Rising influence of the new

Introducing Management of ChangeMBA Management of Change2016-17 1 2017 MBA Management of Change Dr Sue Richardson Overview and objectives 2 2017 MBA Management of Change Dr Sue Richardson The nature of change Triggers for change Organisational responses to change pressures Summary and conclusionsTriggers for change 3 2017 MBA Management of Change Dr Sue Richardson Financial turmoil especially in the West Political and military conflicts Rising influence of the new significant growtheconomies Alternative models of govt. and trade Shift from agricultureindustrypost-industry Ageing population in the West and in China Posing challenges for organisationsTriggers for change 4 2017 MBA Management of Change Dr Sue Richardson Triggers for change 5 2017 MBA Management of Change Dr Sue Richardson EthicalTriggers for change 6 2017 MBA Management of Change Dr Sue Richardson Change environment 7 2017 MBA Management of Change Dr Sue Richardson (Adapted from Ansoff & McDonnell 1990, see Senior and Swailes 2016:61)Impacts of change 8 2017 MBA Management of Change Dr Sue Richardson TaskPeople TechnologyStructureThe Leavitt model, cited in Paton and McCalman (2000: 31)Recognising a need for change 9 2017 MBA Management of Change Dr Sue Richardson Aspects of our business environment changeall the time, however not all changes aresignificant for our business or require adramatic response Some changes will require importantmanagement interventions The trick is recognising a need to change andknowing which changes require what kind ofresponseRecognising a need for change 10 2017 MBA Management of Change Dr Sue Richardson Avoiding complacency Successful organisations are often in a strongposition to effect organisational change Why might this be the case? Money and other resources Confidence Good will of staff Time Others ideas?Recognising a need for change 11 2017 MBA Management of Change Dr Sue Richardson Avoiding complacency But success can breed complacency and a blindnessto the need for change The Icarus Paradox may offer helpful insights The very things that create success can lead to ourdownfall Businesses over-focus on their core and lose vitaldiversity of views; creates a monolithic culture,(Miller 1992: 24) Complacency and too much of a good thingRecognising a need for change 12 2017 MBA Management of Change Dr Sue Richardson Avoiding complacency Monitoring effectiveness and performance Consider what youre measuring, whose interestsdoes it reflect, where are you measuring (level), howare you measuring What do the measures / outputs tell us? Alignment beware that what gets measured getsdone A balanced approach to performance measurement?(Kaplan and Norton 1996)Responses to pressures 13 2017 MBA Management of Change Dr Sue Richardson Organisations may not experience thesepressures in the same way or at the sametimes Some organisations will adapt to theirenvironments gradually Others will face periods of relative stabilitydisrupted by periods of major changeResponses to pressures 14 2017 MBA Management of Change Dr Sue Richardson Gradualism Change occurs gradually over time Changes made through a series ofincremental adjustments rather than radicaloverhauls Incremental changes may, over time, lead tosignificant shifts in how organisations operateResponses to pressures 15 2017 MBA Management of Change Dr Sue Richardson Punctuated equilibrium Periods of relative stability are broken by periodsof significant change Stability is maintained by deep structures, whichconstrain changes within certain boundaries Inertia leads to unsustainable misalignmentbetween organisations and their environments Requires major, deep changeResponses to pressures 16 2017 MBA Management of Change Dr Sue Richardson Punctuated equilibrium (2) Changes affect the nature of the organisation Alter its deep structuresTypes of change 17 2017 MBA Management of Change Dr Sue Richardson Incremental (Small) steps in a process of changes, builds onprevious changes like continuous improvement Existing paradigm Transformational A break with the past Significant shift in how an organisation operates New paradigmTypes of change 18 2017 MBA Management of Change Dr Sue Richardson Tuning Re-orientationAdaptation Re-creation Incremental TransformationalReactive Proactive(Nadler and Tushman 1995)Summary and conclusions 19 2017 MBA Management of Change Dr Sue Richardson Pressures to change create complexenvironments for organisations How organisations experience thesepressures will vary, as will their responses When discussing organisational changes weneed to look at whats driving it as well ashow organisations are responding Consideration of how organisations respondis a key focus of this courseReferences 20 2016 MBA Management of Change Dr Sue Richardson Ansoff, H. I. and McDonnell, E. (1990) Implanting Strategic Management, 2nd edition.Prentice Hall, New YorkBrinkley, I. (2010) Knowledge Economy Strategy 2020: The Work Foundation submissionto the Comprehensive Spending Review. London, The Work Foundation.Kaplan, R.S. and and Norton, D.P. (1996) The Balanced Scorecard. Boston: HarvardBusiness School Press.Nadler, D.A. and Tushman, M.L. (1995) Types of organizational change: Fromincremental improvement to discontinuous transformation. In D.A. Nadler, R.B. Shawand A.E. Walton (Editors) Discontinuous Change: Leading OrganizationalTransformation. San Fransisco, CA: Jossey-Boss.Miller, D. (1992) The Icarus paradox: How exceptional companies bring about their owndownfall, Business Horizons, 35 (1), pp.2435.Paton R.A. & McCalman J. (2000) Change Management a Guide to EffectiveImplementation (2nd Edition). London: Sage.Senior B. & Swailes, S. (2016) Organisational Change (5th Edition). Harlow: FinancialTimes/Prentice Hall.

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