ORGANISATIONAL DEVELOPMENT AND CHANGE MANAGEMENT Burnes B 2009

ORGANISATIONAL DEVELOPMENT AND CHANGE MANAGEMENT (Burnes, B. , 2009)

APPROACHES TO CHANGE MANAGEMENT

APPROACHES TO CHANGE MANAGEMENT The biggest challenge is: understanding the strategy of the organisation and choose the right approach and managing resistance to change

THEORETICAL FOUNDATIONS The theory and practice of change management draw on number of social science disciplines and traditions – schools of thoughts Individual Perspective School Group Dynamics School Open Systems School

THEORETICAL FOUNDATIONS OF CHANGE MANAGEMENT (Limited to three Schools of Thought) Individual Perspective School Behaviourists: Behaviour result of individuals’ interaction with their environment – all behaviour is learnt; individual is passive recipient of external data Gestalt-Field Psychologists: Individual’s behaviour is the product of environment and reason (mind) – change understanding of yourself and the situation would lead to change in behaviour Group Dynamics School Organisational change takes place through teams/work groups rather than individuals Change the behaviour according to prevailing practices and norms – What are the roles, norms & values hold by groups Open Systems School Organisations is composed of nr of interconnected subsystems Any change on the part of the system will have impact on other parts of the system It is about achieving overall performance and synergy. Collectively pursue overall business objectives Understanding the org in its entirety

INDIVIDUAL PERSPECTIVE SCHOOL BEHAVIOURISTS GESTALT-FIELD PSYCHOLOGISTS - Kurt Lewin individuals interaction with the environment Individuals behaviour is the product of environment (field) and reason (mind) All behaviours is learned Learning is a process of gaining/changing insights, thoughts, outlooks, expectations Individual is a passive recipient of external and objective data – human beings only respond to external stimuli (Pavlov taught dog to salivate at the ringing of bell. Conditioning the dog to associate sound of bell with food) Focus on interpretation people place on actions and response -Believe a person function as a whole , total organism -Each person possess positive and negative characteristics Human actions are conditioned by their expected consequences Individual use reason (mind) to interpret stimuli (gestalt is a percept) Behaviour rewarded will be repeated and behaviour ignored will stop Individual should change their understanding of themselves and situation To change behaviour, change also conditions - this would lead to change in behaviour - Achieve organisational change through that causes it (Skinner) changing external stimuli acting upon the Reward all instances of wanted behaviour individual

GROUP DYNAMIC SCHOOL • People in organisations work in teams, work groups rather than individuals • Organisational change takes place through teams/work groups rather than individuals • Change the behaviour of individual according to group’s prevailing practices and norms • Individual behaviour is a function of the group environment • Group is in a continuous process of mutual adaptation • Focus change at the group level and concentrate on influencing and changing group’s roles, norms & values hold by groups

OPEN SYSTEMS SCHOOL The main perspective of Open System school and its objective: • It makes references to organisation and its entirety • It see organisation as composed of a number of interconnected sub-systems • Any change in one part have an impact on other parts of system and overall performance • Based on a method of describing and evaluating these sub-systems to determine how they need to be changed to improve organisation’s overall functioning • Systems in organisation are seen as open – not in isolation • Open to interact with its external environment • Open internally – various sub-systems interact with each other • Internal changes in one area affect other areas and impact external environment and vice versa Objective: - structure the functions of business in such a way that clearly defined lines of coordination and interdependence, the overall business objectives are collectively pursued. - Emphasis is on achieving overall synergy, rather than on optimizing the performance of any one individual part.

FOUR PRINCIPAL ORGANIZATIONAL SUB-SYSTEMS Organisational - Comprises of org’s stated objectives and values it wishes to promote goals and values and achieve sub-system - To operate effectively, org must ensure that its objectives and values are COMPATIBLE with internal and external environment Technical sub-system - Combination of knowledge, techniques and technologies required for organisation to function effectively - Must be COMPATIBLE & APPROPRIATE to organisations circumstances Psychosocial sub-system - Organisational climate and organisational culture - Fabric of values, relationships, values and norms that binds people together and make them citizens organisation - It is influenced by org’s environment, history, employees, tasks, technology and structures Managerial sub-system: - Relating an organisation to its environment, Setting goals, determining values, Developing comprehensive strategic and operational plans, Designing structures and establishing control Directing organisation and ensure objectives are achieved If all these fails, the rest of organisation will fail

Three (3) factors that inform the Open school system Sub-system are interdepend: Alterations in one part of organisation the rest of the organisation Training is a mechanism of change and cannot succeed on its own. Attempting to change individual might not change the organisation – consider other sub-systems • To be successful, organisation must tap and direct the energy and talent of their workforce • Remove obstacles preventing it and provide positive reinforcement which promotes it. • Change norms, rewards, systems, structures etc. from organisational perspective – rather than individual or group perspective

PLANNED APPROACH: KURT LEWIN • • • • Planned change: Identify areas needing change, evaluate & bring about change Planned approach to change is closely associated to the practice of OD (its core) Concern about resolving conflicts and democratic values Believed in Improved human conditions First identify restraining forces, understand group behaviour, map complexity in which behaviour take place Look at the present status quo Identify driving forces that should be diminished or strengthened Determine why people behave the way they do Look at group dynamics (how groups shape behaviour of its members What is the nature or characteristics of each group Three-step model: unfreeze the present (inability to change), moving (creates motivation to learn or adapt) and refreeze (stabilize new behaviour) People react and adjust when faced with change Coping cycle: five stages: denial – need for change, defence past practices, discarding past behaviour to adjust, adapt to new ways and internalisation (change seen as normal).

PHASES OF PLANNED CHANGE (Bullock & Batten) Organisation exist in different states – go through different processes and change should be planned in different states: • Exploration phase: determine need for change – consultants? • Planning phase: Plan the change, collect information, diagnosis of problem, determine appropriate actions etc. • Action phase: Move the oranisation from the current to desired future state, manage change process, gain support, evaluate implementation activities • Integration phase: After successful implementation, stabilize change to be part of organisation’s normal, everyday operations (refreeze); reinforcement through feedback and reward

THREE MODELS OF CHANGE MANAGEMENT Incremental model of change (change in degrees/series) Punctuated equilibrium model of organisational transformation - Continuous transformation model of change - Individual parts of an org deal incrementally and separately with one problem and one goal at a time It takes long time to change – “muddling through with purpose” Managers who respond to pressures in their environments, over a time, their organisations become transformed Change takes place through successive, limited & negotiated shifts Organisations evolve through long periods of stability (equilibrium periods) that are punctuated by relatively short burst of fundamental change (revolutionary periods) Revolutionary periods disrupt established activity patterns and install the basis for new equilibrium periods (isolated episodes) Punctuate : occur at intervals – discontinuities by modifications To survive organisations must develop ability to change themselves continuously in a fundamental manner Change pattern is endless modifications in work processes and social practices Environment in which organisation operate is changing, and will continue to change, rapidly, radically and unpredictably

ORGANISATIONAL CHANGE AND MANAGERIAL CHOICE • Managers know that central to change process is the choice process: - what to change when to change how to change • Change comes in wide variety of shapes and sizes • Therefore, the managers should know and apply: corresponding approaches to strategy development and change management • Managers: Consider the nature of environment in which organisation operates • Planned approach: assume that environment is relatively stable, predictable, controllable • Emergent approach: assume that environment is turbulent, unpredictable and uncontrollable • Principal role of managers and the objective of strategy and change is to align or realign an organisation with its environment

THE CHOICE MANAGEMENT-CHANGE MANAGEMENT MODEL Organisational change is viewed as the product of three interdependent organisational processes The choice process (concerned with nature, scope and focus of organisational decision-making) The trajectory process (it relates to org’s past & future direction - is the outcome of it’s vision, purpose & future objectives) The change process (Approaches to change, Mechanisms of achieving change, Outcomes of change) There are groups of elements or forces which interact, clash with and influence each other in subtle or complex ways. All these can have an impact on the decision-making and change management process.

THE CHOICE PROCESS Org Context - Org should know their strengths /weaknesses, customer needs, nature of environment in which they operate - Collect info on past, present and anticipated future performance - Collect info on main internal constraints such as structures, culture, politics, management style - Collect info on main external constraints such as industry, sector norms, business environment - Tools to used: SWOT analysis & PESTEL (Political, Economic, Socio-cultural, Technological, Environmental & Legal) - Benchmark org’s performance Focus of choice - Focus on key activities of success and aligning it self - Focus on influencing or changing constraints under which it operates - Short-term, medium or long-term focus for decision-making Org - Trajectory/direction is shaped by its past actions, future objectives and trajectory strategies (direction) - Determine interplay between org’s vision, strategies & approach to change - Trajectory is also a blend or clash between emergent elements of its strategy - Interpretation of past actions and future intent – ability to shape developing events

THE TRAJECTORY PROCESS - Organisational Vision: Use various visioning techniques to get different futures and realities to select most favourable one Not all visions lead to success – create ambitious visions Comprise of mission, valued outcomes, valued conditions, mid-point goals • - Organisational Strategy: Stream of actions taken to move towards vision Actions could be planned, driven, delegated and distributed throughout organisation Must have formal and informal plans as well as planned and unplanned actions • - Organisational Change: Create conditions in which change places Its only through change that vision and strategy can advance and become reality • -

THE CHANGE PROCESS Objectives & outcomes Trigger: investigate need for change – current performance Remit: Reasons for assessment, objectives, timeline, who should be involved Assessment Team: -Assess need for change -Representatives from areas affected, change specialist Assessment: Clarify and amend remit. Team should: -Clarify problem -Investigate alternative solutions -Feedback -Recommendations/decision Planning the change - Establish change management team Management structures (in the project) Activity planning Commitment planning (key people, how to gain support) Audits and post-audits (monitor progress) Training and development (new skills/competencies needed) People - Create willingness to change Make people aware of pressures Understand peoples’ fears and concerns Give regular feedback of performance Involve people (communication and involvement) Sustain momentum (provide resources, support, develop new skills, reinforced desired behaviour)