Download pptx - Organisational Change

Lalor Secondary College


Organisational ChangeKey Knowledge

•Concept of organisational change•Internal & external pressures as a source of change•Driving & restraining forces for change


• Strategies for effective change management – low risk and high risk practices

• Kotter theory of change management• Process for effective change management• Role of leadership in managing change


The concept of organisational change

What is change?

How employees feel about change.



Pressures for changeSee pages 286-292Pressures on LSOs include;Internal – a) Corporate cultureb) Policiesc) Managementd) Employees


External pressures for changeOperating environmenta) Customersb) Suppliersc) Competitorsd) Creditorse) Trade unions


External pressures for changeMacroa) Economicb) Politicalc) Social & demographicd) Technologicale) Internationalf) Geographicg) Environmental


Lewin – force field analysis• http://www.youtube.com/watch?v=hBycYu

7T5WY&feature=player_detailpage

http://www.youtube.com/watch?v=hBycYu7T5WY&feature=player_detailpage

http://www.youtube.com/watch?v=hBycYu7T5WY&feature=player_detailpage



Driving & restraining forces for change

Force field analysis looks at the forces that are either driving movement towards a change or goal or are blocking (restraining) movement towards a change or goal.


Forces for changeDriving forces • supportive culture• Participative

management style• Communication** See Table 13.2 page

294

Restraining forces• Apathy• Hostility• Poor working

conditions


Kotter’s Change TheoryThere are eight steps to Kotter’s theory (you have to know all of them).

These are;1. Establish a sense of urgency2. Assemble a group of people who will lead

the change3. Create a vision for the organisation


4. Communicate the vision to all within the organisation

5. Empower others to act on the vision.6. Plan to achieve short-term gains and

wins rather than large instant changes.


7. Consolidate all of the changes. ‘Don’t let up’.

8. Institutionalise the new approaches and create the new cultures. Reinforce change through recruitment, promotion & appointment of new change leaders.


Kotter• http://www.youtube.com/watch?v=ijCuvSej

KD0&feature=player_detailpage• http://www.youtube.com/watch?v=W0EGh

BlJK8o&feature=player_detailpage• http://www.youtube.com/watch?v=F9hbX6

bLwd4&feature=player_detailpage

• http://www.youtube.com/watch?v=7ohEBDLPaTE&feature=player_detailpage

http://www.youtube.com/watch?v=ijCuvSejKD0&feature=player_detailpage

http://www.youtube.com/watch?v=ijCuvSejKD0&feature=player_detailpage

http://www.youtube.com/watch?v=W0EGhBlJK8o&feature=player_detailpage

http://www.youtube.com/watch?v=W0EGhBlJK8o&feature=player_detailpage

http://www.youtube.com/watch?v=F9hbX6bLwd4&feature=player_detailpage

http://www.youtube.com/watch?v=F9hbX6bLwd4&feature=player_detailpage

http://www.youtube.com/watch?v=7ohEBDLPaTE&feature=player_detailpage

http://www.youtube.com/watch?v=7ohEBDLPaTE&feature=player_detailpage


‘Elvis Presley/VCE/WII’E (establish the need)P (put together a guiding team)V (vision)C (Communication)E (empower others)W (wins & celebrate)I (I don’t let up)I (institutionalise)


You need to be able to explain and apply Kotter to a scenario (see the examples & activities in class). Exam question worth 10 marksComplete Activity 13.6 page 296


Low-risk and high-risk practices (tactics) for change

Organisations should try to use low-risk practices when bringing about change.

These include;• Two-way communication• Empowerment of employees• Establish work teams• Support for others


High-risk practices include;• Coercion and threats• Manipulation of the situation eg. leave out

certain facts and information.• Use of an autocratic management style• One-way communication & decision

making; employees are told what to do.


•Low-risk and high-risk practices can be linked to Kotter’s change theory.


Tactics for change1. Educate the leaders to ensure that they

understand what the change is.2. Use a ‘systems’ approach to ensure all

aspects are considered.3. Use a team approach4. Make plans but also allow for flexibility.5. Share power with others.


6. Tension between change and implementation.

7. Provide training & staff development8. Innovative practices9. Change only happens through people10. Be prepared for ‘implementation dip’11. Help employees develop an ‘intellectual

understanding’ of the new practices.12. Take the long term view.


The role of leadership in the change process

What skills do leaders and managers need?List at least five different skills (from Unit Three) a leader and manager would need to have.


Leaders are critical in the change process. They need to be able to;Diagnosing – understand the situation & knowing what could be expected in the future.Adapting – change & adapt behaviour & resources.Communicating – communicate & share what has to be done.


Impact of change on LSOsChanges to internal environment, OM &

HRM Structure• Business many expand through mergers,

takeovers and acquisition


• May be horizontal or vertical integration of the organisation

• Unprofitable parts of the business may be sold off

• Some departments may be relocated interstate or overseas

• Flatter organisational structures with fewer levels of management are more likely.

• Non-core business activities may be outsourced


• Business operations may be diversified• Closing some older plantsCorporate culture• Changes to the size of the workforce may

mean existing employees are negative about the future

• Changes in tasks and jobs may impact on culture.


Policy• News methods and structure may mean

that the organisation develops policies and procedures in areas such as recruitment & selection, training, codes and contracts with suppliers.


Management styles, skills and roles• Effective change may mean the use of

consultative and participative styles – use of two way communication, group decision making and decentralised authority.

• Need for skills such as interpersonal/communication skills, decision making, delegation and vision.

• Focus on roles of Planning & Leading through the change process.


• Need for Controlling and Organising – ensure that the change process has been implemented and evaluated.

Changes to the operations management function

• Emphasis on work groups of teams• New plant and equipment• Introduction of programs such as Total

Quality Management (TQM)


• Introduction of new value added programs• Pressure on organisations to use ‘green’

technology to lessen the impact on the environment

• New technology training and equipment• New production methods Changes to the human resource function • Downsizing may lead to a reduction in the

number of staff


• Decentralisation of power, decision making and accountability with more emphasis on employees

• Changing jobs and tasks• Employees may become multiskilled• HR managers will need to recruit staff with

the right skill set and manage ways to provide career paths and retain talented and skilled employees


• New ways of performing tasks and training programs may be introduced

• Many job descriptions and tasks will change as a result of change within the organisation

• Use of modern awards & EBAs and industry awards.

• Legislative changes such as occupational health and safety, equal opportunity and affirmative action


• Appointment of new senior managers, new management styles and new corporate culture

• Legislative changes such as occupational health and safety, equal opportunity and affirmative action

• Appointment of new senior managers, new management styles and new corporate culture


2010 VCAA exam question – how would you answer this?

• Question 7Managing change is a vital part of ensuring the success of a large-scale organisation. Analyse possible driving and restraining forces which might cause change in a large-scale organisation. Illustrate your answer with references to an issue or organisation that you have studied this year. (10 marks = 40 lines)