Case Study: Contemporary Management Practice (CMP) - Organizational Change

7/25/2019 Case Study: Contemporary Management Practice (CMP) - Organizational Change

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HR0383:

Contemporary

Management Practice

Frank Stephen Thompson

(W12040015)

BA (Hons) Leadership and

Management (Part-time)

Northumbria University

Word count: 3,298


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CONTENTS

1.0 Introduction ..4

2.0 Literature Review . 4

2.1 Definitions of Change ..... .... 4

2.2 Definitions of Change Management ...... 5

2.3 The Necessity for Change .....6

2.4 Impediments to Effective Change ... 8

2.5 Organizational Metaphors ..10

2.6 Models of Change ..........11

3.0 Analysis of the Case Study Organization .............. 13

4.0 Recommendations . 14

5.0 Conclusion ..18

6.0 References .. 19

7.0 Appendices . 24

Appendix 7.1: PESTEL Analysis .25

Figure 7.1A: PESTEL Factors ...... 25

Figure 7.1B: PESTEL AnalysisCase Study Organization (P - E [Politcal/Economic]) ......26


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CONTENTS (CONTINUED)

Figure 7.1C: PESTEL AnalysisCase Study Organization (S, T, E and L [Socio-Cultural,

Technological, Environmental and Legal]) .27

Appendix 7.2: Force-field Analysis .....28

Figure 7.2A: An Example of a Force-field Analysis ...28

Figure 7.2B: A Force-field analysis of The Case Study Organization ....29

Appendix 7.3: Defining Organizations 30

Figure 7.3: Morgans Metaphors For Organizations ...30

Appendix 7.4: Models of Change 31

Figure 7.4: A Comparison Between Three Change Models ...31

Appendix 7.5: Topics For Discussion (Developing Discussion Points) ..........32

Figure 7.5: A Compendium of Suggestions Aimed at Generating Practical Solutions (to

Challenges Facing the Case Study Organization) .32-36


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HR0383: Contemporary Management Practice

Case study Assignment: Organizational Change

1.0

Introduction

This report critically reviews the literature and frameworks relating to organizational change.

Recommendations are presented in relation to the case study organization in the hope that they

will improve its current approach.

2.0Literature Review

2.1 Definitions of Change

The late American science fiction writer and academic, Isaac Asimov (1920-1992), suggested

that:

It is change, continuing change, inevitable change that is the dominant factor in society today. No

sensible decision can be made any longer without taking into account not only the world as it is, but the

world as it will be.

The Cambridge Dictionary defines change as:

To make or become different.

Dawson (2003) says change represents:

New ways of organizing and working


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Strickland (1998) refers to changesmany guises, such as:

transformation, development, metamorphosis, transmutation, evolution, regeneration, innovation,

revolution and transition, to name a few.

This highlights how change can be small and carefully measured on the one hand, or significant

and extreme on the other. While one organization may need to take small, developmental steps,

as is the case when seeking continuous improvement, another may find it needs to reinvent

itself (and what it does). This is known as a metamorphosis.

2.2 Definitions of Change Management

According to Conner (1992):

Change management is a set of principles, techniques, and prescriptions applied to the human aspects

of executing major change initiatives in organizational settings.

Conner does not focus on the what, in terms of what is driving change (such as M&As,

technological developments or globalization); rather, he focuses on the how in terms of the

management of the HR and infrastructure surrounding major projects, so the people involved are

better prepared to adjust to any implications. Other authors have made similar references to the

importance of the human element over recent years, suggesting Connersoriginal points remain

valid. For example, Fincham and Rhodes (2005, p. 525) define change management as:

The leadership and direction of the process of organizational transformation especially with regard to

the human aspects and overcoming the resistance to change.


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In contrast, Moran and Brightman (2001, p. 111-118) focus on the organization itself, defining

change management as:

The process of continually renewing an organizations direction, structure, and capabilities to serve the

ever-changing needs of external and internal customers.

More recently, Hayes (2007, p. 30) offers a similar description, noting that change management

involves tweaking the organization, so it becomes (or continues to be) effective:

Change management is about modifying or transforming organizations in order to maintain or improve

their effectiveness.

Hiatt and Creaseys(2002) definition hopefully offers a vantage point from which to consider the

contents of this report.

While many techniques can be employed to design the solution to a business problem or opportunity

[e.g, the business change], change management is the process, tools and techniques to manage the

people-side of that business change to achieve the most successful business outcome, and to realize that

change effectively within the social infrastructure of the workplace.

2.3 The Necessity for Change

Drucker (1980) suggests a period of uncertainty can also be one of great opportunity for those

who can understand, accept and exploit any new realities. Drucker suggested that organizations

which are sufficiently flexible and able to adapt to a changing business environment would be in

a better position than their rivals to exploit emerging opportunities and avert threats.


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The major drivers for change vary from one organization to the next, while the scope of the

change will have an effect upon the way in which the change is approached. Stacey (1993)

provided some clarity by categorizing change into three forms: closed, contained and open-

ended.

Closed change relates to a situation in which the events leading to the change are easy to

predict. This may involve the refinement of an existing process/system to improve efficiency

and/or effectiveness, such as improving functionality within an existing application.

A contained change is a larger-scale change that is more difficult to predict. This kind of

change is costlier and takes longer to complete, since there are more people to consult and a

larger number of factors to consider. There would also be a greater level of error within the

process. In a contained change, however, similar events and tasks that have taken place before

can provide useful empirical data in relation to the probability of the outcome. A voluntary

redundancy program may fall within this category (unless it is a longer-term requirement).

Open-ended changeis highly volatile and difficult to predict. Open-ended change often

involves dealing with the unknown, such as switching an organizations computer system over

to a new (but largely untested) platform.

In terms of assessing the prospects for change, one of the most popular methods used to perceive

the external (macro) factors that may affect an organization in the future is a PESTEL analysis.

PESTEL stands for Political, Economic, Socio-cultural [or Social], Technological,

Environmental and Legal. Byproducing such an analysis and comparing the results with its

competitors, an organization will be able to recognize problematic areas, strive to overcome

them and generate an edge over their rivals, Ruberson (1999) notes.


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Critics say that for the analysis to be effective, it must be carried out regularly, while noting that

an effective analysis requires access to quality external data sources, which can be time

consuming and costly. A PESTEL analysis pertaining to the case study organization is presented

in Appendix 7.1 (Figures 7.1 A-C [p. 19-21]).

2.4 Impediments to Effective Change

The definitions of change management provided in the Literature Review (Definitions of Change

Management, 2.2 [p. 5]) illustrate the importance of people during the change process. Jeffs

(2011) says resistance to change can be anticipated and should be proactively addressed. He

says many strategies have failed due to a lack of support across an organization, adding that this

is understandable if employees and managers feel they are likely to lose out.AForbesstudy

(2010) revealed that one of the most significant reasons (19%) for the failure of a strategy was:

because key stakeholders dont understand the strategy and dont commit on follow-through.

This highlights the importance of communication, stressing the need for an organization to

thoroughly explain the necessity for change and the consequences of not doing so.

Kegan and Lahey (2001) suggest that employees refuse to change through fear of the possible

outcomes, such as changes in power, the formation of new teams and the need to learn new

skills. This assumes that effective change can only take place if an organizations staff members

are fully supportive.

In his seminal work, Lewin (1951) presented the force-field analysis model, which provides

insight into the strategic changes that need to be made within an organization and areas of


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possible resistance. Jeffs (2011) suggests that understanding the politics of an organization in

conjunction with the indications highlighted by a force-field analysis can provide a useful guide

to identifying how to overcome resistance.

One major advantage of this tool is that it provides a useful visual summary of the factors

supporting and opposing a particular idea within a single image. It is also possible that the

analysis can be expanded upon beyond the data to examine qualitative factors that could

potentially impact upon the success or failure of the idea being assessed.

One major disadvantage is that the end product may not necessarily result in the establishment of

a consensus. Indeed, it may create a division (between those supporting and opposing the idea).

A force-field analysis requires the full participation of everyoneinvolved for it to be effective. If

this isnt possible, the analysis is unlikely to accurately portray the supporting and opposing

forces. Linkov and Ramadan (2004) note that stakeholders can also be opposed to reforms based

on a multitude of different reasons that are not described in a force-field analysis.

A force-field analysis is presented in Appendix 7.2 (Figure 7.2A [p. 22]), which relates to a

(fictitious) manufacturing facility. Here, the forces for and against are balanced. To address the

situation, the organization could reduce the forces against by allaying fears among staff by

means of a comprehensive internal communication program and/or by looking at steps to reduce

the environmental impact of applying the new techniques. Such steps could reduce the resistance

factors and enhance the power of the forces for change.

In Appendix 7.2 (Figure 7.2B [p. 23]), the force-field analysis refers to the case study

organization. It should be noted that force-field presentations are often based on assumptions

rather than facts, so this aspect should be carefully considered when assessing one. Even if the


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picture being developed is built upon accumulated data, the interpretation may not necessarily be

construed as being objective within the overall process of assessing the forces (for and against).

Despite these constraints, this method has been widely used to inform decision-making,

especially with regard to the planning and implementation of change management projects

within organizations.

2.5 Organizational Metaphors

Morgan (1986) suggests eight metaphors (machines, organisms, brains, cultures, political

systems, psychic prisons, flux and transformation and instruments of domination) can be used to

describe an organizations processes and culture. The illustration in Appendix 7.3 (Figure 7.3

[p. 24]) provides a clearer idea as to how the typical characteristics of an organization can be

described in such a way.

For example, the instrument of domination category refers to alienation, repression,

imposing values, compliance, charisma, maintenance of power, exploitation, divide and

ruleand discrimination and corporate interest. This metaphor suggests that employees have

little influence and may even be expected to follow a party line rather than a strategy.

Morgans influence led to many creative works pertaining to organizations. In one example,

Boyce (1995) referred to metaphors used by staff at a non-profit organization to focus on a

significant difference in perception between its staff and president. However, while Morgans

ideas generally receive widespread support, Reed (1990) suggested Morgans writing

transformed organizational theory into a supermarket (of metaphors), within which new


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understandings are off-the-shelf products of the authors imagination. Reed suggests such

ideas can only be passively consumed.

Specific comparisons between the case study organization and Morgans metaphors are included

within the Analysis of the Case Study Organization (3.0 [p. 10]) and Recommendations(4.0

[p. 11]).

2.6 Models of Change

One of the most commonly-used change models during the 20thcentury was Lewins (1951)

three-step model (Appendix 7.4, Figure 7.4 [p. 25]). This involves:

Unfreezing (or unlocking) the present behavior

Moving to another level, and;

Refreezing the behavior (at the new level)

Warner (1996) said this model hasbecome very influential, while Wang (2012) suggested that

most change process theoriesare based upon Lewins ideas.

One major criticism is that the model does not provide users with the opportunity to review and

enhance the changes. It is widely believed that Lewins model is most suitable for organizations

preparing for closed or contained changes.


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Kotter (1996) developed a more complex model, comprising eight steps:

Establish a sense of urgency

Develop a guiding team

Create a vision

Communicate the vision (for buy-in)

Empower action

Create short-term wins

Consolidate the improvements and generate even more change (Dont let up), and;

Institutionalize the new approaches to make the change stick.

Cameron and Green (2004) see change as a continuous cycle, which has seven steps:

Establish the need for change

Build the change team

Vision and values

Communicate and engage

Empower others

Notice improvements and energize; and;

Consolidate.

Some of Cameron and Greenssteps mirror Kotters. In the first three steps of Cameron and

Greens model, they build the change team while Kotter builds the guiding team(see

Appendix 7.4, Figure 7.4 [p. 25]). Similarly, Cameron and Green create vision and values

while Kotter creates the vision. During the phase in which Lewin talks of moving to another

level,both Cameron and Greens and Kotters models communicate then empower.


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Although the language used here differs somewhat, the spirit of the two models is still

essentially very similar up to this point. It is during the final phases that the differences begin to

showCameron and Greensmodel notices the improvements made, consolidates, then reviews

any errors when the cycle begins again, whereas Kotters short-term wins refer to breaking

down the implementation process and reviewing each step.

Both models focus on areas for development and include positive attributes and both are suitable

for the volatile open-ended change described by Stacey (1993).

3.0 Analysis of The Organization

When comparing the case study organization with the metaphors described by Morgan

(Appendix 7.3, Figure 7.3 [p. 24]), the Machine is the most apt metaphor, describing an

organization focused on efficiency, waste, maintenance, order and clockwork. Working

towards its mission, employees have clear roles and job descriptions, while their performances

are monitored closely. There are robust systems in place, a high degree of order, while

generating the end product/service is the organizationsprincipal objective.

It has also been suggested (by Morgan) that some organizations are hybrid. Some of the case

study organizations features may refer to Political Systems, Instruments of Dominationand

Cultures. For example, divide and rulecomes to mind when considering the way in which

staff and management are currently separated physically (Instruments of Domination).


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Recent changes have been unsuccessful, leading to confusion in the workplace, while generating

a negative effect upon efficiency, effectiveness and morale. To address these points, a logical

change management system is required, which will need clear boundaries if it is to be effective.

4.0 Recommendations

Since this section focuses on identifying the most suitable change management model, A

Compendium of Suggestions Aimed at Generating Practical Solutions (to Challenges Facing the

Case Study Organization)is presented in Appendix 7.5 (Figure 7.5 [p. 26-30]) in an effort to

generate suggestions (and discussion points) for each of the particular problems highlighted in

the background information pertaining to the case study organization.

Kotters Eight-Step Change Management Model

The organization could improve its current situation by implementing an effective change

procedure. It must develop cross-functional working and involve its employees in the change

process at an earlier stage to improve communications and reduce the potential for

misunderstanding.

Kotters eight-step model remains one of the most popular change management models. While

Appelbaum, Habashy, Malo and Shafiq (2012) suggest that Kotters model appears to derive its

popularity more from its direct and usable format than from any scientific consensus on the

results, there has to be a practical dimension when considering organizational change and


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Kotters model is more suitablethan the others because the organization must reach specific

targets (regarding customer service and ethics) and adhere to legislation.

The case study organization must:

1. Establish a sense of urgencyThe legislation and targets the organization needs to

reach have generated a sense of urgency (for change to take place).

2. Build the guiding teamThe decision-making process among management requires

clarification and this may be achieved through greater standardization. More regular

cross-functional meetings may offer a way for management to share ideas and for senior

managers to delegate responsibility for implementing change to operational managers.

Some operational processes may retain their current level of discipline (and control).

However, the ability to share the ownership of change requires support from various

tiers of the management chain. Longer-term, management may benefit from moving from

control towards mentoringin order to develop a positive, customer service-friendly

organization that promotes a culture of nurturing leadership.

3. Create the visionChannels of communication must improve, so management

interaction between units should be encouraged and supported. This vision must be

strong and unified among management categories and departments. Would a strong

supporting message add weight to the mission statement?Perhaps management and

employees require a clearer indication of how (and why) they must achieve the aims (of

the vision).


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4. Communicate the vision for buy-inCurrent levels of resistance stem from a

perception that change is being imposed. At this stage, the vision needs to be

communicated in a unified way. Meaningful channels providing feedback must be

provided so that employees can fully commit to the changes.

The various channels used to transmit important information (e.g., via HR, PR, etc) must

ensure the message is not only clear, but fully understood. An agile network referred

to in greater detail shortlywould also play a leading role.

5. Empower actionThis must be provided so employees can fully understand the change.

Executives must walk the talk.Can employees take ownership of this change

initiative? Are they providing feedback and ideas? The organization must recognize

employees participation at this stage.

6. Create short-term winsThis phase recognizes that breaking the implementation into

stages will make the process smoother and easier to digest. It also provides the

opportunity for feedback.

7. Consolidate improvements and produce still more change(Dontlet up)

Modifications can be made now based on feedback received from staff, showing that the

input is valued.


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8. Institutionalize new approachesMake change stickThrough the change process,

natural leaders will emerge. At this stage, these individuals should be recognized

(through promotion/increased responsibility). These individuals will also be responsible

for maintaining the new standards.

Jones (2010) argues that there is now significant consensus among researchers with reference to

drivers for change, citing three major spheres of influence: technological, economic and socio-

cultural. As a heavily-regulated organization, the case study organization is greatly influenced by

government, too. It is feeling growing pressure in terms of ethics and CSR, both from

government and society. In light of this, the organization needs to be adept at changefor the

foreseeable future. This idea is supported by Weick and Quinn (1999), who suggest that many

authors argue that change, never starts because it never stops.

Kotter (2014) recently outlined a new organizational design with two operating systems. One

conducts the day-to-day business of business, while the seconddubbed an agile network-

sits alongside to focus on the opportunities and demands of the future. Everyone works within a

traditional hierarchy, but the hierarchy assigns innovation, agility, and big change to an agile

network of employees (who volunteer for the effort). The initiative is launched by the upper tier

of management or an executive committee. This concept fits perfectly with an organization

facing perpetual change, as is the case with the case study organization. The establishment of

such a system would enable it to become more fluidin terms of managing change, while

providing vital support in the enactment of the change process using Kotters eight-step model.


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5.0 Conclusion

The models discussed in this report do similar things, but for different kinds of change. The form

that is most suitable for the case study organization is what Stacey (1993) defines as open-

ended. An in-depth model is best suited to achieving the goal. Since the organization has a

complex bureaucracy, the recommendations are not too extreme, while management retains

responsibility for making the final decisions.

As the organization moves from Morgans Machine towards the Brain metaphor, operational

staff can become leading change agents with the support of a more structured process (to follow).

Management will communicate more closely with each tier and other units to develop a more

standardized approach to management, while promoting the opportunity among departmental

staff tobecome tomorrows leadersby rewarding them for performance and innovation (in

relation to customer service and CSR).

Customer service will be raised to new heights through finely-honed systems that recognize the

input of those responsible for making them a success (operational staff). Management walks the

talk and mentorsrather than preaches, while everyone works at the same level, developing a

healthier workplace in which sharing and growing are positively encouraged.

The aims must be coherent; discipline will continue to be important in some respects, but, when

it comes to striving to reach the aims of a learning organization, its all about the journey.


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7.0 APPENDICES


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7.1 PESTEL ANALYSIS

FIGURE 7.1A: PESTEL FACTORS

This table refers to the PESTEL factors. A PESTEL analysis represents a survey of an organizations external (macro)environment. The letters in the acronym PESTEL (or PESTLE) stand for: Political; Economic; Socio-cultural;

Technological; Environmental; and; Legal.

Ethics (and morals) serve as guidelines on how to act justly and rightly when individuals face moral dilemmas. This forcecan include corporate social responsibility (CSR), the affiliation between a corporation and charities and fair trade.

Problems can exist when ethical factors relate to legal forces, as they may be at different stages of development. Some

practices may not be ethical, but may be legal. For the purpose of this chart, the author has chosen to try to accommodate

ethics within the standard PESTEL categories. The charts that follow this chart cover each of the PESTEL factors in

greater depth, relating them directly to the case study organization.

POLITICAL ECONOMIC SOCIO-

CULTURAL

TECHNOLOGICAL ENVIRONMENTAL LEGAL

Political factors

refer to thestability of the

political

environment. This

may manifest itself

throughgovernment

influence upon tax

policies or the

tradingenvironment.

Political factors are

intertwined withlegal factors. The

key difference is

that politicalfactors relate toapproaches and

attitudes, whereas

legal factors refer

to aspects that havebecome laws and

regulations. Legal

aspects must becomplied with,

whereas political

aspects may be

influences,restrictions or

opportunities (but

are not

mandatory).

Economic factors

represent thebroadereconomy,

including

economic growth

rates, levels ofunemployment

(& employment),

costs of raw

materials (such asfuel), interest

rates, monetary

policies, inflationrates and

exchange rates.

Clearly economicfactors can be

significantly

influenced by

political factors.For example, an

economy may

undergo asignificant

upheaval if a pro-

capitalist,

market-ledadministration is

replaced by a

hardline socialist

regime (and vice-versa).

Socio-cultural

aspects in aPESTEL analysisrelate to the

culture of the

society that the

organizationoperates within.

These factors

might include age

distribution anddemographics, the

level of education

among members ofthe society, the

distribution of

wealth and socialclasses, as well aslifestyles and

living conditions.

Technological factors

include the rate ofinnovation, new inventionsand development. This

includes changes in

information and mobile

technology, changes inInternet, e-commerce and

even mobile commerce, as

well as government

spending on research.

Although there is a

tendency to focus ondigital and Internet-related

areas, it should also cover

new methods ofmanufacture, distributionand logistics, as well as

materials development.

Environmental factors

include waste disposal andrecycling resources. Thismay also refer to limitations

in terms of natural

resources.

Legal factors

may includelaws relating todiscrimination,

consumer law,

antitrust law,

employment /labor laws and

health and

safety. These

aspects mayaffect how an

organization

operates andimpact upon its

costs and

demand for itsproducts.


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FACTOR FIGURE 7.1B - PESTEL ANALYSIS: CASE STUDY ORGANIZATION (Pto E)

POLITICAL With any organization operating in the power and energy sector in the UK, the political environment is crucial.The case study organization is heavily regulated in terms of its prices, services, health and safety requirements andcorporate social responsibility (CSR).

The organization in the case study most likely includes a high-level body that is specifically concerned with itsrelationships and interactions with the administration of the day. The current energy policy of the UK is set out

in the Energy White Paper of May 2007 (Meeting the Energy Challenge) and Low Carbon Transition Planof July 2009. It is led by the Department of Energy and Climate Change (which is currently headed by Ed

Davey), which was established in 2008. The policy is focused on reforming the electricity market, improvingthe countrys energy efficiency of building stock through the so -called Green Deal and by rolling out smart

meters.

The 2007 White Paper sets out the governments strategy to address long-term energy challenges through fourkey policy goals: To put the UK on a path to cut carbon dioxide emissions by up to 60% by 2050, with real

progress by 2020; maintain reliable energy supplies; promote competitive markets in the UK and beyond,

helping to raise the rate of sustainable economic growth and to improve productivity, and; to ensure everyhome is affordably heated.

The policy states:

Energy is essential in almost every aspect of our lives and for the success of our economy. We face two long-term

energy challenges: tackling climate change by reducing carbon dioxide emissions both within the UK and abroad;

and ensuring secure, clean and affordable energy as we become increasingly dependent on imported fuel.

Since many of the UKs coaland nuclear power stations built in the 1960s and 1970s are set to close, the policy alsorecognizes that the UK will require another 30-35 GW of new electricity generation capacity over the next two

decades. Clearly these policies also stress the importance the environment and environmental factors will have in

relation to the organizations future potential. Ethics are steered by the political climate, but are also inspired by

a nations citizens. Current world events demonstrate that an organization deemed to be unethical can facesignificant upheaval. In reality, a change in government in the UK is unlikely to usher in a radically different energy

policy, unless a Green or nationalist party were to gain a significant foothold, or become a partner in a coalition.

ECONOMIC Since the organization supplies power and energy services to over four million people, including domestic,commercial and industrial customers, the state of the economy will have a significant effect upon its operations.

Since there are clearly other energy suppliers available within the UK, the market is clearly a competitive one.

The organizations internal and external stakeholders, as well as the members of the communities it s erves, havesome kind of relationship with the broader economy, so it could also be argued that its efforts toward becoming

more socially responsible (in relation to CSR) may generate some benefits in terms of its market share and profits.

Many of the external regulatory influences and expectations may be driven by economic factors, so departments

within the organization dealing with political relationships and economic factors will need to cooperate and

coordinate closely if they do not already do so.

The energy policy discussed under the Political category within this PESTEL analysis also highlights some of the

economic challenges ahead.

The organizations positive relationship with the union body bodes well in terms of taking steps to adjust its strategy

In line with the current economic environment. The organizations ability to compete within the UK economy may

depend upon its ability to retain its talent and recruit new talent, so the significant challenges facing the organizationin terms of its workforce will need to be properly addressed. The author will attempt to highlight areas in which this

can be done within the reports (4.0) Recommendations section (p 11) and in the Table 7.5 in Appendix 7.5

(p 26-30).


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FACTOR FIGURE 7.1C - PESTEL ANALYSIS: CASE STUDY ORGANIZATION (Sto L)

SOCIO-

CULTURAL

All the organizations customers (consumers) are members of British society. According to the information

included in the case study, the organization is required to demonstrate that it has effective policies relating toethical practice.

Pro-independence politicians in Scotland recently set a target of 100% green electricity by 2020. One mightassume that since the objective of the politicians responsible for this target proposal is to inspire the (Scottish)

electorate to vote for independence (from the UK) that there is a reasonable degree of interest in the concept amongthe (Scottish) public. Even if this were not the case (within the rest of the UK), it surely reveals that the concept of

green electricity is now reasonably mainstream, even if it might still be considered to be overly idealistic orimpractical in reality.

While the case study organization is heavily regulated in terms of CSR, suggesting that the government is

insisting it develop strategic objectives around CSR issues, it is also quite likely that UK consumers (and theirrepresentative groups) are nowadays demanding that companies engage in meaningful CSR programs. At the very

least, expectations will be higher than they have been at any other time.

Finally, it should be noted that the organization has made a pledge to engage with the local community on

energy-related projects. Community groups are therefore likely to be keen to find out whether the organization

is going to deliver on this pledge.

TECHNOLOGICAL Electronic handheld devices are now being used to communicate daily task allocations among line managers andoperational staff in relation to the organizations weekly workload planning. The extensive field workforce also

receives the delivery of centralized works planning and scheduling via these kind of devices, while vehicle trackingtechnology is also being utilized. The organization needs to monitor closely technological developments and the

degree to which its competitors invest and develop products and services that fall under this category. To keep track

with technological developments, the organization ought to monitor developments on a global level.

ENVIRONMENTAL The countrys energy policy refers toseveral important factors relating to the environment, as listed under thePolitical category (included within this analysis). Operational managers are responsible for leading and managing

resources (both physical and human) and developing opportunities to improve CSR. Environmental developments

in terms of the external environment need to be closely monitored and opportunities and threats clearly identified.

LEGAL The organization faces regular, stringent internal inspections and audits, so it must be constantly aware of its

legal environment and the challenges that lie ahead.

Some areas relating to regulation have been highlighted as being trouble spots, generating potential threats, such

as funding risks. These areas should be examined in greater depth and some proposals have been made in relationto these areas in this reports(4.0) Recommendations section (p 11). Being one step ahead or at least very up to

date interms of the external legal environment could potentially help the organization to better adapt to change. Inother words, if this is carried out thoroughly, the organization ought then to be able to keep pace with external

developments of a legal nature.


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APPENDIX 7.2:

FIGURE 7.2A: AN EXAMPLE OF A FORCE-FIELD ANALYSIS

FORCES FOR CHANGE FORCES AGAINST CHANGE

Customers want

new products

Cost

Enhance production

speed

Disruption

Raise production

out ut

Cost of maintenance

currently increasing

Reduction or loss

in overtime

Staff afraid of

new technology

Improve product

quality

Environmental impact

of new techniques

TOTAL: 14 TOTAL: 14


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FIGURE 7.2B: A FORCE-FIELD ANALYSIS FOR THE CASE STUDY ORGANIZATION

FORCES FOR CHANGE FORCES AGAINST CHANGE

GO STOP

Customers service

must improve

Cost

Strong potential for

union support

Disruption

Financial incentives

(tangible benefits)

Ineffective ethicalpolicies pose penalty risk

Pockets of Resistance

to new work procedures

Mixed messagesamong management

Need to comply with

changes in legislation

Top down approach is

isolating many employees

TOTAL: 16 TOTAL: 16

While the forces for change are reasonably obvious, the compilation of this chart highlighted a major disadvantage of

using the force field analysis system. As stated in the body of this report, many force field analyses are based upon

assumptions not fact. For example, finding a tangible cost in terms of the finances involved is quite difficult to ascertain,

as some of the costs (of failure or success) may be non-financial. The author believes it might be wise to consider the cost

of not succeeding in relation to the customer services incentive (15 million pounds) and penalty (30 million pounds).

If it is possible to quickly gain the support of the union in relation to the change initiative, the potential for disruption is

likely to drop from its present level (3). Through improved consultation and the development of a flatter organization,

there is an opportunity to diminish the current pockets of resistance to new procedures.

By adopting a clear vision and communicating that vision effectively, there is certainly the potential to generate a more

consistent approach (and message) among the management. By working towards the development of a flatter

organization, there will hopefully be an opportunity to reconnect - in a positive sense - with the employees who have

currently become disillusioned with what they perceive to be a top down approach.


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APPENDIX 7.3: DEFINING ORGANZIATIONS

FIGURE 7.3: MORGANSMETAPHORS FOR ORGANIZATIONS

MACHINES This metaphor relates to organizations that are focused on efficiency, waste,

maintenance, order and clockwork. The author conjures up images of cogs in

a wheel, programs, inputs and outputs, standardization, production,measurement and control and design.

ORGANISMS This metaphor conjures up the image of a living system. The imagesgenerated include environmental conditions, adaptation, life cycles, recycling,

needs, homeostasis, evolution, survival of the fittest, health and illness.

BRAINS This metaphor conjures up the idea of learning. The images relating to this

metaphor include parallel information processing, distributed control,

mindsets, intelligence, feedback, networks, knowledge and requisite variety.

CULTURES This metaphor relates to society, values, beliefs, laws and ideology. The

images linked with this metaphor include rituals, diversity, traditions, history,service, shared vision and mission, understanding, qualities and family.

POLITICAL

SYSTEMS

This metaphor relates to interests and rights, power, hidden agendas andback room deals, according to Morgan. The images linked to this metaphor

include authority, alliances, party line, censorship, gatekeepers, leaders and

conflict management.

PSYCHIC PRISONS This metaphor relates to conscious and unconscious processes, repression and

regression, while conjuring up images such as ego, denial, projection, copingand defense mechanisms, pain and pleasure principle, dysfunction and

workaholics.

FLUX &

TRANSFORMATION

This metaphor relates to constant change, dynamic equilibrium, flow, self-organization, systemic wisdom, attractors, chaos, complexity, butterfly effect,

emergent properties, dialectics and paradox.

INSTRUMENTS OF

DOMINATION

This metaphor is all about control. It conjures up images of alienation,

repression, imposing values, compliance, charisma, maintenance of power,

force, exploitation, divide and rule, discrimination and corporate interest.


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APPENDIX 7.4: MODELS OF CHANGE

FIGURE 7.4: A COMPARISON BETWEEN THREE CHANGE MODELS

LEWIN CAMERON & GREEN KOTTER

Unfreeze (or unlock) the current

level of behavior.

Establish the need for change. Establish a sense of urgency.

Build the change team. Build the guiding team.

Create vision and values. Create the vision.

Move to a new level.Communicate and engage. Communicate the vision for buy

in.

Empower others. Empower action.

Refreezebehavior at this new

level.

Notice improvements &energize.

Create short-term wins.

Consolidating.

Consolidate improvements &produce even more change.

Institutionalize new approachesmake change stick.

CONTAINED / CLOSED OPEN-ENDED OPEN-ENDED


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Appendix 7.5: Topics For Discussion (Developing Discussion Points)Figure 7.5: A Compendium of Suggestions Aimed at Generating Practical Solutions (to Challenges Facing the Case Study Organization)

CASE STUDY ORGANIZATIONS

PRINCIPAL CHALLENGESPOTENTIAL SOLUTIONS

Organizational Change: Humanizing

The Machine

Shape up

Some of the organizationsMachine-like aspects may need to be retained,since - on a purely practical level -it has to purchase items and sell its services

to consumers. Efficiency and minimizing waste remain important elements and

much of the standardization in place will retain its relevance. However, the

organization could (and should) move towards some of the more intelligentmetaphors proposed by Morgan (1986).

Citing Seihl (1983), Scott, Mannion, Davies and Marshall (2003) note that:

The management literature on organizational culture has tended toassert arelationship between strong, unified cultures and commercial success. Yetobservation suggests that few large, complex organizations are likely to be

characterized by a single dominant culture. Moreover, there is no convincingevidence that a unitary culture yields higher performance than a pluralistic one.

If the case study organization can become a learningorganization, representedby Brains in Morgans metaphors(see Table 7.3, [p 24]), then some of the

negative aspects of its machine-like structure ought to fade. Perhaps it may be

possible to allow employees to take an active role in helping the organization to

move towards adopting this healthierstructure, as it is clear from the original

literature that a lack of ownership interms of the implementation of change is

considered to be an issue among staff.

Definitions of change management referred to earlier show that people have a

major impact on change management. The reference to Kegan and Lahey

(2001) in (2.4) Impediments to Effective Change (p 6) refers to employees

refusal to change. It suggests organizational change can only happen if staff

members are supportive of the proposed changes. After all, what better way of

supporting change than owningit?

Funding risks (1)

Customer service incentives

(@15 million pounds)

Re-crown the customer

While the organizations mission statement sounds suitably clear; vowing to

get things right first time every time, in reality, the organization is strugglingto deliver on its pledge. Perhaps by developing a vision statement pertaining

to the pledge, which describes howthe pledge can be achieved, the case study

organization may be able to begin to make some real headway.

Perhaps a system can be established under which staff can benefit financially

through a bonus for generating improved levels of customer service. This could

be established in a fair (and realistic) way and could be gradually improved

upon through the life of the change initiative. To monitor customer service

effectively, perhaps a small discount (or entry into a draw) could be offered tocustomers who complete regular surveys. There are certainly (non-costly) ways

to achieve this aim with the help of the organizations marketing/PR department

and/or through information provided through these channels.

Arguably, none of the organizations long-term aims can be achieved without

the support of the consumer, so customers need tobere-crowned king and

queen (and made permanent monarchs). Employees should gain access to an

innovation-oriented New Ideas channel, through which they can contributeideas to better serve the customer. This should offer some (basic) potential for

financial reward and recognition in terms of appraisals.


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PRINCIPAL CHALLENGES

(CONTINUED)

POTENTIAL SOLUTIONS

Funding risks (2)

Financial penalties of up to

2 million pounds if the department

cannot demonstrate it has effectivepolicies relating to ethical practice.

Ourethical pledges

Organizations in this particular sector face tougher challenges than in others.They must respond to government-led pressure and must also accept that there

is now a deeper understanding of the ethical aspects of their business amongmembers of the public.

If the New Ideas-style initiative (referred to in Funding Risks [1]) could beextended to CSR (corporate social responsibility), it could help the organization

to gauge the feelings of staff members. Once again, generating a sense of

ownership among employees would hopefully generate positive feelings and

help the organization to develop a realistic pledge that can be delivered upon.

The influence of CSR on an organizations employees is referred to in a

research paper by Gond, El-Akremi, Igalens and Swaen (2012), citing Blau

(1964), Gouldner (1960) and Molm & Cook (1995), which states that:

CSR encompasses actions oriented towards stakeholders which are beyond the

scope of traditional corporate activities, involving, for example, the environment,NGOs or social groups. These actions are likely to alter dynamics betweencorporations and their employees, creating a need for employees to reciprocate

positive corporate social behavior.

Reconnecting With Reality

Dealing With The Organizations

Outdated Disconnection Policy

Arguably, the case study organizations disconnection policy may lead to

accusations that it is being hypocritical if it refers to ethics and CSR on the

one hand, while maintaining what appears to be a rather harsh policy on the

other, which would seem to harm vulnerable members of society. This could

attract some negative publicity and, if it were to do so, this would put the

organizations ethics/CSR policies under even closer scrutiny.

Again, would it not be possible to utilize the New Ideas-style scheme

(proposed earlier) to generate some creative new ways [for customers] to pay?

Operational Practice: Inconsistency

in managing changeAccording to Peacock (2007), a CMI survey in 2007 suggested that 44% of

senior managers felt they were diverted from work by internal politics. This was

referred to by Hoy and Brown (2012) in a case study that focused on research

and a survey conducted byManagement Todaymagazine in 2006.

If departmental managers are too isolated from other departments, it is not

really surprising that there is an inconsistent approach to change managementamong managers. While developing more opportunities for cross-functional

interactions might be one way to improve the situation, might it also be possibleto get managers to put the change issue at the heart of their own studies, giventhat the organization is supposed to encourage them to develop their leadership

and management, knowledge, skills and behavior at undergraduate and masterslevels? In tandem with the education provider, efforts toward a more focused

approach to change management could be placed at the core of the managers

academic studies.

Would it be possible to develop a change buddy scheme? If such an idea were

considered to be too complex at an operational level, perhaps a member of the

agile network could get involved in this kind of initiative. The concept would

be utilized to ensure that the change message is loud and clear and not getting

lost amid all the din of day-to-day business.


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(CONTINUED)

POTENTIAL SOLUTIONS

A Them and Us culture

(operational, developmental and

emotional)

The author of this report perceives this issue as being a very important one in

terms of the long-term health of the case study organization.

Firstly, it should be noted that an annual bonus is available for managers if their

departments achieve their objectives. There is no reference to a bonus for staff,

which ought to be considered in relation to the funds pertaining to customer

service standards. This may already be a source of grievance among staff within

the organization, although there is no reference to it specifically in the

background info. If the customer service-related incentive (15 million pounds)

is annual, a significant chunk should be expertly divided up in order to be usedto motivate staff properly and give the change initiative a long-term lifespan.

The New Ideas initiative referred to earlier should be extended to all levels of

the organization. BT (formerly British Telecom) utilized a program of this kind

during the 1990s. The financial incentive for having an idea accepted as a

proposal was 25 pounds. While this was certainly no Kings ransom, it was

nevertheless a genuine form of encouragement aimed at helping staff to reallythink about the nature of their work. Most importantly, it helped to generate aninterest among employees in the organizations processes and systems.According to a former employee, some of the better proposals were pursued

and, following a trial period, eventually adopted by the organization.

What is the organizations leadership template at present? Does it only hiregraduates? Is there any potential to progress from within? Through an essay

competition or a similar initiative, staff members could compete for a place on

an undergraduate leadership program. Could the children of staff members

possibly compete for a college sponsorship? As many economies grow evermore reliant on younger workers, the organizations future may also rely upon

younger people given current population trends (aging).

Given that the union has a largely positive relationship with the case study

organization, this might be an area in which it could work with the organization

and perhaps even contribute towards the development of leadership and

innovation programs, which could also really help to narrow the gap between

themand us. If they are to retain their relevance and power base, unions

need good leaders, too.

Hoy and Brown (2012) cite a 2008 CMI study called Management Futures,

which discovered changing perceptions of what makes a good manager. For the

first time since 1986, the results showed that the belief that leaders are born

and not made was eclipsed by the view that relevant job experience makes

good managers. The report also reveals that a distinctive trend is appearing interms of the skills employers will be developing in the future, namely:

the ability to manage change and manage risk will be the key for managers in thecoming years.

According to the study:

An increasingly flexible and transient workforce and multicultural and remote teamworking will require talented and prudent managers who excel in analysis, evaluationand, above all, good judgment.


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(CONTINUED)

POTENTIAL SOLUTIONS

A Them and Us culture (physical) At present, managers and leaders from the case study organization are based

within the organizations headquarters and have their own offices, separate from

the operational staff. This arrangement is detrimental and promotes the idea of a

hierarchy, rather than a culture of learning and knowledge-sharing.

In a 2003Management Todaysurvey, 94% of respondents said they regarded

their place of work as a symbol of whether or not they were being valued by

their employer. Only 39% thought that their office/workplace had been

designed with the employee in mind.

Herzberg (1959) suggested workplace design was a key satisfier. Other leading

writers from the human relations movement also suggested that workplace

design was a clear motivator and could lead to improved employee retention,

while attracting new employees and improving productivity. Organizations now

recognize workplace design and aesthetics as being an important factor in the

management of an organization and have begun to look at new, innovativeforms of workplace design to spur productivity and motivation. Indeed,

workplace design can be a clear indicator of an organizations culture,according to Brown (2014).

Since task-focused cross-working will be at the heart of the change initiative

suitable for the case study organization, it is worth noting that the co-founder

and former CEO of Apple, the late Steve Jobs, saw Apple and Pixar as learning

organizations and felt they should therefore encourage creativity andinnovation by providing employees with suitably interesting and dynamic

workplaces. He promoted the idea by developing open-plan spaces, so staff

members could come and go and work wherever was best for them. Arguably,

since the trends in future working (discussed under Them and Us culture

[operational, developmental, emotional]) refer to differences in the way people

work, the case study organization should adopt more relevant and inclusive

working spaces for its teams, which should also help to improve staff morale.

The idea of developing a more dynamic organization through improved

workplace design is not new. The spacious, open atrium space found within the

Larkin Building, designed by Frank Lloyd-Wright for the Larkin Company in

Buffalo, New York at the dawn of the 20 thcentury, illustrates a significant step

in the development of workspace design and development. The atrium spacerepresents social space and was ideal for holding meetings and sharing ideas.

Everyone felt interconnected and the design was ideal for building

relationships. The building helped to develop a sense of belonging among

staff, while it broke down barriers by minimizing the use of walls.

The silos and terminals that typify many modern workplaces are seen as being

symbolic of scientific, classical and bureaucratic forms of management. If staff

were not told what to do and where to do it, they would be timewasting,according to the management concepts based on the works of writers such as

Frederick Taylor and Max Weber.

Despite the generally positive outcomes of adopting more open workspaces,

there can also be some serious challenges. For example, resistance can occur

among those with traditional power (status/territorialism), while more time is

involved in organizing work. There maybe too much communication, whichmay be inappropriate for staff dealing directly with the public. Moreover,

people can be difficult to locate and there can be a lack of privacy.

Each [value] is united by a

common thread a belief

that the quality of our

surroundings has a direct

influence on the quality of

our lives.

Brochure for The Art ofArchitecture exhibition (Bangkok

[4 April-29 June,2014]), Foster +

Partners.


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(CONTINUED)

POTENTIAL SOLUTIONS

A lack of flexible working

arrangements

Poor morale among field work

force

Employees are a vital stakeholder group, so if the organization is to promote

CSR (and CSR-related initiatives), it needs to be sure that its own working

arrangements at least meet the aspirations of the general working populace.

Since shift working is currently being used and the customer needs to be trulyvalued in order to bring about the changes required by the organization, a

comprehensive study should be conducted to identify peak periods and see

whether or not flexible working is feasible and workable. If this survey shows

that it is feasible and workable, the organization should consider adopting

flexible working arrangements, including home working, as soon as possible.

BT notes on its website, under the heading, Social Responsibility: Awards and

Recognition, that:

Over the years BT has become widely recognized as a progressive employer.

Our flexible working policies and communications services enable a wide range ofpeople to work for us including parents, carers and people with disabilities.

We have around 14,500 contracted home workers and a further 64,000 employees whoare able to work flexibly thanks to the use of BTs technology.

If BT can do this successfully, the case study organization ought to be able toattain similar results. While it may not have access to BTs technology, recent

significant developments in IT ought to ensure that it would not be too costly to

develop a similar IT infrastructure.

The case study notes suggest that staff members are currently disillusioned and

questioning the validity of recently-introduced work procedures. The

organization, perhaps in tandem with the union, should strive to find practical

and workable solutions to rise to this challenge. If the organization takes intoconsideration employeesgrievances and concerns, staff will gain a greater

sense of ownership and this ought to help ensure that any adjustments (or

indeed any other practical, workable solution [including change]) ought tohave a greater chance of success. This refers to a point made earlier in this

report that in order for this organization to be successful over the long-term, it

will really need to be adept at change. To do this, it needs to be fully engagedin a positive and dynamic relationship with its employees.

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Case Study: Contemporary Management Practice (CMP) - Organizational Change

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