Lecture 7: Organisational Change Flashcards
what are the stages of the model of organisational change?
- forces initiate change - what drives change? (internal/external)
- action of change agent - what is their role?
- What is to be changed? (culture - norms, strategy -decisions, structure - organisation)
- type of intervention eg. Lewins model of freezing
- Unfreeze, change, refreeze
- Org. effectiveness?
- 1 feedback - is it working, do we need to readjust/start again?
what external factors initiate change? (point 1 of model of change)
- socio-cultural factors: shifts in market tastes/preferences. Eg, rise of sustainability
- technological factors: digital tech, R&D intensity. Eg. smart phone
- economic factors: inflation, income levels. Eg. GFC
- political and legal factors: standards on safety, environment, labor practices. Eg. Brexit, laws being passed
what internal factors initiate change? (point 1 of model of change)
- performance outcomes: employee absenteeism, shareholder activism. Eg comm bank shareholder vote against the board
- internal processes: ineffective decision making and cumbersome procedures.
- new management philosophy: Cultre, vision. eg, new CEO coming in as a change agent.
new strategies: objectives, products, markets, businesses.
what does the change agent/what is their role in org. change? (point 2 of model of change)
- identify/interpret forces causing change
- diagnose the problem (what needs to change)
- decide objectives
- generate solutions (what types of interventions are needed?)
- champion the change (communicate the vision)
- implement the change
- monitor, review results and get feedback to determine effectiveness
what typically needs to change in organisations? (point 3 of model of change)
- power: too much top down decision making
- communication: company is withholding important info from its employees
- culture: a negative culture, eg. of greed
- strategy: company has fallen behind, eg. technologically
what evolutionary types of interventions are there? (point 4 of model of change)
- relatively stable
- change individual part or departments
- makes most of existing structure and mgmt
- incrementally change existing technology
- improve existing products
what is the difference between evolutionary and revolutionary change in organisations?
Ev: smaller, incremental eg. new IT system. Planned, can happen in individual departments, using existing management structures
Rev: massive organisational change, whole org. will be impacted, new structure and potentially new mgmt style or people… breaking into new products
what revolutionary types of interventions are there? (point 4 of model of change)
- seek new equilibrium
- transform entire organisation
- create new structure and mgmt
- adopt radically new production tech
- introduce path breaking new products
what is another massive impact on types of interventions?
whether it was planned or unplanned?
what are the 4 types of change basing off the 2 dimensions of rev-ev and unplanned-planned? (point 4 of model of change)
Chaotic (Rev, Un): terrorist attack, GFC, failure of major supplier or customer
Transitory (Ev, Un): strike, loss of key personnel, sudden change in commodity prices
Systemic (Rev, Pl): new tech, privatisation, deregulation, entry into new major market
Adaptive (Ev, Pl): updating computer systems, new equipment, modifications to plans
What is lewin’s 3 step model? (point 5 of model of change)
unfreeze, change and refreeze.
what is unfreezing?
preparing staff and org for the change, going to adjust and adapt everything
what is refreezing?
after the changes have been made, lock it down. enact processes to ensure the changes stick
what are the ways that orgs overcome resistance to change?
championing change:
learning and communication - reduce misinformation
involvement and participation - enhance commitment, increase quality of change decision
facilitation, support, stress management - reduce anxiety and fear
negotiation - reduce and overcome conflict
More forceful ways:
manipulation and co-optation - make change more appealing
coercion - enforce change
realigning staff profiles - dismiss resistors, hire adopters of change
how can orgs refreeze - support permanent change?
reward allocation systems transformational leadership coalitions and social networks effective transmission of new information diffusion in the change effort