Slide 10.1 WEEK 5 A framework for change Approaches and choices (Chapter 10) Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

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Transcript Slide 10.1 WEEK 5 A framework for change Approaches and choices (Chapter 10) Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 1

Slide 10.1

WEEK 5
A framework for change
Approaches and choices
(Chapter 10)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 2

Slide 10.2

Lecture 5 Learning outcomes









Exploring the varieties of approaches to
change
The contingency approach to change
The new paradigms of change
Organisational culture and change
The Japanese approach to change
Organisational Learning and change

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 3

Slide 10.3

Change is multi-disciplinary

As Stickland (1998: 14) remarks:
... the problem with studying change is that it
parades across many subject domains under
numerous guises……………………..

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 4

Slide 10.4

Varieties of change – 1


Smooth incremental, covering slow,
systematic, evolutionary change.



Bumpy incremental, pertaining to periods
where the smooth flow of change
accelerates.



Discontinuous change, which is similar to the
punctuated equilibrium model.
Senior (2002)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 5

Slide 10.5

Varieties of change – 2


Top-down systemic change aimed at transforming
the organisation.



Piecemeal initiatives devised and implemented by
departments or sections in an unconnected fashion.



Bargaining for change where a series of targets
are jointly agreed between managers and workers,
but are pursued in a piecemeal fashion.



Systemic jointism where managers and workers
agree a total package of changes designed to
achieve organisational transformation.
Storey (2002)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 6

Slide 10.6

A Contingency approach
Turbulent times demand different responses in
varied circumstances. So managers and
consultants need a model of change that is
essentially a ‘situational’ or ‘contingency
model’, one that indicates how to vary change
strategies to achieve ‘optimum fit’ with the
changing environment.
(Dunphy and Stace, 1993: 905)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 7

Slide 10.7

Criticisms of contingency






Ignores environmental manipulation
Ignores managerial choice
Ignores the difficulty of changing structures,
cultures and managerial behaviour
Assumes that survival depends on being the
best.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 8

Slide 10.8

Figure 10.1

Varieties of change
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 9

Slide 10.9

Figure 10.2

Change continuum
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 10

Slide 10.10

Figure 10.3

Approaches to change
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 11

Slide 10.11

Figure 10.4

Speed and focus of change
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 12

Slide 10.12

Figure 10.5

A framework for change
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 13

Slide 10.13

Organisational change
Summary
 There are many approaches to change
 All tend to be situation-specific
 Managers can influence situational
constraints
 Organisations can exercise choice in:





What to change
How to change it
When to change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 14

Slide 10.14

In search of new paradigms
(Chapter 3)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 15

Slide 10.15

Describing organizational culture
( Senior & Fleming)













Artefacts
Language in the form of jokes, metaphors, stories, myths
and legends
Behaviour patterns in the form of rites, rituals, ceremonies
and celebrations
Norms of behaviour
Heroes
Symbols and symbolic action
Beliefs, values, attitudes
Ethical codes
Basic assumptions
History
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 16

Slide 10.16

Culture–Excellence
Key figures
• Tom Peters and Robert Waterman
• Rosabeth Moss Kanter
• Charles Handy
Core concept:
Culture determines Performance.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 17

Slide 10.17

Organisational culture
Why does it matter?
Peters and Waterman found a strong link between
excellence (good performance) and organisational
culture.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 18

Slide 10.18

7 S framework

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 19

Slide 10.19

Peters and Waterman
Eight key attributes of excellent organisations
1.

Bias for action

2.

Closeness to the customer

3.

Autonomy and entrepreneurship

4.

Productivity through people

5.

Hands-on, value-driven

6.

Stick to the knitting

7.

Simple form, lean staff

8.

Simultaneous loose–tight properties.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 20

Slide 10.20

Rosabeth Moss Kanter (1989)
When giants learn to dance: mastering the challenges of
strategy, management, and careers in the 1990s

Kanter’s Post-entrepreneurial model


Restructuring to find synergies



Opening boundaries to form strategic alliances



Creating new ventures from within – encouraging
innovation and entrepreneurship.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 21

Slide 10.21

Charles Handy (1989)
The age of unreason
The world is changing, therefore, organisations
must change.
In future, organisations must be
 Knowledge-based
 Run by a few smart people
 Populated by a host of smart machines.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 22

Slide 10.22

Charles Handy
Emerging organisations




The Shamrock organisation


3 distinct groups of staff



Core , Contractual Fringe, Flexible Labour Force

The Federal organisation




Network of individual organisations allied to
achieve a common purpose

The Triple I organisation.


Information , Intelligence, Ideas = added value

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 23

Slide 10.23

Changing organizational culture
to bring about organizational change
( Senior & Fleming)


Assessing cultural risk



The relevance of culture change to organizational change
(1) Ignoring the culture
(2) Managing around the culture
(3) Changing the culture
(4) Changing the strategy to match the culture

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 24

Slide 10.24

Summary
Organisations must promote
 Strong, flexible cultures
 Innovation and entrepreneurship
 Teamwork and individual enterprise and development
 Reward systems based on contribution and not position
 Brain power and not muscle power
 Flat, anti-hierarchical structures
 Small corporate and middle management staffs
 Tight control of a few key measures
 Continuous, radical change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 25

Slide 10.25

Criticisms






Empirical evidence does not stand up
Back to ‘one best way’
Assumes all organisations face the same
problems and opportunities
People are the chief asset but...







are easily discarded
compete with each other
not all are treated the same way

Culture is the great cure-all
What about the Japanese?
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 26

Slide 10.26

The Japanese approach
Distinct features
 Personnel policies (soft)
 Business practices and work systems (hard)
Effectiveness comes from the ability to combine
soft and hard practices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 27

Slide 10.27

The Japanese approach (Continued)
Personnel policies (soft)
 Lifetime employment
 Internal labour market
 Seniority-based promotion and rewards
 Teamwork and bonding
 Enterprise unions
 Training and education
 Company welfarism.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 28

Slide 10.28

The Japanese approach (Continued)
Designed to promote:
 Loyalty and gratitude
 Commitment
 Sense of security
 Hard work and improvement
 Co-operation not conflict
 Self-development.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 29

Slide 10.29

The Japanese approach (Continued)


Business practices and work systems (hard)
Long-term planning






15 years
Market growth
Low dividends
Low profits.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 30

Slide 10.30

The Japanese approach (Continued)
Timeliness





Fast product development
JIT
Right first time.

Quality




Total quality approach
Continuous improvement.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 31

Slide 10.31

The Japanese approach
Summary
Values and promotes loyalty
 Slow promotion
 Seniority principle
 Lifetime employment
 Paternalistic and deferential
 Slow, collective decision-making
Change is continuous, incremental, bottom-up but
within an overall company vision.


Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 32

Slide 10.32

The Japanese approach
Criticisms









Two-tier labour markets
Lifetime employment = slavery
Teamwork = coercive pressure
Enterprise unions = exploitation
Cannot accommodate globalisation and
workforce diversity
Threatened by economic shocks.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 33

Slide 10.33

Organisational learning
Some definitions
• Organizational learning is the process by which the
organization’s knowledge and value base changes,
leading to improved problem-solving ability and
capacity for action (Probst and Buchel, 1997: 15).
• A learning organization is an organization skilled at
creating, acquiring and transferring knowledge, and
at modifying behavior to reflect new knowledge and
insights (Garvin, 1993: 80).

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 34

Slide 10.34

Organisational learning (Continued)






Organizational learning means the process of
improving actions through better knowledge and
understanding (Fiol and Lyles, 1985:803).
An entity learns if, through its processing of
information, the range of its potential behaviors is
changed (Huber, 1991: 89).
Organizational learning occurs through shared
insight, knowledge and mental models and builds on
past knowledge and experience, that is, on memory
(Stata, 1989: 64).

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 35

Slide 10.35

Organisational learning (Continued)
Positives
 A rich, multi-dimensional concept affecting many aspects
of organisational behaviour.
 An innovative approach to learning, to knowledge
management and to investing in intellectual capital.
 A new set of challenging concepts focusing attention on
the acquisition and development of individual and
corporate knowledge.
 An innovative approach to organisation, management
and employee development.
 Innovative use of technology to manage organisational
knowledge through databases and internet or intranets.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 36

Slide 10.36

Organisational learning (Continued)
Negatives










A complex and difficult set of practices, difficult to implement
systematically.
An attempt to use dated concepts from change management
and learning theory, repackaged as a management consulting
project.
A new vocabulary for encouraging employee compliance with
management directives in the guise of ‘self-development’.
An innovative approach for strengthening management
control.
A technology-dependent approach that ignores how people
actually develop and use knowledge in organisations.
(From Huczynski and Buchanan, 2001: 135)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 37

Slide 10.37

Organisational learning
Summary
Survival depends on the organisation learning (adapting)
at the same rate or faster than the environment changes.
 Learning must become a collective and not just an
individual process.
 There must be a fundamental shift towards systems (or
triple-loop) thinking by an organisation’s members.
 This gives an organisation the ability to adapt to,
influence and even create its environment.
Change comes from learning and learning comes from
change.


Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 38

Slide 10.38

Organisational learning
Criticisms





No agreed definition
Scarcity of rigorous empirical evidence
Organisations do not learn – people learn
It requires the creation of organisational diversity
and consensus at the same time.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009