Final 6360

Deszca4e_PPT_Ch03.pdf

Chapter 3: What to Change in an Organization: Frameworks

Chapter Overview

• Change leaders must understand both the HOW and the WHAT of change. The focus here is on WHAT needs to change

• Open systems organizational frameworks are valuable assessment tools of what needs to change. Nadler and Tushman’s Congruence Model is explored in detail

• The non-linear and interactive nature of organizations is explored to make sense of their complexity

• Quinn’s competing values model is used to create a bridge between individual and organizational levels of analysis

• Organizational change over time is discussed

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Use Diagnostic Frameworks in Ch.3 to better understand: • How to Change & • What to Change

Open Systems Perspective

• Organizations exchange information, material & energy with their environment. They are not isolated

• A system is the product of its interrelated and interdependent parts • It represents a complex web of

interrelationships, not a chain of linear cause–effect relationships

Dynamic Complexity because Systems are:

•Constantly changing

•Tightly coupled

•Governed by feedback

•Nonlinear

•History-dependent

•Self-organizing

•Adaptive

•Characterized by trade-offs

•Counterintuitive

•Policy resistant

Open Systems Perspective (cont.)

• A system seeks equilibrium and one at equilibrium will only change if energy is applied

• Individuals within a system may have views of the system’s function and purpose that differ greatly from those of others

• Things that occur within and/or to open systems should not be viewed in isolation. See them as interconnected, interdependent components of a complex system

Nadler & Tushman’s Organizational Congruence Model

Input

Environment (PESTEL)

Resources

History / Culture

Output

Systems

Unit

Individual

Informal Organization

Work Formal Organization

People

Strategy

Transformation Process

Nadler & Tushman’s Organizational Congruence Model

Input

Environment (PESTEL)

Resources

History / Culture

Output

Systems

Unit

Individual

Informal Organization

Work Formal Organization

People

Strategy

Transformation Process

Environmental Pressures for Change

Analyzing Organizations Using Nadler and Tushman’s Model

1.Use the congruence model to describe your organization or an organization you are familiar with. Categorize the key components (environment, strategy, tasks, etc.). What outputs are desired? Are they achieved?

2. Is the strategy in line with organization’s environmental inputs? Are the transformation processes aligned well with the strategy? How do they interact to produce the outputs?

3.When you evaluate your organization’s outputs, are there things your organization should address?

4. Are there aspects of how your organization works that you have difficulty understanding? If so, what resources could you access to help with this analysis?

Linear Event View of the World

Goal

Situation

Gap / Problem

Decision / Action Results

Issues & Problems with the Linear View

• Time delays and lag effects related to variables and outcomes you are trying to manage (e.g., inventory stocks and flows, customer satisfaction and purchase decisions)

• Complexity makes cause–effect relationships difficult to predict and track

• Attribution Errors and False Learning often result from the above

A Feedback Model

EnvironmentDecisions

Decisions

But Feedback Models are Messier

Goals

Decisions

Environment

Goals of Others

Action of Others

Side Effects

Quinn’s Competing Values Framework

Flexibility

Control

Internally Externally Focused Focused

Quinn’s Competing Values Framework (cont.)

Flexibility

Control

Internally Externally Focused Focused

Human Resources

View

Open Systems

View

Internal Processes

View

Rational Economic

View

Quinn’s Competing Values Framework (cont.)

Flexibility

Control

Internally Externally Focused Focused

Human Resources View • How to work with individuals and

groups • Teamwork and HR dept. • Mentor and group facilitator roles

Open Systems View • How to use power and manage

change • The challenge of change • Innovator and broker roles

Internal Processes View • How to understand & control

the work unit • Consolation and continuity • Internal monitor and

coordinator roles

Rational Economic View • How to stimulate individual and

collective achievement • Maximization of output • Producer and director roles

Greiner’s Five Phases of Organizational Growth

Evolution stages

Revolution stages

Size of organization

LARGE

SMALL

YOUNG Age of Organization

MATURE

1: Growth through CREATIVITY

1: Crisis of LEADERSHIP

2: Growth through DIRECTION

2: Crisis of AUTONOMY

3: Growth through DELEGATION

4: Growth through COORDINATION

5: Growth through COLLABORATION

3: Crisis of CONTROL

4: Crisis of RED TAPE

5: Crisis of ?

PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

Stacy’s Complexity Theory and Organizational Change

• Organizations are webs of nonlinear feedback loops that are connected with individuals and organizations through similar webs

• These feedback systems operate in stable and unstable states of equilibrium, even to the point at which chaos ensues

• Organizations are inherently paradoxes, pulled by forces of stability and instability

Stacy’s Complexity Theory and Organizational Change (cont.)

• If organizations give into forces of stability, they become ossified and change impaired

• If organizations succumb to forces of instability, they will disintegrate

• Success is when organizations exist between frozen stability and chaos

Stacy’s Complexity Theory and Organizational Change (cont.)

• Short-term dynamics (or noise) are characterized by irregular cycles and discontinuous trends, but long-term trends are identifiable

• A successful organization faces an unknowable specific future because things can and do happen

• Agents can’t control the long-term future—they can only act in relation to the short term

• Long-term development is a spontaneous, self-organizing process that may give rise to new strategic directions

• It is through this process that managers create and come to know the environments and long-term futures of their organizations

Summary

• When assessing organizations, think of them as open systems— webs of interconnected and interdependent relationships that interact with the environment

• Change often originates in the external environment.

• Change upsets the internal equilibrium in an organization and thus may be resisted.

• Both evolutionary and revolutionary change is needed for organizational growth

• We need to understand the WHY and WHAT of change.

• Models in this chapter have focused on the WHAT of change