MHR650 Final: MHR 650 CRIB SHEET

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11 Dec 2015
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Basic Definitions
-Strategic Change – has org’l rather than local impact
-Sustainable Change – has deep impact addresses second order issues
-Developmental Change – is improvement to what is already being done. Focus is
to strengthen or correct rather than to go “outside the box”
-Transitional Change – replaces what exists with something entirely different to
move to a new “State”. Requires dismantling & letting go of old order. Once the
vision & parameters are created, “projects” can be initiated to transition the org.
-Transformational Change – is a radical shift of behaviour, culture & mindset.
The change is so radical that the new order must emerge from the change initiative
rather than be transitioned to.
Bridges Model: Ending Neutral Zone Beginning
(Change begins with an end, after the ending is the Neutral Zone, & the last phase
in the transition is the beginning)
Lewin’s 3 Step Change Model
(1) Unfreezing - The first step in Lewin's change model, in which individuals are
encouraged to discard old behaviours by shaking up the equilibrium state that
maintains the status quo. The org. eliminates rewards for current behaviour (2)
Moving – The second step in Lewin’s model in which new attitudes, values, &
behaviours are substituted for old ones. The org. initiates new options & explains
their rationale (3) Refreezing – The final step in Lewin’s model in which new
attitudes, values, & behaviours are established in the new status quo. Org. culture
& formal reward systems encourage the new behaviours
Environmental Pressures
Fashion Pressures: Mgrs. imitate practices associated with success org.
Mandated Pressures: An org. change through formally or informally mandated
requirements
Geopolitical Pressures: Macroeconomic change (or crises) place pressure on orgs
to change the way they operate
Market Decline Pressures: When current markets begin to decline there is
pressure to find newer, more viable markets
Hyper-Competition Pressures: Highly intensified rate of business – including
shortened product life cycles & rapid responses by competitors – produces pressure
for change at the org’l level
Reputation & Credibility Pressure: Pressure to maintain a good reputation &
high level of credibility has increased
Internal Pressures
Growth Pressures: Existing systems & pressures in an org. may no longer be
applicable when the size of the org. increased
Integration & Collaboration Pressures: Integration & creating economies of
scale can lead to pressure for change in orgs.
Identity Pressures: A common org. identity & the unified commitment of staff in
different areas/departments of an org. can be difficult to manage & may encourage
change
New Broom Pressures: Change at the senior management level – particularly of
CEO – can often be a catalyst for significant changes in an org.
Power & Political Pressures: Power relationships & politicking can change
internal pressures & decision making
Debate: Role of the External Environment
Organizational learning vs. threat-rigidity: Whether external pressures facilitate
or inhibit the process of change
Environment as an objective entity vs. environment as a cognitive
construction: The former treats the environment as an objective entity to which
mgrs. must respond. The latter emphasizes the centrality of mgrs.’ interpretations
of environmental conditions as the key determinant of behavior
Forces for change vs. forces for stability: External forces can vary; they either
promote change or promote stability
Bridging (adapting) vs buffering (shielding): These represent either strategies
that can maintain effectiveness by adapting parts of the org. to changes happening
in the outside environment (bridging) or focusing on efficiency by avoiding change
through shielding parts of it from the effects of the environment (buffering).
Scale of Change
First-order change: Incremental, Maintains & develops the org. E.g. continuous
& smaller changes to the structure of an organisation
Second-order change: Transformational, fundamentally changes the way an org.
functions. E.g. downsizing
Between 1 st
& 2 nd
Order Change
Mid-range changes: Overcomes inertia but is not revolutionary, avoids the
alarming implications of large scale change
Punctuated equilibrium: Long periods of stability followed by short bursts of
change & instability
Robust transformation: Considers environmental conditions as being temporary
& requiring robust responses including the enactment of new capabilities.
Beckhard & Harris Change Template Framing: Bolman &Deal
Change Managers Images of Pressure for Change
Director: Change is a result of strategic pressures & controllable by mgrs.’ ability
to direct the org.’s response
Navigator: Strategic change is in response to internal & external pressures.
Multiple pressures facing mgrs. will need to be taken into account
Caretaker: Mgrs. have little control over the inevitable pressures on the org. Mgrs.
have little choice in the org.’s actions.
Coach: Pressures for change are constant & result in the need to develop & shape
the org’s capabilities to better enhance org’l outcomes.
Interpreter: Pressures for change are internal & external & mgrs. need to
understand & give meaning to these
Nurturer: Pressures for change are large & small & the mgr.’s role is to enhance
the adaptive capacity of the org.
Diagnostic Models: Organizational Performance
-Six-box organizational model: The key focus here is on six variables – purpose,
structure, rewards, helpful mechanisms, relationship & leadership. This model is
useful to maintain awareness of all areas for consideration even though one
variable may be identified as the main area for attention
-7-S framework: The 7-S framework: this focuses on seven key components that
affect org. effectiveness – structure, systems, style, staff, skills, strategy &
superordinate goals. The interconnectedness of these variables is vital to the
success of change
-Star model: An org. is effective when the five components of org. design –
strategy, structure, processes & later capability, reward systems & ppl practices –
are in alignment
-Congruence model: The org. is broken down into four components – task,
individuals, formal org’l arrangements & informal organisation. This is influenced
by the context where the strategy is formulated & the output is then the
performance of the org.
-Burke-Litwin model: This model identifies the transformational – external
environment, mission & strategy, leadership & org’l culture - & transactional
sources of change
-Four frame model: This offers four frames for the mgrs. to conceptualize how the
org. operates. These frames are structural, human resource, political & symbolic
frames
-Diagnosis by image: This technique allows org’l members to use images to
describe the orgs & this can be used as a basis for discussion.
Diagnostic Models: Components
-PESTEL Framework: This analyses the external environment in terms of six
factors – political, economic, social, technological, environmental & legal
-Scenario analysis: Creating stories of possible future scenarios that are considered
to be vital to the future of the org.
-Gap analysis: This is a tool used for reviewing the org.’s position based on where
they are & where they want to get to
-Elements of strategy: These are five elements of strategy that are considered
mutually reinforcing – arenas, vehicles, differentiators, staging & lowest costs
through scale advantage. Any misalignment of these signifies the need for change
-Strategic inventory: This aims to identify the strategic assumptions of mgrs. &
determine their consistency with the business environment. This determines
whether the strategy should be a focal point for change
-Newsflash exercise: This is an exercise that encourages mgrs. to be very specific
& succinct about change & clearer about the intended outcomes
-Cultural web: This provides a way of mapping the org’l culture through seven
elements – paradigm, rituals & routines, stories, symbols, control systems, power
structures & org’l structure
-Structural dilemmas: Six possible structural dilemmas that can be encountered
during change are diagnosed so areas that have been “traded-off” during the
change process can be identified
-The Boundaryless Org.: Success is arguably achieved only if four types of org’l
boundaries are diagnosed & reduced. These are vertical, horizontal, external &
geographical boundaries.
Readiness for Change
-Assessing the org.'s readiness to change can be a mediating variable between
change management strategies & the outcomes of desired strategies. Some ways
of doing this include: Questionnaires, Stakeholder Analysis: This focuses on the
position of stakeholders in the change process & allows the mgr. to be better
informed of how to confront potential issues, Force-Field Analysis: This
identifies factors that are driving forces for change as well as restraining forces.
Change Managers Implications for Managing Change
-Interpreter: Care needs to be taken in assuming that types of org. changes can be
neatly categorized as small, adaptive, & incremental compared to those that are
large & transformational
-Navigator: Multiple types of changes simultaneously should also be considered. In
addition, some changes require other changes nestled under them in order for
another change to proceed
-Nurturer: From chaos theory, we know that small changes at an individual level
may have enlarged unanticipated consequences throughout the org.
-Coach: There are a number of inertial forces that act as a drag on individuals &
orgs in adopting adaptive, first-order change
-Director: Change mgrs. need to remember what might appear at first sight to be a
paradox, that often change is needed in order to remain stable
-Change may mean adding on to, & integrating rather than removing & replacing
current practices
-There is often an implicit assumption that incremental, adaptive changes are less
risky than large, second-order transformational changes
Types of Change & Key Challenges
Change Managers Perspective on Resistance to Change
-Director: Resistance signifies that not everyone is on board with the change
program. Managerial skills can be acquired to overcome this
-Navigator: Resistance is expected & represents different interests within the org.
IT should be overcome but this is not always possible
-Caretaker: Resistance is short-lived & change will occur regardless of attempts to
stop it
-Coach: Resistance is to be expected & mgrs. need to show others that the
resistance does not promote effective teamwork
-Interpreter: Resistance occurs when the change is not interpreted well or
understood. The mgr.’s role is to clarify the meaning of change.
-Nurturer: Resistance is irrelevant to whether the change will occur. Resistance is a
matter of guesswork by the resistor.
Resistance to Change
It can be considered “tridimensional” – made up of three components: (1)
Affective: how a person feels about change (2) Cognitive: what they think about it
(3) Behavioural: how they act or what they do in the face of change The
behavioural response may take active or passive forms.
Active Signs of Resistance: Being critical, finding fault, ridiculing, appealing to
fear, using facts selectively, blamed or accusing, sabotaging, intimidating or
threatening, manipulating, distorting facts, blocking, undermining, starting rumors,
arguing
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