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Chapter 2 Images of Managing Change Learning Objectives • Understand the importance of organizational images and mental models. • Identify different images of managing and of change outcomes. • Outline six different images of managing change. • Identify the theoretical underpinnings of these six change management images. • Understand the practical implications of the six images and how to use them. Images of Managing Change Images of Managing Change Controlling… Images of ◦ Top-down view of management Change Outcomes ◦ Fayol’s theory of management: planning, organizing, commanding, Images of Change coordinating and controlling. Managers: -Director Shaping… -Coach -Navigator ◦ Participative style of management -Interpreter ◦ Improving the capabilities of people -Caretaker -Nurturer within the organization Three Core Uses of the Images Images of Change Outcomes Images of Managing Change Intended Change: Images of ◦ Change is a result of planned action Partially Intended Change: Change Outcomes Images of ◦ Change may need to be re-modified Change after it is initially implemented Unintended Change: Managers: -Director -Coach -Navigator ◦ Forces beyond the control of the -Interpreter -Caretaker change manager -Nurturer Three Core Uses of the Images Images of Change Managers Images of Managing Change Images of Managing Images of Change Outcomes Controlling . . . Shaping . . . Images of (activities) (capabilities) Change Managers: -Director Intended DIRECTOR COACH -Coach Images of -Navigator Partially NAVIGATOR INTERPRETER -Interpreter Change -Caretaker Intended Outcomes -Nurturer Unintended CARETAKER NURTURER Three Core Uses of the Images Images of Change Managers Images of Managing Director Coach Change Based on an Relies upon building Images of image of in the right set of Change Outcomes management as values, skills and control and of “drills” that are Images of Change change outcomes deemed to be the Managers: as being best ones to be -Director -Coach achievable. drawn upon in order -Navigator -Interpreter Supported by the to achieve desired -Caretaker n-step models and organizational -Nurturer contingency outcomes. Three Core Uses of the theory. Related to OD Images approaches. Images of Change Managers Images of Managing Navigator Interpreter Change Control is the heart of The manager Images of management action, creates meaning for Change although a variety of other organizational Outcomes external factors mean members, helping Images of that managers may them to make sense Change achieve some intended of various Managers: -Director change outcomes and organizational -Coach others will occur over events and actions. -Navigator -Interpreter which they have little Supported by the -Caretaker control. sense-making -Nurturer Supported by the theory of Three Core Uses of the contextualist and organizational Images processual theories of change change. Images of Change Managers Images of Managing Caretaker Nurturer Change The manager’s control Even small changes may Images of is severely impeded by have a large impact on Change a variety of internal organizations and Outcomes and external forces managers are not able to Images of beyond their scope. control the outcome of Change The caretaker these changes but may Managers: -Director shepherds their nurture their organizations. -Coach organizations along as This facilitates -Navigator -Interpreter best they can. organizational qualities -Caretaker Supported by life- that enable positive self- -Nurturer cycle, population- organizing to occur. Three Core ecology and Related to chaos and Uses of the Images institutional theories. Confucian/ Taoist theories. Three Core Uses of the Images Images of Managing Change These six images of change Images of managers have three core uses: Change 1) They highlight a variety of assumptions Outcomes that change managers make about change Images of and increase the awareness of different Change interpretations of change. Managers: -Director 2) They draw attention to the dominant -Coach images of change within an organization. -Navigator -Interpreter 3) They highlight a range of perspectives -Caretaker available to change managers. -Nurturer Three Core Uses of the Images Table 2.5 Chapter Reflections for the Practicing Change Manager Chapter 3 Why Organizations Change Why Change? Why Change? External Pressures -Fashion Change is a risky activity – many organizational changes fail or do -Mandated -Geopolitical -Market decline -Hyper- competition -Reputation & not realize their intended credibility outcomes. This raises the Role of the Environment question: why is change so Internal Pressures prevalent? -Growth -Integration & collaboration Pressure to change comes from: -Identity -New broom ◦ External, environmental pressures -Power & political ◦ Internal, organizational pressures Environmental Pressures Why Change? External Pressures -Fashion -Mandated Pressure Examples Description -Geopolitical -Market decline Neo-institutionalism: mimetic -Hyper- competition -Reputation & Fashion Boeing isomorphism. Managers imitate credibility pressures Co. practices associated with successful Role of the organizations Environment Neo-institutionalism: coercive Internal Pressures Mandated Chevron isomorphism. An organization -Growth pressures Texaco changes through formally or -Integration & collaboration informally mandated requirements. -Identity -New broom Macroeconomic changes (or crises) -Power & political Geopolitica place pressure on organizations to 3M l pressures change the way they operate. Environmental Pressures Why Change? External Pressures Pressure Examples Description -Fashion -Mandated -Geopolitical Market When current markets begin to -Market decline AOL Time -Hyper- competition decline decline there is pressure to find Warner -Reputation & pressures newer, more viable markets. credibility Role of the The highly intensified rate of Environment business – including shortened Hyper- product life cycles and rapid Internal Pressures competition Gateway -Growth responses by competitors – pressures -Integration & produces pressure for change at collaboration -Identity the organizational level. -New broom -Power & political In light of recent corporate Reputation governance scandals, the Walt Disney and credibility pressure to maintain a good Company pressures reputation and high level of credibility has increased. Debate: Role of the Environment Why Change? External Pressures Organizational learning vs. threat-rigidity -Fashion ◦ whether external pressures facilitate or inhibit the process of change. -Mandated -Geopolitical -Market decline Environment as an objective entity vs. environment as a cognitive -Hyper-competition construction -Reputation & credibility ◦ The former treats the environment as an objective entity to which managers must respond. The latter emphasizes the centrality of Role of the managers’ interpretations of environmental conditions as the key Environment determinant of behavior. Internal Pressures Forces for change vs. forces for stability: -Growth ◦ External forces can vary; they either promote change or promote stability. -Integration & collaboration -Identity Bridging (adapting) vs buffering (shielding): -New broom ◦ These represent either strategies that can maintain effectiveness by -Power & political 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). Internal Pressures Why Change? External Pressures Pressure Examples Description -Fashion -Mandated Existing systems and processes in -Geopolitical -Market decline Growth an organization may no longer be -Hyper-competition Microsoft pressures applicable when the size of the -Reputation & credibility organization increases. Role of the Integration Integration and creating Environment and economies of scale can lead to EDS collaboration pressure for change in Internal Pressures -Growth pressures organizations. -Integration & collaboration A common organizational identity -Identity and the unified commitment of -New broom -Power & political staff in different Identity Forte areas/departments of an pressures Hotel organization can be difficult to manage and may encourage change. Internal Pressures Why Change? External Pressures -Fashion -Mandated Pressure Examples Description -Geopolitical -Market decline -Hyper-competition -Reputation & Change at the senior credibility New management level – particularly of Bank of Role of the broom CEO - can often be a catalyst for America Environment pressures significant changes in an organization. Internal Pressures -Growth -Integration & collaboration Power and Power relationships and -Identity Morgan -New broom political politicking can change internal -Power & political Stanley pressures processes and decision making. Exercise 3.2 Public Change Rationales More on the why of change… Theories of Organizational Change • Life cycle theories: linear and irreversible sequence of prescribed change • Organizations go through different stages: birth, youth, midlife, maturity,…. When reached maturity, revitalization is needed. • Teleological theories: recurrent and discontinuous sequence of goal setting, implementation, and adaptation • Dialectic theories: recurrent and discontinuous sequence of confrontation, conflict, and synthesis • Evolutionary theories: recurrent, cumulative and probabilistic sequence of variation, selection, and retention Economic Pressures • globalization: Deregulation, opening of national economies • Unpredictable and Rapidly changing markets • Service and knowledge base business • profitability based on machine power to profitability based on intelligence and skills Social Pressures • Flexible working arrangements • Women in management • Educated workforce/society • Demographics • Immigrations • People more independent, questioning • Lack of loyalty between the workers and companies Technological Pressures • Information and Communication Technology • High performance work systems • Integrated information systems • Access to information • Global networking • New media • Shortening product life cycles • High quality Sustainable Development Pressures SD Elements: Social 1. Employee Well-Being 2. Quality of Life 3. Business Ethics Economic 4. Shareholder Value Creation 5. Economic Development Environmental 6. Environmental Impact Minimization 7. Natural Resource Protection Organizational Self-renewal • Challenging old assumptions • Understanding the new rules of competition • Capturing the potential of new paradigms by rethinking business processes • Constant innovation • Improving continually as part of normal functioning • Transforming while keeping purpose and direction Continuous learning Organic type of organizations, adopted to unstable conditions • continual new and unfamiliar problems cannot be broken down and distributed among the existing specialists roles • continual adjustment and redefinition of individual tasks is needed • Interactions and communication may occur at any level as required by the process • organization charts are not always useful Emerging Mindset • Industrial mindset: • Invalidity of the internal reality of human consciousness • Scarcity of resources • Separate parts • Discrete events • emerging mindset: • Consciousness is causative • Abundance • Relationships and Wholeness • Continuous Process parts are connected and they are connected to the whole, change is a continuous process, and the internal and external dynamics are both important.
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