UBO - Lecture 06 - Change in Organisations

Lecture 6 Change in Organisations Understanding Business Organisations
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UnderstandingBusiness
NCC Education Limited V1.0
Understanding Business
Organisations
Lecture 6:
Change in Organisations
Change in Organisations Lecture 6 - 6.2
Scope and Coverage
This topic will cover:
Why change is important in todays organisations
The internal and external context of change
The four common types of change structural
The four common types of change structural,
technological, systems and cultural
The importance of culture in a change project
Learning Outcomes
By the end of this topic, students will be able to:
Understand the context of change
Describe the four common types of change
Explain howthe decisionto initiate a change
Explain how the decision to initiate a change
project is made
Understand why cultural change and organisational
change are bound together
Change is a feature of
organisational life
Pace of change has
accelerated
Motivations to Change
accelerated
External environment is the
main source of
organisational change
Influential players initiate change because of a
performance gap
External or internal events are threatening the ability to
deliver the expected performance
Agreement is secured for organisational change
The Context of Change
Agreement is secured for organisational change
A project is created through which the change is
planned
Success of project impacts upon the performance gap
This in turn feeds back to the outer context of the
organisation
Need to close
performance gap
External context
Model of the Change Process
Establish
change project
Plan changes
to internal
context
Outcomes affect
performance gap
Internal context
Use theories
of change
Diagnose
nature of project
Influence
people to
implement
change
Change projects only occur when someone sees a
threat or an opportunity
They have to get internal support to justify the
change project
Making the Decision for Change
The need for change is subjective what some see
as urgent, others will leave until later
People can affect decisions on change by
managing external information, e.g. magnifying
customer complaints to heighten the case
Structural change
Technological change
Systems change
Types of Change
Systems change
Cultural change
May be necessary to modify structure of an
organisation in response to environmental changes
Recent trend is to flatten the organisation by
removing layers of management
Structural Changes
This development has been facilitated by advances
in IT (see Topic 12)
Structural changes also result from reorganisations
following acquisitions and mergers
Technology has revolutionised many workplaces
Production processes automated by computer-
aided design (CAD) and computer-aided
manufacturing (CAM)
Technological Change
Integration of IT, the Internet and digital telecoms
have transformed business activities
Electronic Funds Transfer at Point of Sale
(EFTPOS) has major implications for retailing
Changes in internal systems follow on from
changes in structure and technology
Examples of such changes include:
Reporting procedures and lines of authority
Systems Change
Control systems (e.g. budgetary control)
Financial reporting systems
Quality systems
Access to information systems
This type of change involves changing people, so it
is the hardest to achieve
Other changes can be forced on an organisation
in a shorter time; changing a personality takes
Cultural Change
much longer
The culture of any group of people is that set of
beliefs, customs, practices and ways of thinking
that they have come to share with each other
through being and working together. It is a set of
assumptions people simplyaccept without question
What is Corporate Culture?
assumptions people simply accept without question
as they interact with each other. At the visible level
the culture of a group of people takes the form of
ritual behaviour, symbols, myths, stories, sounds
and artefacts.
Ralph Stacey (1996)
Values written
statements about mission
or objectives
Beliefs focused issues
Three Layers of Corporate Culture
that people can discuss
Taken-for-granted
assumptions the real
core of an organisations
culture
It can affect the degree of employee motivation
It can affect staff turnover
It can affect the morale and goodwill of employees
It can affect absenteeismand punctuality
Why is Culture Important?
It can affect absenteeism and punctuality
It can have an effect on productivity and efficiency
It can affect the quality of work produced
And... crucially for this Topic, it can affect an
employees willingness to accept change
In the holistic system, any change will affect the
culture and the culture will affect or constrain the
change...Cultural change is intimately bound up
Culture and Organisational
Change
with the process of organisational change
J . Naylor Management second edition
Change is an increasingly important factor in todays
organisations
Concerns over a performance gap are often the
catalyst for change
Both the internal context and the external context can
Summary
Both the internal context and the external context can
be addressed in the change process
There are four main types of change structural,
technological, systems and cultural
Cultural change and organisational change are
intertwined
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 736-76
Lecture 6 Change in Organisations
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Lecture 6 Change in Organisations Understanding Business Organisations

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