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Prof. Dr. E.VatchkovaProf. Dr. E.Vatchkova
Strategic ManagementStrategic Management
IMPLEMENTATION AND IMPLEMENTATION AND CHANGECHANGE
CONTENTSCONTENTS1.1. Understanding changeUnderstanding change
2.2. Factors, causing changeFactors, causing change
3.3. TypologyTypology
4.4. Contextual features of changeContextual features of change
5.5. The process of strategic changeThe process of strategic change
6.6. Forcefield analysisForcefield analysis
7.7. Overcoming resistance to changeOvercoming resistance to change
8.8. Change strategies and tacticsChange strategies and tactics
9.9. Communicating changeCommunicating change
1. Understanding change1. Understanding changeConstant processConstant process
““Status” of contemporary Status” of contemporary organizationorganization
Main competitive advantageMain competitive advantage
Means for long-term survivalMeans for long-term survival
Managerial competence and Managerial competence and competencycompetency
2. Factors, causing change2. Factors, causing change
External triggers:External triggers:– technologytechnology– customer’s tastescustomer’s tastes– Competitor’s activitiesCompetitor’s activities– MaterialsMaterials– LegislationLegislation– Social or cultural valuesSocial or cultural values– Economic circumstancesEconomic circumstances
Internal triggers to changeInternal triggers to change
Job designJob design
Product designProduct design
Office and factory layoutsOffice and factory layouts
Allocation of responsibilitiesAllocation of responsibilities
TechnologyTechnology
TypologyTypologyIndividual, group, organizationalIndividual, group, organizationalInnovative, adaptive, radicalInnovative, adaptive, radicalReactive, proactiveReactive, proactiveTechnological, administrative, Technological, administrative, peoplepeopleWanted, compulsoryWanted, compulsoryBy stages, divisible, trial, By stages, divisible, trial, reversible, non-reversiblereversible, non-reversibleConcrete, known, relevant, Concrete, known, relevant, attractiveattractive
AdaptiveChange
InnovativeChange
RadicallyInnovative
Change
“Reintroducinga familiarpractice”
“Introducing apractice newto the organization”
“Introducing apractice newto the industry”
A Generic Typology of Organizational Change l
Types of strategic changeTypes of strategic change
EvolutionEvolution AdaptationAdaptation
RevolutionRevolution ReconstraReconstractionction
SCOPE
NATURE
Transformation Realignment
Incremental
Big Bang
Contextual featuresContextual features TimeTime
ScopeScope
PreservationPreservation
DiversityDiversity
CapabilityCapability
CapacityCapacity
ReadinessReadiness
PowerPower
Steps in the change processSteps in the change processLevin-Schein modelLevin-Schein model::
1.unfreezing, 2.changing, 3.refreezing1.unfreezing, 2.changing, 3.refreezing
Richard Daft modelRichard Daft model::1.1. NeedNeed
2.2. IdeaIdea
3.3. ProposalProposal
4.4. Decision to adoptDecision to adopt
5.5. ImplementationImplementation
6.6. ResourcesResources
FRAMEWORK FOR MANAGING FRAMEWORK FOR MANAGING STRATEGIC CHANGESTRATEGIC CHANGE
Diagnosing the change situation
Types of strategic change The importance of context Organizational culture Forcefield Analysis
Management styles and roles
Styles of managing change Change agency roles:• Strategic leaders• Middle managers• Outsiders
Levers for managing change
Structure & Control Routines Symbolic processes Political processes CommunicationChangetactics
Force field analysisForce field analysisIdentifying forces for and against Identifying forces for and against
changechange
1.1. What aspects of the current culture What aspects of the current culture might aid change?might aid change?
2.2. What aspects of the current culture What aspects of the current culture would block such change?would block such change?
3.3. What is to be introduced or What is to be introduced or developed to aid change?developed to aid change?
Forcefield analysisForcefield analysisPUSHINGPUSHING
High-quality High-quality serviceservice
Ethos of hard workEthos of hard work
FlexibilityFlexibility
Devolved servicesDevolved services
RESISTINGRESISTING
Workload/overloadWorkload/overload
FirefightingFirefighting
DepartmentalismDepartmentalism
Departmental Departmental baronsbarons
Formality of Formality of managementmanagement
Stories of “the Stories of “the good old days”good old days”
Blame cultureBlame culture
Deference Deference
Political mechanisms in organizationPolitical mechanisms in organization
ACTIVITYACTIVITY
AREASAREASRESOURCESRESOURCES ELITESELITES SUB-SUB-
SISTEMSSISTEMSSYMBOLICSYMBOLIC KEY KEY
PROBLEMSPROBLEMS
Building Building the power the power basebase
ControlControl
AcquisitionAcquisitionSponsorshSponsorship of / ip of / Associ-Associ-ation with ation with eliteselites
Alliance Alliance buildingbuilding
Team Team buildingbuilding
Building Building on on legitima-legitima-tiontion
TimeTime
Dualty of Dualty of ideasideas
Existing Existing eliteselites
Overco-Overco-
ming ming resistanceresistance
Withdra-Withdra-walwal
Use of Use of “counter-“counter-intelli-intelli-gence”gence”
Breakdown Breakdown or devisionor devision
Association Association with: with: change change agent,agent,
RespectedRespected
outsideroutsider
Foster Foster momentummomentum
for changefor change
Sponsor-Sponsor-ship/ship/
reward of reward of change change agentagent
Attack or Attack or remove le-remove le-
GitimationGitimation
Foster Foster confuson,confuson,
Conflict Conflict and ques-and ques-
tionningtionning
Striking Striking from too from too low a low a power power basebase
Need for Need for rapid rapid rebuildingrebuilding
Achieving Achieving
Comp-Comp-lianceliance
Giving Giving resourcesresources
Removal Removal of resis-of resis-tant elitestant elites
ImplementImplementation and ation and collabo-collabo-rationration
Applause/Applause/rewardreward
ReassuranReassurancece
Converting Converting the body of the body of the organi-the organi-sationsation
Change strategiesChange strategiesEducation and communicationEducation and communication
Collaboration/participationCollaboration/participation
InventionInvention
DirectionDirection
Coercion/edictCoercion/edict
STYLES OF MANAGING STRATEGIC STYLES OF MANAGING STRATEGIC CHANGE ICHANGE I
StyleStyleMeansMeans
/Context/ContextBenefitsBenefits ProblemsProblems
Education Education & & Communi-Communi-cationcation
Group briefings Group briefings assume assume internalization internalization of strategic logic of strategic logic & trust of top & trust of top managementmanagement
Overcoming Overcoming lack of (or lack of (or miss) miss) informationinformation
Time Time consuming consuming Direction or Direction or progress progress may be may be unclearunclear
Collaboration Collaboration / Participation/ Participation
Involvement in Involvement in setting the setting the strategy agenda strategy agenda &/or resolving &/or resolving strategic issues strategic issues by taskforces or by taskforces or groupsgroups
Increasing Increasing ownership of ownership of a decision / a decision / processprocess
May improve May improve quality of quality of decisionsdecisions
Time Time consultingconsulting
Solutions / Solutions / outcomes outcomes within within existing existing paradigmparadigm
CircumstancesCircumstances
of effectivenessof effectiveness
Incremental change Incremental change or long-time or long-time horizontal horizontal transformational transformational changechange
STYLES OF MANAGING STRATEGIC STYLES OF MANAGING STRATEGIC CHANGE IICHANGE II
StyleStyle Means Means
/ Context/ ContextBenefitsBenefits ProblemsProblems CircumstanceCircumstance
s of s of effectivenesseffectiveness
InterventionIntervention Change agent Change agent retains retains coordination/contcoordination/control: delegates rol: delegates elements of elements of changechange
Process Process controlled but controlled but involvement involvement takes placetakes place
Risk of Risk of perceived perceived manipulationmanipulation
Incremental/non-Incremental/non-crisis crisis transformational transformational changechange
DirectionDirection Use of authority Use of authority to set direction & to set direction & means of changemeans of change
Clarity & speedClarity & speed Risk of lack of Risk of lack of acceptance & acceptance & ill-conceived ill-conceived strategystrategy
Transformational Transformational changechange
Coercion/Coercion/edictedict
Explicit use of Explicit use of power through power through edictedict
Successful in Successful in crisis or state of crisis or state of confusionconfusion
Least Least successful successful unless crisisunless crisis
Crisis, rapid Crisis, rapid transformational transformational change or change change or change in autocratic in autocratic culturescultures
Communication of changeCommunication of change1.1. Face to faceFace to face (one-to-one or group) (one-to-one or group)
2.2. Interactive Interactive (e.g. telephone, video, (e.g. telephone, video, conferencing)conferencing)
3.3. Personal “memoing”Personal “memoing” (e.g. (e.g. tailored memos, letters)tailored memos, letters)
4.4. General bulletinsGeneral bulletins (e.g. circulars, (e.g. circulars, announcement on notice boards)announcement on notice boards)
Effectiveness of communicationEffectiveness of communicationRoutineRoutine ComplexComplex
Overly rich communicationCauses confusion
Rich communication for complex change
Routine communication for Routine change
Too little informationand sensitivity leads to mistrust and lack ofcommitment
EFFECTIVE COMMUNICATION
TRENDS CREATING CHANGETRENDS CREATING CHANGEin the ………….. Industryin the ………….. Industry
Technology:
Regulations:
Economy:
Business:
Markets and Customers
Competitions:
Family and Social issues
TrendsImpact on…………… Industry
Challenges for HumanResource Management
Write your ideas for how each trend impacts the ….. Industries and challenges human resource managements
THANK YOU !THANK YOU !