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Chapter
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1
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Introduction
The environments that organizations find themselves in are
changing very quickly. Change programs have had a poor track
record to date. There is an increasing need for organizational
change (OC), which addresses this issue. Change is both initiated
and restrained by people. |
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2
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Definition
of Terms
There are many possible models for an organization, ranging
from the mechanistic to the humanistic. OC involves the whole
process from strategy formulation through to strategy implementation.
OC is a rather ambiguous and poorly understood concept. There
are many suggested definitions for OC. At the highest level
these are well-defined and understood. The most common view
of OC is that it relates to the organizational and human factors
of change. Another view is to see OC as the who, why, what,
and how of change in organizations. There are a number of
other related terms, such as strategy, change agent etc.
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3
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Evolution
Many factors have influenced the development of what we now
know as OC. The academic thinkers of the early twentieth century
started the humanistic and social schools of thought. Kurt
Lewin was the true founder of OC at the end of the 1940s.
The field of OC is linked to many others, such as psychology,
sociology, and strategy. Relatively new schools of thought
such as systems thinking have led the field of OC. Until recently,
academic interest has focused purely on the topic of strategy
formulation. The growth of technology within organizations
has been a major catalyst for change in organizations. The
environment around organizations has been changing rapidly
over the past 10 years. Various management fads over the past
decade have contributed both positively and negatively to
the field of OC. It is being increasingly recognized that
the key factors in successful change are the softer, more
intangible aspects of an organization, such as organizational
culture. |
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4
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The
E-Dimension
Technology is becoming all-pervasive in organizations. It
is precisely this pervasiveness that is the key issue for
OC. Its impact on organizations is becoming increasingly significant.
The implication is that the whole organization has to undergo
change. The technology aspect is a small part of the overall
change in an organization. The example of GE's "DYB" or destroy-your-own-business.com
initiative is given as an example of best practice. This was
so effective because it was led from the top, was totally
integrated with business-as-usual, and had a very compelling
case for action. |
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5
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The
Global Dimension
Globalization is an increasingly important issue for organizations.
Its significance and implications are huge. Attributes of
culture ¿ especially national and organizational ¿ are significant
for OC. Sony is used as an example of best practice. Sony
adopted a localized approach to change, and had a very participative
element. |
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6
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The
State of the Art
OC currently faces a number of issues: the disconnection between
strategy and OC; widely varying levels of understanding, interpretation,
and recognition of its value; the myriad of barriers to change;
how to assess the amount of change; and the constancy and
speed of change. There are a number of new ideas, themes,
and trends within OC: broad-based participation; a more integrated
and holistic approach to change; balancing the coercive and
participative approaches to change; an acknowledgement that
there are different types of change - for instance, superficial
and deep; measurement; change capability; and systems thinking.
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7
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In
Practice
Three case studies outline some very important learning points
from organizations' experiences. The three concern Jim, an
individual change agent; the Daimler-Chrysler merger; and
Japan's attempts to break out of its stagnation. Key learning
points from these include the importance of: reinforcing structures;
initiative; understanding where other people are coming from;
and understanding and thinking through the amount of change
involved. |
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8
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Key
Concepts and Thinkers
A number of important concepts are useful in OC. Certain key
thinkers have contributed to the field, and many are still
involved. |
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9
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Resources
There are a multitude of resources, including books, business
and academic journals, and the Web. This chapter provides
many examples. |
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10
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Ten
Steps to Making It Work
Change can be viewed as a cycle, and increasingly a continuous
one. At its heart, change involves people. A key issue is
always to ask why people should change - what's in it for
them? Understanding their perspectives and agendas is crucial.
It is important to understand the barriers to change. Similarly,
it is important to understand the levers for change. Planning
and thinking things through is crucial. The campaign launch
phase is very important in gaining and building momentum.
There is a key requirement to define measures for change.
The most difficult part of any change is embedding and institutionalizing
the change. |