Leadership and Management

Topic 6: Change Management

BBM1 Lecture 11
10/25/2020
 Learning areas to be covered
• 6.1 Types of change
• 6.2 How change happens • 6.9 Identifying the need for
change
• 6.3 Organizational dynamics –
how organizations grow and • 6.10 The benefits of change
change
• 6.11 Risks of change
• 6.4 Change models
• 6.12 Planning the change
• 6.5 The steps to effective change programme
• 6.6 How people change • 6.13 Requirements for success in
managing change
• 6.7 Resistance to change
• 6.14 Organizational
• 6.8 Developing and embracing a transformation
change culture
Tutorial 4 Topic 6
 Introduction
• ‘The circumstances of an everchanging market and an ever-changing
product are capable of breaking any business organization if that
organization is unprepared for change’.
 Types of change (7 types)
• 1. Incremental change is gradual change. It takes place in small steps.
At the strategic level James Quinn (1980) coined the phrase ‘logical
incrementalism’ to describe how organizations develop their change
strategies. He suggested that organizations go through an iterative
process that leads to incremental commitments that enable the
enterprise to experiment with, and learn about, an otherwise unknowable
future.
 Types of change (7 types)
• 2. Transformational change: process of ensuring that an organization can
develop and implement major change programmes so that it responds
strategically to new demands and continues to function effectively in the
dynamic environment in which it operates.

• Organizational transformation may involve radical changes to the

structure, culture and processes of the organization. This may be in
response to competitive pressures, mergers, acquisitions, investments,
disinvestments, changes in technology, product lines, markets, cost
reduction exercises and decisions to downsize or outsource work.
 Types of change (7 types)
• A distinction can be made between first-order and second-order
transformational development. First-order development is concerned
with changes to the ways in which particular parts of the organization
function. Second-order change aims to make an impact on the whole
organization.
 Types of change (7 types)
• 3. Strategic change is concerned with broad, long-term and organization-
wide issues. It is about moving to a future state that has been defined
generally in terms of strategic vision and scope.

• It will cover the purpose and mission of the organization, its corporate
philosophy on such matters as growth, quality, innovation and values
concerning people (employees and customers), and the technologies
employed.

• Strategic change takes place within the contexts of the external environment
 Types of change (7 types)
• 4. Organizational change: deals with how organizations are structured
and, in broad terms, how they function. It involves identifying the need
to reconsider the formal structure of organizations, which Child (1977)
has defined as comprising ‘all the tangible and regularly occurring
features which help to shape their members’ behaviour’.

• Organizational change programmes address issues of centralization and

decentralization
 Types of change (7 types)
• 5. Systems and processes: Changes to systems and processes affect
operations and impact on working arrangements and practices in the
whole or part of an organization. They take place when operating
methods are revised, new technology is introduced or existing technology
is modified.
 Types of change (7 types)
• 6. Cultural change aims to change the existing culture of an organization.
Organizational or corporate culture is the system of values (what is
regarded as important in organizational and individual behaviour) and
accepted ways of behaviour (norms) that strongly influence ‘the way
things are done around here’. It is founded on well-established beliefs
and assumptions.
 Types of change (7 types)
• A deeply rooted culture may be diffi cult to change – old habits die hard.
Deal and Kennedy (1982) said that there are only five reasons to justify
large-scale cultural change:
1. If the organization has strong values that do not fit a changing
environment.
2. If the industry is very competitive and moves with lightning speed.
3. If the organization is mediocre or worse.
4. If the company is about to join the ranks of the very largest companies.
5. If the company is small but growing rapidly.
 Types of change (7 types)
• 7. Behavioural change involves taking steps to encourage people to be
more effective by shaping or modifying the ways in which they carry out
their work.

• Organizations depend on people behaving in ways that will contribute to

high performance and support core values. They must recognize that
people at work often have discretion on the way they do their work and
the amount of effort, care, innovation and productive behaviour they
display.