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Case Study: Contemporary Management Practice (CMP) - Organizational Change
Case Study: Contemporary Management Practice (CMP) - Organizational Change
HR0383:
Contemporary
Management Practice
Frank Stephen Thompson
(W12040015)
BA (Hons) Leadership and
Management (Part-time)
Northumbria University
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
CONTENTS (CONTINUED)
Figure 7.1C: PESTEL Analysis Case 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
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.
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 Conners original 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.
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.
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 openended.
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 change is 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. By producing 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.
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]).
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
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 everyone involved 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
10
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.
11
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]).
Warner (1996) said this model has become very influential, while Wang (2012) suggested that
most change process theories are 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.
12
Create a vision
Empower action
Consolidate the improvements and generate even more change (Dont let up), and;
Cameron and Green (2004) see change as a continuous cycle, which has seven steps:
Empower others
Consolidate.
Some of Cameron and Greens steps 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.
13
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
show Cameron and Greens model 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).
14
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.
15
Kotters model is more suitable than 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 urgency The legislation and targets the organization needs to
reach have generated a sense of urgency (for change to take place).
2. Build the guiding team The 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 mentoring in order to develop a positive, customer service-friendly
organization that promotes a culture of nurturing leadership.
16
4. Communicate the vision for buy-in Current 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 shortly would also play a leading role.
5. Empower action This 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 wins This 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 (Dont let up)
Modifications can be made now based on feedback received from staff, showing that the
input is valued.
17
8. Institutionalize new approaches Make change stick Through 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 sociocultural. 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 change for 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 second dubbed 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 fluid in 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 openended. 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 to become tomorrows leaders by 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 mentors rather 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.
19
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20
References (continued)
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21
References (continued)
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22
References (continued)
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23
References (continued)
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7.0 APPENDICES
25
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 force
can 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
SOCIOCULTURAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL
Political factors
refer to the
stability of the
political
environment. This
may manifest itself
through
government
influence upon tax
policies or the
trading
environment.
Political factors are
intertwined with
legal factors. The
key difference is
that political
factors relate to
approaches and
attitudes, whereas
legal factors refer
to aspects that have
become laws and
regulations. Legal
aspects must be
complied with,
whereas political
aspects may be
influences,
restrictions or
opportunities (but
are not
mandatory).
Economic factors
represent the
broader
economy,
including
economic growth
rates, levels of
unemployment
(& employment),
costs of raw
materials (such as
fuel), interest
rates, monetary
policies, inflation
rates and
exchange rates.
Socio-cultural
aspects in a
PESTEL analysis
relate to the
culture of the
society that the
organization
operates within.
These factors
might include age
distribution and
demographics, the
level of education
among members of
the society, the
distribution of
wealth and social
classes, as well as
lifestyles and
living conditions.
Technological factors
include the rate of
innovation, new inventions
and development. This
includes changes in
information and mobile
technology, changes in
Internet, e-commerce and
even mobile commerce, as
well as government
spending on research.
Environmental factors
include waste disposal and
recycling resources. This
may also refer to limitations
in terms of natural
resources.
Legal factors
may include
laws relating to
discrimination,
consumer law,
antitrust law,
employment /
labor laws and
health and
safety. These
aspects may
affect how an
organization
operates and
impact upon its
costs and
demand for its
products.
Clearly economic
factors can be
significantly
influenced by
political factors.
For example, an
economy may
undergo a
significant
upheaval if a procapitalist,
market-led
administration is
replaced by a
hardline socialist
regime (and viceversa).
Although there is a
tendency to focus on
digital and Internet-related
areas, it should also cover
new methods of
manufacture, distribution
and logistics, as well as
materials development.
26
FACTOR
POLITICAL
Since many of the UKs coal and nuclear power stations built in the 1960s and 1970s are set to close, the policy also
recognizes 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 face
significant 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, have
some 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 organization
in 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).
27
FACTOR
SOCIOCULTURAL
TECHNOLOGICAL Electronic handheld devices are now being used to communicate daily task allocations among line managers and
operational 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 tracking
technology 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 to several important factors relating to the environment, as listed under the
Political 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 relation
to these areas in this reports (4.0) Recommendations section (p 11). Being one step ahead or at least very up to
date in terms of the external legal environment could potentially help the organization to better adapt to change. In
other words, if this is carried out thoroughly, the organization ought then to be able to keep pace with external
developments of a legal nature.
28
APPENDIX 7.2:
FIGURE 7.2A: AN EXAMPLE OF A FORCE-FIELD ANALYSIS
FORCES FOR CHANGE
Customers want
Cost
new products
Enhance production
Disruption
speed
Raise production
output
Reduction or loss
in overtime
Cost of maintenance
Staff afraid of
currently increasing
new technology
Improve product
Environmental impact
quality
TOTAL: 14
of new techniques
TOTAL: 14
29
FIGURE 7.2B: A FORCE-FIELD ANALYSIS FOR THE CASE STUDY ORGANIZATION
Customers service
Cost
must improve
Disruption
union support
Financial incentives
Pockets of Resistance
(tangible benefits)
benefiutput
Ineffective ethical
Mixed messages
among management
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.
30
ORGANISMS
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 and
back room deals, according to Morgan. The images linked to this metaphor
include authority, alliances, party line, censorship, gatekeepers, leaders and
conflict management.
PSYCHIC PRISONS
FLUX &
TRANSFORMATION
This metaphor relates to constant change, dynamic equilibrium, flow, selforganization, systemic wisdom, attractors, chaos, complexity, butterfly effect,
emergent properties, dialectics and paradox.
INSTRUMENTS OF
DOMINATION
31
APPENDIX 7.4: MODELS OF CHANGE
FIGURE 7.4: A COMPARISON BETWEEN THREE CHANGE MODELS
LEWIN
KOTTER
Empower others.
Empower action.
OPEN-ENDED
OPEN-ENDED
32
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)
POTENTIAL SOLUTIONS
Shape up
Some of the organizations Machine-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 intelligent
metaphors proposed by Morgan (1986).
Citing Seihl (1983), Scott, Mannion, Davies and Marshall (2003) note that:
The management literature on organizational culture has tended to assert a
relationship between strong, unified cultures and commercial success. Yet
observation suggests that few large, complex organizations are likely to be
characterized by a single dominant culture. Moreover, there is no convincing
evidence that a unitary culture yields higher performance than a pluralistic one.
33
CASE STUDY ORGANIZATIONS
PRINCIPAL CHALLENGES
(CONTINUED)
Funding risks (2)
Financial penalties of up to
2 million pounds if the department
cannot demonstrate it has effective
policies relating to ethical practice.
POTENTIAL SOLUTIONS
34
CASE STUDY ORGANIZATIONS
PRINCIPAL CHALLENGES
(CONTINUED)
A Them and Us culture
(operational, developmental and
emotional)
POTENTIAL SOLUTIONS
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 used
to 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 really
think about the nature of their work. Most importantly, it helped to generate an
interest 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 hire
graduates? 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 ever
more 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
them and 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 in
terms 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 the
coming years.
35
CASE STUDY ORGANIZATIONS
PRINCIPAL CHALLENGES
(CONTINUED)
POTENTIAL SOLUTIONS
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 2003 Management Today survey, 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, innovative
forms 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 and
innovation 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 20th century, illustrates a significant step
in the development of workspace design and development. The atrium space
represents 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 may be too much communication, which
may be inappropriate for staff dealing directly with the public. Moreover,
people can be difficult to locate and there can be a lack of privacy.
36
CASE STUDY ORGANIZATIONS
PRINCIPAL CHALLENGES
(CONTINUED)
POTENTIAL SOLUTIONS
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 into
consideration employees grievances 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 to
have 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 engaged
in a positive and dynamic relationship with its employees.