Organizational Change

1
Organizational Change
3.1.1

• Different types of change
• Proactive change
• Reactive change
• Each of which can be subdivided in
• Incremental change
• Strategic change

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Table of organizational change
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Tuning
Introduction of new ways of order taking and
order treatment. Letter Telephone TTY
fax e-mail EDI connection of
computers with ADSL/LAN-systems A newly developed
label machine (for putting on bandaroles and
adhesive tape on tobacco pouches) implies, that 8
women rend superfluous.
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Adjustment
A work stoppage has as consequence, that the raw
materials are not received in 14 days. A major
customer chooses to have deliveries from a
competitor.
5
Reorientation
Change in strategy/proactive Outsourcing. The
organization chooses to outsource all production
routine activities to Poland or
Lithuania. Planned change in structure.
Transition from mechanistic structure with manny
rules, high degree of formalization with 6 levels
to a more flat structure through availability of
better information equipment. Mergers or
acquisitions. Duplicate functions will be
eliminated, and new coordinating positions are
typically created. Changing marketing strategy.
Going from customer focus to cost leadership for
a productline. A number of productfeatures will
be changed/deleted to meet the demand from the
whole world and advertising will be addressed
more globaly.
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Reconstruction
Reactive change in strategy A campaign for
threatened species implies, that you cant sell
clothes made from mink. A new by-pass road
implies an unforeseen reduction in customers to a
gasoline station.
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Change of strategy (Miles Snow)
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Implementation
Generally there is high resistance to change.
This resistance can be dealt with in a number of
ways. The driving forces, which direct behaviour
away from status quo, can be increased. The
restraining forces, which hinder movement from
the existing equilibrium, can be decreased.
Unfreeze
Move
Refreeze
You have to create understanding. The change
agent ( CEO or outside consultant) is giving the
rationale for the change.
The termination is marked with a ceremony.
Employees are promoted or appointed, receive
diplomas for completed courses etc.
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Model
Forces Initiating Change
Determinants
Feedback
Change Agent
Initiator
What is to be changed? Structure? Technology?
Organizational processes?
Intervention strategies
Change Process Unfreeze Move - Refreeze
Implementation Tactics Intervention,
Participation, Persuasion, Edict
Implementation
Change
Results
Organizational Effectiveness