management
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New_Ch_3_RD.pptChapter 3
Why Change?:
contemporary drivers and pressures
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
2.pdf
Providing the Skills to Successfully Manage Change Managing Organizational Change: A Multiple Perspectives Approach, 3e, by Palmer, Dunford, and Buchanan, offers managers a multiple perspectives approach to managing change that recognizes the variety of ways to facilitate change and reinforces the need for a tailored and creative approach to fit different contexts.
The third edition offers timely updates to previous content, while introducing new and emerging trends, developments, themes, debates, and practices.
Highlights of the third edition include: • New coverage of contemporary topics throughout, such as “depth of change”
(Chapters 1, 4, and 12), change in a recession (Chapter 3), the built-to-change organization (Chapter 4), and the impact of social media and the communication “escalator” (Chapter 7).
• A new chapter, “The Effective Change Manager: What Does It Take?” (Chapter 12), exploring competency frameworks, interpersonal communication processes and skills, issue-selling tactics, and the need for the change manager to be politically skilled.
• Improved visual appeal with more graphics and occasional memorable cartoons.
Now available with —the leading adaptive learning resource.
connect.mheducation.com
Providing the Skills to Successfully Manage Change Managing Organizational Change: A Multiple Perspectives Approach, 3e, by Palmer, Dunford, and Buchanan, offers managers a multiple perspectives approach to managing change that recognizes the variety of ways to facilitate change and reinforces the need for a tailored and creative approach to fit different contexts.
The third edition offers timely updates to previous content, while introducing new and emerging trends, developments, themes, debates, and practices.
Highlights of the third edition include: • New coverage of contemporary topics throughout, such as “depth of change” (Chapters 1, 4, and 12),
change in a recession (Chapter 3), the built-to-change organization (Chapter 4), and the impact of social media and the communication “escalator” (Chapter 7).
• A new chapter, “The Effective Change Manager: What Does It Take?” (Chapter 12), exploring competency frameworks, interpersonal communication processes and skills, issue-selling tactics, and the need for the change manager to be politically skilled.
• Improved visual appeal with more graphics and occasional memorable cartoons.
Now available with —the leading adaptive learning resource.
connect.mheducation.com
Why Change?
- Change is a risky activity – many organizational changes fail or do not realize their intended outcomes. This raises the question: why is change is so prevalent?
- Pressure to change comes from:
External, environmental pressures
Internal, organizational pressures
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Images of Managing Change
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
| Images | Pressures for Change |
| Director | Change is a result of strategic pressures and controllable by managers’ ability to direct the organization’s response |
| Navigator | Strategic change is in response to internal and external pressures. Multiple pressures facing managers will need to be taken into account. |
| Caretaker | Managers have little control over the inevitable pressures on the organization. Managers have little choice in the organization’s actions. |
| Coach | Pressures for change are constant and result in the need to develop and shape the organization’s capabilities to better enhance organizational outcomes. |
| Interpreter | Pressures for change are internal and external and managers need to understand and give meaning to these. |
| Nurturer | Pressures for change are large and small and the manager’s role is to enhance the adaptive capacity of the organization. |
Environmental Pressures for Change 1
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
| Pressure | Examples | Description |
| Fashion pressures | Boeing | Neo-institutionalism: mimetic isomorphism. Managers imitate practices associated with successful organizations |
| Demography | Generation C | As population characteristics change, so do the nature/motivation of the workforce and the demand for various products/services |
| External mandate | Coca-Cola Adobe Chevron- Texaco | Neo-institutionalism: coercive isomorphism. An organization changes through formally or informally mandated requirements |
Environmental Pressures for Change 2
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
| Pressure | Examples | Description |
| Globalization and geopolitical developments | Exxon | Macroeconomic changes (or crises) place pressure on organizations to change the way they operate. |
| Hyper-competition pressures | Dell YouTube Dropbox | The highly intensified rate of business – including shortened product life cycles and rapid responses by competitors – produces pressure for change at the organizational level. |
| Credibility and reputation | Mattel Volkswagen | In light of recent corporate governance scandals, the pressure to maintain a good reputation and high level of credibility has increased. |
Why Do Organizations Not Change in Response to Environmental Pressures?
- Organizational learning vs. threat-rigidity
whether external pressures facilitate or inhibit the process of change.
- Environment as an objective entity vs. environment as a cognitive construction
The former treats the environment as an objective entity to which managers must respond. The latter emphasizes the centrality of managers’ interpretations of environmental conditions as the key determinant of behavior.
- Forces for change vs. forces for stability:
External forces can vary; they either promote change or promote stability.
- Bridging (adapting) vs buffering (shielding):
These represent either strategies that can maintain effectiveness by adapting parts of the organization to changes happening in the outside environment (bridging) or focusing on efficiency by avoiding change through shielding parts of it from the effects of the environment (buffering).
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures?
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Why Do Organizations Not Change After Crises?
Factors may include:
- Organizational learning difficulties
- Second-order and third-order causal factors are not understood
- Lack of a ‘psychologically safe environment’
- ‘Defensive’ agendas designed to prevent something happening (again) can be less appealing/rewarding than ‘innovative’ agendas focused on the development of something new (e.g., products, markets, systems)
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Internal Organizational Change Drivers 1.
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
| Pressure | Examples | Description |
| Growth pressures | Microsoft | Existing systems and processes in an organization may no longer be applicable when the size of the organization increases. |
| Integration and coordination | EDS | Integration and creating economies of scale can lead to pressure for change in organizations. |
| Corporate Identity | Forte Hotel US Mint | A common organizational identity and the unified commitment of staff in different areas/departments of an organization can be difficult to manage and may encourage change. |
Internal Organizational Change Drivers 2.
Why Change?
Images of Managing Change
Environmental Pressures for Change
Why Do Organizations Not Change in Response to Environmental Pressures
Why Do Organizations Not Change After Crises?
Internal Organizational Change Drivers
3-*
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
| Pressure | Examples | Description |
| New Chief Executive | Bank of America Harper’s Bazaar | Change at the senior management level – particularly of CEO - can often be a catalyst for significant changes in an organization. |
| Power and politics | Morgan Stanley Roche NYPD | Power relationships and politicking can change internal processes and decision making. |
