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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