/wellbeing
Huge implications for job satisfaction, production, and turnover
the potential for negative outcomes is especially high when employees experience change as occurring very frequently ,
Employees may experience ‘change fatique’
Negative employee outcomes from change are preventable
why is health/wellbeing a reason for our interest in change?
To understand
Higher job stressors and demands
Depression, anxiety, insomnia, emotional exhaustion, burnout
what is the scale of change?
fine tuning -> incremental adjustment -> modular -> transformation
What is FINE TUNING change?
Changes to details within existing targets of change
e. g., training to increase competence with existing technologies
e. g., changing reporting roles of a senior staff member
What is INCREMENTAL ADJUSTMENT change?
Environmental adaptations, with small to moderate effects on targets of change
e.g., bringing in a new technology or production process in one area
What is MODULAR change?
Large scale, radical change of part of an organization affecting many targets of change
e.g., merging two Schools within a university
What is TRANSFORMATION change?
Large scale, radical, whole of organization change affecting most or all targets of change
e.g., changing emphasis to different industry/product
Who are the agents for driving change? Who is driving the need for, and nature of change from the TOP-DOWN?
- CEO, senior managers
- Experts appointed by them
Who are the agents for driving change? Who is driving the need for, and nature of change from the BOTTOM UP?
- Employee concerns
- Employee initiatives
how is the GOVERNMENT an agent for driving change?
Through:
- laws
- regulations
- policies
how are OTHER STAKEHOLDERS agents for driving change?
Through:
- customers
- competitors
- suppliers
- retailers
i. e. through the external community