Chapter 10: Understanding the impact and context of change Flashcards
What two groups can environmental pressure for change be divided into?
General (indirect action) environmental factors - divided using PESTEL framework
Task (direct action) factors - assessed using Poter’s five forces
What are Porter’s five forces?
Competitive rivalry
Power of customers
Power of suppliers
Threat of new entrants
Threat of substitutes
What are some internal triggers that leads to change?
Philisophy - New ownership
Reorganisation - Takeover/merger
Personnel - Promotions/Transfers
Conditions - Location change
Technology - New systems
What are the four types of change?
Evolution
Adaptation
Revolution
Reconstruction
If the extent of change is realignment and the speed of change is big bang what change is it?
Reconstruction - undertake to realign the way in which the organisation operates. Often forced and reactive because of changing competitive context
If the extent of change is realignment and the speed of change is Incremental what change is it?
Adaptation - implemented in a series of steps
If the extent of change is transformation and the speed of change is incremental what change is it?
Evolution - implemented gradually through inter-related intiatives. likely to be proactive change undertaken in participation of the need for future change
If the extent of change is transformational and the speed of change is big bang what change is it?
Revolution - occurs via simultaneous initiatives. More likely to be forced and reactive because of the changing competitive conditions that the organisation is facing
What does transformation entail?
Changing an organisations culture. Fundamental change that cannot be handled with the existing organisations paradigm.
What does realignment not involve?
Fundamental reappraisal of the central assumptions and beliefs
What does evolution result in once complete?
Fundamentally different organisation. It can take a long time
What is culture?
Set of values, guiding beliefs, understandings and ways of thinking that are shared by the members of an organisation and is taught to new members as correct.
Why is the inherent culture of the organisation important?
Existing culture can become ‘embedded’ and hence resistant to change
Exisiting culture can limit the type of strategy development and change that are considered
What is in the cultural web?
Stories and myths
Symbols
Power structure
Organisational structure
Control systems
Routines and rituals
What did Gerry Johnson conclude when he attempted to explain why firms oftern failed to adjust to environmental changes as quickly as they needed to?
Firms developed a way of understanding their organisation - called a paradigm - and found it difficult to think and act outside this paradigm if it was particularly strong
