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Week 5 Change and Managing Change

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29 views33 pages

Week 5 Change and Managing Change

Uploaded by

alisbd016
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Change and Managing

Change

BABA 3001
Business Principles and Practice

Remi Ojebode PhD CMI FHEA PGCE

Senior Lecturer Corporate Governance, Business and Management

Module Leader

E-mail: [email protected]
Learning Outcomes

 Examine the concept of organisational change and


how organisations manage change
 Examine the key drivers of change and barriers to
change
 Examine the approaches, frameworks and models
for managing change
 Describe the success factors for implementing
Change and Managing Change
 Change is an integral part of how
organisations operate
 As organisations grow and evolve, they have to
continuously change their strategy, structures,
people, culture to adapt to the market
environment
 Change management constitutes the
collection of activities required to prepare,
The Organisation as a System
Drivers of Change

Source: Barbara, S &


Stephen, S, 2019
Organisational change,
Fifth Edition, Pearson.
External Drivers of Change

Source: Barbara, S &


Stephen, S, 2019
Organisational change,
Fifth Edition Pearson.
Drivers of Change
External drivers of Change
Internal Drivers of Change
 A new CEO or another senior manager
 Falling organisation performance
 A new vision and mission statement
 High employee turnover, low employee
morale
 Recognition or de-recognition of a union
 Relocation and/or redesign of a factory
or office layout
 Takeover, divestment, or merger and
acquisition
 Labour shortages or surpluses
Class Discussion:
What drove Tesco to make changes
to products, services, systems
and/or structure in 2014?
Types of Change
Incremental vs Transformational change
 Incremental change
- smooth incremental is a change that evolves slowly in a
systematic and predictable way
- bumpy incremental is characterised by periods of
relative tranquillity
punctuated by acceleration in the pace of change.
 Organisations focus on changing their processes rather
than their structures, strategy and culture
 Transformation/Discontinuous change is marked by
rapid or complete shifts in the strategy, structures and
culture or all three of the organisation
 This kind of radical change is unlikely unless there is
Types of Change
 Incremental change
e.g., Apple lunches of Iphone 11

 Transformation change
e.g., I.B.M
-The dominant computer manufacturers in the
word for – 45yrs
but missed the computer revolution of the 1980’s
(miniaturisation)
- I.B.M’s very existence was challenged
-Solution – transformation of I.B.M from computer
Types of Change
States of Change

How to move How things will


from current be done
to future tomorrow
Organisational Ambidexterity
 For organisations to move from their current
state to future state, they should be able exploit
their resources and institute structures that
would able them to explore their resources in the
future.

 Leader and Managers must periodically destroy


what was created/aligned in the short run to
reconstruct a new organisation better suited to
the next wave of competition.
The Change Process
1. Determine the need for change
- Organisational & external environment
2. Prepare and plan for change
- problem definition
- levels, objectives and strategies
- sequence of steps & measurement
systems
3. Implement the change
- training employees on the
appropriateness for change
4. Sustain the change
- maintain enthusiasm & sustain momentum
Frameworks and Models for
Managing Change
Two main approaches

Design/ Developmental
planned approach
approach • Focus on
• Focus on experiences
shortcomings • Problem-
• Solution- oriented
Kotter’s Planned and Linear
Change
Kotter’s Model
eight-steps
1. Establish a Sense of Urgency
2. Create the Guiding Coalition
3. Create a Vision for Change
4. Communicate the vision
5. Empower Broad Based Action
6. Generate Short-Term Wins
7. Consolidate Gains to Produce More Change
8. Anchor the change
1. Establish a Sense of Urgency
 Examine market and competitive realities
 Communicate the information broadly and
dramatically especially to respect to crises, potential
crises or great opportunity that need to be dealt
with
 Drive people out of their conform zone and engender
cooperation
2. Form a Powerful Guiding
Coalition
 Recruit a group with enough power to lead the
change effort
 Encourage the group to work as a team
3. Create a Vision for Change
 Create a vision that help direct the change
effort
 Develop strategies that facilitate the
achievement of the vision
4.Communicate the Vision for
 DemonstrateChange
clear understanding of the
change process, objectives, vision, etc.
 Communicate the new vision using every
possible methods
 Provide training and teach new behaviour at
align with the new vision
5. Empower other to Act on the

Vision
Remove obstacles that block change
 Change systems and structures that
undermine the vision
 Encourage risk taking and not traditional
ideas, activities and actions
6. Plan and Generate Short-term
 Plan for visibleWins
performance improvements
 Communicate progress
 Recognize and reward those involved in the
improvements
7. Consolidate Gains to Produce
More Change
 Maintain enthusiasm
 Sustain momentum
 Hire, promote and develop employees who can
implement the vision
 Reinvigorate the process with new projects,
themes and change agents
8. Anchor the change
 Make the Change Stick
 Embed the change within the organisational
culture
 Promote and communicate the success of the
change
 Written into roles, procedures, protocols,
rules etc
Pettigrew’s Organisation
Development Model
Pettigrew’s four stages model
1. The development of concern
- Concern amongst a group of
people that existing organisational
structures and
procedures are no longer
compatible with the operating
Implementing Change Successfully

(1)
Ensure that the objectives and details of any
changes are communicated as clearly and quickly
as possible to employees
-Leaving staff in the dark can lead to rumours and
speculation that
can be difficult to challenge

 Appointing a project champion


-A change champion needs to have power and
persuasion to push
the change through and persuade staff that the
Implementing Change Successfully
(2)
 Involving staff rather than imposing change
 Ensuring appropriate leadership
-The most appropriate style will depend on the
circumstances
-All leaders will need to provide their people
with the vision
and rationale for change to make it a success

 Creating a culture for change


-A learning organisation is one that embraces
change and
Class Discussion: What do you
think are the top three reasons
people resist change?
Key Barriers to Change (1)
 Unclear agreement of change objectives
and strategy
 Lack of conviction that change is needed
 No engagement of top management
 Lack of clarity as to what is expected
 Little attention for creating support for
change
 Insufficient interaction and communication
 Insufficient monitor systems and feedback
 Perceived negative effect of interest
 Discomfort with uncertainty
Barriers for Change (2)

Resistance can come in different


forms
 Active – opposition is clearly stated (e.g.
industrial action)
 Passive – hidden e.g. failing to attend
meetings, not responding to messages
 Can be more successful in blocking
change
References and Reading
• Barbara, S & Stephen, S. (2019). Organisational Change, Fifth Edition,
Pearson.
• Daft, R., Kendrick, M. & Vershinina, N. (2011) Management Intl edn,
Andover: South Western Cengage Learning.
• Kotter J (1996) Leading change. Harvard Business School Press, Boston
• Kotter J (2008) A sense of urgency. Harvard Business School Press, Boston
• Pettigrew, Andrew M. (1987) The Management of Strategic Change. Oxford:
Basil Blackwell.
• Pettigrew, Andrew M., Richard W. Woodman and Kim S. Cameron (2001)
‘Studying organizational change and development: challenges for future
research’. Academy of Management Journal 44(4):697–713.
• S. Oskamp (Ed.), Reducing prejudice and discrimination: Social
psychological perspectives (pp. 93–114). Mahwah, NJ: Erlbaum

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