Changes in organisations
21 important questions on Changes in organisations
What is the difference between planned changes and emergent changes?
Emergent changes are those that just happen, or have to happen, in response to unforeseen events
What are the two types of changes?
Second order (discontinuous) changes: transform the nature of the organisation by introducing new products or ways of doing business. These changes are trans-formative, radical and fundamental. It is a continuous disruption of core assumptions
Coghlan and Rashford also identify a third-order change, explain this one
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What is according to Frohman undervalued and who are the most important people for organisations
Frohman distinguishes 3 kinds of organisations, which 3?
Meritocratic organisations implement heavily regulated procedures which limits room for individual initiative
Social club organisations prioritizes conformity to the team rather than to the work itself
When is according to Frohman, individual initiative available?
According to Palmer and Dunford there are eight common trends for change implemented by organisations coping with hyper competitive business evironments, which eight?
- Delayering
- networks/alliances
- outsourcing
- disaggregation
- empowerment
- flexible work groups
- short-term staffing
- reduction of internal and external boundaries
These eight common trends are referred to as second order transformational changes, where do such changes result in?
However, rather than replacing the old practices such as hierarchy, formalization etc. With new ones, the two should be integrated.
The reason for this is so the organisation can adapt to competitive pressures and still maintain their organisational strenghts.
Transformational changes have different levels of magnitude.
What are the three types of transformational change?
Type 2: resurgence of already-established companies - the organisation remains in the same market but rebuilds itself to compete more effectively
Type 3: Fundamentally changing the business in which the organisation is involved. Compound transformations can occur when an organisation simultaneously tackles multiple transformations
Beyond first-order or second-order change
The following approaches do not retain strong distinctions between categorizing changes such as being adaptive or transformational
2) Change as punctuated equilibrium
3) Change as robust transformation
Explain the theory of midrange organisational change
- tectonic change
- main goal: modify the organisation without negatively affecting employee loyalty and other positive organisation attributes.
This is to prevent the change from being perceived as unnecessary/ high intertia and unattainable/high stress
Explain the theory of change as punctuated equilibrium
This theory describes how organisations go through long periods of stability (equilibrium periods) and are followed by relatively short periods of transformational change (revolutionary periods). This explains how usually in certain circumstances, whole industries go through organisational change, while most of the time they display periods of equilibrium
Explain the theory of change as robust transformation
The key here is to identify what is intended when an organisation engages in change, and to ensure that it is in accordance with the type of environmental change that is occurring.
Recently theorists believe that many organisations engage in discontinuous and unanticipated change. There are 3 forms of such unanticipated changes, which 3?
- Step functions: Emergence of new conditions that are permanent, requiring the organisation to change to fit the environment better
- Oscillation: Cycles of discontinuity occur such as expansion and contraction of the organisation's market.
Many organisations have set up corporate program management offices (PMO's) to support and coordinate their initiatives (and make sure there is no duplication, overlap or unnecessary costs).
these produce benefits such as what?
-> delivering projects under budget and ahead of schedule
-> improving productivity
-> increasing cost savings
What are three of the common changes managers are likely to face?
- implementation of new technology
- mergers and acquisitions
Downsizing is the process of permanently reducing staff numbers in an organisation. What are the common types of downsizing?
Downscaling: permanent alterations to employment and tangible resource capacity. This reduces the firm's economies of scale and competitive market share
Down scoping: happens when the firm divests activities or markets in which it operates. This is done by reducing the vertical/horizontal differentiation.
What are some of the reasons for firms to undertake downsizing?
- closing or selling a business unit
- cost reduction / savings
- increased productivity through greater efficiency
- effectiveness and coping with external pressures
What are some of the change challenges of downsizing?
- avoiding hard landings
- minimizing political behavior and loss of teamwork
- survivor syndrome
- communication
- due diligence
- cultural adjustment
- choice of restructuring technique
What are challenges when implementing technological change?
- identifying political barriers
- time frame (short vs long term)
- incorporating the IT team into the organisation
- communicating the direction of and the process for implementing
- goal synthesis and identifying technologies place within the organisation
- contingency planning enables what if questions to be asked that can anticipate possible scenarios that might emerge and how they could be handled
What are change challenges of mergers and acquisitions?
- employee retention
- contingency planning
- cultural adjustment is needed
- balancing change and continuity
- the lack of due diligence that can lead to incorrect pricing of the target company and integration of the two organisations
- power structure is needed to undermine the success of the merger if there is a lack of commitment to the merger
- cost savings which are often overvalued initially which leads to a focus on short-term returns to meet calculated goals
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