Theories of change

Theories of change
1. Traditional Change. Yes. But
models How?
2. Critical
perspectives
3. Strategic
management
models
Why study models of organizational
change?
 To assess change at a macro level
◦ Leaders’ view about their organizations
 To know
◦ Why change occurs (driving forces of change)
◦ What will occur (content of change; outcomes,
ways to measure change)
◦ How change occurs (stages, scale, timing, process
characteristics)
 Traditional models
1. The “clinical” approach
2. Linear approaches
3. Systems theory
4. Emergent approaches to change
 1.The “clinical” approach
 Based on the description,
evaluation, and modification
of human behavior.
 Individuals and teams are

central to success or failure.

◦ resistance to change, team
effectiveness and dynamics
◦ “psychological contract”
between employer and
employee and the attitudes of
those involved in change
 how the employee is treated by
the employer, and
 what the employee puts into the
job.
 1.The “clinical” approach
Models of change:
 Organization Development

(OD)
◦ interventions in the processes
of human systems in order to
increase their effectiveness and
health 
 Action research
◦ process of inquiry
conducted by and for those
taking the action. 
 2.Linear approaches
 Linear change:
◦ Sequential process
 Running a single task to
completion
◦ Finite beginning and ending
◦ Predictable, based on past
experience
 Non-linear change:
◦ Evolutionary process
 process of gradual change and
development.
◦ Finite starting point, but no
clear end
◦ often abrupt, unexpected,
and difficult to predict.
2.Linear approaches
 2.Linear approaches
 “Managerial
approach”
◦ describe change as a
series of steps from
vision to implementation.
◦ able to identify
organizational changes
ahead of the
environmental changes.
◦ Organizations are
systems that are
operating within a stable
environment.
 2.Linear approaches
 Lewin (1947)
◦ 1. Unfreezing – the stage wherein it is recognized
that some form of change is needed
◦ 2. Moving – the stage wherein the new ideas and
ways are tested
◦ 3. Refreezing – the stage wherein everything is
stabilized and the change has been achieved
 2.Linear approaches

UNFREEZING OLD WAYS MOVING PHASE REFREEZING PHASE

Urgency Guiding Vision Vision Communi Empow Short- Reinfor Make
Team cation er term ce the
Action Wins Roles Chang
 2.Linear approaches
 Beer and Nohria (2000)
◦ Theory E (Economic)
 maximize shareholder value through financial incentives, downsizing and
divestment.
◦ Theory O (Organizational Capabilities)
 performance improvement through incremental interventions to the
organizational culture, capability and the promotion of organizational learning.
 2.Linear approaches
 Kotter (1996):
 3.Systems theory
 take the whole system into account as the
basic unit of analysis.
 views a company as an interconnected

purposive system that consists of several

business sections.
◦ Input : raw materials, funds, technology, etc.
◦ Process : activities related to management,
technology, operations, etc.
◦ Output : products, results, etc.
◦ Feedback : information and data which is utilized
for correcting the errors found in the processes.
3.Systems theory
 3. Systems theory
1. Socio-technical systems theory
2. Open systems theory
3. Systems dynamic
 3.1. Socio-technical systems theory

 design roles around

both
◦ the demands of the
tasks to be performed,
and
◦ what we know about
human attitudes,
motivation and
capabilities.
 3.2. Open systems theory
 Open System
◦ elements of the system interact
with the environment.
 transfer of material, information or
manpower.
 The purchase department in any
organization: The buyers have to interact
with suppliers (environment) and other
internal departments to carry out the
purchasing activity.
 Closed system
◦ elements of the system do not
interact with the environment at all.
 no exchange of information, material or
manpower between the system and
environment.
 An assembly line, a research department
 3.3. Systems dynamic
 focus on how to choose rather than on how
to change
 part of change and a full evaluation of

options to help avoid “unintended

consequences”.
4.Emergent approaches to change
1. Good to Great (James C. Collins, 2001)
2. Leadership models of emergent change
(Higgs and Rowland, 2005)
3. Market-induced change (Piercy, 2004).
 4.1. Good to Great
 Good to Great (James C. Collins, 2001)
◦ outperformed on financial indicators, such as share price
◦ over a period of 20 years
◦ between four and twenty companies in same industry
 Two-stages model of change:
◦ Build-up
 appoint, nurture and encourage “level 5 leaders”.
 willing to acknowledge personal limitations
 get the right people into place in terms of knowledge,
experience, skills and motivation.
 face reality.
◦ Breakthrough
 build a passion for its business, its products/ services/
sector/ capabilities/ technology and people.
 provide certain characteristics of successful operation and
ways of deciding, working and performing.
4.1.Good to Great
4.2. Leadership models of emergent
change
 Two types of situations and appropriate
leadership
◦ In a technical situation: the problem facing a group
is recognizable and can be solved with a response
that has worked in the past. 
 a manager asking departments to cut their budgets by
10% when there is a budget shortfall
◦ In an adaptive situation: the problem requires
changes in the group’s values, attitudes, or habits.
 a manager facing rising bad performance rates cannot
simply demand that performance go up. 
 Rather: analyze the problem and help the entire
organization work together to create a new solution to
the problem, which would involve changes in behaviors,
attitudes and habits.
 4.3. Market-induced change
 Market-induced change (Piercy, 2004).
◦ role of incentives and rewards combined with
disincentives
◦ change via competitive/collaborative behaviour in
pursuit of economic goals.
 ?
Questions