HRM3008 Organisational Change
Lecture 1: Causes of Change
Causes of change
• New technology
• New management
• Closing down and opening up of operations
• Budget implications
• Change of new ownership
• PESTLE factors
• Life cycle of organisation
• Globalisation
Internal and external triggers
Internal and external triggers for change are often interdependent. For example:
• a cut in finance for HE leads to staff redundancies and re-structuring of teaching
(Dawson, 1994).
Environmental turbulence
A firm’s performance is optimised when its aggressiveness and responsiveness match its
environment.
Five levels of turbulence.
1. Predictable
2. Forecastable by extrapolation
3. Predictable threats & opportunities
4. Partially predictable opportunities
5. Unpredictable surprises (Ansoff & Mcdonnell, 1990)
Drivers for change
Champy & Nohria (1996) claim that the three major drivers stirring organisational change
faster than ever before are:
1. Technology
2. Government:
3. Globalisation
,HRM3008 Organisational Change
Traditional organisational thinking
Acquiescing
“Rubbishing” ideas
Involves the “top” few
Expedient, quick fixes
Repeating the same mistakes
Telling people what they want to hear/filtering
Single-loop learning
Waiting for other people to do it (to me/for me)
Modern thinking/Learning Organisation:
Asking questions
Suggesting ideas
Involves everyone
Exploring alternatives
Converting mistakes into learning
Being open
Double-loop learning
Responsibility for own learning/development
Triggers of change
Disorganising pressures indicating that current systems, procedures, rules, organisation
structures and processes are no longer effective.
(Buchanan D. Huczynski A. (2010) Organisational Behaviour, 7th Ed, Person Education Ltd)
Internal triggers of change
New product and service design innovations
Low performance and morale, high stress and staff turnover
Appointment of a new senior manager or top management team.
Inadequate skills and knowledge base, triggering training programmes
Office and factory relocation, closer to suppliers and markets
Recognition of problems triggering reallocation of responsibilities
Innovations in the manufacturing process.
New ideas about how to deliver services to customers.
(Buchanan and Huczynski, 2010)
External triggers of change
, HRM3008 Organisational Change
Changing economic and trading conditions, domestic and global.
New technology and materials
Changes in customers’ requirements and tastes
Activities and innovations of competitors, mergers and acquisitions
Legislation and Government policies
Shifts in local, national and international politics
Changes in social and cultural values
Resistance to change
Four common causes of resistance to change
1. Parochial self interest
– Pushing us out of our “comfort zone”.
– Perceived as well as actual threats to interests and values
2. Misunderstanding and lack of trust .
3. Contradictory assessments
– A major threat for me can be stimulating for you
4. Low tolerance for change
– Self doubt, “can I handle this?”
– (Bedeian, 1980)
Lecture 1: Causes of Change
Causes of change
• New technology
• New management
• Closing down and opening up of operations
• Budget implications
• Change of new ownership
• PESTLE factors
• Life cycle of organisation
• Globalisation
Internal and external triggers
Internal and external triggers for change are often interdependent. For example:
• a cut in finance for HE leads to staff redundancies and re-structuring of teaching
(Dawson, 1994).
Environmental turbulence
A firm’s performance is optimised when its aggressiveness and responsiveness match its
environment.
Five levels of turbulence.
1. Predictable
2. Forecastable by extrapolation
3. Predictable threats & opportunities
4. Partially predictable opportunities
5. Unpredictable surprises (Ansoff & Mcdonnell, 1990)
Drivers for change
Champy & Nohria (1996) claim that the three major drivers stirring organisational change
faster than ever before are:
1. Technology
2. Government:
3. Globalisation
,HRM3008 Organisational Change
Traditional organisational thinking
Acquiescing
“Rubbishing” ideas
Involves the “top” few
Expedient, quick fixes
Repeating the same mistakes
Telling people what they want to hear/filtering
Single-loop learning
Waiting for other people to do it (to me/for me)
Modern thinking/Learning Organisation:
Asking questions
Suggesting ideas
Involves everyone
Exploring alternatives
Converting mistakes into learning
Being open
Double-loop learning
Responsibility for own learning/development
Triggers of change
Disorganising pressures indicating that current systems, procedures, rules, organisation
structures and processes are no longer effective.
(Buchanan D. Huczynski A. (2010) Organisational Behaviour, 7th Ed, Person Education Ltd)
Internal triggers of change
New product and service design innovations
Low performance and morale, high stress and staff turnover
Appointment of a new senior manager or top management team.
Inadequate skills and knowledge base, triggering training programmes
Office and factory relocation, closer to suppliers and markets
Recognition of problems triggering reallocation of responsibilities
Innovations in the manufacturing process.
New ideas about how to deliver services to customers.
(Buchanan and Huczynski, 2010)
External triggers of change
, HRM3008 Organisational Change
Changing economic and trading conditions, domestic and global.
New technology and materials
Changes in customers’ requirements and tastes
Activities and innovations of competitors, mergers and acquisitions
Legislation and Government policies
Shifts in local, national and international politics
Changes in social and cultural values
Resistance to change
Four common causes of resistance to change
1. Parochial self interest
– Pushing us out of our “comfort zone”.
– Perceived as well as actual threats to interests and values
2. Misunderstanding and lack of trust .
3. Contradictory assessments
– A major threat for me can be stimulating for you
4. Low tolerance for change
– Self doubt, “can I handle this?”
– (Bedeian, 1980)
