unit 10 Flashcards
2 type of change
-external
-internal
external examples
-economic conditions
-social trends
-laws
internal examples
-delayering
-expansion
-new management
main types of change
-incremental
-step change
-disruptive
incremental change
-changes that happen over a period of time as the business develops.
-happens in small stages
- usually theres little resistence
step change
- This is a significant change that occurs rapidly and it likely will encounter resistance
- this change is dramatic and radical
- usually it is required when a business has suffered from strategic drift
disruptive change
This is a type of step change and usually arises from change in external environment
e.g technology
what is the value of change
it is an essential part of business life
-external environment is constantly changing, which makes change a constant as well
- all successful businesses look to make internal change a part of the way they operate.
benefits of embracing change
- helps sustain a competitive advantage.
-It aligns business strategy with changing customer need and wants.
-stakeholders gain from improved productivity and work environment
- Change in organisational structure = better communication and decision making
what is lewins force field analysis
force field analysis provides an overview of the balance between forces driving change in a business and the forced resisting change.
who is lewin
american social psychologist
- argued that successful businesses tend to be constantly adapting to their environment and changing, rather than being inflexible
what does lewins force field analysis look like
explanation of the force field analysis
- there are forces driving change and forces restraining it.
- when the driving force and resistance force are in equilibrium there will be no change
- in order for change to occur the driving force must exceed the restraining force
internal examples of forces driving change
-need for higher profits
- poor efficiency
-lack of innovation
- need to change culture
- change of leadership
external examples of forces driving change
-customer demand
- competition
- legislation and taxes
-political environment
- ethics and social values
- technological change
resistance to change.
good or bad
a degree of resistance is normal, change can be disruptive and stressful
- a degree of scepticism can be healthy especially where there are weaknesses in the proposed changes
however resistance will also slow the achievements of organisational objectives
why change is resisted
self interest
-individuals are concerned with the implactations for themselves
misunderstanding
- communication problems
-inadequate information
low tolerance of change
-sense of insecurity
different assessment of the situation
- disagreement over the need for change
- disagreement over the advantages and disadvantages
what is a flexible organisation
a flexible organisation is one that is able to adapt and respond relatively quickly to changes in its external environment in order to gain advantage and sustain its competitive position
how important is organisational structure
the structure of an organisation helps determine how effectively it can identify the need for change and also respond to the necessary change
what are the two approaches to organisational structure
- organic structure
-Mechanistic structures
organic structure
-informal
-flexible and fluid(easy to change)
-favours verbal communication
-Associated with decentralised decision-making and empowerment
- find change easier to handle
mechanistic structure
-formal
-bureaucratic (hard to change)
-formal communication methods
-associated with centralised decision-making and supervision
-favours standardised policies and procedures
-little perceived need to change
flexible organisation
-use flexible working
- flat hierarchies
-culture embraces change
-quick decision making
what is delayering
removing layers of management from the hierarchy of the organisation
why we should understand the organisational structure
-shows the management hierarchy in a business
-works from top to bottom
-also illustrates
span of control
line management
chain of command
levels of hierarchy
the number of layers of management or supervision in the organisational structure
why we want to delayer tall organisational structures
-key features of tall = many levels of hierarchy+ narrow span of control
-allows tighter control(less delegation)
-takes longer for communication to pass through the layers
more layers = more staff = higher costs
benefits of delayering
-lower labour costs(main benefit)
- faster decision-making
-shorter communication paths
-stimulating employee innovation
also associated with
-widening spans of control
-greater emphasis on teamworking and empowerment
drawbacks of delayering
-often significant one-off costs of making managers redundant
-increased workloads for managers who remain
-impact of redundancies on organisational morale
-loss of expertise
what is flexible working
working arrangements where employees have options in terms of working time, working location and the pattern of working
examples of flexible working
working from home
part-time working
annual hours contract
self employment
main benefits of flexible working for a business
-cost-potentially significant savings on fixed costs(e.g less space)
- higher job satisfaction and employee morale if employees who want to work flexibly are allowed to do so
- may attract more applicants for available jobs
- better customer service - e.g ability to offer 24/7 services
drawbacks of flexible working (for a business)
-more complex to manage
-investement required in technology and other support to make flexible working effective
-potential impact on motivation from greater remote working(e.g increased isolaton, work/life balance)
-loss of capacity/capability if key employees reduce their hours
who come up with the four causes of resistance to change
Kotter and Schlesinger
what are Kotter and Schlesingers 4 causes
-self interest
-low tolerance for change/ inertia
-different assessment of the situation
-misinformation and misunderstanding
self interest
-self interest is a powerful motivator
-arises from a perceived threat to job security, status and financial position.
understandable-why would you wat to lose something you believe to be valuable?
-individuals often place their own interests ahead of those of their organisation, particularly if they dont feel a strong loyalty to it
low tolerance/inertia
-many people suffer from inertia or reluctance to change, preferring things to stay “The way they are”
- Many people need security, predictability and stability in their work
-if there is low tolerance of change(perhaps arising from past experience) then resistance to change may grow
different assessment of the situation
here there is disagreement about the need for change or what that change needs to be
some people may simply disagree with the change proposed, or they may feel hey have a better solution
This is different from “self-interest” - the resistance here is based on disagreement about what is best for the business
misinformation and misunderstanding
people don’t understand why change is needed, perhaps because they are misinformed about the position of the business
perception may be widespread that there is no compelling reason to change
perhaps even an element of people fooling themselves that things are better than they really are
what are Kotter and Schlesingers six ways of overcoming resistance
-education and communication
-participation and involvement
-facilities and support
-manipulation and co-option
-negotiation and bargaining
-explicit and implicit coercion
education and communication
-the starting point for successful change is to communicate effectively the reasons why change is needed.
-honest communication about the issues and the proposed action helps people see the logic of change.
-Effective education helps address misconceptions about the change, including misinformation or inaccuracies
-Education and communication are unlikely to be successful in the short-term. They need to be delivered consistently and over a long-period for maximum impact
Participation and involvement
• Involvement in a change programme can be an effective way of bringing “on-board” people who would otherwise resist
• Effective participation often leads to commitment, not just compliance
• A common issue in any change programme is just how much involvement should be permitted. Delays and obstacles need to be avoided
Facilitation and support
• Kotter & Schlesinger identified what they called “adjustment problems” during change
• Some people will need support to help cope with change
• Might include training, counselling and mentoring as well as simply listening to the concerns of people affected
• If fear and anxiety is causing resistance to change, then facilitation and support is particularly important
Manipulation and co-option
• Co-option involves bringing specific individuals into roles that are part of change management (perhaps managers who are likely to be otherwise resistant to change)
• Manipulation involves the selective use of information to encourage people to behave in a particular way
• Whilst the use of manipulation might be seen as unethical, it might be the only option if other methods of overcoming resistance to change prove ineffective
Negotiation and bargaining
• The idea here is to give people who resist an incentive to change - or leave
• The negotiation and bargaining might involve offering better financial rewards for those who accept the requirements of the change programme
• Alternatively, enhanced rewards for leaving might also be offered
• This approach is commonly used when a business needs to restructure the organisation (e.g. by delayering)
Explicit and implicit coercion
• This approach is very much the “last resort” if other methods of overcoming resistance to change fail
• Explicit coercion involves people been told exactly what the implications of resisting change will be
• Implicit coercion involves suggesting the likely negative consequences for the business of failing to change, without making explicit threats
• The big issue with using coercion is that it almost inevitably damages trust between people in a business and can lead to damaged morale (in the short-term)
Handy’s Four Classes of Culture
Model
Power culture
• Control radiates from the centre
• Concentrates power among a few
• Few rules and little bureaucracy
•Swift decisions are possible
Role Culture
• People have clearly delegated authorities within a highly defined structure
• Hierarchical bureaucracy
• Power derives from a person’s position
• Little scope exists for expert power
Task Culture
• Teams are formed to solve particular problems
• Power derives from expertise as long as a team requires expertise
• No single power source
• Matrix organisation
• Team may develop own objectives (a risk)
Person cultureb
• People believe themselves to be superior to the business
• Business full of people with similar training, background & expertise
• Common in firms of professionals - e.g. accountants & lawyers
• Power lies in each group of individuals
Handy’s Culture Types and Leadership style?
