4 - Topdown radical Change Flashcards
Lecture 5 Crossan & Berdrow MacKay & Chia
Radical OC as Strategic Choice
- What is it?
- What does it comprise of?
- What does it emphesize in realizing change?
- TM decides, the others execute
- Strategic change comprised of
> recognition and definition of a problem or opportunity
> search for alternative courses of action
> Gathering and analysing data about alternatives
> Evaluation of alternatives
> Selection and implementation of preferred alternative - Emphasize on Formal analysis and Strategic decision making in realizing change
C&B - Strategic renewal
The tension between exploring new competencies and exploiting old ones
- Explotation: the efficient production within well-defined and routine parts of the business
- Exploration: exploring new routines, equally important but less tangible
and concrete
C&B - Strategic renewal:
- Levels
Levels of analysis on which organizational learning takes place
- Individual
- Group
- Organization
C&B - Strategic renewal
- 4I framework of processes
1 Intuiting
2 Interpreting
3 Intergration
4 Institutionalizing
C&B - Strategic renewal
- Intuiting
- The preconscious recognition of the pattern and/or possibilities inherent in a personal stream of experience.
- This process can affect the intuitive individual’s behavior, but it only affects others as they attempt to (inter)act with that individual.
- Individual level
C&B - Strategic renewal
- Interpreting
- The explaining of an insight, or idea to one’s self and to others.
- This process goes from the preverbal to the verbal and requires the development of language.
Individual level and group level
C&B - Strategic renewal
- Integreating
- The process of developing shared understanding amongst individuals and the taking of coordinated action through mutual adjustment.
- Dialogue and joint action are crucial to the development of shared understanding. This process will initially be ad hoc and informal, but if the coordinated action taking is recurring and significant it
will be institutionalized.
Group level and organizational level
C&B - Strategic renewal
- Institutionalizing
- The process of ensuring that routinized actions occur. Tasks are defined, actions specified and organizational mechanisms put in place to ensure that certain actions occur.
- Institutionalizing is the process of embedding learning
that has occurred by individuals and groups into the
institutions of the organization including systems, structures, procedures, and strategy.
Group level
C&B - Strategic renewal
- allignment between organization and environment
- This allignment is a dynamic process, shifts over time
- As it shifts, a firm must be capable of reinterpretating the environment, and incorporate it’s understanding into new products/processes/strategy/structure
C&B - Strategic renewal
- Feedback loop
Competitive position of a firm is dynamic not static,
Influences work through feedback loops
Feedbackloops create the tension between exploitation (institutionalized learning) and exploration (intuiting, interpreting, integrating)
C&B - Strategic renewal
- Feedforward and feedback
Feedforward: How a lower level process leads to a higher level process, (e.g. how individual intuiting leads to group level institutionalization)
Feedback: How changes in a higher level process affect lower level processes (e.g. institutionaliztion of one thing affects the individuals intuiting)
“Change is the implementation of TM vision”
- assumptions?
Top management always has the best vision
Critisism Strategic decision making
Emphasis of calculation can lead to:
- alienation of employees
- lack of participation in change
Quality of decision can only be evaluated after implementation
M&C - strategic change views
- Common view of strategic change
- M&C view on strategic change
- Strategic change: the purposeful choices of organizational actors intent on achieving a prespecified goal against a backdrop of existing environmental forces.
- change processes involve ‘doing things’ and “owned” view of change processes.
- M&C have an unowned view of process that elevates chance, environmental uncertainty and unintended consequences of choice in accounting for strategic change
Topdown organizational change is achieved through?
- Replacement
- Control: utilization of power by those who have a legitimate power position (e.g. managers) to constrain the behavior of others. Ultimate goal is to minimize deviation from expected behavior
Actors can control
- inputs to behavioral processes
- behavioral processes
- outcomes of behavioral processes