Innovation and Change Management

Different ways a business can obtain money

By: M Kamran
Managing Organisational Change
 Defining Change

 Fincham and Rhodes (2005) define change

management as “leadership and direction of the
process of organisational transformation –
especially with regard to human aspects and
overcoming resistance to change”
 Types of Change

 The level of organisational change

 The size and scope of change
 The nature of change:
Types of Change

 Change momentum – speed and magnitude of change

 Model of Change Momentum
Transformational change
 Emergence of a new state, unknown until it takes shape, out of the remains of

the chaotic death of the old state; time period hard to control (Ackerman 1997)

 Examples
 Drivers of Change

 Internal change Vs External change

Example: ADKAR Model

Change Management Tools

 Paton and McCalman (2000) – TROPICS – to help to determine

the nature of change in terms of a continuum from hard to soft

 Change Management Tools
Hard Soft
Time-scales clearly defined Time-scales ill-defined/medium to long
term
Resources needed identified Resources uncertain
Objectives specified and quantified Objectives subjective and ambiguous

Perceptions of the problem shared by all No consensus of problem

Interest in problem limited and defined
Control within managing group
Source of the problem is within
organisation
Interest in problem widespread and ill-
defined
Control is shared with people outside of
managing group
Source of the problem is outside the
organisation
Change Management Tools

 Change management three phase model

 Managing the Resistance to Change

Example: Lewin and French et al

Organisational Development

 CIPD (2009) – “planned and systematic approach to enabling

sustained organisational performance through the involvement of

its people”
Organisational Development

 Emphasises organisational culture and employee behaviour as the

central mechanisms for sustaining the organisations ability to
manage long term change and improve performance.

 NHS
 Organisational Development

 The argument for organisations having stronger and more sophisticated

Organisational Development processes can never be understated
 HR in partnership with line management must ensure that
organisational change is planned, communicated and executed
successfully on an ongoing basis in order to sustain business survival
7S model
Why do we need
to change?

E.g: Business sustainability

Barriers to Change

Individual Organizational
 Economic insecurity  Structural inertia
 Fear of the unknown  Work group inertia
 Threats to social  Threats to existing
relationships
balance of power
 Habit
 Previously
 Failure to recognise
unsuccessful change
need for change
efforts

Source: Greenberg (1996))

Management of Change

 http://www.cipd.co.uk/podcasts/_articles/_makingchangeworkpar
t1.htm
 http://www.cipd.co.uk/podcasts/_articles/Makingchangework_par
t2_episode_31.htm
 QUESTION

 WHY DO WE NEED ORGANISATIONS ?

 classification of organisations
Organisation can hey are classed by

 size, sector, ownership

 they may be private or public companies

 either profit oriented or non-profit oriented

 production or service [or both] oriented

 a partnership [limited or not] or sole trader

associations [e.g. housing association, club]

 overall? formal or informal, legal or illegal!1 |

 organisational structure: Overview
 Many people associate structure with large, hierarchical organisations that
have very tall and well-defined chains of command where everything has a
place and everyone is in their place.

 Structure suggests rationality,order, control and, essentially, co-ordination.

 organisational structure: Overview
 Mintzberg (1979, p.170), defined structure as:the sum total of the ways in
which it divides labour into distinct tasks and then achieves co-ordination
between them.

 “the pattern of relationships among positions in the organisation and among

members of the organisation... The structure defines tasks and responsibilities,
work roles and relationships and channels of communication.”
Mullins (2002, p. 530)
 Factors Affecting Organizational Structure

Figure 10.1
10-25
 organisational Culture: Overview
 Culture is defined by Deal and Kennedy (1982) as “the way we do things
around here.”

 Culture encompasses every aspect of organisational life, including personal

idiosyncrasies, the way individuals conduct themselves, dress and uniforms,
titles that are used to represent job roles, rules and procedures, rites and
rituals, etc.
 Types of Structure and Structure
 Structure can take on a number of forms and the adoption of a particular
form is contingent upon a number of factors such as size, culture, product,
division, function etc.

 Typically there are four main types of structure:

1. entrepreneurial

2. bureaucratic

3. matrix

4. independence structure
The Independence Structure and Person Culture
Elements of Culture
 The Choice of Structure
The choice of structure is dependent on the:

 size

 age and

 environment of the organisation

 The impact of structure and culture on individual
Culture andbehaviour and
structure affect teams
teams and individuals as follows:

 shape behaviour

 increase performance

 increase motivation

 reduce absenteeism

 effective work flow

 Attraction-Selection-Attrition (ASA) Cycle
 Different people are attracted to different careers and organizations as a
function of their own:

 abilities
 interests
 personalities
 Organizations select employees on the basis of the needs the organization has
 skills and abilities
 individual attributes such as values and personality
 Attraction-Selection-Attrition (ASA) Cycle
 Attrition occurs when:
 individuals discover they do not like being part of the
organization and elect to resign, or
 the organization determines an individual is not
succeeding and elects to terminate

 Each phase of the ASA cycle is significantly influenced

by the individual differences of each person
 Individual Differences in the Workplace
Individual Differences

Personality
Personality

Perception
Perception Ability
Abilityand
andSkills
Skills Attitudes
Attitudes

Work Behavior
• Productivity
• Creativity
• Performance
 Diversity Factors
Primary
Primary Dimensions
Dimensions (stable)
(stable)
 Age
Age
 Ethnicity
Ethnicity
 Gender
Gender
 Physical
Physical attributes
attributes
 Race
Race
 Sexual
Sexual // affectional
affectional orientation
orientation

Secondary
Secondary Dimensions
Dimensions (changeable)
(changeable)
 Educational
Educational background
background
 Marital
Marital status
status
 Religious
Religious beliefs
beliefs
 Health
Health
 Work
Work experience
experience
 Abilities and Skills
 Ability
Ability –– aa person’s
person’s talent
talent to
to perform
perform a mental or
or physical task

 Skill
Skill –– aa learned
learned talent
talent that
that aa person
person has
has acquired
acquired to
to perform
perform aa task
task
 Key
Key Abilities:
 Mental
Mental Ability
Ability
 Emotional
Emotional Ability
Ability and
and
 Tacit
Tacit Knowledge
Knowledge
 Personality
 A
A relatively
relatively stable
stable set
set of
of feelings
feelings and
and behaviors
behaviors that
that have
have been
been significantly
significantly
formed
formed byby genetic
genetic and
and environmental
environmental factors
factors

 The
The relationship
relationship between
between behavior
behavior and
and personality
personality is
is one
one of
of the
the most
most complex
complex
matters
matters that
that managers
managers have
have to
to understand
understand
 Some Major Forces Influencing Personality

Cultural forces

Individual Social class / group

Hereditary forces membership forces
Personality

Family relationship
forces
 Class Work

 1.3 discuss the factors which influence individual behaviour at work

 Summary
 We have reviewed the definition of Organisation, it types, it structure
including entrepreneur, bureaucratic, matrix and independence

 we have also reviewed the different classifications of culture and the

relationship between culture and structure.
 Further Information
 Huczynski, A. and Buchanan, D. (2007).

Organisational Behaviour: An Introductory Text. 5th Edition. Financial

Times/Prentice Hall.
 Mullins, L. J. (2007). Management and Organisational Behaviour. 8th
Edition.
Financial Times/Prentice Hall.
 Rollinson, D. (2002). Organisational Behaviour and Analysis: An Integrated
Approach. 2nd Edition. Pearson Education Limited