UBO - Lecture 07 - Implementing and Managing Organisational Change

Lecture 7 Implementing and Managing
Organisational Change
Understanding Business Organisations
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Understanding Business
Organisations
Lecture 7:
Implementing and Managing Organisational
Change
Implementing and Managing Organisational Change Lecture 7 - 7.2
Scope and Coverage
This topic will cover:
The lifecycle, emergent, participative and political
theories of change
Changing the internal context within an organisation
g g g
The different forms of resistance to change
Strategies for successfully implementing change
The process for managing change successfully
Kurt Lewins three-step model for change
Learning Outcomes
By the end of this topic, students will be able to:
Describe the four models of change
Explain how a change project can change internal
elements within an organisation
elements within an organisation
Understand the reasons for resistance to change
and how such resistance can be overcome
Describe a process for the successful management
of change
Lifecycle perspective
Emergent perspective
Participative perspective
Four Perspectives on Change
Political perspective
These are complementary
Projects go through successive stages
Results depend on conducting these stages in an orderly
and controlled way
Major themes of such a project are:
Define objectives
Lifecycle Perspective
Allocate responsibilities
Fix deadlines and milestones
Set budgets
Monitor and control
Key element is to monitor activities to ensure the project
stays on target
Researchers have developed a view of strategy as
an emergent or adaptive process
Projects face similar challenges
Volatile and uncertain environment
Emergent Perspective
People with different interests and priorities
For projects to succeed, they must be closer to the
emergent than the lifecycle perspective
Participative approach is commonly used in
management literature
Intention is to give people a feeling of personal
involvement in events and outcomes
Participative Perspective
Assumption is that a sensitive approach by
reasonable people will result in willing
acceptance and implementation of change
Power is essential to get things done in
organisations
Change project may challenge established
interests and threaten the status quo
Political Perspective
Successful change requires support from senior
managers
Power politics and change are inextricably linked
Perspective Themes Examples of management practices
Lifecycle Rational, linear, single agreed aim,
technical focus
Measurable objectives; planning and
control devices such as Gantt Charts
or critical path analysis
Emergent Objectives change as learning
occurs during the project and new
possibilities appear
Open to new ideas about scope and
direction, and willing to add new
resources if needed
Perspectives on Change
possibilities appear resources if needed
Participative Ownership, commitment, shared
goals, people focus
Inviting ideas and comments on
proposals, ensuring agreement before
action, seeking consensus
Political Oppositional, influence, conflicting
goals, power focus
Building allies and coalitions, securing
support from powerful players,
managing information
Change projects will seek to change one or
more organisational elements
Rare for any significant change to be confined
to only one element
Changing the Internal Context
to only one element
Element Example of change to this element
Objectives Developing a new product or service. Changing the overall mission.
Technology Installinga new computer. Creating a new website.
Business processes Introducing a new process for dealing with customer orders.
Financial resources A set of changes, such as closing a facility, to reduce costs.
Examples of Change in the
Organisation
Structure Reallocatingfunctions and responsibilities between departments.
People Designinga new training programme to enhance skills. Changing the
tasks of staff to offer a new service.
Culture Creating a more innovative or flexible culture. Encouraging greater
emphasis on quality and reliability.
Power Centralisingdecisions to increase the control of HQ over operations.
Core/margin
Novel/familiar
Factors affecting the Change
Management Challenge
Rapid/gradual
Controversial/uncontroversial
Novel
4 1
Critical Dimensions of Change
Projects
Core Margin
3 2
Familiar
People at all levels in an organisation will
sometimes resist change
They may see it as a threat to their interests or
status
Resistance to Change
They may believe that the proposed change
will damage rather than benefit the
organisation
Refusing to use new systems or procedures
Making no effort to learn
Using older systems whenever possible
Excessive fault finding and criticism
Forms of Resistance
Excessive fault finding and criticism
Deliberate misuse
Not attending meetings to discuss the change
Protracted requests for more information
Not releasing staff for training
Element Sources of resistance to change
Objectives Lack of clarity or understanding of objectives
People Change may threaten important values, skills, needs and interests
Technology May be poorly designed, hard to use or incompatible
Business processes Mayrequire unwelcome changes inthe way people deal with
Reasons for Resistance to
Change
Business processes May require unwelcome changes in the way people deal with
colleagues or customers
Financial resources Doubts over whether change will be financially worthwhile
Structure New reporting relationships may disrupt things
Culture Change that challenges core values may be resisted
Power Change that affects ownership of information may be resisted
Front-stage performance logical and rationally
planned change linked to widespread and
convincing participative measures
Back-stage activity exercise power skills
Strategies for Successfully
Implementing Change
Back-stage activity exercise power skills,
influencing, negotiating, selling, searching out and
neutralising resistance
Supporting the individual change manager with
project teams containing the necessary expertise
and power
Communication
of objectives and processes to all affected parties
Education
regarding the need for change and how it is to be implemented
Consultation
to ensure the willing co-operation of all affected parties
Management of Change Process
Negotiation
If necessary, making some concessions to facilitate compliance
Manipulation
of affected parties by the use of manipulative techniques
Coercion
forcing the change through via executive power
Unfreezing the current level
Moving to a new level
Kurt Lewins Three-Step Model
Moving to a new level
Refreezing new level
Kurt Lewins Three-Step Model (2)
Unfreezing the current level abandoning old
practices and beliefs and creating a cultural climate
of change
Moving to a new level implementing the change
once the old attitudes have been unfrozen
Refreezing the new level cementing the new
culture and practices and preventing employees
from falling back into old practices
There are four complementary perspectives on change,
each with different management implications
Support from senior managers is vital to the success of
change projects
People at all levels in an organisationwill resist change
Summary
People at all levels in an organisation will resist change
and this resistance can come in many forms
Effective planning, negotiating and selling can help to
overcome resistance
Lewins three-step model is commonly used to illustrate
the management of change process
References
Boddy, D. (2005), Management: An Introduction, 3rd
edition, Prentice Hall, Chapter 13
Boddy, D. (2007), Management: An Introduction, 4th
edition, Prentice Hall, Chapter 13
Campbell and Craig (2005) Organisations and the
Campbell and Craig (2005), Organisations and the
Business Environment, 2nd edition. Butterworth-
Heinemann, Chapter 23, pp 499-517
Mullins (2010), Management & Organisational Behaviour,
9th edition, Prentice Hall, Chapter 19 pp 736-761
Any Questions?

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