BMO6624 Organisation Change

Management
Seminar Outline

Introduction

Assessment

Formation of groups

Why study Organisational Change Management?

Organisational Development (chpt.1&2)

OD Vs OCM- an explanation

Assessments
Assessment*
Assignment 1
Learning and Reflective Journal
Assignment 2
Literature Review
Assignment 3

Group Facilitation and Project

Presentation
Assignment 4
Group Project Report

Weight
15%
35%

10%

40%

Assessments (2)
1. Individual Reflection of four topics (800-1000 words)
2. Literature Review (2000 words)
3. Group Presentation and Activity (In class)
4. Group Report (3000 or so words)

Important note
1. Assignment coversheet signed
2. Submit by Assessment Dropbox on VU Collaborae
3. Turnitin report required as noted in the study guide.
4. Medical Certificate needed to cover late
5. I Mark lost for each date Late if Late by 6 days not marked ie fail

To get us in the mood

http://www.youtube.com/watch?v=yhx0vE9CjRQ&index=2&list=PLc1xwo5clV0_Aoo1su4S_aN-mKkZ0K14
http://www.youtube.com/watch?v=x-9FaJPhFxQ&list=PLc1xwo5clV0_Aoo1su4S_aN-mKkZ0K14
http://www.youtube.com/watch?v=Fv8HjxWKEF0
http://www.youtube.com/watch?v=rxl4a4dEt9Q

Why StudyOrganisational Change Management?

Management guru Tom Peters blunt formula is change or die
Why?
Era where all aspects of Business Is Unusual
Three to five year Strategic Plan is often changed

What are your examples of change and change management

(share with person next to you and present back)

Plan for today

Summarise Last session
1. 7.15 pm Shem McDonald from Melbourne Student Learning will talk
about Literature Reviews
2. 8 to 8.15 Share last change experiences
3. Break Strict 10 to 15
4. 8.30 Seminar for rest of Session _ I will start on time
Chapter 1 and 2

Psychological Contract Reflection 1 (Have a go and email me)

http://trove.nla.gov.au/work/9437423?selectedversion=NBD50858808

Organisations are faced with fierce

Global competition
Market Deregulation

World Politics/Wars and International conflicts/disuptes

Economic shocks
Technology
Social Trends and New Technologies
Nature of the Workforce.

Contd..

 The pace, volume and complexity of managing business and

maintaining the competitive advantage is no longer an easy

task

Some of the changes are big; some are small. Some occur
rapidly; while others occur slowly. Some are threatened, some
are real.

Contd..

 Some planned, others are unplanned and some are

controlled and while others are not.

They occur in all domains:

Education systems, Management information systems;

Business strategies, Product life cycles, Human resource

system, Leadership positions, technology etc

Contd..

 What ever the area of business or type, one question gets

asked over and over again how are we going to implement
these changes?

It is this question that lead to the study of Organisational

Change Management in Business Schools around the world

and it is this question that forms the basis of our lecture
topics.

Contd..

 Change has occurred for decades

However, todays Organisations operate in:
Simultaneous, Unpredictable and turbulent environment and
At a global scale, the forces multiply, competition intensifies,
complex relations with other firms- survival

Contd..

THREE TYPES OF CHANGE

1.

Development Change- Fine tuning

To do better than or To do more of what already exists.

2.

Transitional Change

Old system is replaced by New

changes in services, quality technology as well as workforce

3.

Transformational Change

Most radical form of organizational change.

Reconceptualisation of the organisations mission, vision,
culture, critical success factors, forms and structures and
leadership.

Contd..

THREE PERSPECTIVES ON CHANGE

Developmental change

Old
State

Transition Stage

New
State

Transitional change

Plateau
Reemergence

Chaos

Transformational change
Birth

Death

THREE ELEMETS OF CHANGE

1. Change Strategists- Leaders & Visionaries are the initiators of

change

Concerned with:
-Relationship between Organisations and the Environment
(industry, market & competition)
-Provide a vision to integrate the two and design strategic plan to
implement it.

2. Change Implementors : Agents and Champions

Responsible For:
The micro dynamics of the day by day change effort,
internal organizational structure and coordination of units.

This role is traditionally associated with middle managers

Who manages change in your organisation?

Contd..

3. Change Recipients: Changees

Their actions or reactions crucially determine success or
failure of change.
Their role emerges towards the end of the change process.
Typically, they are not invited to participate in either the
conception or implementation of the change.
While there are more recipients however change effort gets
confined to upper and middle organizational ranks.

Contd..

THE CHALLENGE OF CHANGE

Definition:
Change in its broad sense, is planned or unplanned response to
pressures and forces.

There is no universal agreement on the magnitude, the time frame

and the implications of these forces.

One part of the organization might perceive reasons for change

while other sections may not.

 Different parts of the organisations may drive different forces

of change

One assumption is that there is no margin for error, it has to be

managed perfectly the first time round- Project change
management.

The other assumption is that mistakes can be made and

accepted as part of managing change, the idea is that you can

learn from your mistakes, thus increasing flexibility and long
term success.

Change can be seen as an obstacle or challenge, threats or

opportunities despair or mobilize energy.

WHEN TO CHANGE
How do you know when to change? Organisations can
institute a change when :
Things are going well- fine tuning
Results are mixed- transitional
Full fledged crises transformational
Some argue that change can only be introduced when
there is a genuine crises while others believe in
manufacturing a sense of crises to create an
atmosphere for change.
One thing for certain when to change involves an
exquisite sense of timing : have we started too soon or
too late?

ENABLING CHANGE

How do we enable the change to be effective?

Some key questions before implementation:

Pace:
Time frame in which to plan and design the program. At
what speed should the program unfold? How much room is
there fore trial and error learning? How much time do you
have to respond to the Driving forces- customer needs and
competitive demands?
Scope:
How large or small should be the change? How to carryout
action research?
Depth:
How far can a large scale change go to ensure maximum
impact? how do you deal with resistance ? how much high
risk/reward factors are involved?

Publicity:

How loud, how long and how much can the organization
publicise? Should it be visible via speeches, banners,
news letters, roadshows, to create the hype and
excitement and the expectation is that every body will be
motivated and committed?
The problem with this approach is that it raises
expectations that are high already and leaves itself to
criticism with little room for flexible adjustment.
The counter argument is for a quite , understated
introduction, that controls resistance, allows for mistakes
in learning and moderates expectations.

Supporting Structures:

What mechanisms does the organization have, or put

in place, to further the change effort? Some care and
nurturing will be needed.
Driving Force:
Who drives the change? Who should initiate the
change? What should be the role of the sponsor?

Pace

Scope

Enabling
Change

Publicity

Supporting
Structures

Depth

Driving
force

REACTING TO CHANGE
How to deal with resistance to change which includes issues such
as:

inertia, habit and comfort that surrounds the job;

confusion and the threat of loss of control;

collective decision to maintain status quo and
culture;
effort to block the organization from understanding
the gravity of a problem;

 fear of downsizing, streamlining and restructuringloss of job;

There are limits to the stress that organisations can
absorb. If reacting to change is not dealt properly,
the organization can become saturated and
unwilling or unable to integrate new and deeper
changes.

Activity and Video

http://www.youtube.com/watch?v=Dg8KNE_NVJM

http://www.youtube.com/watch?v=ak4_Woqzh90

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CHAPTER 1

Introduction

LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Describe what are Organisation Development (OD) and
Organisation Transformation (OT), and explain the
similarities and differences
Explain the relevance of OD and its role within organisations
Analyse the evolutionary historical context of OD and have
an understanding of its future
Assess the environment of OT and comment on its
relevance in todays change environment

MANAGING IN A CHANGING
ENVIRONMENT
For the purposes of sustainability, organisations need to
be able to implement both incremental and
transformational change.
(see Kammen, 1999, cited in Waddell, 5e, p.2)

[Managing change] requires organisational and

management skills to compete in a mature market and
develop new products and services.
(Tushman & OReilly, 1996)

32

MANAGING IN A CHANGING
ENVIRONMENT

33

WHAT IS YOUR THEORY OF CHANGE?

Do you think change moves in a straight line from A to
B? Or is it more circular?
How do you react to change? How does your family
react? How did your parents react?
How do you make sense of Figure 1.1? What are the
main elements involved in a process of change?
Is the management of change necessary? Important?
Talk to your classmates and jot down a few ideas

WHAT IS ORGANISATION
DEVELOPMENT?
Organisation development is a system wide application of
behavioural science knowledge to the planned
development and reinforcement of organisational
strategies, structures and processes for improving an
organisations effectiveness.

35

ORGANISATION DEVELOPMENT:
VIEWS FROM THE FIELD

Warner Burke (1982)

Organisation development is a planned process of
change in an organisations culture through the
utilisation of behavioural science technology,
research and theory.
What does this mean to you?

37

Wendell French (1969)

Organisation development refers to a long-range effort
to improve an organisations problem-solving
capabilities and its ability to cope with changes in its
external environment with the help of external or
internal behavioural-scientist consultants, or change
agents, as they are sometimes called.

What does this mean to you?

38

Richard Beckhard (1969)

Organisation development is an effort:
(1) planned, (2) organisation-wide, and (3) managed from the
top, to (4) increase organisation effectiveness and health
through (5) planned interventions in the organisations
processes, using behavioural science knowledge.

Does real change always need to be managed from

the top?

39

Michael Beer (1980)

Organisation development is a system-wide process of
data collection, diagnosis, action planning, intervention
and evaluation aimed at:
1. Enhancing congruence between organisational structure,
process, strategy, people and culture
2. Developing new and creative organisational solutions, and

3. Developing the organisations self-renewing capacity

For Beer, OD occurs through the collaboration of

organisational members working with a change agent
using behavioural science theory, research and
technology.

40

Dexter Dunphy & Doug Stace (1994)

Organisation development is a soft approach that
describes a process of change undertaken in small
incremental steps managed participatively.
Is OD always a soft process? Does it have to be
participative?

41

Warner Burke & David Bradford(2005)

Based on a set of values, largely humanistic, application
of the behavioural sciences, and open systems theory,
organization development is a system-wide process of
planned change aimed toward improving overall
organization effectiveness by way of enhanced congruence
of such key organization dimensions as external
environment, mission, strategy, leadership, culture,
structure, information and regard systems, and work
policies and procedures.
What are humanistic values? Why are values included
here?

42

WHAT MAKES OD UNIQUE?

1. OD applies to an entire system
2. OD is based on behavioural science knowledge and
practice
3. OD is oriented to improve an organisations
effectiveness through processes of adaptive
development
4. OD creates change and also reinforces it
5. OD encompasses strategy, structure and process
changes
6. OD is oriented towards improving organisational
effectiveness
43

THE INTERDEPENDENCY OF CHANGE

PROCESSES

44

WHY STUDY ORGANISATIONAL

DEVELOPMENT?
The knowledge gained from studying organisation
development is playing an increasingly important role in
helping organisations change themselves. There are
three major trends to which organisations need to
understand and respond effectively:
Globalisation is changing markets and environments
Information technology is changing work and knowledge
Managerial innovation is responding to these trends and
accelerating their effect on organisations

45

SHORT HISTORY OF OD:

FIVE DEVELOPMENTS

46

LABORATORY TRAINING
Origin: T-groups
Kurt Lewins research: unstructured group in which
participants learn from their own interactions and
evolving dynamics about such issues as
interpersonal relations, personal growth, leadership
and group dynamics
Now: Team Building
T-group style development expanded into business
and industry

47

ACTION RESEARCH/SURVEY FEEDBACK

Origin
Researchers John Collier, Kurt Lewin and William
Whyte found that research must be closely linked to
action to be useful in managing change

Now
OD practitioners now use action research cycles
and surveys to help gather information about an
issue or problem before a change process starts

48

PARTICIPATIVE MANAGEMENT
Origin
Likert found that participative management was the most effective
way to make change happen. He identified four systems:
1. Exploitative authoritative systems (autocratic; top-down)
2. Benevolent authoritative systems (paternalistic)
3. Consultative systems (workers involved; management
decides)
4. Participative systems (managers and staff involved in all
levels of decision making)

Now
Debates about levels of staff involvement in managing change

49

PRODUCTIVITY AND QWL

Origin
Eric Trist examined the technical and human sides
of organisations and how they interrelate
Aimed at improving productivity AND quality of
workers lives: an early example of win-win

Now
Strongly aligned to TQM developed by Deming and
Duran and pioneered by Toyota, Ericsson and
Sheraton

50

STRATEGIC CHANGE
Origin
Beckhard was one of the first to use strategic
thinking to align both the organisations relationship
to its environment and the fit between its technical,
political and cultural systems

Now
A competitive OD strategy involves the whole
organisation and is multi-levelled: might include
finance and marketing, as well as using team
building, action research and survey feedback

51

THE EVOLUTION OF OD
Expansion of the OD network
Growth in professional societies
Growth in educational programs

New theorists, researchers & practitioners

Gen 1: Argyris, Bennis, Schein, Beckhard & Tannenbaum

Gen 2: Burke, Greiner, Lawler III, Margulies & Raia,

Vaill & Lundberg

Wider network of use of OD

A now-international span of organisations using the OD
approach, both for business and broader organisational
development

52

THE LIMIT OF OD? THE RISE OF

ORGANISATION TRANSFORMATION
Calls for Organisation Transformation (OT) arise when:
-

There is a crisis
OT approaches can respond quickly, often perceived as a
quick fix and observable, which may even receive
significant coverage in the media as a result

Where the environment may be unpredictable and

planning would be difficult

The factors pressing the change are external

OT also calls for a different leadership style than for OD

OT is regarded as more revolutionary and OD and
more evolutionary
53

SUMMARY
As organisations and their surrounding economy become
more complex and uncertain, the scale and intricacy of
organisational change has increased
Organisational change is a fact of life
Organisation Development has become a significant
approach to planning change using behavioural science
This has been shown to enable organisations to become
more effective
Unpredictable environments, external factors and crises
have seen the development of OT as another aspect of
organisation responsiveness to change

54

BMO6624

Organisational
Change Management