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 Contents vii

Professional ethics 87
Summary 91
Activities 92
References 93

CHAPTER 4 MANAGING RESISTANCE AND ORGANISATIONAL CULTURE 96

Resistance to change: Reality or myth? 97
Concrete responses to change 108
Managing resistance to change 110
Organisational culture 114
Summary 125
Activities 125
References 126

CHAPTER 5 THE PROCESS OF ORGANISATIONAL CHANGE 130

Diagnosing organisations 131
Collecting and analysing diagnostic information 138
Feeding back diagnostic information 148
Designing interventions 153
Implementing change 157
Evaluating organisation development interventions 168
Summary 179
Activities 180
References 181

PART 3 ORGANISATION DEVELOPMENT 187

CHAPTER 6 ORGANISATION DEVELOPMENT AND CONTINUOUS CHANGE 190

Learning organisations 191
Self-designing organisations 206
Built-to-change organisations 211
Summary 215
Activities 216
References 217

CHAPTER 7 ORGANISATION DEVELOPMENT INTERVENTIONS: PEOPLE

AND PROCESS 222
Individual and group performance 223
Interpersonal process approach 236
Organisation process approaches 252

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viii Contents

Summary 261
Activities 262
References 263

CHAPTER 8 ORGANISATION DEVELOPMENT INTERVENTIONS: STRATEGY

AND STRUCTURE 268
Organisational and environmental framework 269
Open systems planning 274
Transorganisational development 277
Restructuring organisations 280
Work design 289
Summary 304
Activities 305
References 307

PART 4 ORGANISATION TRANSFORMATION 315

CHAPTER 9 ORGANISATION TRANSFORMATION AND CHANGE 318

Characteristics of transformational change 319
Integrated strategic change 323
Organisation design 328
Culture change 333
Summary 343
Activities 344
References 346

CHAPTER 10 CHANGE IN A CHAOTIC AND UNPREDICTABLE ENVIRONMENT 351

Change management throughout the world 352
Worldwide organisation development 353
Summary 367
Activities 367
References 368

CHAPTER 11 COMPETITIVE AND COLLABORATIVE STRATEGIES 371

Environmental framework 373
Competitive strategies 374
Collaborative strategies 382
Summary 396
Activities 397
References 398

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 Contents ix

PART 5 THE FUTURE OF CHANGE MANAGEMENT 405

CHAPTER 12 ORGANISATION DEVELOPMENT FOR ECONOMIC,

ECOLOGICAL AND SOCIAL OUTCOMES 408
Sustainable management organisations 409
Global social change 421
Summary 429
Activities 429
References 430

CHAPTER 13 FUTURE DIRECTIONS IN ORGANISATION DEVELOPMENT 433

The current state of organisation development 434
Trends in the context of organisation development 435
Implications for OD’s future 440
Summary 449
Activities 449
References 450

PART 6 INTEGRATIVE CASE STUDIES 454

»» Case study 1 Nintendo Switch: Now you’re playing with even more power! 455
»» Case study 2 Implementing organisational transformation in
Auzee Engineering Services (AES) 468
»» Case study 3 Delivering your Aboriginal strategy: Using strategic change
planning in a Victorian health and community support alliance 479
»» Case study 4 Decolonising ‘Closing the Gap’: Changing the colonial mindset 489
»» Case study 5 Building a new brand culture for Burger U 498
»» Case study 6 Listening to the City: Rebuilding Ground Zero with the citizens
of New York City 507
»» Case study 7 Building an SMO at illycaffè 513
»» Case study 8 Social and environmental change at LDI Africa 517
»» Case study 9 Diagnosis and feedback at Adhikar 521
»» Case study 10 Cultural and organisational integration at MMI: The Momentum
and Metropolitan merger 527

Glossary 541
Index 544

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 Guide to the text
As you read this text you will find a number of features
in every chapter to enhance your study of Organisational
Change and Development and help you understand
how the theory is applied in the real world.

PART OPENING FEATURES

Understand how key concepts are Meet real professionals in the
connected across the text with the Practitioner Vignettes, to gain an
Framework Diagram. insight into how Organisational Change
and Development theory informs their
day-to-day practice.
SUSTAINABILITY
GENERAL
DEFINITIONS INTRODUCTION Environment Structure
TO CHANGE
Australian context KEY ISSUES Leadership
BROAD and vision Culture PRACTITIONER VIGNETTE
ORGANISATION TRANSFORMATION

INCREMENTAL THEORETICAL
APPROACHES
UNDERSTANDING CHANGE

Revolutionary Interventions Technology

VISION
CONTINGENCY
Planning and
Bill Millard

Source: Bill Millard.

THEORIES
preparation MODELS AND
PROMOTING
FRAMEWORKS Process theories
READINESS Chief Executive/Moyne Shire Council
Allowing people FOR CHANGE
Culture excellence
to let go
Roadmaps for organisation development
OL VS LO
Handling the
transition MANAGING Characteristics METHODS
IN A ORGANISATIONAL AND TOOLS Few people have the same breadth and intensity of experience of organisation
LEARNING Learning
CHANGING Guiding ideas development (OD) as Bill Millard, the current Chief Executive at Moyne Shire Council
ENVIRONMENT organisation
architecture on Victoria’s west coast and formerly a senior Director at Hobsons Bay City Council in
Structure and
Process models infrastructure inner-city Melbourne and at Warrnambool City Council. Bill has a unique managerial
background in both regional and urban planning and development, in addition
RESPONSES TO CHANGE

CHARACTERISTICS to qualifications and experience in sociology, human resources and business. Bill
FIELD THEORY
OD models
generously provides two recent roadmap examples of his experience of OD at Hobsons
ORGANISATION
Natural part
DEVELOPMENT
Bay City Council.
of change OD interventions
RESISTANCE
Strategies for Cynicism Action research Example 1: Strategic roadmap
handling
resistance Silence
In late 2017, I presented to the International Economic Development Council (IEDC)
Alternative views conference (Toronto, Canada) with the topic ‘Reconciling Objectives of Land Use
Planners and Economic Developers’. City development is often highly contentious and
triggers emotional responses from people who perceive themselves to be impacted
negatively. Even high-quality proposals will be opposed vigorously, and passionate
community members will galvanise against a project quickly. Developers often
blame planning staff for delays and frustrations. As background to my presentation,
I undertook a short survey of town planners in my network to uncover the ‘Top 5
Gripes’ of land use planners in dealing with development applications. Likewise, I
Source: Adapted from D. Waddell, E-Business in Australia: Concepts and Cases, Pearson Education Australia, 2002. surveyed economic development professionals and members of the development
industry to understand their Top 5 Gripes of the planning process. [CHAPTER 1] INTRODUCTION 9

FEATURES WITHIN CHAPTERS

My survey showed that these myths about the planning process are heavily ingrained
2
by all parties and new ways of engagement are needed. I suggest a practical
[CHAPTER approach for
1] INTRODUCTION 25
The left-hand side of the model reflects common organisational change management
economic developers. In brief, the gripes of all parties are numerous. The Top 5 Gripes of
issues, such as the scale of change. How much change is required for an organisation to
land use planners in dealing with development applications were:
resolve a problem,and such as poorconsultants
customer service, or to adapt to competition
change, and to as
grow?

NEW
OD practitioners
1 Not the external
right information to supportwho lead organisational
development applications such the
– inaccurate
It also broadly
Australian identifies
Institute of the types
Training of change typically
and Development. 60 adopted in organisations, such as
BK-CLA-WADDELL_7E-190017-Chp01.indd 2 03/04/19 4:23 PM planning reports and/or technical information (a ‘trust us’ approach)
changes to structure or technology. Theundertaken
final and most important issue relates
Many2 different
Lobbyingorganisations have a wide –variety of OD willtolisten
efforts. the human
Many have

Identify the key ideas that the chapter will Important Key Terms are marked
CEO, Directors, state government anyone who to exert
dimension
been at the of change.
forefront It
ofreferences
innovating the capabilities
new change of leaders
techniques to establish
and
pressure when you are not giving them the answer they want to hear methods, a new
as direction
well as and
new
their ability
organisational to enable
3 Applicantsforms.change.
who Effective
Traditionally,
think their change
much leadership
of this
application work
is the wasalsoconsidered
only necessitates
one understanding
that is confidential
being and at
dealt with

cover with the Learning Outcomes at the in bold in the text and defined in
the responses
not thatoftime
publicised. employees
Today, whoorganisations
however, are the recipients
haveofincreasingly
change, (thegonepeople who with
public havetheir
to enact
OD
the change)
efforts, and the
4sharing
Being their responses
lessons
contacted withtoothers.
change
(pressured andinharassed)
terms of their emotional
by several reactions,
different perceptions
parties relating to
of fairness
OD work andissame
the the extent
also to which
application
being to they
done only
in support or reject
give thecommunities
schools, same change
message andinitiatives.
local, state and federal

start of each chapter. the margin to help guide your

It becomes A
governments.
need to be
Education
apparent
system from
able totolearn
(TAFE)
that the
implement
figure that,
encouraged
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for at
staff
incremental
another
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purposes of sustainability,
Institute of Technicalorganisations
and transformational
won its designer, Stuart Williams,
and Further
change. 3
a prestigious ‘This
requires organisational
achievement and management awardskills
from to compete in a mature
Human market (where cost,

understanding, and Concept Links

individual recognition the Australian Resources Institute
efficiency and incremental innovation are key) and to develop new products
(AHRI). It required all departments to provide six hours of training to fellow staff members and services
4
(where radical
annually. 61
OD is innovation, speed
increasingly and flexibility
international. As are
wellcritical).’
4
Thus, managers
as in South-East Asia, it today
has been are

will help you find related content in

requiredin
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Canada, andSweden,
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BK-CLA-WADDELL_7E-190017-Chp01.indd 4
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03/04/19 4:23 PM

implement
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INTRODUCTION change
total
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incremental
that and exists.
such a term planned change (organisation development) to dramatic
day example; not literally
LEARNING and unplanned change (organisation transformation) (Figure 1.2). Although applicable. For example, change
After studying this chapter, you should be able to: OUTCOMES is like the weather, always
organisation transformation (OT) receives headlines in the media, it
changing.
1 Describe both organisation development (OD) and organisation transformation THE RISE OF ORGANISATION TRANSFORMATION
is often organisation development (OD) that is the desired state for
Organisation development
(OT), and explain their similarities and differences. organisations. Where OT is a reactive, and sometimes dramatic, response (OD): a professional field of
As a result of external forces, such as the global financial crisis that began in 2008–09 social action(the
and an area of
2 Explain the relevance of OD and its role within organisations. to external pressures, OD is the preferred option for organisations that are
effects of which are still felt today), there has been a need to respond quicklyscientific in order to
inquiry.
3 Analyse the evolutionary historical context of OD and have an understanding of its introspective and wish to continually improve their products and services
anticipate negative consequences and/or capture an opportunity for advancement. Later
future. in an incremental manner.
chapters (see Chapters 9–11) explain how OT is often perceived as observable and a ‘quick
4 Assess the environment of OT and comment on its relevance in today’s change This is a book predominantly about OD, the desired state: a process that applies
fix’, and as a result may even receive significant media coverage. It is also very evident in
environment. behavioural science knowledge and practices to help organisations achieve greater
international contexts where the environment may be unpredictable and planning
effectiveness, including increased financial performance and improved quality of work life
would be difficult.
(QWL). It must also be noted that OD differs from other planned change efforts, such as
This kind of change is often termed revolutionary, as distinct from
technological innovation, training and development or new product development,For in further
that
evolutionary, which is the nature of OD. As a consequence, the alignment explanation of
Metaphor for change Sensitivity training KEY TERMS the focus is on building the organisation’s ability to assess its current functioningorganisation and to
with factors (including internationalisation, environment and technology) will
Organisation development (OD) Action research achieve its goals – OD is process-oriented, not outcome-oriented. Moreover, OD is oriented transformation
vary depending mainly on external forces, whereas OD has a predominantly (OT), see Chapters
Globalisation Systematic collection to improving the total system5 – the organisation and its parts in the context of the larger
Strategic alliance internal focus. OT also requires a different leadership style, which would 9–11.
environment that impacts on them.
be more directional and/or charismatic, whereas OD requires a more
On the other hand, OT may be perceived as volatile and reactive to environmental forces.
transactional approach.
In most instances, organisations tend to favour OD as it may be implemented proactively
Apply your learning 1.3 reports a longitudinal study that examined mergers
and therefore gradually minimise the disturbance within the organisation.
between three large multi-site public-sector organisations.
When one considers the events unfolding with each day, change remains one of the few constants in an
increasingly unpredictable and complex environment and one of the more significant and demanding
issues facing managers today. As the environment changes, organisations must adapt if they are to be
successful. Under these pressures, companies are downsizing, re-engineering, flattening structures,
going global and initiating more sophisticated technologies. A major challenge facing organisations today
is to develop a management style and culture that will enable them to cope with the challenges and

x
BK-CLA-WADDELL_7E-190017-Chp01.indd 9 03/04/19 4:23 PM
opportunities they face. Irrespective of whether the change has to do with introducing new technology, a
reorganisation or new product development, it is important for leaders to have a sound understanding of
change issues and theories to help guide their actions.1 BK-CLA-WADDELL_7E-190017-Chp01.indd 25 03/04/19 4:24 PM

Copyright 2020 Cengage Learning. All Rights Reserved. May not

7 be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202

BK-CLA-WADDELL_7E-190017-Chp01.indd 7 03/04/19 4:23 PM

 GUIDE TO THE TEXT xi
[CHAPTER 2] UNDERSTANDING CHANGE 57

→ Consultative: Consultation with employees, primarily about the means of bringing about
organisational change, with their possible limited involvement in goal setting that is
relevant to their area of expertise or responsibility.
→ Directive: Use of managerial authority and direction as the main form of decision making

FEATURES WITHIN CHAPTERS

about the organisation’s future, and about the means of bringing about organisational
change.
→ Coercive: Managers/executives or outside parties forcing or imposing change on key
groups in the organisation.
Typology of change strategies and conditions for their use

Engage actively and personally with Relate chapter theory to real-world

→ Participative evolution: Used when the organisation is ‘in fit’ but needs minor adjustment,
or is ‘out of fit’ but time is available and key interest groups favour change.
→ Charismatic transformation: Used when the organisation is ‘out of fit’ and there is

the material by completing the

little time for extensive participation, but there is support for radical change within the
organisation.
business environments by examining
Experiential Activities, which help the organisational practices of local
→ Forced evolution: Used when the organisation is ‘in fit’ but needs minor adjustment, or
is ‘out of fit’ but time is available. However, key interest groups oppose change.
→ Dictatorial transformation: Used when the organisation is ‘out of fit’, there is no time for

you assess your own knowledge,

extensive participation and no support within the organisation for radical change, but
radical change is vital to organisational survival and fulfilment of the basic mission.
and international companies in the [CHAPTER 1] INTRODUCTION 23

beliefs, traits and attitudes. Apply Your Learning Boxes.

As with any paradigm, Dunphy and Stace’s model has created considerable debate.
There certainly are positive and negative aspects and issues of resistance, politics, the
unpredictability of environment, ethical considerations and the unique characteristics of Apply your learning 1.2 demonstrates how competitive advantage is the goal of strategic
particular groups. change at Nissan Motors.

Understanding your beliefs about successful change

2.1
APPLY
managers EXAMPLES OF STRATEGIC CHANGE YOUR
LEARNING

1.2

EXPERIENTIAL ACTIVITY
Read each of the following 10 statements and indicate your agreement or disagreement. If In March 1999, Renault Motors acquired the failing Nissan Motors of Japan.
you fully agree with the statement, score 10. If you totally disagree, score 1. If you tend to Japanese business culture is famous for its policy of life-long employment. In an
agree more than you disagree, give a response between 6 and 9 depending on how much interview for Harvard’s ‘Working Knowledge’, Carlos Ghosn, the man Renault chose
you agree. If you tend to disagree, give a response between 2 and 5. as CEO for Nissan, asked, ‘How do you make head count reductions in Japan?’ He
1 Successful entrepreneur–change agents are often methodical and analytical individuals had to reduce manufacturing overcapacity, get rid of the seniority system at Nissan
who carefully plan out what they are going to do and then do it. and replace it with performance-based management. He focused his attention
on cost reduction, sales of assets, eliminating the keiretsu, a Japanese term for
2 The most successful entrepreneur–change agents are born with special characteristics,
interlocking business relationships to develop other kinds of suppliers. The result
such as a high achievement drive and a winning personality, and these traits serve
was a nearly complete strategic turn-around for Nissan, which went on to announce
them well in their change endeavours.
its biggest profit ever in May 2001 – only a year after it had posted its worst loss in
3 Many of the characteristics needed for successful entrepreneurship–change agency can
the company’s history.
be learned through study and experience.
Source: V. Duff, ’Examples of strategic change’, https://smallbusiness.chron.com/examples-strategic-
4 The most successful entrepreneur–change agents are those who invent a unique
change-11467.html, accessed 21 May 2018.
product or service.
5 Highly successful entrepreneur–change agents tend to have very little formal
schooling.
Critical 1 What does ‘keiretsu’ mean? Give an example.
» thinking
questions 2 List the major changes that were made by the organisation, which
qualifies the changes to be strategic.
3 Search the internet and identify what has happened to the company
since 2001.

BK-CLA-WADDELL_7E-190017-Chp02.indd 57 03/04/19 4:34 PM

EVOLUTION IN ORGANISATION DEVELOPMENT
Current practice in OD is strongly influenced by these five stems, as well as by the trends
that shape change in organisations. The laboratory training, action research, survey
feedback and participative management roots of OD are evident in the strong value

END-OF-CHAPTER FEATURES
focus that underlies its practice. The more recent influences (the quality of work life and
strategic change stems) have greatly improved the relevance and rigour of OD practice.
They have added financial and economic indicators of effectiveness to OD’s traditional
measures of work satisfaction and personal growth. All of the backgrounds support the
transfer of knowledge and skill to the organisation so it can better manage change in
the future.

At the end of each chapter you will find several tools to help you to review, practise Today, the field is being influenced by the globalisation and information technology
trends described earlier. OD is being carried out in many more countries and in many
more organisations that operate worldwide, and this is generating a whole new set of
and extend your knowledge of the key learning outcomes. interventions as well as adaptations of traditional OD practice.41 In addition, OD must adapt
its methods to the technologies now being used in organisations. As information technology

Review your understanding of the Test your knowledge and consolidate

key chapter topics with the your learning with the Review Questions
Chapter Summary. and apply your skills with the Extend
BK-CLA-WADDELL_7E-190017-Chp01.indd 23 03/04/19 4:24 PM

Your Learning Activities.

[CHAPTER 2] UNDERSTANDING CHANGE 59 [CHAPTER 1] INTRODUCTION 27

SUMMARY
Theories of planned change describe the activities that are necessary in order to modify strategies,
structures and processes to increase an organisation’s effectiveness. Lewin’s change model, the action
research model and the positive model offer different views of the phases through which planned change
occurs in organisations.
Lewin’s change model views planned change as a three-step process of unfreezing, movement and
refreezing. It provides a general description of the process of planned change. The action research model
focuses on planned change as a cyclical process involving joint activities between organisation members
and OD practitioners.56 It consists of eight sequential steps that overlap and interact in practice: problem
identification, consultation with a behavioural science expert, data gathering and preliminary diagnosis,
feedback to key client or group, joint diagnosis of the problem, joint action planning, action and data
gathering after action. The action research model places heavy emphasis on data gathering and diagnosis
prior to action planning and implementation,57 as well as on the assessment of results after action has
been taken. In addition, change strategies are often modified on the basis of continued diagnosis, and
termination of one OD program may lead to further work in other areas of the organisation. Trends in
action research include the movement from smaller to larger systems, from domestic to international
applications and from organisational issues to social change. As the name suggests, the positive model
focuses on all that is good about the organisation. This constructive approach utilises the processes that
are working and builds on their strengths.
These theories can be integrated into a general model of planned change. Four sets of activities –
entering and contracting, diagnosing, planning and implementing, and evaluating and institutionalising –
can be used to describe how change is accomplished in organisations. The general model has broad
applicability to planned change; it identifies the steps that an organisation typically moves through in order
to implement change and specifies the OD activities necessary for effecting the change.
Although the planned change models describe general stages of how the OD process unfolds, there
are different types of change according to the situation. Planned change efforts can vary in terms of the
magnitude of the change and the degree to which the client system is organised. When situations differ
on these dimensions, planned change can vary greatly. Critics of OD have pointed out several problems
ACTIVITIES
REVIEW QUESTIONS
1 Distinguish between OD and OT. What are the advantages and disadvantages of each? (LO1)
2 Likert’s participative management system (System 4) suggests that organisations have one of four
types of management systems. Provide examples from your own experiences of each management
system and explain how it relates to the system chosen. (LO2)
3 Change processes can create a ‘domino effect’ where if anything changes it creates ongoing changes
with other areas. Provide an example of how this can occur. (LO2 & 3)
4 Explain the difference between strategic change and OT. (LO4)
5 Do you agree with the metaphor of the pendulum? Explain your answer. (LO1)
EXTEND YOUR LEARNING
1 Explain the value of planned versus unplanned change. Use examples to reinforce your explanation. Is
there a preferred process of change? (LO2 & 4)
2 What do you see as the future of change: planned or unplanned? Explain your answer using examples
where appropriate. (LO3)
3 ‘As the environment changes, organisations need to adapt if they are to be successful.’ Discuss. (LO2 & 4)
Management
Explore Search Me! Management for articles relevant to this chapter. Fast and convenient, Search Me!
Management is updated daily and provides you with 24-hour access to full text articles from hundreds
of scholarly and popular journals, eBooks and newspapers, including The Australian and The New York

Conduct further research in the

Times. Visit http://login.cengagebrain.com and use the access code that comes with this book for 12
with the way planned change has been conceptualised and practised. They point out specific areas where months access to the Search Me! Management database. Try searching for the following keywords:
planned change can be improved.

Search Me! Management database Keywords:

• Metaphor for change
Search tip: Search Me! Management contains
information from both local and international
sources. To get the greatest number of
•

with the suggested key terms.

Organisation development
ACTIVITIES • Globalisation
search results, try using both Australian and
American spellings in your searches; for
• Strategic alliance example, ‘globalisation’ and ‘globalization’;
REVIEW QUESTIONS • Sensitivity training ‘organisation’ and ‘organization’.
• Action research
1 ‘No action without research. No research without action’. Discuss. (LO1)
• Systematic collection
2 How are the five phases of the positive model similar to and/or different from the eight phases of
action research? Is this an example of the evolution of change management theory or an entirely new
concept? Explain your answer with examples. (LO1 & 2)
3 What are the major problems with planned change efforts? How may these be preempted or
overcome? (LO3)

BK-CLA-WADDELL_7E-190017-Chp02.indd 59 03/04/19 4:34 PM BK-CLA-WADDELL_7E-190017-Chp01.indd 27 03/04/19 4:24 PM

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 Guide to the online resources
FOR THE INSTRUCTOR

Cengage is pleased to provide you with a selection of

resources that will help you prepare your lectures and
assessments. These teaching tools are accessible via
cengage.com.au/instructors for Australia or
cengage.co.nz/instructors for New Zealand.

INSTRUCTOR’S MANUAL
The Instructor’s Manual includes learning outcomes, solutions to questions in the
text, additional activities, suggested class discussions and teaching ideas, websites
and readings.

CASE DATABASE AND TEACHING NOTES

Access a database of cases extracted from this text and previous editions, including
case solutions and teaching notes, which can be utilised on your LMS or in
the classroom.

TEST BANK
A bank of questions has been developed in conjunction with the text for creating
quizzes, tests and exams for your students. Create multiple test versions in an
instant and deliver tests from your LMS, your classroom, or wherever you want
using Cognero.

POWERPOINT™ PRESENTATIONS
Use the chapter-by-chapter PowerPoint slides to enhance your lecture presentations
and handouts by reinforcing the key principles of your subject.

ARTWORK FROM THE TEXT

Add the digital files of graphs, tables, pictures and flow charts into your course
management system, use them in student handouts, or copy them into your lecture
presentations.

xii
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 GUIDE TO THE ONLINE RESOURCES xiii

FOR THE STUDENT

New copies of this text come with an access code that gives
you a 12–month subscription to Search Me! Management.
Visit http://login.cengagebrain.com and
log in using the access code card.

SEARCH ME! MANAGEMENT

Search Me! is an online research library customised to your subject, that puts the
information you need right at your fingertips. Content is updated daily from hundreds
of scholarly and popular journals, eBooks and newspapers. Plus, 24-hour access
means you won’t be limited by library opening times! Log in using the code on the card
inside the front cover.

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 PRACTITIONER VIGNETTES
»» Bill Millard 4
»» Colin May 34
»» Irene McAleese 188
»» Leanne Atkinson 316
»» Laird Heffer 406

APPLY YOUR LEARNING BOXES

»» 1.1 Improving quality of work life through labour legislation 21
»» 1.2 Examples of strategic change 23
»» 1.3 The impact of leadership and change management strategy on
organizational culture and individual acceptance of change
during a merger 26
»» 2.1 Implementing organizational change using action research in
two Asian cultures 41
»» 2.2 Australian companies expanding their wings offshore 51
»» 2.3 Your company’s secret change agents 55
»» 3.1 The future of the organisation and implications for OD 66
»» 3.2 Ethics and organizational change management 86
»» 4.1 Revolutionary change: Uber vs the taxi service industry 101
»» 4.2 Leadership and innovation 114
»» 4.3 Turning the ship around: A guide to changing workplace culture 118
»» 5.1 Improving resilience through environmental scanning in Western Australia 133
»» 5.2 A guide to giving and receiving performance feedback 150
»» 6.1 If learning is important, show us the money! 197
»» 6.2 MOOCs are moving 202
»» 6.3 Workplaces designed for mental health 209
»» 6.4 Mentoring for change 212
»» 7.1 Appraisal as criticism: A gender perspective 229
»» 7.2 Royal rewards indeed 235
»» 7.3 T-groups for high performance 238

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 Experiential Activities xv

»» 8.1 One-third of all Telstra jobs lost over three years. Really? 284
»» 8.2 New World Bank report outlines Malaysia’s successes and challenges
in transforming land administration 288
»» 8.3 Changing landscape for the generations 291
»» 9.1 Australia Council maps out its reform strategy 320
»» 9.2 Miss Chu and Lady Chu reconstrue 327
»» 9.3 Designing human rights correctly 332
»» 9.4 ASIC is sick of bad culture 342
»» 10.1 Internationalised student accommodation 357
»» 11.1 Calling in a huge telecommunication merger 377
»» 11.2 Remote opportunities come from collaboration 383
»» 11.3 Alliances take two 388
»» 11.4 Facebook education network? 395
»» 12.1 Sustainable development in a developed country 420
»» 12.2 Social change movements 427
»» 13.1 Pacific nations seek new way on trade 437
»» 13.2 The problem with start-ups clustering in capital cities 445

EXPERIENTIAL ACTIVITIES
»» 2.1 Understanding your beliefs about successful change managers 57
»» 3.1 Consultant styles matrix 72
»» 5.1 Internal profile analysis 147
»» 11.1 Developing as a change agent 385

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 PREFACE
Organisational Change: Development and Transformation is a book describing change
management as a challenge, particularly as the environment in which we work is in
such a volatile state. The world of managing organisation development (OD), which is a
planned process of change, continues to change dramatically as the terminology vacillates
towards organisational transformation (OT), a more dramatic and unpredictable process.
Leaders, and in particular change agents, are faced with conflicting challenges, such
as understanding and motivating an increasingly diverse workforce, being open and
accountable to a wide range of stakeholders, planning for the future in an increasingly
chaotic environment, considering the ethical implications of decision making and many
more unanticipated issues.
For students studying change management, the prospect of managing others in such a
situation may be daunting. While it is interesting and somewhat straightforward to become
a specialist in a specific field, such as OD, the added pressure of supervising or managing
others can be stressful. This textbook is written with students in mind, preparing them for
the challenges that lie ahead. Featuring current case studies, questions and activities and
extensive support material, the book presents the challenges of change management from
a real-life perspective. There is no ‘one size fits all’ method for being a successful change
agent, so this book presents change management issues from different viewpoints.
The first author of this book in particular has taken advice from feedback given by her
peers and has attempted to provide a comprehensive overview of the fundamental theory
as well as its practical applications. Of particular significance is that this book assumes
and encourages students to contribute their own understanding and experiences. Students
are the beneficiaries of this expected exchange of expertise – as the book attempts to draw
together the various views about change management, the emphasis is on heightening
the learning experience for students. Students entering a change management position or
contemplating being more proactive in their career as a change agent will be exposed to a
variety of challenging management issues in this text. I must reiterate that this book is not
designed to be prescriptive but a catalyst for further learning. It would be better to consider
it to be a vehicle or language to assist in the articulation of ideas.
Students should appreciate the following quotation from George Bernard Shaw, which
could well be their mantra in the future:
Some men see things as they are and ask why. Others dream things that never were
and ask why not.

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 ACKNOWLEDGEMENTS
Dianne M. Waddell
A special thanks must go to Andrew Creed. Although we have worked together over the
years while at Deakin University, this is another foray into joint authorship and I have valued
his support and camaraderie. It has certainly given us many opportunities to catch up for
coffee, support and gossip.
This publication has been successful over the years mainly because it has mirrored
its own philosophy of continuous improvement. Some changes have been incremental,
whereas others have been significant; they have all been as a result of collaboration and, in
some instances, negotiation. Peer reviewers have played a very significant role in helping
refine the content and pedagogy of this book, and without their valuable contribution we
would not be able to produce a publication of which we are proud.
Our special appreciation also extends to our case study authors; their texts give
the book an extra dimension and a thematic approach to the issues. Thank you to Andrew Zur
(University of Melbourne), Dr Shoaib Riaz (Monash University), Zane Diamond
(Monash University), Scott Gardner (Murdoch University) and Karen Lin Mahar (Central
Queensland University).
It would be remiss to not acknowledge the team at Cengage for their patience,
understanding and, on many occasions, their persistence: our Content manager,
Rachael Pictor; Samantha Brancatisano, Content developer, who has been persistent and
resilient; and Debbie Gallagher, rights and Permissions researcher, who assisted me on the
project by doing all the hard permissions work. Many thanks must also go to Raymond Williams,
Project editor, as well as to Graphic designer Nikita Bansal for commissioning the cover and
internal text design.
As writing a textbook bites considerably into the personal and family time of those
involved, I would also like to thank the special people in my life. In particular, I would like
to thank Denis for enduring 48 years of ‘surprises’ and not complaining about the cremated
dinners. My children, Paul, Corinne and Suzanne, have also suffered because of my
‘distractions’, yet have survived the turmoil to become sane adults and have made me very
proud. New members of the family, Megan and Edhi, are still in a state of shock while trying
to adapt to the chaos, but hopefully time will help with their adjustment. My grandchildren,
Kit, Anouk and Indie, think that their Nanna is a bit ‘weird’, but at least they now have
something for show-and-tell.
Of course this project would not have been possible without the support and
understanding of my past work colleagues and students, who were often the ‘victims’ of
my experiments and vehicles for the testing of my ideas. Hopefully I have made a positive
contribution to their work and learning and they have pleasant memories of our encounters.

xvii
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xviii Acknowledgements

Andrew Creed
There could be no better lead author on this project than Dianne Waddell. She was a cool
colleague and a supportive mentor to me at Deakin University. Now she is working in other
places and putting into practice, yet again, the change management principles from this
book. I too have experienced much change during the creation of the new edition. Deepest,
lasting thanks to my Mum and Dad, Nita and Trevor, with whom I have been privileged to
share a journey on the ultimate life transition. There are other people, my children, family
and friends, who all contributed to the thought and energy that went into this new edition.
I appreciate you, everyone, and thank you for the experiences and interactions that fuelled
the new concepts and cases I brought to the book. I also echo Di’s thanks to the Cengage
team. The end result is truly praiseworthy.

Cengage and the authors would also like to thank the following reviewers for their incisive
and helpful feedback:
Jane Boeske (University of Southern Queensland)
Lisa Daniel (University of Adelaide Business School)
Erin C. Gallagher (University of Queensland)
Andrea Howell (Charles Sturt University)
Bernadette Lynch (University of Southern Queensland)
Tui McKeown (Monash Business School)
Mulyadi Robin (Alphacrucis College)
Gerardine Rudolphy (James Cook University)
Mohammad Saud Khan (Victoria University of Wellington)

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 ABOUT THE AUTHORS
Dianne M. Waddell is now semi-retired and occupying herself with some consulting in
Higher Education, specialising in Quality Assurance in Higher Education. She was formerly
Professor and Academic Director with two private providers in the tertiary sector. Before
that she was an Associate Dean (Teaching and Learning) at Deakin University.
Dianne has been responsible for the development, implementation and evaluation of
postgraduate and undergraduate courses and has been the coordinator of the Assurance
of Learning processes for external accreditation with Tertiary Education Quality and
Standards Agency (TEQSA). She has been on the list of Expert Reviewers for TEQSA. She
has taught in the areas of management, quality management, change management and
strategic management at a number of institutions, including Deakin University, Edith Cowan
University, Monash University and Victoria University. She has taught in both the public
and private education systems for many years, as well as presenting specially designed
industry-based executive courses.
As well as significant external research-funded projects, her publications include eight
books (of which two are textbooks), 15 book chapters, six research reports, 30 refereed
journal articles and 76 conference papers. She has also written evaluation reports for
various consultancies, including Australian and international universities. Dianne has
received several professional awards, including the 2009 Vice Chancellor’s Award for
Outstanding Achievement in Teaching and Learning at Deakin University and in 2011 the
Vice Chancellor’s Award for Outstanding Achievement in Student and Staff Support as
project leader for the implementation of the new Learning Management System.
Dianne holds a Graduate Certificate in Quality Assurance in Higher Education (Melbourne),
PhD (Monash), Master of Education Administration (Melbourne), Bachelor of Education
(Melbourne) and Bachelor of Arts (LaTrobe). She is an Affiliate with the International
Network for Quality Assurance Agencies in Higher Education (INQAAHE) as well as Fellow
with the Australian Organisation for Quality (AOQ). She was Chair of the Victorian Chapter
of the Higher Education Research and Development Society.

Andrew Creed is an award-winning lecturer and writer at Deakin University, specialising in

change management and organisational behaviour. His research interests include online
management education, organisational learning and change, education for sustainable
development, action research and relational ethics. He has published textbooks in the fields
of organisational behaviour and business communication. He has authored more than 80
scholarly publications, with the highest impact including 10 book chapters, 17 technical
manuals, 22 refereed journal articles and 17 conference papers. Other roles have included
Adjunct Associate Professor in the online MBA course at University of Maryland University
College; teacher and instructional designer in the TAFE and ACE sectors; owner-manager
of a bookshop, publishing and consulting business; member of a family-run health care
practice; and an area manager in south-west Victoria for the federal government’s New

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xx About the authors

Enterprise Incentive Scheme (NEIS). Andrew has received several professional awards,
including the 2006 and 2015 Vice Chancellor’s Award and commendation for Teaching and
Learning at Deakin University. Andrew holds a Graduate Certificate in Higher Education
(Deakin), PhD (University of Exeter, UK), Master of Business Administration (University of
Maryland University College) and Bachelor of Science (University of the State of New York).
He is active in his local community and in global collaborations.

Thomas G. Cummings is Chair of the Department of Management and Organization and

Professor of Management and Organization at the University of Southern California’s
Marshall School of Business in Los Angeles, California. He received his Bachelor of Science
and MBA from Cornell University, and his PhD in sociotechnical systems from the University
of California at Los Angeles. He was previously on the faculty at Case Western Reserve
University. He has authored 13 books, written over 40 scholarly articles and given numerous
invited papers at national and international conferences. He is associate editor of the
Journal of Organizational Behavior, former editor-in-chief of the Journal of Management
Inquiry, chairman of the Organizational Development and Change division of the Academy
of Management and president of the Western Academy of Management. His major research
and consulting interests include designing high-performing organisations and strategic
change management. He has conducted several large-scale organisation design and
change projects, and has consulted to a variety of private and public-sector organisations
in the United States, Europe, Mexico and Scandinavia.

Dr Christopher G. Worley holds a joint appointment as a research scientist at the Center for
Effective Organizations at the University of Southern California Marshall School of Business
and as an associate professor at Pepperdine University. He is the former director of the
Master of Science in Organization program at Pepperdine University, where he was awarded
the Harriet and Charles Luckman Distinguished Teaching Fellowship between 1995 and
2000. Dr Worley also has taught undergraduate and graduate courses at the University of
San Diego, University of Southern California and Colorado State University. He was chair of
the Academy of Management’s Organization Development and Change Division. Dr Worley
received his PhD in strategic management from the University of Southern California, a
Master of Science in organisation development from Pepperdine University, a Master of
Science in environmental psychology from Colorado State University and a Bachelor of
Science from Westminster College. He is a member of the Strategic Management Society,
the Academy of Management, NTL and the Organization Development Network. He lives
with his wife and three children in San Juan Capistrano, California.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 BOOK OVERVIEW
This book presents the process and practice of organisation development in a logical
sequence. In Part 1, Chapter 1 provides a comprehensive overview of organisation
development (OD) that describes the process of planned change, those who perform the
transition and the various types of interventions. This chapter sets the scene and includes
a thought-provoking mind map on change management. It also introduces the concept
of organisation transformation (OT). Part 2 covers an overview of change processes and
concepts. In particular, Chapter 2 defines the term ‘planned change’ in the context of OD. All
approaches to OD rely on some theory about planned change. Three theories are described
and compared, and the chapter presents a general model of planned change that integrates
recent conceptual developments in OD. Finally, several critiques of planned change are
presented. Chapter 3 examines the people who perform OD in organisations and their role
as leaders of change. A closer look at OD practitioners provides a more personal perspective
on the field, and assists in the understanding of the essential character of OD as a helping
profession, involving personal relationships between OD practitioners and organisation
members. Chapter 4 presents two contentious issues facing change management
practitioners: resistance to change, which is an inevitable response to any attempt to
change, and fitting their organisational strategies, structures and processes to different
organisational cultures. Chapter 5 presents an overview of the design, implementation
and evaluation of interventions currently used in OD. It describes an intervention as a
set of planned activities intended to help an organisation improve its performance and
effectiveness. Effective interventions are designed to fit the needs of the organisation, are
based on causal knowledge of intended outcomes and transfer competence to manage
change to organisation members.
The book continues with Part 3, which gives further details regarding OD interventions.
Chapter 6 describes interventions that enable organisations to change themselves
continually. These change processes are particularly applicable for organisations facing
turbulent environments where traditional sources of competitive advantage erode quickly.
Chapter 7 discusses change programs relating to OD interventions, in particular people
and processes. These change programs are among the earliest in OD and represent
attempts to improve people’s working relationships with one another. The interventions
are aimed at helping group members to assess their interactions and to devise more
effective ways of working together. Chapter 8 is concerned with interventions that are
aimed at organisation and environment relationships. These change programs are
relatively recent additions to the OD field that focus on helping organisations to relate
better to their environments, and to achieve a better fit with those external forces that
affect goal achievement and performance.

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xxii BOOK OVERVIEW

Part 4 presents the various views of OT. Chapter 9 presents interventions for transforming
organisations; that is, for changing the basic character of the organisation, including how it
is structured and how it relates to its environment. These frame-breaking and sometimes
revolutionary interventions go beyond improving the organisation incrementally, focusing
instead on changing the way it views itself. Chapter 10 describes the practice of change
management in a chaotic and unpredictable environment, which is exhibited in international
settings. It presents the contingencies and practice issues associated with change in
organisations outside the host country, and worldwide organisations. Chapter 11 describes
transformation interventions that help organisations implement strategies for both
competing and collaborating with other organisations. They focus on helping organisations
position themselves strategically in their social and economic environments and achieve a
better fit with the external forces affecting goal achievement and performance.
Finally, Part 5 contains the concluding Chapters 12 and 13, which describe major trends
within OD and trends driving change in OD’s context. The future of OD is likely to be the
result of the interactions among the traditional, pragmatic and scholarly trends as well as
how the global economy evolves, technology develops, workforces engage and organisations
structure themselves. Chapter 14 should be written by the readers of this book.
Organisational change: An integrated view
Organisational change affects all aspects of an organisation. Development and transformation
cannot be a separate event happening in one place that does not affect the other parts.
Structure and strategy are integral. Change is therefore a ripple with consequences. There
is interdependency between organisational functions. However, the structure of this book
collects chapters into parts to help organise our thinking about the management of change.
Each part delineates a sector of the research and experience of change that is distinct yet
interrelated to the other parts and chapters. Each part opening page shows you a chart
of how these parts interrelate with each chapter. It would be helpful to consider change
processes as being similar to a domino effect. Change one aspect, even a minor aspect, and
it will lead to all sorts of consequences, both anticipated and/or unintended.

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Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 SUSTAINABILITY
GENERAL
DEFINITIONS INTRODUCTION Environment Structure
TO CHANGE
Australian context KEY ISSUES Leadership
BROAD and vision Culture
ORGANISATION TRANSFORMATION
INCREMENTAL THEORETICAL
APPROACHES
UNDERSTANDING CHANGE

Revolutionary Interventions Technology

VISION
CONTINGENCY
Planning and
THEORIES
preparation MODELS AND
PROMOTING
FRAMEWORKS Process theories
READINESS
Allowing people FOR CHANGE
Culture excellence
to let go

OL VS LO
Handling the
transition MANAGING Characteristics METHODS
IN A ORGANISATIONAL AND TOOLS
LEARNING Learning
CHANGING Guiding ideas
ENVIRONMENT organisation
architecture
Structure and
Process models infrastructure
RESPONSES TO CHANGE

CHARACTERISTICS
FIELD THEORY
OD models
ORGANISATION
Natural part
DEVELOPMENT
of change OD interventions
RESISTANCE
Strategies for Cynicism Action research
handling
resistance Silence

Alternative views

Source: Adapted from D. Waddell, E-Business in Australia: Concepts and Cases, Pearson Education Australia, 2002.

2
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