P Ch 4 What Changes in Organizations Flashcards
types of change
first order
second order
first-order, incremental change, continuous change
- adjustments in systems, processes or structures
- maintains and develops the org.
- changes designed to support org. continuity and order
- “we have to change to stay the same”
second-order, discontinuous change
- transformational, radical, fundamentally alter the org. at its core
Types of change according to Nadler and Tushman
incremental and discontinuous (transformational)
reactive or anticipatory
incremental and anticipatory:
fine-tuning, improving, enhancing
- discontinuous and anticipatory:
reorientation, frame-bending
reactive incremental:
adaptation, internally initiated
reactive discontinuous
- re-creation, fit change of all basic elements- frame braking, second order change
fine-tuning
where incremental changes are made that anticipate changes to the external environment
adaptive changes
incremental but reactive to changes made by other organizations
reorientation
is an anticipatory, discontinuous change that involves frame bending
frame bending (reorientation)
major modification of the org. but by building on past strengths and history
re-creation
second-order change that is reactive and involves frame breaking
frame breaking (re-creation)
major upheaval where the org. breaks with past practices and directions
Change as the taking of Individual Initiatives (Frohmann)
- local org. change by those who go beyond their jobs and strive to make a difference, action oriented, focus less on teamwork and more on results
(overlooked by management as high potential individuals in terms of progression through the company
-> can be achieved when there is a balance btw. leadership, bureaucratic systems and teamwork
Frohmann and autocratic (relating to a ruler who has absolute power.) org.
-these org. discourage initiative by removing responsibilities
Frohmann and Meritocratic org. (relating to or characteristic of a society in which power is held by people selected according to merit.)
constrain individual initiative and action by tightly regulating controls and procedures throughout the company
Frohmann and Social club org.
- discourage individual initiative by requiring conformity to the team rather than to the work itself
Change as the Development of Local Routines
- routines can be the source of change in org. when they are enacted by different people who place their own interpretations and actions on how the routines should occur.
Change as the Development of Local Routines
- routines can be the source of change in org. when they are enacted by different people who place their own interpretations and actions on how the routines should occur.
–> elements of the routine do not change but the way they are accomplished
Second-Order, Transformational Change examples
- downsizing
- restructuring
- reengineering
Delayering
common recommendations for major org. change to cope with hyper-competitive business environments
reducing the number of vertical levels in the org.
–> enhancing information flows, speed of response, removal of expensive middle management
networks/alliances
internal and external strategic collaboration
outsourcing
of activities in which org. has not distinctive competence
Disaggregation
- breaking up the org. into smaller business units
Empowerment
introduction of mechanisms to provide employees with the authority, resources, and encouragement to tea actions
Flexible work groups
- for specific purposes that are disbanded or reformed upon completion of the task
Short-term staffing
- people are contracted to the org. for a short period of time to work on a specific issue/task
Reduction of internal and external boundaries
encourage communication and resource sharing
Decentralization
encourage cross-functional teams
horizontal networking
- enhancing communication exchanges and cross-boundary career paths
Downscoping
Downscoping refers to the divestiture, spin-off, or other means of eliminating businesses that are unrelated to the firm’s core business. In other words, downscoping refocuses the firm on its core businesses.
Type 1 transformational change
when org. moves from entrepreneurial to professional management structure
Type 2 transformation
- revitalization of already-established companies.
- org. remains in the same market but focuses on how to rebuild itself in order to operate more effectively.
Type 3 transformation
- involves a visionary change in which the org. fundamentally changes the business in which it is involved
(Starbucks from local roaster to importer of coffee beans)
Beyond first or second-order change
- midrange org. change, punctuated equilibrium theory, and robust transformation
Midrange Org. Change
- middle road, tectonic change (moderate earthquake)
- for modifying a company without destroying employee loyalty
- mental models lead to individuals establishing org. identity and this influences how announced changes are received.
high inertia
- tendency to do nothing or remain unchanged
- when the change is perceived as unnecessary
high stress
- when the change is perceived as unattainable
What can tectonic change accomplish
balance between high inertia and high stress
change as punctuated equilibrium
- attention to the interplay btw. incremental and transformational change
- org. evolve through long periods of stability and are punctuated by relatively short bursts of fundamental change (revolutionary periods)
- revolutionary periods disrupt established activity patterns and still the basis for new equilibrium periods
Change as Robust Transformation
- need to pay attention to transient conditions rather than assume change is always a shift to a new equilibrium
Alan Meyer and discontinuous unanticipated change
- response to unanticipated change:
- jolts, step functions, oscillation
-> suggests that since some changes are temporary such as jolts and oscillations the org needs to revert to its former org. capabilities when these conditions have been removed. The punctuated equilibrium theory does not incorporate this as it sees the org. as changing its patterns.
jolts
push or shake (someone or something) abruptly and roughly.
passing shocks that can temporarily disrupt org. but then eventually subside
step functions
where new conditions emerge that are permanent and require the org. to move from one position to another in order to achieve a better fit with the environment
oscillation
movement back and forth in a regular rhythm.
where cycles of discontinuity occur, including expansion and contraction of an org. market or operating environment
interpreter (shaping) and type of change
- whether a change is adaptive, reactive, or transforming is not an objective given but will depend upon the perspective of the person doing the considering
- role of manager is to mold these perspective and provide sense making
navigator (control) and multiple changes
- when multiple changes are implemented it is likely to bring them into contract with different groups and interests that will require negotiation and navigation through a range of issues
- change managers need to avoid focusing on one change without an understanding of the way other related changes may impact upon their staff.
- navigate through multiple changes at the same time
nurturer (shaping)
- small changes have radical consequences throughout the org. that managers may not be able to anticipate
coach image
- there are inertial forces that act as a drag on individual and org. adaptive (1st order) change. The numbers of problems facing an org. are not associated with its propensity to change.
- coach should provide the conditions for the exercise of personal initiative to cultivate the change through the exercise of frontline staff
frontline staff
employees in direct contact with customers
director
- often change is needed in order to remain stable
- provide directions about stability: telling people what will not be changing
riskiness of change?
- incremental, adaptive change is not less risky than large change
- -> because it is risky staying the same
retrenchment
centralizing a firm’s operations to sustain or improve productivity. Reengineering practices and removal of unnecessary jobs and amenities.
–> increase the economies of scale and help maintain competitive advantage
downscaling
- permanent alterations to employment and tangible resource capacity.
- -> reduces the firm’s economies of scale and competitive market share
downscoping
divestment of activities or markets. By reduction the vertical and horizontal differentiation
survivor syndrome
- employees that remain feel guilty and have low morale
ERP
Enterprise resource planning
- provides an organization wide platform that consolidates the company’s needs while still allowing particular departments to use the system for their specific needs
CRM
Customer relationship management
- system allows an organization to scrutinize their consumers’ needs by tracking information relating to their sale and more effectively forecasting their demand for the future.
BRP
Business process reengineering
- way of managing change that requires a complete overhaul of business practices and can be implemented through technological changes
Six sigma
process of quality control that is monitored through the use of statistical information regarding defect occurrences
Transformational change speed
- too rapid change throughout the org. is detrimental to its outcome.
- early bursts of change on high-impact decision-making areas
Lawrence and Lorsch measures of differentiation
- degree of formality
- relative amount of attention given to task performance
- orientation to time
- goal orientation
