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BOOK TITLE: Organizational Change.
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Chapter
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1
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.
2
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.
3
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.
4
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.
5
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.
6
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.
7
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.
8
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.
9
Resources
There are a multitude of resources, including books, business and academic journals, and the Web. This chapter provides many examples.
10
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.
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