What is an organization?
two or more people (social dimension) who (are supposed to) ‘cooperate’ with each other within a formally established structure mobilizing/using resources in order to achieve a certain goal.
Open vs closed systems
Open also look at the environment, strategy and goals outside the firm
What is culture?
represents an interdependent set of values and ways of behaving that are common in a community and that tend to perpetuate themselves, sometimes over long periods of time.
Organizational change, changes
culture
Organizational developments of the past
- Adam Smith: specialization
- Fayol and Taylor: standardization (scientific management: how long does it take to do a certain task, which corporate management is the best fit)
- Max Weber: bureaucracy (accountability and responsibility)
General organizational assumptions of the past
- Organizations are seen as rational entities
- People are economic beings
- The design of an organization is “science”
- There is ‘One best way’
Change was based on rationality and legitimate managerial authority.
Criticism of old assumptions
o Humans have emotional needs.
o Organizations are cooperative social systems.
o Organizations have informal structures and rules
–> Resulted in the so-called human relations school (change by consent)
CSR time view change
CSR and CFP were not interconnected, it was not even legal to sell a company to do good. Now CSR and CFP has become interconnected. Most impacts tackled are the easy ones
Organizational change definitions
- response on what happens in the environment, not looking at the goals of the firm
- effectiveness is the change from the present state to a future state which achieves the goals of the firm
Types of change
Evolutionary
Revolutionary
Evolutionary change
Gradual
Incremental
Narrowly focused: smaller part of the firm or a small adjustment, it can still impact all employees
Revolutionary change
Rapid
Dramatic
Broadly focused
Models of change
Planned change
Emergent approach
Planned change
Field theory/force field analysis
Group dynamics
Action research
Three-step model of change
Field theory and group dynamics
Focused on analysing and understanding how social groupings were formed, motivated an maintained.
Field theory: When the forces for and against are the same no change is happening
Action research (5 steps)
- Diagnosing
- Determining
- Implementing: internal vs external change agents
- Evaluating
- Institutionalizing
Not necessarily long lasting
Internal vs external change agents
Internal: knows more about the firm but could be biased. If the agent is respected it is easier to implement change. Change can also be more informal.
External: is not biased but needs more time to acquire knowledge of the firm. Better for cultural change and having an expert. Easier for lower level employees to say what kind of change they need.
Lewin’s three step model of change
- Unfreeze
- Change
- Refreeze
Criticism three step model
- Assumes environmental stability
- Not applicable to situations that need rapid and radical change
- Assumes suitability for all organizations
n.b.: Lewin never saw Planned change as being applicable to all situations
Emergent approach
- Open-ended process
- Adjusting to changing external environment
- Bottom-up
- Unpredictable
- Cannot be pre-planned
- Learning process
- No universal rules
2 streams in emergent approach
Processual approach
Prescriptive approach
Processual approach
Study of organizational change over time and in context to develop a recipe to change the organization
Prescriptive approach
Instead of a detailed analysis of what organizations do, it tells organization what they should do
Two important scholars:
- Kanter
- Kotter
Kanter’s ten commandments for executing change
- Analyze the organization and its need for change
- Create a shared vision and a common direction
- Seperate from the past
- Create a sense of urgency
- Support a strong leader role
- Line up political sponsorship
- Craft an implementation plan
- Develop enebaling structures
- Communicate, involve people and be honest
- Reinforce and institutionalize change
