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5.4 Organisational Change - Coggle Diagram
5.4
Organisational Change
Changing to survive, surviving to change
organisational change is the norm, rather than the exception
organisations have to adapt in order to survive
McKinsey & Company (2008) produced a report that echoed this point stressing that organisations would only survive if they changed constantly.
The challenge of change
The McKinsey (2008) report highlights that two thirds of all change initiatives fail.
As managers we need to be careful not to get too wrapped up in what Grint (1997, p.35) called “the fetish for change”,and to see beyond the hype.
ould not underestimate how important it is for organisations to be able to adapt, and how difficult it can be to manage organisational change.
When change goes wrong
the consequences of managing change badly can be huge.
Why do organisations need to change?
Triggers for change
Triggers for change have been defined as “disorganizing pressures that make current systems, procedures, rules, organization structures, processes, roles and skills inappropriate and ineffective” (Buchanan and Huczynski, 2017, p.634).
Triggers for change could be internal or external. Also could be proactive or reactive
Hickman and Silva (1984) have suggested that organisations are often unable to recognise the need to change.
Danny Miller (1990) the Icarus Paradox.
Types of change
incremental change
a semi-continual and gradual progression change
it is accepted that if time is available then incremental change is preferable.
radical change
an organisation seeks to transform itself.
carries the risk of destroying an organisation and its culture, but if the organisation faces an existential crisis (or its culture is identified as a major barrier to continued success), it may be the only option.
Bringing about transformational change
Models for managing change
What all the different models of vhange promote is the idea that a systematic and ordered process is required to bring about organisational transformation
David Collins (2005) uses the term ‘N-Step Guides for Change’ to describe these sorts of models, irrespective of the number of stages. His perspective appears quite dismissive of this type of model that presents change as a series of neat steps that can be followed using a simple recipe. He calls them ‘under-socialised models of change’, arguing that they fail to recognise the complexity of social interactions that create organisational cultures.
How does change affect individuals?
Increasingly there is an appreciation of the phenomenon of change fatigue. This is where individuals feel they are constantly experiencing change, and adopt a negative attitude towards it.
it is important to recognise that individuals go through a complex set of emotional responses to change
there is an acceptance of what is called the change curve. Elisabeth Kubler-Ross, published in the 1970s.
Based on her work, Schneider and Goldwasser (1998) produced what is now considered
the classic change curve
The coping cycle (Kubler-Ross,1969) identified five stages people go through when dealing with trauma:
Denial: this is not happening (or it will somehow go away)
Anger: questioning why this is happening
Bargaining: try to negotiate the best outcome
Depression: the reality of the loss or magnitude of change is realised
Acceptance: accepting the situation, look at moving forward
Resistance to change
Models of change (such as Lewin’s) imply that people do not embrace change and will try to maintain the status quo. As a result, they will have to be actively persuaded (perhaps even coerced) to participate in and accept change.
the term ‘readiness for change’ is increasingly being used. (after all, the more resistant someone is, the less ready they are)
Rafferty et al. (2013) suggest that five factors shape an individual’s readiness to accept change:
Discrepancy (believing that change is needed)
Appropriate (change is an appropriate response to the situation)
Efficacy (the person in charge is perceived to be capable of implementing change)
Principal support (the belief that the organisation will provide support)
Valence (evaluation of the personal costs and benefits to be gained from change. If benefits are few or non-existent, there will not be a positive evaluation for change)
reasons for resisting change
Self-interest
A desire to protect status quo and existing situation, as change may alter current status, as the planned organisational change may lead to a loss of power or status
Lack of understanding
Change will not be supported if there is no understanding or support for the reasons behind it,
Different assessment of the situation
Contradictory assessments are made regarding the need for, or the likelihood of potential results, from the change programme.
Low tolerance for change
The uncertainty that inevitably surrounds the introduction of change can create apprehension and anxiety.
Strategies for change
Analysing situational factors
deterine how much resistance to expect, then assess yur power relative to resisters
Determining the optimal speed of change
Proceed slowly if you:
expect intense resistance
have less power than resisters
need more information to design and implement change
Considering methods for managing resistance
communicate reasons for change
consider resisters participation in the change design
If speed is essential use coercion, this is effective but sparks intense resentment
Kotter’s Eight Stage Model of Organisational Transformation