Professional Documents
Culture Documents
Transformational Change
Transformational Change
Transformational Change
20-2
legal, political, technological, economic, technological Product lifecycle shifts Internal company dynamics- size, portfolio, executive turnover
20-3
Characteristics of Transformational Change contd Systemic and Revolutionary Change Demands a New Organizing Paradigm- gamma change, organizational learning, continuous improvement, commitment based Driven by Senior Executives and Line Management- envisioning, energising, enabling Involves Significant Learning- perceiving, thinking, behaving
20-4
20-5
Integrated Strategic Change (ISC) ~ Key Features Strategic Orientation- strategy & design are the relevant unit of analysis Integrated whole- creating the Strategic Plan, gaining commitment & support for it, planning its implementation & executing it Integrating Individuals and Groups into the Process
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
20-6
Strategy S1
Strategy S2
Organization O1
Organization O2
Strategic Analysis
Strategic Choice
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
20-7
Strategic Analysis
Assess the readiness for change and top
managements ability to carry out change Diagnose the Current Strategic Orientation
Strategic Choice
Top management determines the content of the
strategic change- what products, markets, production, positioning, organization structures & processes
20-8
Organizational Design
Conceptual Framework
Strategy Structure Work Design Human Resources Practices Management and Information Systems Fit, Congruence, Alignment among Organizational Elements
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
Key Point
20-9
Organization Design
Management and Information Systems
Structure
Design Fit
Work Design
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Organization Designs
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Create the overall framework, begins with examining strategy and objectives and determining organization capabilities needed
Results in an overall design for the organization, detailed designs for the components, and preliminary plans for how to implement
Puts the new structures, practices and systems into place, draws heavily leading and managing change methods
20-12
Basic Assumptions
20-13
Values -
what is important in the orgnaziation & what deserves attention. Eg: cutomer service
20-15
performance
20-16
Diagnosing Organization Culture contd Competing Values Approach Flexibility & Discretion Internal Focus & Integration
Clan
Adhocracy
Hierarchy
Market
Market Culture
The market culture gained popularity among businesses in the 1960s. This culture is similar to the hierarchy culture in its emphasis on organization and control. However, the market culture places great value on the external relationships with customers, suppliers and creditors, for example, believing that successful relationships will increase the company's competitiveness. According to ongoing studies conducted by Angelo Kinicki and his colleagues at the W. P. Carey School of Business at Arizona State University, the market culture is the culture type most likely to yield the best financial results.
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
20-18
Adhocracy Culture
The adhocracy culture places most importance on flexibility and innovation. Adaptability and quick reactions to the changing market, competition and external environment is an integral component of corporate strategy in this type of business. Leadership in an adhocracy culture is demonstrated by entrepreneurship and risk taking. The emphasis is always on growth opportunities and employees are encouraged to experiment with new ideas. What might seem like chaos and disorder to the hierarchy culture is valued and embraced in the fast-moving adhocracy culture.
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Learning
20-19
Diagnosing Organization Culture contd Deep Assumptions Approach interview process involving both insiders & outsiders, culture workshops Pattern of unexamined assumptions that solve internal integration and external adaptation problems well enough to be taught to others
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20-21