Lecture 19
ORGANIZATIONAL DEVELOPMENT
AND CHANGE
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
1
Forces acting on organizations
Helriegel et al (1989):
External forces:
• Rapid product obsolescence
• Knowledge explosion
• Demographics
Internal forces:
• Efficiency
• Fashion
• Control
• Internal pressure
Stewart (1991) changes that
effect managerial
careers:
• Business structure
• Business functioning
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
2
Forces acting on organizations:
Adaptive change
Fracturing change
Planned change
Unplanned change
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
3
Organizational development – strands of theory and practice
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
4
Organizational development – strands of theory and practice
• Encounter or T Groups
• Process consultation
• Survey feedback
• Action research
• Planned approach to OD interventions
• Quality of working life
• Strategic change
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
5
Organizational development – strands of theory and practice
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
6
Power, politics and change
Two major ways in which power and politics interact with change:
• Process
• Purpose
Stephenson (1985) - tactics that are useful in the introduction of change:
• Simple first
• Adaptation
• Incorporation
• Structure
• Ceremony
• Assurances
• Timescales
• Support
• Transition
• Unexpected
Nadler and Tushman (1988) - three mechanisms:
• Mobilizing political support
• Encouraging supportive behaviour
• Managing the transitional process
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
7
Leavitt’s organizational variables and change
• Major constituent parts of an organization - all interact
and change in any can cause change to occur in the others:
• People
• Task
• Structure
• Technology
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
8
Mergers, acquisitions and change
Johnson and Scholes (1993) - development by acquisition occurs in waves
Change is an inevitable consequence
Important cultural blockages to change:
• Routines
• Control systems
• Structures
• Symbols
• Power and dependency
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
9
Re-engineering and quality approaches to change
Meeting the needs of the customers
Meeting the needs of the hierarchy
Process is fundamental to business process re-engineering
Hammer and Champy - ‘Individualism, self-reliance, a willingness
to accept risk and a propensity for change’
Rapid identification and quick implementation
Total Quality Management (TQM):
• Meet the needs of customers
• Cover all parts of organization
• Every person in organization
• Examine all costs associated with quality
• ‘Right first time’
• Systems and procedures to support quality improvement
• Continuous improvement
Dale - ten years to implement TQM properly
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
10
Lewin’s forcefield model of change
• Stage 1 - Unfreezing
• Stage 2 - Changing
• Stage 3 - Refreezing
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
11
Contingency perspectives on change:
Kotter and Schlesinger’s model
• Education plus communication
• Participation plus involvement
• Facilitation plus support
• Negotiation plus agreement
• Manipulation plus co-option
• Explicit plus implicit coercion
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
12
Contingency perspectives on change:
Dunphy and Stace’s model
Developed a two dimensional matrix based on:
• The scale of change
• Style of management
The matrix produced four change strategies:
• Participative evolution
• Forced evolution
• Charismatic transformation
• Dictatorial transformation
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
13
Contingency perspectives on change:
Plant’s model
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
14
Systems perspectives on change
Total systems intervention
• Creativity
• Choice
• Implementation
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
15
Chaos and change
Relatively recent branch of science - chaos and complexity theory
Marion (1999) Mathematically, Chaos happens when equations used to
describe seemingly simple systems just won’t behave as expected.
They will not yield a stable response, or the answers they give jump
wildly when the quantity of an input variable is even lightly perturbed.
These equations are called ‘nonlinear’ because their inputs are not predictably
related to their output.
Any organization is essentially a complex adaptive system (CAS) - forever
perched on the edge of change
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
16
The change agent
• Change generators
• Change implementers
• Change adopters
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
17
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
18
Group and organizational resistance to change
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
19
Innovation as a change strategy
Pascale (1990) suggests that a number of organizational features restrict the
ability to innovate and change:
• The pre-eminence of one function with a restricted perspective
• Learned helplessness
• Conformity as the basis of promotion
• How conflict is resolved
• Effect of privilege and reward
• Lack of empowerment
• Reinforcing folklore
Betz (1987) - three levels of innovative
activity:
• Radical
• Systems
• Incremental
Schermerhorn (1993) - five elements of
innovation process:
• Internal organizational sensitivity
• Idea creation
• Initial experimentation
• Feasibility determination
• Final application
For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e
ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning
20