CHAPTER 8 Flashcards
What are the four styles of change management identified by Dunphy & Stace?
Collaborative: Widespread participation by employees in important decisions about the organization’s future and the means of bringing about organizational change.
Consultative: More limited involvement where employees are asked for their views on proposals.
Directive: Senior management takes key decisions about the change agenda and directs efforts to deliver change. They employ firm persuasion to engage those affected.
Coercive: An extension of directed change where change is imposed on staff without attempts to persuade them. Threats and sanctions can be used
Fine-tuning
Type of organisational change. Refers to minor adjustments made at the unit level within an organization. For example, a department might refine its procedures to improve efficiency or effectiveness. This could involve tweaking a process to reduce the time it takes to complete a task or modifying a policy to better align with the organization’s goals. Fine-tuning is often a continuous process of improvement and doesn’t significantly alter the overall structure or functioning of the organization
Incremental adjustment
his type of change is made in response to a changing environment and is not radical in nature. For instance, a company might make incremental changes to its product line in response to customer feedback or market trends. These changes are typically small and gradual, allowing the organization to adapt to new circumstances without disrupting its core operations
Modular transformation
This involves major realignment or restructuring of one or more departments within the organization, but not the entire organization. For example, a company might decide to completely restructure its marketing department to better align with its strategic goals. This could involve changes to the department’s roles, responsibilities, processes, and even its personnel. While this type of change can have significant impacts on the affected departments, it doesn’t fundamentally alter the entire organization
Corporate transformation
This is a type of change that affects the entire organization and fundamentally alters its ways of thinking and operating. For example, a company might undergo a corporate transformation when it decides to shift from a traditional business model to a digital one. This type of change can involve major shifts in the organization’s structure, culture, processes, and strategy. It requires a high level of commitment from all members of the organization, as it often involves letting go of traditional ways of doing things and embracing new systems and procedures
Styles of change with scale & span of change, 4 change approaches are identified…
Developmental transitions = require constant gentle, incremental adjustment → consultative.
- Task-focused transitions = require constant adjustment of the organization to redefine how it operates in specific areas → directive.
- Charismatic transformation = change needing a more radical shift that may involve the whole organization → use key managers to gain inspirational, emotional commitment from staff.
- Turnarounds = fast discontinuous changes to recreate the organization → directive change.
Developmental transitions
These are changes that require constant gentle, incremental adjustments and are usually consultative. For example, a company might make small adjustments to its employee training programs to better align with industry standards and improve employee performance.
Incremenral/Modural + Consultive
Task Focused
These are changes that require constant adjustment of the organization to redefine how it operates in specific areas and are usually directive. For example, a company might change its sales strategy to focus more on online sales rather than in-person sales in response to changing market trends.
Incremental/Modular+ Directive
Charismatic transformation
These are changes that need a more radical shift that may involve the whole organization. They use key managers to gain inspirational, emotional commitment from staff. For example, a company might undergo a charismatic transformation when it decides to change its corporate culture to be more innovative and entrepreneurial.
modular/corporate +consultative
Turnarounds
These are fast, discontinuous changes made to recreate the organization and are usually directive. For example, a company in financial distress might implement a turnaround strategy that involves significant cost-cutting measures and a restructuring of its operations to improve its financial performance
Modular/Coorporate +Directive/Coercive
Theory E
This is a hard approach to handling corporate change, often involving restructuring and downsizing. The decision to change is based on economic value, and it uses top-down communication. For example, when British Telecom was privatized, top management decided to completely restructure the organization, leading to drastic layoffs and the creation of autonomous work groups
Theory E when change is driven by economic imperatives.
Theory O
This approach to change is based on organizational capability and focuses on the human aspect. It involves changing corporate culture, or the values, norms, and beliefs of employees. The change process involves getting feedback from staff as the change starts to take place and then reflecting on the feedback and, if necessary, making further changes. For example, Richard Branson’s Virgin Group utilizes this approach, focusing on increasing organizational capability through learning
Theory O when change is driven by organizational culture & capabilities.
Business Process Re-engineering
Business Process Re-engineering is a strategy that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance measures such as cost, quality, and speed. It involves eliminating unnecessary and inefficient aspects of the workflow or aspects that add little value, and combining similar tasks to reduce the number of steps required for employees to complete a procedure
Example:
A company that traditionally used paper-based records could switch to an electronic data system. This change would eliminate the inefficiency of manually searching for files and make tasks easier for employees, thus exemplifying the principles of BPR.
BPR: Four key steps
1.Prepare the organisation: Assess strategic contact and communicate reasons for re-engineering.
2.Fundamentally rethink the way in which things get done: Identify, analyze, and redesign processes while simplifying current process by combining/eliminating steps, attending to both technical and social aspects of the process, preventing past practice from being a constraint, and performing activities in their most natural order.
3.Restructure the organization around the new business process: Restructuring and disruptions are part of BPR.
4.Implement new information and measurement systems to enforce change.
Example:
A manufacturing company might decide to re-engineer its production process. The company would first communicate the need for change to its employees (step 1), then analyze and redesign its production process to eliminate unnecessary steps and combine similar tasks (step 2). The company might then restructure its organization to better align with the new production process (step 3), and finally, implement new systems to track efficiency and enforce the changes (step 4).
What are the benefits of Business Process Re-engineering?
- Reduced operational costs: By eliminating unnecessary fees that may be part of outdated processes.
2.Enhanced quality of products or services: Changing the workflow allows employees to focus more energy on output, leading to higher quality.
3.Increased speed of business operations: By streamlining operations, you eliminate aspects that slow the process down.
4.Improved customer service: Speeding up the operations process can lessen customer wait time.
5.Boosted profits: BPR allows you to reorganize the company so that efficiency and output remain priorities, which can lead to higher profits.
6.Clarified purpose: BPR allows you to re-familiarize yourself with your employer’s mission and evaluate any changes that occurred over time.
Example:
A restaurant might implement BPR to improve its service. By streamlining the order-taking process and eliminating unnecessary steps, the restaurant could reduce operational costs and increase the speed of service (benefits 1 and 3). This could lead to improved customer service as customers would have to wait less time for their food (benefit 4), and potentially higher profits as the restaurant could serve more customers in the same amount of time (benefit 5). The process of re-engineering could also help the restaurant owners clarify their mission and make any necessary changes (benefit 6).
