12.1Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Understanding Organisational Context 2e

Slides by Claire Capon

Chapter 12

Managing a changing environment

Sources and types of change

The process of change

Communicating change

Greiner’s model

12.2Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Sources of change

• The demand for change can arise from:

- the internal environment (e.g. employees and departments)

- the external environment (e.g. competition, markets and customers)

12.3Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Types of change

• Types of change include alterations to size, structure, culture, leadership, tasks and activities

• The organisation can be reactive or proactive towards change

12.4Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Figure 12.2 Lewin’s force field analysis

12.5Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

The process of change

• Change is the outcome of the impact of driving forces upon restraining forces

• Driving forces are often economic in nature

12.6Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

The process of change

• Change invokes uncertainty in the existing workforce

• Managers involved need to communicate strong justification for changes

12.7Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Figure 12.3 The change process model

12.8Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

The change process model

Stage 1

• Unfreezing of current attitudes and behaviour

• Organisational anticipation

12.9Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

The change process model

Stage 2

• Moving to a new level

• Organisational flux

• Information building

• Experimentation

12.10Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

The change process model

Stage 3

• Refreezing attitudes and behaviour at the new level

• Highlight the positive outcomes of the changes

12.11Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Communicating change

• In communicating change consider:

- the information which needs to be imparted

- the best media to use

12.12Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Communicating change

• For communicating routine or minor change use:

- circulars or newsletters

- announcements on

noticeboards

- letters, memos and e-mail

12.13Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Communicating change

• For communicating complex information and significant changes use interactive media

• Examples: meetings, video-conferencing, team briefings

12.14Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Communicating change

• In communicating change aim to:

- involve organisation members in planning

and implementing the change

12.15Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Communicating change

- have a two-way dialogue with those affected by

the change

- counter informal communication, such

as rumours and gossip

12.16Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Greiner’s model

• Greiner’s model can be used to highlight the need:– for structural change

– for development of key skills

–to manage transfer from one phase to the next

12.17Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Figure 12.6 Greiner’s model

12.18Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Five dimensions of organisational development• Age

• Size

• Stages of evolution

• Stages of revolution

• Industry growth rate

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Phase 1 - Growth through creativity

• Focus is product development and selling

• Crisis of leadership:–informal management style

becomes inadequate

–more expertise is needed

12.20Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Phase 2 - Growth through direction

• Crisis of leadership is resolved by:– specialisation

– functional structure

– implementing control systems

– formal communication

– DM expands up the hierarchy

12.21Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Phase 2 - Growth through direction

• Crisis of autonomy–over centralisation

–no opportunity to exercise initiative

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Phase 3 - Growth through delegation

• Crisis of autonomy is resolved by:– decentralisation

– divisional structure

– top management deal with strategic issues and middle manager competitive issues

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Phase 3 - Growth through delegation

• Crisis of control:–top management feel a loss of

control over the divisions

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Phase 4 - Growth through co-ordination

• Crisis of control is resolved by:– formal planning

– more staff concerned with control throughout the organisation

– encourage managers to take a corporate perspective

12.25Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Phase 4 - Growth through co-ordination

• Crisis of red tape:–lack of confidence in co-

ordination between employees and HQ

–proliferation of systems

–innovation is stifled

12.26Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Phase 5 - Growth through collaboration

• Crisis of red tape is resolved by social control and self discipline

• Crisis of collaboration - employees exhausted by teamwork and the need for innovation

12.27Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004

Phase 6 - Dual organisation structure

• Habit structure for routine work

• Reflective structure - personal development, e.g. flexible hours, revolving jobs, secondments, sabbaticals