You are on page 1of 5

Title of Coursework: Assignment 2- Making the case for LMP

Unit Name: Leading and Managing People

Topic: Managing Organisational Change

Organizational change is the trend for the further development and which been explained is the
enduring quest of scholars in many disciplines. Prescriptive approach and emergent approach are
two main types of models for organizational change. The Seven S Framework from Peters and
his colleague to show the interrelationships between different aspects of corporate strategy.
Mintzberg developed his rational concept of an organisation as composed of five segments and
uses his model flexibly to develop five different configurations of structure. Organizational
change is the process by which organizations move from their present state to some desired
future state to increase their effectiveness. Change may be regarded as one of the few constants
of recorded history. Often societys winners, both historical and contemporary, can be
characterized by the common ability to effectively manager and exploit change situations.
Individuals, societies, nations and enterprises who have at some time been at the forefront of
commercial and/or technological expansion have achieved domination, or at least competitive
advantage, by being innovative in thought and/or action.

Organizational Change Category by Scale

When it comes to change characterised by scale there is less confusion as there seems to be some
wider agreement. According to Dunphy and Stace (2013), change identified by scale can be
divided into four different characteristics: fine-tuning, incremental adjustment, modular
transformation, and corporate transformation. Fine-tuning, also known as convergent change
(Nelson, 2014), describes organisational change as an ongoing process to match the
organisations strategy, processes, people and structure (Senior, 2012). It is usually manifested at
a departmental or divisional level of the organisation. The purpose of fine-tuning is, according to
Dunphy and Stace (2013), to develop personnel suited to the present strategy, linking
mechanisms and create specialist units to increase volume and attention to cost and quality, and

refine policies, methods and procedures. Furthermore, the fine-tuning should foster both
individual and group commitment to the excellence of departments and the organisations
mission, clarify established roles, and promote confidence in accepted beliefs, norms, and myths
(Dunphy and Stace, 2013). According to Senior (2012) incremental adjustment involves distinct
modifications to management processes and organisational strategies, but does not include
radical change.

When characterised by how change comes about, there are several different approaches, as
identified in Table 3. However, the literature is dominated by planned and emergent change
(Bamford and Forrester, 2014). Even though there is not one widely accepted, clear and practical
approach to organizational change management that explains what changes organisations need to
make and how to implement them (Burnes, 2012) the planned approach to organisational

change attempts to explain the process that bring about change (Burnes, 1996; Eldrod II and
Tippett, 2012). Furthermore, the planned approach emphasises the importance of understanding
the different states which an organisation will have to go through in order to move from an
unsatisfactory state to an identified desired state (Eldrod II and Tippett, 2012).

Areas of Organizational Change

Students of organizational change identify areas of change in order to analyze them. Daniel
Wischnevsky and Fariborz Daman, for example, writing in Journal of Managerial Issues, single
out strategy, structure, and organizational power. Others add technology or the corporate
population ("people"). All of these areas, of course, are related; companies often must institute
changes in all areas when they attempt to make changes in one. The first area, strategic change,
can take place on a large scalefor example, when a company shifts its resources to enter a new
line of businessor on a small scalefor example, when a company makes productivity
improvements in order to reduce costs. There are three basic stages for a company making a
strategic change: 1) realizing that the current strategy is no longer suitable for the company's
situation; 2) establishing a vision for the company's future direction; and 3) implementing the
change and setting up new systems to support it.

Technological changes are often introduced as components of larger strategic changes, although
they sometimes take place on their own. An important aspect of changing technology is
determining who in the organization will be threatened by the change. To be successful, a
technology change must be incorporated into the company's overall systems, and a management
structure must be created to support it. Structural changes can also occur due to strategic
changesas in the case where a company decides to acquire another business and must integrate
itas well as due to operational changes or changes in managerial style. For example, a
company that wished to implement more participative decision making might need to change its
hierarchical structure. People changes can become necessary due to other changes, or sometimes
companies simply seek to change workers' attitudes and behaviors in order to increase their
effectiveness or to stimulate individual or team creative-ness. Almost always people changes are
the most difficult and important part of the overall change process. The science of organization
development was created to deal with changing people on the job through techniques such as
education and training, team building, and career planning.

Influence Factor
Hughes (2006) argues that, different factors can influence organisational changes, from the effect
of internal control, to external rolls in consumer behaviour, or changing the business settings.
The most common reasons are: Legislation, incorporation or attainment, competitive market,
world economy, Structural change, technological advancement and Strategic re-organisation.
Moreover, Haikonen et al (2004) argue that different important internal and external factors
which influence change as policy, structure, control system, organisational culture, and power
distribution. Moreover, Saka (2014) state that the external factors as national or international
rules and regulations influence the organisation to accept new strategies to survive in changed
situation. Furthermore, many other factors related to market competition, economic growth, and
living standard also oblige organisation to commence change programmes for update and
manage the external forces (Beugelsdijk, et al, 2012; Breu & Benwell, 1999; Carr & Hancock,

Consequently, the technological advancement creates internal and external demands to generate
the capabilities of organisations and assess their strategies regularly (Harris & Wegg-Prosser,
2007; Ragsdell, 2000; Shaft, et al, 2008). Moreover, Eisenbach et al (2016) also recognized
different factors that compel change such as innovation, new technology, workforce, productivity
and working quality. Similarly, McAdam (2014) and Mukherji and Mukherji (2015) emphasize
that availability of skilled employees, changing customer behavior, free flow of information and
cultural change make very impact on organisation for modification on their activities and compel
it to readjust or large scale change for transforming from deadlock to effectiveness. Finally,
internal change factors like leadership, organisational culture, employee relationship, workload,
reward system, internal politics, and communication system compel the organisation to take up
change strategy (Bhatnagar, et al, 2010; Potter, 2001; Van Marrewijk, et al, 2010).