Week 4: Organisational Change and Innovation Flashcards
1
Q
What is Organisational Change?
Radical change
Incremental change
Change agents
Unplanned change
Planned change
Performance gap
A
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What is Organisational Change?
- Refers to organisation-wide change (e.g., a change in mission, restructuring operations)
- Radical change: is change that results in a major make-over of the organisation and/or its component systems. Often caused by introduction of new technologies or regulations, or by changing consumer preferences
- Incremental change: is change that occurs more frequently and less traumatically as part of an organisation’s natural evolution. Often includes new products, new technologies and new systems
- Change agents: are the individuals or groups that take responsibility for changing the existing pattern of behaviour of a person or social system
- Unplanned change: is change that occurs at random or spontaneously and without a change agent’s direction
- Planned change: is change that happens as a result of specific efforts on the part of a change agent
- Performance gap: is the discrepancy between an actual and a desired state of affairs
2
Q
Leadership of Change
A
3
Q
Forces of change
internal and external forces
Cultural change
Technological change
A
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Forces favouring change:
- Sufficient dissatisfaction with the existing situation (state A)
- Strong attraction towards a more desirable position (state B)
- Desire to formulate a well-thought-out strategy that will realise the vision (how to move from state A to B)
Change may be triggered by external (politics or laws etc.) or internal factors (change of ownership, products etc.)
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Internal and external forces
- Internal: changes in ownership, leadership, products, processes, etc.
- External: competition, markets, politics, etc.
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Cultural change
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Pathways to effective cultural change:
- Educate stakeholders as to why change in necessary
- Communicate the new culture that is desired
- Use value statements to embed the new cultural requirements
- Give people the skills, knowledge and capabilities they will need to work differently
- Create processes, systems and ways of working that enable people to put the new values into practice
- Use performance management and reward to enforce desired behaviours
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Pathways to effective cultural change:
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Technological change
- Computers, mobile technology
4
Q
Pathways to effective cultural change:
A
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Pathways to effective cultural change:
- Educate stakeholders as to why change in necessary
- Communicate the new culture that is desired
- Use value statements to embed the new cultural requirements
- Give people the skills, knowledge and capabilities they will need to work differently
- Create processes, systems and ways of working that enable people to put the new values into practice
- Use performance management and reward to enforce desired behaviours
5
Q
Organisational Targets for Change
A
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Change targets
- purpose
- technology
- structure
- tasks
- people
- culture
- strategy
- objectives
6
Q
Phases of planned change
A
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Phase 1: Unfreezing
- creating a felt need for change
- minimising resistance to change
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Phase 2: Changing
- Changing people (individuals or groups), tasks, structure, technology
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Phase 3: Refreezing
- reinforcing outcomes
- evaluating results
- making constructive modifications
7
Q
Change Levers and Cycles
A
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Technical design problem
- A production or operational problem
- Social/technical resources should be dispatched to solve the problem
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Political allocation problem
- Organisation must determine how resources will be used, and which parts of the organisation will benefit
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Cultural/ideological mix problem
- What values need to be held by what people
All of these problems seem to occur simultaneously in organisations and all components need attention to ensure high performance
8
Q
Planned Change Strategies (4)
A
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Top-down approach to change
- Using centralised power to force compliance
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Force-coercion
- Using authority to force compliance
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Rational persuasion
- Using logic and information to persuade people to accept the change
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Shared power/ normative-reeducative strategy
- Involving others in change decisions
9
Q
Forced coercion strategy:
Rational persuasion strategy:
Shared power/ normative-reeducative strategy:
A
- Forced coercion strategy: tries to ‘command’ change through the formal authority of legitimacy, rewards and punishments
- Rational persuasion strategy: attempts to bring about change through persuasion based on empirical facts, special knowledge and rational argument
- Shared power/ normative-reeducative strategy: attempts to bring about change by identifying or establishing values and assumptions so that support for the change emerges naturally
10
Q
Guidelines for effective change:
A
Managers should keep in mind when planning change:
- Consider using an expert consultant
- Communicate the need for change
- Gather as much information and feedback from employees as possible
- Do not fall into the trap of change for changes sake
- Study organisational change, including new forms and structures
11
Q
Resistance to change
Reasons for resistance to change
A
- Resistance to change: is any attitude or behaviour that reflects a person’s unwillingness to make or support a desired change
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Reasons for resistance to change:
- Fear of the unknown
- Need for security
- No felt need for change
- Vested interests threatened
- Contrasting interpretations
- Poor timing
- Lack of resources
12
Q
In order to reduce resistance to change the people affected need to know how change satisfies the following criteria
A
- Benefit: the change should have a clear relative advantage for individuals being asked to change
- Compatibility: the change should be as compatible as possible with the existing values and experiences of the people being asked to change
- Complexity: should be as simple as possible
- Triability: change should be something people can try on a step-by-step basis and make adjustments as things progress
13
Q
Action Research Process
A
- Change requires both an action (i.e., changing attitudes and behaviours) and research focus (i.e., testing theory through data collection and analysis)
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Action Orientation
- Solve problems and change the organisational system
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Research Orientation
- Concepts guide change
- Data needed to diagnose problem, identify intervention, evaluate change
14
Q
Appreciative Inquiry Research
Four-D Model of Appreciative Inquiry
A
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Appreciative Inquiry Research
- Frames change around a positive possible future rather than having a traditional problem focus
- Application of positive organisational behaviour
- i.e., group’s potential and positive elements
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Four-D Model of Appreciative Inquiry
- Discovery-> Dreaming-> Designing-> Delivering
15
Q
How to Minimise Resistance to Change
A
- Benefit (‘a better way’)
- Compatibility (with existing values and experiences of those who will be affected)
- Complexity (change should be no more complex than necessary)
- Triability (can be tried on a step-by-step basis and adjusted as time goes on)
16
Q
Ways to deal with Resistance to Change
A
- Education and communication
- Participation and involvement
- Facilitation and support
- Negotiation and agreement
- Manipulation and co-optation
- Explicit or implicit coercion
18
Q
Innovation Process Steps:
A
- Idea creation
- Initial experimentation
- Feasibility determination
- Final application
- Central to this idea is that any new product or process musst offer true benefits to the organisation and/or marketplace*
- Innovation process (see pic)
