Topic 10: Managing Strategic Change

• Incremental Change


  involves introducing small and gradual adjustments made over time in a business strategies to achieve a specific goal or objective.
• Disruptive change


  is a sudden drastic change in the market or industry in a completely different way of operating, providing products and services than usual.
• Lewin’s Force Field


  is a model that provides an overview of the balance between forces driving change and forces resisting to change in a business.
• Kotter and Schlesinger's Four Reasons for Resistance to Change

  is a theory model that helps businesses understand why employees might resist organisational changes.
• Kotter and Schlesinger's Six Ways of Overcoming Resistance to Change


  is a theory model used for businesses to strategize and manage the resistance they might face during organisational changes.
• Handy Culture Model

  is an organisational culture model that describes different types of employment relationships and organizational structures within a company.

  It describes four distinct management styles, each with its own values.

  "the way we do things around here"
• Hofstede National Culture

  is a model that identifies six dimensions that is used to understand cultural differences and values across countries.
• Flexible organisation includes what?

  Restructuring

  Delayering

  Flexible Employment Contracts

  Organic Structure vs Mechanistic

  Knowledge and Information Management
• Restructuring 


  is the act of reorganizing the structure of a business for the purpose of making it more profitable, or better organized for its present needs.
• Parochial Self Interest


  is when the employees are concerned that the impact of change will make them lose something valuable and so they focus on their own self interest rather than the organisation’s interest.
• What are the 4 reasons for resistance to change?

  Parochial Self Interest

  Misunderstand and Lack of Trust

  Low Tolerance of Change

  Different Assessment of the Situation
• Misunderstand and Lack of Trust

  is when employees do not fully understand the implications of change or why it is needed.
• Low Tolerance of Change

  is when employees are very set in their ways and have difficulty adjusting to new situations.
• Different Assessment of the Situation

  is when employees disagree about the needs for change and about the advantages and disadvantages for changes, not just from their perspective but also the organisations.
• Delayering

  refers to the process of reducing the number of hierarchical levels within a company or organization.
• Flexible Employment Contracts

   are agreements between employers and employees that allow for variations in working arrangements
•  A zero-hour contract

  is a type of employment agreement where the employer does not guarantee a minimum number of working hours to the employee. 
• What are two types of workers?

  Core workers

  Peripheral workers
• Core workers

   refer to employees who have a regular and ongoing employment relationship with a company. 
• Peripheral workers

  are individuals who are employed in a more temporary or flexible capacity.
• What are the 6 ways to overcome resistance to change?

  Participation and Involvement

  Education and Communication

  Negotiation and Agreement

  Facilitation and Support

  Explicit and Implicit Coercion

  Manipulation and Co-option
• Participation and Involvement

  is when employees are involved in the change of process whilst seeking and often acting on their advice.
• Education and Communication

  is the involvement of informing people about the change in advance to eliminate misunderstandings.
• Negotiation and Agreement

  is offering incentives to those who might lose out from the change.
• Facilitation and Support

  is providing training and emotional support to help people adjust to the change.
• Explicit and Implicit Coercion

  is when the workforce is forced to accept the change as it will lead to negative consequences.
• Manipulation and Co-option


  is the involvement of selecting leaders of the resistors to participate in the change or giving them a key role in the decision-making process.
• Knowledge and Information Management


  refers to the collection, organisation, distribution and application of knowledge and information with the business
• Organic structure 


  is the structure of an organization that is based on the interrelationships among its parts.
• Mechanics Structure 


  is a type of organizational structure that is characterized by its rigid, traditional approach.
• Characteristics of organic structure:


   • Flexible structure

   • Decentralized approach

   • More job and team focused

   • Flatter structure = informal communication
• Characteristics of mechanistic structure:

  • Rigid structure = strict

  • Centralised approach

  • Job roles are well defined

  • tall structure = chain of command is clear, wider span of control
• What are the 4 types of culture in Handy's Culture?

  Power

  Person

  Task

  Role
• Power culture


  is a type of organisational culture where power is held by just a few individuals.
• Characteristics of Power Culture

  • Centralised culture

  • May occur in small businesses

  • Stressful if a business grows and can't run from the centre
• Role Culture 


  is a type of organizational culture where roles and responsibilities are clearly defined within a hierarchical structure.
• Characteristics of Role Culture


  • Jobs have clear rules and procedures

  • Appropriate in a stable environment

  • Lack of communications
• People Culture 


  is a model where the organization is made up of individuals who are seen as valuable and unique - more focus on individual talents and skills.
• Characteristics of people culture

  • individuals have considerable freedom to act independently

  • have high level of specialist workers
• Task Culture


  is a type of organisational culture where the focus is on completing a particular task or project.