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Chapter 19 & 20 .docx

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University of Calgary
Management Studies
MGST 391
Ahmad Ali Sohrabi

Chapter 19 & 20 : Change Management and Changing Environment Change Types of change:  Changes in environment (Cause)  Changes in organization (Effect)  Changes in products/services  Changes in technology and working conditions  Changes in management and working relations  Changes in organizational structure and size Change is small and gradual whereas Transformation is crucial and significant. Factors forcing change: Changes may occur due to - Threat of new entrants Environmental factors: - Bargaining power of suppliers  SLEPT - Bargaining power of customers  Porter’s 5 competitive forces - Threat of substitutes Changes in Technology: - Rivalry between competitors  Computerization  New products  Better MIS Change in Working conditions: Nature of strategic change:  New offices Incremental  Varied work times Change may be Transformational  Emphasis on health  Govt. regulations Reactive Change in Management: Management may  New style of leadership  Participation in decision making Be Pro-active  Collaboration between management staff & unions Step change Change in Personal policies: Types of Planned change  Change in rules and procedures (e.g. smoking) Changes  Promotion, transfer, training , development Emergent change Change in structure and size:  Due to Takeovers  Delegation of authority  Centralization  Downsizing Model for change:  Determine need/desire for change in a particular area.  Prepare tentative plan (via Brainstorming)  Analyze probable reactions to change.  Make a final decision (Coercive or Adaptive)  Establish time table for change. Speed of implementation will depend on:  Type of change (Coercive, Adaptive or Managed resistance change)  Reaction of people (Acceptance, Indifference, Passive resistance, Active resistance)  Driving and Restraining forces (Force Field Analysis)  Communicate the plan for change  Implement, review and modify change.  Review the change Approaches to change: Resistance to change i) Unfreeze – Move /Shake– Refreeze ii) Adaptive change approach Active resistance passive resistance iii) Coercive change approach iv) Using Change agent v) Integrative VS segmentalist vi) Theory E & Theory O Force Field Analysis: (Lewin) It is an interplay of restraining and driving forces that keeps things in equilibrium. Introducing change: 3 factors to consider to minimize resistance. Pace of change:  Adapt strategy according to time available. Manner of change:  Resistance should be welcomed.  Reasons and results of change should be circulated.  Change must be sold to people concerned.  Individuals must be helped to learn. Scope of change:  Small or Transformation. Change process: (by Lewin/Schein) Unfreeze existing behavior:  Most difficult and neglected stage. 
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