Post on 14-Apr-2018
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School of Computing
Engineering and
Information Sciences
Business Agility andCreativity
IS 0739
Essentials of Change
Management I:
Organisational Theory andApproaches to Change
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Overview of the Lecture
Define and discuss the term Organisation
Discuss various traditional and contemporary
theories about the ways people in organisations
are attracted to them and motivated to work
within them
Discuss two main traditional approaches to
managing organisational change
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What is an Organisation?
Here are some general definitions: Organisations are social arrangements for the
controlled performance of collective goals
Organisation: a group of people brought
together for achieving certain objectives Note: Organisations cannot exist without human activities within
them. Organisations are not buildings, plant or equipment.
Organisations shown as pictures such as organisationcharts are abstractions
The reality is much more complex
Organisational theories provide ideas about howto construct, reconstruct and manageorganisations
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Three Approaches to Understanding
Organisation Theory
The Classical Approach (Scientific-Rational
Approach)
The Human Relations ApproachThe Contingency Theory Approach
Managing Organisational Change is usually
based on applying Organisational Theories
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The Classical Approach: At the end of the 19th Century, there was a clear
need to replace the rule of thumb approach toorganisational design & management with a moreconsistent and organisation - wide approach.
The Classical approach is characterised by threecommon propositions:
Organisations are rational entities They have a defined and clear purpose
The design of organisations is a science
People are economic beings The key figures in the development of the
Classical Approach were Frederick Taylor (1856-1915): Henri Fayol (1841-1925) and Max Weber(1864-1920).
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The Classical Approach:
Frederick Taylor He was an American engineer who attempted to improve
productivity through the pursuit and promotion of
scientific management.
Taylors approach was based on two beliefs:
It is possible and desirable to establish, through
methodological study and the applications of scientificprinciples, the one best way of carrying out any job. Once
established, the way must be implemented totally and
made to operate consistently.
Human Beings are predisposed to seek the maximum
reward for the minimum of effort, which Taylor referredto as soldiering. To overcome this, managers must lay
down in detail what each worker should do, step by step;
ensure through close supervision that the instructions are
adhered to, and to give positive motivation, link pay to
performance.
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The Classical Approach:
Frederick Taylor (Continued)
These two beliefs led to 3 core elements of Scientific
Management:
The systematic collection of information/knowledge
about the work process by managers.
The removal or reduction of workers discretion and
control over what they do
The laying down of standard procedures and times for
carrying out each job.
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The Classical Approach:
Henri Fayol
Whereas Taylor concentrated on improving productivity atthe task level, Fayol concentrated on efficiency at theorganisational level (top-down).
He emphasised the importance of training/educating
managers to make them professionals. Some of his universal principles involved:
Division of work
Authority and Control
Discipline
Centralisation Initiative (contrast with Taylor)
Esprit de Corps (contrast with Taylor)
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The Classical Approach:
Max Weber
In his study of Western civilisation, Weber concluded that therise of civilisation was a story of power and domination:
He identified the rational-legal authority model as the dominanttype in the 20th Century and the bureaucratic approach toorganisations was the most appropriate and efficient
Under the rule of bureaucracy laws, rules, procedures and
predefined routines are dominant and are not subject to thevagaries and preferences of individuals:
Everything is based on routine pre-programmable procedures)
Ideal for centralised control
Characterised by division of labour and clear hierarchical
authority & structure There is considerable affinity between Webers and Fayols work.
Both were concerned with the overall structuring oforganisations, and the principles which guide managers in thistask. Weber, however, was an academic (sociologist) not apractitioner..
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Human Relations Approach
This approach emerged in the 1930s as a reaction to the
de-humanised Classical approach of the 19th and early
20th centuries
Rather than treating humans as programmable machines
who lacked emotion and worked only for material benefit,the proponents of the Human Relations school of thought
emphasised the importance of co-operation and non-
materially driven motivation
The main proponents of this school were: Mayo, Maslow,
McGregor & Herzberg.
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Human Relations Approach
(Continued) The precepts of this school are diametrically
opposed to the Classical approach, namely:
People are emotional rather than economic-rational
beings.
Organisations are co-operative social systems ratherthan mechanical ones.
Organisations are composed of informal structures,
rules and norms as well as formal practices and
procedures.
One of the criticisms of this approach is that it is just
another means of management control albeit more
subtle and humanised compared with the Classical
approach.
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Human Relations Approach
Mayo
Mayo recognised the value of workerscontribution to the solution of problems inthe workplace: Management did not always have all the right
answers Workers would be more motivated when they
saw that their ideas were useful
Mayo is associated with a famous case study inorganisational behaviour called the Hawthorne
Effect where social and psychological effectssuch as teamwork and personal goal setting wereseen as important contributors to workersproductivity
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Human Relations Approach:
Maslow
Maslow proposed that people have a hierarchyof needs - that managers in an organisation needto recognise if they are to motivate workers
Highest
Lowest Physiological Needs
HumanNeeds
Hierarchy
Safety Needs
Affection Needs
Esteem Needs
Self-Actualisation Needs
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Human Relations Approach:
Herzberg
Herzberg proposed a two factor theory of
motivation:
Hygienic factors:
Pay, working conditions, supervision etc.
When these factors are wrong, they act as
dissatisfiers - but if the factors are right, they do not
in themselves motivate workers
Motivators:
Feelings of achievement, responsibility, job challengeetc.
When motivators are strong, even very poor
hygienic factor can be overcome
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Human Relations Approach:
McGregor
McGregor described organisations where the main ideas ofclassical management prevail as being guided by Theory X:
Authoritarian, work centred, hierarchical, lack of trust inthe worker, workers avoid responsibility etc
Where organisations adopted a more people centred
approach and followed the human relations style of thinking,these were described as Theory Y:
People can be trusted and will seek responsibility and riseto a reasonable challenge that is meaningful and requirescreativity and personal effort
Organisations exhibit a mixture of Theory X and Theory Y intheir management approaches and practices
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The Contingency Theory Approach I
Since the 1970s, Contingency theory has proved to be moreinfluential than the other approaches
It rejects the one best way approaches of the other two
schools; classical and human relations
The other approaches also tended to view organisations as
closed systems separate from their environment - whereasthis approach viewed them as self-adaptive open systems
responding to its environment
Structure and the operation of an organisation is dependent
(contingent) on the situational variables it faces
No two organisations will face the same contingencies
Consequently, the universal best way is replaced by the best
way for each organisation.
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The Contingency Theory Approach II
Although there may be many situational variables, the
following are considered to be the most important:
Environmental Uncertainty & Dependence
Uncertainty occurs because of our inability to understand
and control events fully, especially the actions of others,
whether outside or inside an organisation Technology
Organisations creating different products and services
use different technologies and techniques that will have
an impact on the way the organisation needs to function
Size
It is argued that the structures and practices of small
organisations are not suitable for larger ones
The combination of these and other variables mean that each
and every organisation has a unique culture
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Two Approaches to Organisational
Change
Planned Approach: This is the traditional approach whereby organisational
change is viewed as a process of moving from one fixedstate to another through a series of pre-planned andpredictable steps
Scientific thinking favours this approach More appropriate in stable environments
Emergent Approach:
This starts from the assumption that change is acontinuous, open-ended unpredictable process of aligning
and re-aligning an organisation to its changingenvironment
Contingency theory of organisations relates to thisapproach More suitable to turbulent environments
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Planned Approach - Lewins 3 Step Model
1. Unfreezing the Present LevelUnfreezing involves reducing those forces maintainingthe organisations behaviour at its present level.Unfreezing involves the re-education process for thoseinvolved. This might be achieved through team buildingor some other form of management development.
Unfreezing can occur through confrontation.
2. Moving to the New LevelThis involves actions as a result of the first step. This
requires developing new behaviours, values and attitudesthrough changes in organisational structures andprocesses.
3. Refreezing the New LevelThis seeks to stabilise the organisation at a new state ofequilibrium and to ensure that the new ways of working
are relatively safe from regression.
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Planned Approach - Lewins 3 Step
Model for Organisational Change
Present
Future
Time
Productivity
Unfreeze Move (Transition) Freeze
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Planned Approach & Action Research
Kurt Lewin was one of the founding fathers of Action
Research.
Action Research is based on the proposition that aneffective approach to solving organisational problemsmust involve a rational, systematic analysis of the issuesin question.
Action Research has three major characteristics:
It is change oriented: Problem focused, aims at improvingsome existing condition or practice, or realising someopportunity for innovation.
It is organic: It is re-iterative consists of a series ofsystematic steps of fact-finding, reflection, planning,strategic action and evaluation.
It is collaborative: Research is conducted as a joint, co-operative effort amongst the participants.
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The Emergent Approach to Change I
The rationale for the Emergent Approach stems from thebelief that change should not be, and cannot be solidified,or seen as a series of linear events within a given period oftime; instead it is reviewed as a continuous process
Proponents of this approach argue that those who believe
that organisational change can successfully be achievedthrough a pre-planned and centrally directed process of
unfreezing, moving and refreezing ignore the complex
and dynamic nature of environmental and change
processes
Emergent Change is largely a bottom-up approach(rather than the top-down approach of Lewin and others) It requires a major change in the attitude and role of
senior managers
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The Emergent Approach to Change II
There is a need to think of change not as a simple activityor episode but as a process.
Those who are involved in the change process should not
expect the processes and final outcomes of change to be
mapped out clearly before them. Producing models of change should capture some flavour
of complexity, confusion, uncertainty and ambivalence.
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Conclusions
Organisations are defined by people and the
shared values and aims that they support
The motivation of people in organisations is a
complex issue - and many attempts havebeen made to construct and apply workable
theories
Organisational change brings in another set
of theories for management to consider