Prepared by Fiona Graetz, Malcolm Rimmer, Ann Lawrence, Aaron Smith

Chapter 1Introduction to change management

Chapter OutlineThe change problem The role of the environmentChange management metaphors and perspectivesAnalytical frameworkCase studies

IntroductionChange is a normal part of business lifeManaging change affects performanceChange management is difficult and complexChange is pervasive in business Instructive to review approaches to change

The Change Problem Rapid environmental changeHuman psychology lack of motivationEngrained systems how things are done Institutionalised ideas how to thinkConflicting cultural standards values held

Change in the New Business Environment A time of unprecedented change?Technological developments Business change in Asia-Pacific More organisational casualties than everGlobalisation and trade liberalisation

Perspectives on Managing Organisational change Proliferation of metaphors about changePerspectives are used for conceptualisationFrameworks for thinking about changeBased on many common ideas Typology of 10 perspectives as a summary

1. The Biological Perspective Change as analogous to those in the natural worldDarwinian evolution and life-cycle Strength: incremental, slow changeWeakness: change can be rapid

2. The Rational Perspective Strategic approachStructure/competencies match environment Linear, direct and based on planningStrength: logical, progressive and proactiveWeakness: assumes change is simple

3. The Institutional Perspective Shaping force is the industrial environmentIncludes social, governmental, legal, cultural Encourage conformity to standardsStrength: understand role of environmentWeakness: ignores internal forces

4. The Resource Perspective Acquisition and deployment of resources is the critical activity driving change Management of resource assets pivotalStrength: explains differences in orgs.Weakness: demands resources for success

5. The Contingency Perspective Behavioural view governed by situation Change decisions must account for technology, structure and sizeStrength: awareness of the environmentWeakness: lack of system and best way

6. The Psychological Perspective Individuals personal psychology Personal psychological reaction to changeImportance of resistance to changeStrength: understanding of personal stressWeakness: tends to ignore systemic issues

7. The Political Perspective Change driven by desire to introduce new philosophies, approaches or ideas Causes conflict and resolved by powerStrength: role of clashing ideologyWeakness: change needs power to work

8. The Cultural Perspective Change is governed by the values and beliefs shared by organisational membersEncourage conformity but difficult to changeStrength: role of collective values and beliefsWeakness: difficult to diagnose and manage

9. The Systems Perspective Relationship of organisational partsChange must be holisticChange to one sub-system affects othersStrength: holistic and realisticWeakness: complex and difficult to manage

10. The Postmodern Perspective Rejects universal theories or best-practiceChange best understood through social reality, which can be contradictoryStrength: explains and accepts contradictionWeakness: can lead to confusion or inaction

Table 1.1 Summary of Organisational Change Perspectives

Table 1.1 Summary of Organisational Change Perspectives

Table 1.1 Summary of Organisational Change Perspectives

Managing Organisational Change Perspectives SystemsRational and strategicContingencyPsychologicalPolitical

Managing Organisational Change: An Analytical framework Driving change: when change is necessary Change levers: tools, techniques, practices Change enactors: ease or obstruct levers Maintaining change: measuring and sustaining change

AffectersCulture: shared set of values and beliefs Context: environment and market Knowledge: learning and know howTechnology: equipment employed to deliver products or to manage processes

Figure 1.1: Managing Organisational change An Analytical framework

Case Studies William Angliss Institute of TAFE (education)Norske Skog Mill (pulp / paper manufacturer)Autoliv (multinational automotive safety systems manufacturer) Long-term change focus

Chapter Review Many change interventions fail Not attempting to change is a path to failureRapidly changing, turbulent environment10 change perspectivesAnalytical framework and affectors