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Presented by: Owais Qazi2 The nature of organizational change

Organizational Change2 The nature of organizational change

Learning objectives

By the end of this chapter, we will be able to: emphasize the complex nature of organizational change; describe and discuss the multi-dimensional nature of organizational change; analyze change situations in order to choose appropriate methods of managing and implementing change;2 The nature of organizational change

Learning objectives

recognize that there are limitations to the common-sense approach to managing change because of cultural, political and leadership influences; critically evaluate the theoretical perspectives relating to the types of change that organizations may experience.Varieties of change Smooth incremental: evolves slowly in a systematic and predictable way Bumpy incremental: periods of relative tranquility punctuated by acceleration in the pace of change Discontinuous: which is marked by rapid shifts in strategy, structure or culture, or in all three

Varieties of change Organizational convergence and upheavalIncremental: evolution, adaptationBig Bang: revolution, reconstructionConverging change types: fine tuning, incremental adaptationsFrame-breaking change: industry discontinuities, product lifecycle shifts, internal company dynamics Illustration 2.2 Illustration 2.2.docx

Varieties of change Fine tuning to corporate transformationScale Type 1: Fine TuningScale Type 2: Incremental adjustmentScale Type 3: Modular TransformationScale Type 4: Corporate transformationIllustration 2.3 Illustration 2.3.docxPredictable change Lifecycle of organizationPhase 1: Entrepreneurial stagePhase 2: Collective stagePhase 3: Formalization stagePhase 4: Elaboration stagePhase 5: Decline or rebornIllustration 2.5

Table 2.1 cont.Diagnosing change situations Breakpointsthose times when organizations must change their strategies in response to changes in competitors behaviourCompetitive cycle suggests two basic types of breakpoint:Divergent Breakpoints associated with sharply increasing variety in the competitive offerings, resulting in more value for the customer.Convergent Breakpoints associated with sharp improvements in the systems and processes used to deliver the offerings, resulting in lower delivered cost.

Hard and soft problems Hard (difficult) soft (messy) problemsIllustration 2.7 Illustration 2.7.docxCase Example NHS revolution breathes new life into private sector1 To what extent do you consider this change to be frame-breaking change? Justify your view.2 In your opinion, which sectors and elements of the environment do you consider to have had the most influence on the decisions detailed in the case? Justify your conclusions.3 From your knowledge and experience of the NHS and private healthcare providers, analyze the effects that will be felt by doctors, other medical staff and administrators in the NHS and other healthcare providers.4 What effects, if any, over the longer term might these changes have for patients?

Part one case study Orange, a study of change: part 1