organjsatjonal change and Development

study Guide

c0ntents
Topic 1 Mapping the terrain of organisational change and development …………. 5
Before you get started …………………………………………… ………………………………………………………….. 5
what is organisational change? ……………………………………………………………………………………………. 5
what is organisational transformation? ………………………………………………………………………………… 6
what is organisation development? ……………………………………………………………………………………… 7
References …………………………………………… ………………………………………………………………………… ll
Topic 2 The nature of change …………………………………………………………………………………………….. 13
what prompts organisations to change? ………………………………………………………………………………… l3
A word about discontinuous change ……………………………………………………………………………………. l5
References …………………………………………… ………………………………………………………………………….. l9
Topic 3 Models of organisational change …………………………………………………………………………….. 21
Topic 4 Recognising and diagnosing the need for change ……………………………………………………… 27
Topic 5 Managing personal transitions ………………………………………………………………………………….31
Resistance …………………………………………… …………………………………………………………………………..36
Topic 6 Politics, power and leadership …………………………………………………………………………………..39
Politics and power …………………………………………… …………………………………………………………………39
Leadership …………………………………………… ……………………………………………………………………………4o
Ethics and the change leader …………………………………………………………………………………………………45
References …………………………………………… ……………………………………………………………………………46
Topic 7 communicating change and motivating others ……………………………………………………………..47
communication and resistance to change ……………………………………………………………………………….. 47
Topic 8 The learning connection ……………………………………………………………………………………… ……51
organisational learning …………………………………………………………………………………………………………. 5l
Individual learning ……………………………………………. ……………………………………………………………….. 57
Topic 9 strategies for change ………………………………………………………………………………………………….59
Role of vision in organisation change …………………………………………………………………………………….. 59
Topic 1o lnterventions ……………………………………………………………………………………. …………………….61
Intervention types …………………………………………… ………………………………………………………………….. 6l
Topic 11 Evaluating and sustaining change ……………………………………………………………………………..65
Evaluation …………………………………………… …………………………………………………………………………….. 65
sustaining change …………………………………………… …………………………………………………………………… 66

Topic 1 Mapping the terrain 0f 0rganisati0nal change and devel0pment .
organisational transformation (oT)
. explain six change approaches that include organisational development (oD)
. appreciate the parent disciplines of each approach.
Materials required
Textb00k
Introduction and overview, chapter 3, cPatterns of change’ and chapter 4, cRecognising the Need or opportunity for change’.
Readings
l.l
HRD and oD’ ) Human Resource Management
l.2 cacioppe, R & Edwards, M 2oo5, cseeking the holy grail of organisational development’, Leadership and organization Development Journal
sl.3 Buchanan, D & Dawson, PMB 2oo7, cDiscourse and audience: organizational change as multi-story process, Journal of Management studies
Bef0re y0u get started
Take some time to quickly read the introduction and overview as it will give you a place to commence your understanding of the component parts of such enquiry as well as an understanding of the text layout. what is 0rganisati0nal change?
that alters the status quo or new ways of organising and working.
Most theorists do seem to agree that organisational change encompasses the individual, the group and the organisation, with some also envisaging the inter-organisational (i.e. networked organisations). Most theorists agree that organisational change can involve:
. techn0structural interventi0ns such as restructuring of the organisation, downsizing, work design and degrees of employee involvement
. strategic interventi0ns such as environmental change, mergers or acquisitions, networks and alliances
. human res0urce management interventi0ns such as performance management, rewards, career planning and human resource development.
organisational change management is broadly informed by the parent social science disciplines of economics, strategy, psychology, sociology, management and organisational behaviour.
Palmer et al. (2oo8) suggest that there are six methods of implementing change:
. organisation development
. appreciative enquiry
. sense-making approaches
. change management
. contingency approaches
. processual approaches.
what is 0rganisati0nal transf0rmati0n?
Given the discontinuous nature of change, discussed in the next topic, the concept and practice of organisation transformation (oT) has entered the oD/change literature. oT is aimed at changing the basic culture of an organisation aligning the culture with the organisation’s strategies, design elements and external environment. organisational transformation requires radical changes in how members of the organisation perceive, think and act.
environmental and external discontinuities such as changes in legal, political economic or technological conditions, product life cycles, company size or strategy or executive turnover, and has several properties namely:
.
tuning or incremental change and involve changes to values, power and expertise as well as structure, . change involves a new organising paradigm _ this may involve a change from a ccommand’ to a at the level where the decision is implemented, matrix structures and teamwork
. change is driven by senior management and line managers _ these managers envision the change through developing the strategic direction, energise the organisation and enable the change to occur. In some organisations cummings and worley (2oo5) suggest that externally recruited executives are three times more likely to initiate transformational change than existing executives
. continuous learning and change _ innovation and learning are the trademarks of transformational change. You will be familiar with the terms learning organisation and organisational learning, which will be discussed in Topic 7.
Auth0r’s 0pini0n
organisational learning or restructuring can occur without the involvement of transformational change. It leader has been challenged by literature on shared leadership since to invest the visioning and responsibility for implementation of transformational change to one person is an almost inhuman task in large, complex

Topjc 1 Mappjnq the terrajn of orqanjsatjonal chanqe and development 7 advent of a new cEo can herald yet another new direction, resulting in change fatigue and a questioning of any real progress (see Fashion Pressures in the next topic).
whatever we call it, change is with us at the personal, group and organisational levels and is well worth analysing with all our critical faculties at work.
what is 0rganisati0n devel0pment?
while you will encounter the six change interventions, of which oD is one, in a later topic it is worthwhile considering that nature of oD here and the debate between some oD and oc practitioners.
oD is an incremental, business process improvement method that has been around for quite some time. system wide application and transfer of behavioural science knowledge to the planned development, improvement, and reinforcement of the strategies, structures and processes that lead to organisational following:
organization’s processes using behavioural science knowledge
(Beckhard l969) oD is a system wide process of data collection, diagnosis, action, planning, intervention and evaluation aimed at (l) enhancing congruence among organizational structure, process, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organizations self renewing capacity. It occurs through the collaboration of organizational members working with a change agent using behavioural science theory, research and technology.
(Beer l98o) attesting to oD’s place in history.
l. oD applies to changes in the strategy, structures and/or processes of an entire system such as an 2. oD is based on the application and transfer of behavioural science knowledge including concepts around leadership, groups and work design as well as strategy, organisational structure and design, and international perspectives.
cumming and worley (2oo5) also suggest that this factor distinguishes oD from change management and organisation change, which they claim are more about management consulting, change management neglects the personal and social aspects of a system. Please keep this assertion in mind as you continue with this topic.
3. oD is concerned with managing planned change as an adaptive process for planning and implementing change rather than a blueprint for how things should be done.
4. oD involves the creation and reinforcement of change and has a longer-term goal of stabilising and institutionalising new activities within an organisation.
5.
problems.
behavioural science and its major concern is the transfer of knowledge and skill so that the system is
a more humanistic perspective. More recent concepts such as the learning organisation could be seen as In contrast, organisational change and change management are seen by cummings and worley (2oo5) as focussing more narrowly on cost, quality and schedule. All oD involves some type of change management but change management may not involve oD. organisational change has a broader application and can include structural, technical and managerial changes.
As you will see the text for this unit (Hayes 2ol4) appears to agree with this overall perspective, citing oD as It is interesting to note that a number of contemporary texts such as those cited in the recommended reading list for this unit focus more on organisational change management than oD. However contemporary oD and organisational change management texts follow very similar structures, examining the diagnosis of change, models, strategies, interventions and evaluation.
Training Laboratories in the usA, which developed sensitivity and leadership training for groups and studied group dynamics. while T-groups have declined as an oD intervention, their techniques are still used in team-building activities. Many of you may have experienced such activities including the widely used MBTI, for example.
At the same time Kurt Lewin commenced using action research and survey feedback to research behaviour in organisations. Lewin’s (l952) oD model involved:
. unfreezing , in which present forces that are compelling individuals to act in a certain way are weakened so that change can occur
. m0ving
benchmarking from another organisation
. refreezing
collection, data feedback, action planning, implementation and follow up _ data collection to map, measure Likert conceptualised organisations as having four types of management systems:
. exploitative authoritative systems _ autocratic, top down approach/leadership, employee motivation based on punishment and reward, downwards communication, decision making at the top . benevolent authoritative systems _ similar to system l, but more paternalistic, employees allowed a little more communication/interaction but within boundaries set by management
. consultative systems _ increased employee interaction and communication, employees consulted but . participative group systems _ designed around group methods of decision-making and supervision, high degree of member involvement and participation. Two way and lateral communication, work groups set goals, make decisions and improve methods resulting in high levels of quality, productivity and member satisfaction.
Blake and Mouton’s Managerial Grid organisation Development (l98l) was developed around research on l98 organisations in the usA, Britain and Japan and they found that the two greatest impediments interventions around this grid based on a one week seminar when individuals assessed their leadership because it is somewhat inward looking to the organisational groupings and does not acknowledge the however are still in use today.

Topjc 1 Mappjnq the terrajn of orqanjsatjonal chanqe and development 9 Productivity and Quality of work Life (QwL) was another oD approach that originated in Europe in the l95os based on the work of the Tavistock Institute in London and research in countries such as Norway and high levels of worker autonomy, task variety and feedback led to increased work satisfaction and productivity _ good for the individual and the organisation. some QwL interventions focussed on the individual while others focussed on job design and enrichment, self managed teams and labour-management committees. It fell out of favour somewhat in the l97os but was revived when Japanese productivity and management methods came to be seen as giving that country’s production a competitive advantage. Hence workplace democracy, reward systems, management styles and the physical work environment were also included in this approach. Today QwL is seen mostly as employee involvement and the emphasis in some organisations on how employees can contribute to making the organisation more productive and competitive.
The great debate – 0D vs 0c
oc proponents (see cummings and worley 2oo5; Hughes 2oo6; and Palmer et al. 2oo8).
As can be seen from the above description of oD and its genesis it appears to be quite benign. However, more recent critiques of oD highlight the disconnect between the humanistic rhetoric of oD and the ethics of Hughes (2oo6) also reports on a study undertaken by wirtenberg et al. in 2oo4 with 6,ooo members of the organisation Development Network. Members saw the strengths of oD as systematic orientation, change management, teamwork leadership development and values. weaknesses included lack of distinctiveness and more to do with the practitioners themselves. oD has undergone some soul searching in recent years. previ0us learning and behaviour, while transformation focuses more on the desired future
isolate lo factors in the transformational exercise they undertook with the chicago Tribune newspaper: . overview of management
. interpersonal skills
. leadership
. team building and team-oriented leadership
. situational leadership
. problem solving
. time management and delegation
. performance management system
. coaching
. summary and integration.
Action research, mentioned above, is another tool of oD. simply put this method is action or problem- centred and is a collaborative process which involves the clients in the research steps of:
. diagnosing
. action planning
. action taking
. evaluating
. specifying learning
. taking further action.
clearly those of the psychological/psychotherapeutic tool, in which an almost medical model of diagnosis and treatment exists.
Palmer et al. (2oo8) suggest that change management models are supplanting oD, however oD practices oD in three ways:
. change management has a broader scope than oD as it examines not only human performance and development but also issues such as technology, operations strategy and the human processual interactions with these elements.
.
includes skills relating to strategy and organisational practices.
. change management is based on the premise that through structural changes new behaviours emerge rather than the oD premise that changing individual attitudes and ideas comes before structural change.
Auth0r 0pini0n
Looking at the two approaches from a fairly simplistic angle it could be said that oD with its roots in behavioural sciences is about changing people through coaching and facilitation and then changing the organisation, whereas change management approaches appear to be more about changing organisations in response to external or internal drivers and then changing the people to be in synergy with these changes. I would suggest that the organisational change many of us have experienced in recent years may have had individuals supporting them in adapting to the change.
As organisations become more technologically complex and more networked across the globe in a context that is more politically, socially and economically complex it seems that multiple change approaches may need to be called on depending on circumstances. open systems theory (allowing resources such as material or information to enter or leave the system, sucking in resources from outside or giving out more than they take in ( http:yywww.calresco.orgyglossary.htm#o) and complexity theory (the study of how critically interacting components self-organise to form potentially evolving structures exhibiting a hierarchy of emergent system properties ( http:yywww.calresco.orgyglossary.htm#c) help understand these complex environments. cPure’ oD, which was developed before much of this more recent theorising, may thus be r Textbook
r Readings 1.1 and 1.2
Access the Ruona and Gibson Reading l.l to gain an appreciation of how oD (and I would also argue organisational change management) are becoming much more aligned to HRM and HRD. It is appropriate now to approach cacioppe and Edwards Reading l.2 that integrates a number of oD approaches.
It is important to note that some change theorists have moved the change debate along to contextual matters such as increasing environmental concerns, international co-operation between governments, international trade and social justice agreements, increased questioning of the neo-liberal economic model and the post-modern view of consumerism and a concern for a new social contract with their stakeholders, focus on human sustainability, cultural diversity,

Topjc 1 Mappjnq the terrajn of orqanjsatjonal chanqe and development 11 values based action, ecological sustainability with proactive leadership and strategy built into advantage and discuss both the incremental and transformational paths. You will encounter some of their thinking later in this unit.
If you would like to read an alternative and more critical review of change management and organisational development, Reading sl.3 explains that there is always more than one view of point of including this reading is to signal that although the cstandard’ management thinking about oc and oD has been presented in this topic, there are other views.

Activity 1.1
How applicable is Lewin’s three-phrase organisational change model for contemporary organisations?
Activity 1.2
You have just been appointed as HRM Director to an inadequately performing Australian is a technological follower rather than a leader. Drawing from the concepts of organisational development and organisational transformation would you adopt oD or oT? why?
References
perspective’, Australasian Journal of Environmental Management
Blake, R.R & Mouton, Js, l98l cManagement by Gridr principles or situationalism: which?’ Group & organization Management
Journal of Management studies
cummings, T & worley, c, 2oo5, organization development and change
ohio.
Dunphy, D l996, corganizational change in corporate settings’, Human Relations
Frame, R.M, Nielsen, wR & Pate, LE l989, ccreating excellence out of crisis: organizational transformation at the chicago Tribune’,
Greiner, LE & cummings, TG 2oo4, cwanted oD more alive than dead!’
science
Hughes, M 2oo6, change management, chartered Institute of Personnel & Development.
Palmer, I, Dunford, R & Akin, G 2oo9, Managing organizational change: A multiple perspectives approach , McGraw-Hill Irwin New York.
Applied Behavioral science

Topic 2 The nature 0f change
. analyse the external and internal factors that contribute to organisational change
. explain discontinuous change
. discuss diversity and sustainability.
Please read the news and business sections of a national paper in your country of residence with an eye to absorbing articles on corporate/organisational change.
Materials required
Reading
2.l Journal of organizational change Management
what pr0mpts 0rganisati0ns t0 change?
Palmer et al. (2oo8) discuss environmental and organisational pressures for change.
. fashion pressures _ a company may copy the successful changes in another organisation in the mimetic isomorphism
the result of the adoption management fashions without critical analysis of their applicability to the organisation and its stage of development. In recent decades total quality management and corporate culture of the l98os have given way to re-engineering, horizontal corporations and agile strategies of the l99os. You may like to think about the management fashions of the early part of the 2oth century . mandated pressures _ compliance with environmental, occupation health and safety and anti- discrimination may be a pressure for an organisation to change. Palmer et al. (2oo8) cite the case in the usA where chevron Texaco paid out us$l76 million in a racial discrimination lawsuit brought diversity management led to great organisational change
. geopolitical pressures _ these may be the result of immediate crises such as september ll, 2ool and sARs where there was downsizing of organisations associated with the travel industry. Longer-term geopolitical changes such as the political and economic expansion of the European union have caused some multinational corporations to revise their operations into independent, country based . market decline pressures _ declining markets put organisations under a great deal of pressure to change and innovate. changes in the telecommunications industry attest to this
. hypercompetition pressures _ again the computer, telecommunications and automotive industries are

with a product or service all illustrate organisational responses to change pressure
. reputation and credibility pressures _ following scandals in several countries over corporate governance issues and corruption (for example Enron in the usA and HIH in Australia) many organisations have reviewed their board structures and practices to ensure the corporate governance in organisations.
a Activity 2.1
what are some of the major factors forcing organisations to make regular changes to their structure and management operating practices ?
environment pressures might have forced this change, and in what way?
.
. integration and collaboration pressures _ mergers and acquisitions as well as the need to create change
.
each other in the marketplace. For instance, a company with a number of hotel chains may need human resource practices and the way business units are set up
. new broom pressures _ new cEos tend to wish to make their mark and do so in product practices
. power and political pressures _ power struggles between the cEo and chair or members of the result in pressures to change personnel, structures and business processes.
In addition there are both forces for change and forces for stability/inertia within organisations. . the adaptability of the organisation to its environment _ cthe ball game’s changed so we need to as well’
. the containment of costs _ cthe way we’ve been doing business is unsustainable’
. less hierarchy but greater control through performance targets _ cdevolve responsibility to those close to the customer’ (empowerment, self-managed teams)
.
Forces for stability/inertia include:
. institutionalism of current practices though power structures and past successes _ cwhen it’s broke . sustained advantage _ cwe’ve always been number one’
. organisational social capital where the trust among workers becomes an organisational asset _ cour people are our best asset’
. need for predictability _ cwe’ve always done it this way and it works’.
we could also add to the above list, structural inertia and people’s ccomfort zones’.

Topjc 2 The nature of chanqe 15 A w0rd ab0ut disc0ntinu0us change
To say that we are living in a period of discontinuous change is to state the obvious, however, any discussion of change within organisations must acknowledge the wider societal changes which interact with and sometimes precipitate organisational change.
a Activity 2.2
Before continuing to read this study Guide consider the technological, societal, technological, You may have considered such macro-changes as the increasing number of women in the workforce and the part-time nature of much work today. You may have considered unemployment and especially the concerns about youth employment in many countries as well as concerns for ageing workforces and skills shortages. You may have considered the changing relationship 2os!) and between people and the institutions such as the church or government. You may have considered the acknowledgement of diversity yet the seeming resurgence of racial intolerance. You may have considered changes in work practices due to technology and the disappearance of certain jobs as well as the emergence of others. or you may have considered the Asian tiger economies and the emergence of china as an economic powerhouse whose needs in minerals and primary products have boosted the economies of other countries including Australia. You may have considered globalisation pressures and the rampant consumerism of many societies. All of these factors are illustrative of the nature and pace of change.
At the micro-level you may have considered changes to your own job design and work processes, a merger or acquisition resulting in changes in culture and business processes. You may have In relation to the workforce, Handy (l995) has suggested that the number of people in full-time jobs in the western world would be less than half the adults of working age. Handy (l995) had built on Atkinson’s of the casual or contract workers who can be bought in if needed then discarded. Another leaf comprises what he calls the cportfolio people’ who build up a portfolio of skills and then gain other work and move from job to job. In the Australian context, Limerick and cunnington (l993) have referred to these type of jobs that we do ourselves that were once undertaken by service workers _ think automatic tellers, self-serve petrol stations, Internet banking and shopping.
the average supermarket stocked 5,ooo lines, of which 3,ooo were food. Now the average supermarket stocks well over l9,ooo lines of which lo,ooo are food. consumerism may be said to be the new entertainment of the 2lst century and is seen as graphically in shanghai and Hong Kong as in New York or sydney. instigated by management in response to future threats that may have the potential to undermine viability. Many organisations now engage in cfuturing’ and adjust their strategies accordingly. hierarchies or delayering as it is sometimes called, has resulted from the pressures of increased competition,

structuring into the classical organisational pyramid. He also claims that specialisation of tasks and skills Flattened hierarchies, Mcconnell claims, led to increased communication and decision-making devolved downsizing, rightsizing, reorganising or re-engineering was a painful process. Middle managers, those redundancies or early retirements.
these changing world market conditions has largely been through micro economic reform, the restructure of organisations and the workforce. During a period of unprecedented turbulence in the l99os, Australia restructured many of its enterprises and more recently we have seen the emergence of cnew’ organisational Limerick and cunnington (l993) also provide two useful models of Australian organisations that explain changes taking place in organisational structures due to deregulation, opening the Australian economy, globalisation and the rising economic importance of Asia, competition pressures, growth in a knowledge Figures 2.l and 2.2.
Figure 2.1 The conventional model of organisational choice
managed in mechanistic ways.
bureaucratic, insular, rule bound, hierarchical, male dominated and ethnocentric. In their quest for what was done.

Topjc 2 The nature of chanqe 17 As things began to change, organisations tried to remain competitive by becoming more responsive to Limerick and cunnington go on to argue that we have now entered a period of discontinuous change _ a period when changes are being changed. In an environment of turbulence, organisations need to respond to emerged that is based on:
. loosely coupled systems _ small not tightly connected independent business units
. strategic alliances _ subcontractors/outsourcers
. strategic networks _ network organisations.
Figure 2.l shows the form of cnew’ organisations in periods of discontinuous change and their relationship to models of the past decades.
Figure 2.2 organisational choice: towards networks and strategic alliances
focused on forming a web of alliances both within the organisation and beyond. It encourages the small organisation inside the large one, the autonomous unit that collaborates with other sections working across business units on particular projects. In addition to the removal of internal barriers that prevent or discourage collaboration, new organisations collaborate with organisations outside their walls. strategic alliances have now become a popular feature of the new organisation at a regional, industry or . focusing on developing the units’ own distinctive competencies
. sharing expertise, competencies and best practice
.
other units
.
services
. market synergies, in the form of new markets, shared distribution channels, promotion activities and the like.

r Reading 2.1
discontinuous change. Is change inevitable? Much of the literature on organisations would assert that this is the case, however the reading argues that there are also powerful opposing forces for inertia in organisations, particularly if you take the long view.
Auth0r 0pini0n – a w0rd ab0ut diversity
Dunphy et al. (2oo3) highlight diversity as one of the important factors in sustainable organisations. one of the main changes in western workforces is that they are becoming more diverse regarding gender, sexual Four recurring issues that face contemporary organisations are:
. keeping and gaining market share
. cost savings
. increased productivity
. better quality of management.
As markets become increasinly diverse and competition for market share escalates, managers who diversity amongst an organisation’s decision makers is the best way to ensure that the organisation has the capacity to capture diverse markets and provide adequate client service.
An organisation’s ability to represent its shareholders and clients is a major issue in market place competitiveness. A manager who is of the same sex or ethnic background as the customer may have greater credibility because of the implied shared experience, and consequently greater understanding, empathy and honesty. shared experiences include speaking another person’s language, rearing children or simply having terms of preparing people for senior management roles as any conventionally recognised work experience. Many organisations, both public and private sector, now recognise that their ethics and values are becoming as important as their products and service. Increasingly, corporate attitudes to the environment, the local community or the workforce, are becoming critical aspects of an organisation’s public image, and therefore its future competitiveness. Having a reputation as a fair and just employer, that actively recruits, trains and promotes a diverse group of people, has enhanced the public image of companies such as Argyle Diamonds, Besides contributing to a positive public image, these companies also build workforce reputations that attract employment of women managers, are considered to be innovative and dynamic in their approach to other areas of the organisation.
Increasingly, evidence is forthcoming that promoting diversity in management will ultimately result in cost savings. costs associated with recruiting, training, relocating and replacing employees, along with remuneration, are a major expense for most organisations, and usually represent at least 5o per cent to 7o per cent of their budgets. Because organisations with reputations for advancing non-traditional managers may be sought out by non-traditional recruits, costs associated with searching for job candidates are reduced. aware of incentives that will both attract high potential managers and retain their services over the longer working population ages.

Topjc 2 The nature of chanqe 19 Many organisations are also acknowledging that implementing strategies, which recognise and part-time and out-sourcing employment options, working from home and work-based child care can ensure such issues are implicated in the types of organisational change you will encounter in the next topic. References
crisis in organizations’, Journal of organizational change Management)
Handy, c l995, , Random House, New York.
Limerick, D, cunnington, B & crowther, F l993, Managing the new organisation: A blueprint for networks and strategic alliances, Business and Professional Publishing, sydney.
Palmer, I, Dunford, R & Akin, G 2oo9, Managing organizational change: A multiple perspectives approach , McGraw-Hill Irwin New York.

Topic 3 M0dels 0f 0rganisati0nal change . analyse change in the light of a range of theoretical models
.
Materials required
Textb00k
chapter l cProcess Models of change, and chapter 2 cLeading change: A Process Perspective’. Readings
s3.l Abrahamson, E 2ooo, cchange without pain’, Harvard Business Review
3.2 Morgan, G l997, Images of organization
3.3 Karp, T & TI Helg? 2oo9, cReality revisited: leading people in chaotic change’, Journal of Management Development)
change models it is useful to step back and examine how organisations grow.
l97os change in organisations in the usA was more likely to be incremental and infrequent but that has all changed. In Australia and some other countries this situation may have continued well into the l98os. local routines and the institution of small-scale change due to individual initiatives.
. Type l occurs when an organisation moves form an entrepreneurial to a professional management structure (for instance the transformation of Apple computers from an entrepreneurial company under its founder to a much larger professional company under a new cEo).
. Type 2 transformation involves revitalising an already established company. In the l99os compaq computers, in the face of changing customer needs, downsized, changed its operational systems, and lowered its production coast and price points.
. Type 3 transformational change involves a visionary change in the fundamental business of the beans to a worldwide chain of cafes.
changing the organisation’s identity while building on its still relevant strengths.

Palmer et al. (2oo8) cite a study of management texts that found eight common occurrences in organisational change:
. delayering
. networks/alliances
. outsourcing
. disaggregation (breaking the organisation into smaller business units)
. empowerment (mechanisms to give employees the authority and resources to take action) .
.
. reduction of internal and external boundaries (to encourage open system thinking and communication).
As evidenced in Limerick and cunnington (l993), the pattern of incremental change so well managed by cclassical’ organisation development (oD) interventions in the l97os and early l98os has changed. It is now one of discontinuous change thus making oD as a sole intervention less applicable.
Limerick and cunnington (l993) presented the model of transformative change as cthe’ blueprint for the .
. not all organisations entered the period of discontinuous change with the same need for change/ .
successful leadership.
Dunphy and stace (l99l) proposed a situational model of organisational change, which accommodates the above issues and allows for an organisation to move from one type of change to another depending on outside forces and internal needs.
l. of the match between the organisation’s strategy, structure, people and processes. individual and group commitment to the existing company mission
2. incremental adjustment
3. m0dular transf0rmati0n in which radical change is focused on one or more departments or divisions within the organisation. For example major restructuring of a department, or the introduction of divisions
4. c0rp0rate transf0rmati0n in which change is corporation wide and is a radical departure from current business strategy, structure, work processes. For instance, reformed organisational mission . c0llab0rative _ participation by employees in important decisions about the organisation’s future and about the change strategies
. c0nsultative _ consultation with employees about ways to bring about organisational change, not about direction setting
. Directive _ managerial authority used to set direction and determine change strategies . c0ercive _ managers or key executives impose or force change on key groups within the organisation. organisation (62 per cent) had engaged in the last three years in modular transformation, while 32 per cent had engaged in incremental adjustment, 8 per cent in corporate transformation and none had engaged in

Topjc 3 Models of orqanjsatjonal chanqe 23 which appears below:
Figure 3.1 Four change strategies
Dunphy and stace (l99l) concluded that:
.
. corporate change transformation is the most common change strategy used when an organisation .
modular transformation.
lncremental change strategies Transformative change strategies collaborative/
consultative models
1. Participative evolution 2. charismatic change strategies needs minor adjustment, or is out
interest groups factor change
is little time for extensive participation but there is support for radical change within the organisation
Directive/coercive
models
3. Forced evaluation 4. Dictatorial transformation
needs minor adjustment, or is out
interest groups oppose change
is no time for extensive participation and no support within the organisation for radical change is vital to organisational Figure 3.2 A typology of change strategies and conditions for their use

Dunphy and stace (l993) have also theorised that organisational change takes place on two levels: l. corporate level _ directive or coercive from an individual or executive group at the top in setting direction, goals and strategies
2. business unit level _ consultative at lower levels in the organisation between managers and employees in implementing goals and strategies.
More recently again, Dunphy et al. (2oo3) have analysed both incremental and transformational change, arguing that some organisations that are in steady state with few external pressures can move to sustainability through the incremental pathway. on the other hand, they suggest that the transformational pathway is l. Know where you are now
2. Develop the vision
3. Identify the gap
4. Assess the readiness for change
5. set the scene for action
6.
7. Move beyond compliance
8. Establish the performance criteria for ccompliance plus’
9. Launch and manage the transformational change program
lo. Maintain the rage.
interest is Dunphy et al.’s (2oo3) discussion of the virtues and pitfalls of the incremental path. a Activity 3.1
models applied, and in what way? Given the following recommendations from Dunphy and stace, was this the right choice for the situation?
of them.
objectivities w .managers need to be skilled in the art of reading and understanding organisational life. Metaphor encourages us to think and act in new ways. It extends the horizons of new insight and creates new possibilities.
al’s. (l997) Images of organisation is recommended. In summary the metaphors are:
.
. organisations as organisms _ living systems existing in a wider environment on which they depend . organisations as brains _ a holographic system
. organisations as culture _ a system of knowledge, ideology, values, laws and day-to-day ritual . organisations as political systems _ systems of authority, power and superior-subordinate relations . organisations as psychic prisons _ people are chained so that they cannot move

Topjc 3 Models of orqanjsatjonal chanqe 25 .
the organization must respond
. organisations as instruments of domination _ exploitation by authority or power.
r Reading 3.2
considered a landmark.
Bolman and Deal (2oll) suggest that there are four cframes’ through which organisational change can be understood and managed:
. the structural frame involves the structural forms and functions of the organisation, restructuring, tasks and linkages of small groups, team structure and performance
. the human resource frame involves theories of human personality, motivation and performance, the role of hr in developing and empowering employees and the interpersonal dynamics and management styles of employees
. the political frame involves thinking of organisations as political arenas with power circulating and coalitions forming, the manager as politician
. the symbolic frame involves understanding organisations as cultures with their own symbols and processes.
r Reading 3.3
which a range of tools can be rationally and logically applied is almost guaranteed to lead to from real organisations (mostly in the l99os) give us some useful categories for slotting various changes into, they perhaps imply a greater degree of certainty and predictability than what creally’ unpredictability, uncertainty and ambiguity. You could say that all our attempts to study and Auth0r’s 0pini0n
structure but the underlying symbolic Frame issues are not addressed then the mismatch could lead to forms of resistance. similarly if the values undergo change in the symbolic Frame but HR practices still You will meet these concepts again in Topic 6 when leadership is discussed.
. core values focus and awareness
. high levels of trust throughout the hierarchy
. strong commitment to tasks and objectives at all levels of the hierarchy
. a compelling vision for the future of the organisation
.
. innovation
. open communication and exchange of opinion
. co-operation throughout the ranks
. resourcefulness at all levels of the hierarchy

. communication to manage perceptions and beliefs
. chigh tech’ and chigh touch’
. an attitude of setting the trend rather than reacting to a trend set by others.
change.
References
perspective, Australasian Journal of Environmental Management) vol. l3 ‘
organizational change for corporate sustainability, Routledge, organizational change for corporate sustainability, Routledge, London and New York.
Bolman, L & Deal, TE 2oll, Reframing organizations. Artistry) choice and Leadership, 4 th edn, Jossey-Bass, san Francisco.
Dunphy, D 2oo3. corporate sustainability: challenge to managerial orthodoxies. Journal of the Australian and New zealand Academy of Management) 9 ‘ 2.
Human relations) vol. 46 ‘ no. Dunphy, Dc & stace, D l99l, strategies for organisational transition , centre for corporate change, Australian Graduate school of Management, university of New south wales.
Limerick, D & cunnington, B l993, Managing the new organisation: A blueprint for networks and strategic alliances, Business and Professional Publishing, sydney.
Morgan, G l997, Imaginization: New Mindsets for seeing) organizing) and Managing, ERIc. Patching, A & waitley, D l996, , KHL Printing, singapore.
Library management) vol. 32 ‘

27 Topic 4 Rec0gnising and diagn0sing the need f0r change . recognise signals of the need for change
. apply a range of tools for diagnosing the need for organisational change
.
. discuss the role of change management and the need to change in organisation failure.
Materials required
Textb00k
chapter 4 and 5, cRecognising the need for change and starting the change process’, and cstarting the change, chapter 7, cDiagnosis’ and chapter 8, cGathering and interpreting information for diagnosis’. Readings
s4.l Karp, T 2oo5, cunpacking the mysteries of change: mental modelling’, Journal of change Management, s4.2 Palmer, Dunford and Akin 2oo6, chapter 5, cDiagnosis for change’, in Managing organizational change: a multiple perspectives approach
4.3 Adamson, B & Kwolek, s 2oo8, cstrategy, leadership and change: the North York General Hospital transformation journey’, Healthcare Quarterly
4.4 south African Journal of Economic and Management sciences
Auth0r’s 0pini0n
At the time of writing the Ford motor company is in the news as the 8o-strong Ford family (descendants of Henry Ford who developed the model-T Ford in the early years of the 2oth century in the usA) is taking along with competition from Japanese manufacturers of smaller, more economical vehicles mean that Ford larger vehicles and the family’s hold on the chairmanship of the Board and the management structure of the great press for organisations to be more cgreen’ and reduce their carbon footprint. sustainability is the an organisation needs to be planning for its next change just as it is peaking in its current success. Inertia, perseveration and a blind spot to the need for change can be the traps of success. IBM’s turnaround has taken its place in the pantheon of corporate giants’ history. It will be interesting to watch developments at Ford to see if such a turnaround occurs.

r Textbook
chapter 5 illustrates this succinctly. Please read this chapter now.
needed:
l.
2. why is the change taking place _ planned and wide-ranging in relation to internal or external factors or emergent smaller scale experimentation and adaptation by managers?
3.
expressing concerns?
4. what has been the recent organisational history of change _ a long period of stability or many changes recently taking place?
5. How is this change being communicated _ both top down and bottom up answering the question cwhat is going to happen to me?’?
6. what is the scale and scope of the change _ in one part or all of the organisation, small or large scale? 7. what are the temporal aspects of this change _ timeframe and pace of change?
8. who is managing the change, and how is it being managed _ internal or external change agents, planned, driven or evolved change?
9. what would be a successful outcome of this change? Has senior management articulated the desired outcome?
lo.
support the change?
r Readings s4.1, s4.2 and chapter 7 (Textbook)
Reading s4.l uses the concept of mental models to recognise the need for change. methodologies may be used.
once a diagnostic model has been chosen _ and this very much depends on the resources available, the type way oc adopts some of the data gathering and feedback of oD.
r Textbook
analysed. As with all research triangulation where several sources of data are gathered, analysed and compared to produce a rich picture is preferable to relying on one source of data alone. r Reading 4.3
change and shows that what we teach about how to do it well can work in practice. Although, drawing on some of the earlier topics, you could question whether this is only one view of the success of change in this organisation and consider whether there were other stakeholders who a case study of an organisation that has handled a threat well, compared, for example, to how

Topjc 4 Recoqnjsjnq and djaqnosjnq the need for chanqe 29 r Reading 4.4
we don’t talk much about organisation failure, despite the fact that most small businesses fail in their early years, and we have witnessed spectacular failures of large organisations. It could literature review, extracts some themes in organisation failure and serves as a timely reminder of how organisations need to change to at least avoid failure (which might not equate to success but certainly avoids a lot of pain).
a Activity 4.1
Resistance to change is a complex response by employees when confronted with the possibility of unwelcome changes to their working lives. It is based on employee beliefs about the change (for example, there will be job cuts); emotions (such as anxiety, anger); and behaviours (for example, absenteeism, reduced work quality, undermining the changes). conduct a search on the topic of resistance, identifying a range of employee response types encompassing beliefs, emotions and behaviours. what can you conclude about the way people respond to the possibility of unwelcome changes to their working lives? As organisations gather and interpret this information what can HR managers do to anticipate and minimise resistance to change?
References
Hughes, M 2oo6, change Management: A critical Perspective, wimbledon: cIPD Publishing.

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