The global situation of economical and political instability and the related turbulences caused changes in an inevitable part of any health organisation. Even companies with dominant positions in this market such as Apple after introducing its iPad are forced to innovate and keep their products up-to-date constantly. Simplistically change means doing things in a different way. Currently change is studied on the individual, group, national, and multinational levels during different time periods, from days to years.
Organisational change is a process where companies modify working methods, organisational structure and culture, mission and vision in order to survive, develop and cope with faced problems or situations. According to Fincham and Rhodes (2005), change management is at the peak of the organisational change process, which includes the important factor of minimizing change barriers.
Table of Contents
- Organizational Change
- Triggers of Organizational Change
- External Forces
- Internal Forces
- Types of Organizational Change and Their Risks and Rewards
- Planned Change and Lewin's Three-Step Model
- A Case Study: Remploy
- Criticisms of Lewin's Model
Objectives and Key Themes
This text aims to explore the multifaceted nature of organizational change, examining its triggers, types, and management. It analyzes various theoretical approaches, particularly Lewin's three-step model, and applies this framework to a real-world case study. The text also critically assesses the limitations of existing models.
- Triggers of organizational change (internal and external)
- Different types of organizational change (incremental vs. transformational)
- Lewin's three-step model of change management
- Successful implementation of change management strategies
- Criticisms and limitations of existing change management models
Chapter Summaries
Organizational Change: This introductory chapter establishes the context of organizational change as a necessary process for survival and development in a dynamic environment. It highlights the importance of adapting to internal and external pressures, using examples such as Apple's continuous innovation and the impact of economic instability on business practices. The chapter lays the groundwork for subsequent discussions on the drivers and processes of organizational change.
Triggers of Organizational Change: This section delves into the various factors that necessitate organizational change. It distinguishes between external forces such as economic instability, technological advancements, globalization, and political events, and internal forces such as workforce demographics, social trends, quality initiatives, and performance issues. Specific examples illustrate the impact of each factor, highlighting the interplay between external and internal drivers in initiating change within organizations. For instance, the chapter showcases how the 2008 financial crisis affected business models and how technological innovations, like self-service options and tablet-based ordering systems, transformed customer service and operational efficiency.
Types of Organizational Change and Their Risks and Rewards: This chapter categorizes organizational change into four types: automation, rationalization, reengineering, and paradigm shift. It differentiates between incremental (evolutionary) and transformational changes, highlighting the associated risks and rewards. The discussion emphasizes the trade-off between the modest returns and low risks of incremental adjustments versus the high rewards and potential failures of transformational changes. Real-world examples, such as the potential for banks to eliminate branch banking through revolutionary change, versus IT companies opting for incremental automation and rationalization, illustrate the diverse approaches to organizational change.
Planned Change and Lewin's Three-Step Model: This section explores Lewin's three-step model of planned change—unfreezing, movement, and refreezing—as a fundamental technique for managing organizational change. The chapter details each stage, emphasizing the importance of motivation, communication, and support in successfully implementing change. The discussion also acknowledges the practical considerations and assumptions underlying the model's application in real-world scenarios, such as the need for motivation, the centrality of individual involvement, and the necessity of abandoning obsolete processes and behaviors. Monetary rewards as a motivator are mentioned, highlighting the practical aspects of implementing the model.
A Case Study: Remploy: This chapter presents a case study of Remploy, a UK company providing employment for disabled people, illustrating the practical application of Lewin's model. It narrates how Remploy managed the closure of several factories due to economic pressures, highlighting the crucial roles of communication, participation, and support in minimizing resistance to change. The case study showcases how individual consultations, offering alternative employment opportunities, and keeping employees informed at each stage contributed to a more successful change process, resulting in reduced factory closures and improved financial performance.
Keywords
Organizational change, change management, Lewin's three-step model, external forces, internal forces, incremental change, transformational change, automation, rationalization, reengineering, paradigm shift, case study, Remploy, resistance to change, communication, employee involvement.
Frequently Asked Questions: Organizational Change
What is the overall focus of this text on Organizational Change?
This text provides a comprehensive overview of organizational change, covering its triggers, types, management strategies, and critical analysis of theoretical models. It uses Lewin's three-step model as a key framework and applies it to a real-world case study (Remploy).
What are the key themes explored in the text?
Key themes include the internal and external triggers of organizational change, different types of organizational change (incremental vs. transformational), Lewin's three-step model of change management, successful implementation strategies, and a critical evaluation of existing change management models. The interplay between internal factors (workforce, social trends) and external factors (economic climate, technology) are extensively discussed.
What are the main types of organizational change discussed?
The text categorizes organizational change into four types: automation, rationalization, reengineering, and paradigm shift. It also distinguishes between incremental (evolutionary) and transformational changes, highlighting the different risks and rewards associated with each.
What is Lewin's three-step model of change management, and how is it applied in the text?
Lewin's three-step model consists of unfreezing (preparing for change), movement (implementing the change), and refreezing (solidifying the new state). The text details each step, emphasizing the roles of motivation, communication, and support. The model's application is illustrated through a case study of Remploy.
What is the Remploy case study, and what insights does it offer?
The Remploy case study examines how a UK company providing employment for disabled people managed the closure of several factories. It highlights the importance of communication, participation, and support in minimizing resistance to change and shows how individual consultations and alternative employment opportunities contributed to a more successful outcome.
What are the criticisms or limitations of Lewin's model discussed in the text?
While the text emphasizes Lewin's model, it also acknowledges potential limitations and criticisms which aren't explicitly detailed but implied through the critical assessment of existing models mentioned in the objectives and key themes section.
What are the key takeaways from the chapter summaries?
The chapter summaries provide a concise overview of each section, highlighting key concepts and examples. They emphasize the dynamic nature of organizational change, the diverse factors that trigger it, the varied approaches to managing it, and the importance of considering both the risks and rewards of different change strategies. The summaries also underscore the practical application of theoretical models like Lewin's three-step model.
What are some examples of external and internal triggers of organizational change?
External triggers include economic instability, technological advancements, globalization, and political events. Internal triggers include workforce demographics, social trends, quality initiatives, and performance issues. The text provides specific examples of each, illustrating how these factors can interact to initiate change.
What are the key words associated with the content of this text?
Key words include: Organizational change, change management, Lewin's three-step model, external forces, internal forces, incremental change, transformational change, automation, rationalization, reengineering, paradigm shift, case study, Remploy, resistance to change, communication, employee involvement.
- Quote paper
- Aruzhan Zhomart (Author), 2017, Organisational Change and its Reasons, Munich, GRIN Verlag, https://www.grin.com/document/366386
