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NATURE OF
ORGANIZATIONAL
CHANGE
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We cannot become what we need tobe by remaining what we are.
Max DePree
It is not the strongest of the species
that survive, nor the mostintelligent, but the one mostresponsive to change.
Charles Darwin
Importance
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Change is the law of life. And those wholook only to the past or present arecertain to miss the future.
John F. Kennedy
The road to excellence is always underconstruction.
Anthony Robbins
Importance
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When the rate of change outsideexceeds the rate of change inside,
the end is in sight.
Jack Welch
Importance
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Change and Organization
Organizationsdynamic field ofcomplexity challenged by ever presentdemands of change (Pettigrew, 2001).
Change - an inevitable feature oforganizational life, determining itssuccess and survival.
75 percent of all American corporations
have gone through some type of
systematic change program (Attaran,
2000).
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Change and Leadership
70 percent of new programs fromreengineering, installing new technology
to changing culture fail (Beer and Nohria,
2000).
Startlingly low record of change
success (Sturdy and Grey, 2003).
Survey of European firms by theEconomist(2000) 20 percent substantialsuccess with change and 63 percent only
temporary success.
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Concept
Change
The only constant
Moving to a new (better) state of being
Organizational change
A process by which organizations movefrom their present state to some
desired future state to increase theireffectiveness.
Implementation of new ways of doing orbeing in order to realign with the new
demands of the environment or to
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Concept
Goals
To find improved ways of usingresources and capabilities inorder to increase anorganizations ability to create
value and improve returns to its
stakeholders.
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Research Findings on OrganizationalChange
Needed for both the failing organizations(e.g. IBM or GM) or thriving organizations(e.g. Wal-Mart) to use resources in a way that
improve their fit with the environment.
Over half of all Fortune 500 companies haveundergone major organizational changes to
allow them to increase their ability to createvalue.
Of the 1970 Fortune 500 companies, one
third ceased to exist by 1983 because ofth ir in ilit t h n .
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Two modes of Change
1. Accidental or inevitable change
Happens to the organization
2. Planned change
Purposively designed andexecuted by the organization
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Types of Organizational Change
Evolutionary change
Gradual, incremental, and
narrowly focused.
A constant attempt to improve,adapt, and adjust strategies and
structure incrementally toaccommodate to changes in theenvironment. E.g. TQM, flexible
work groups, employee training.
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Types of Organizational Change
Revolutionary change
Rapid, dramatic and broadly
focused. A bold attempt to quickly find new
ways to be effective.
Radical shift in ways of doingthings, new goals and newstructure.
E.g. Reengineering, restructuring,
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Work in historical context
How has work changed over the years?How is it being transformed by
changing technologies, new ideas onhow to organize work--on the factoryfloor, in offices, working at home or
on the road, or in globally dispersedteams and organizations?
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Work: a brief history
Medieval Days: work was for the Serfs!
Marx Do we work to live or live towork?
Today: Source of Identity, EconomicNecessity, Social Contribution.
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Past and Present Industrial Economy Information Economy
Domestic Competition Global Competition
Big Industrial Firm Services--size varies Two groups: managers
and workers Diverse groups with
blurred boundaries
Adversarial Relations Mixed modes--conflict
and cooperation
Male Breadwinner with
Spouse at Home Men & Women at Work--varied families
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The Problem
Nature of work and the workforce havechanged dramatically, but our institutions,
policies, and practices for governing andmanaging work still reflect their origins inthe industrial economy of the past
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Our challenges
Update practices, institutions, andpolicies to catch up with the
changes in the workforce and inwork--to meet the needs of the
modern economy, and the modernworkforce and modern families!
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