Gw cm 1 (1)
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Transcript of Gw cm 1 (1)
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Group 1 :
Debdeep Chatterjee
Rakhi Jain
Vinayak Pareek
Shapes Of
Organizational
Change
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Presentation Outline
Part – I : Theoretical Framework
Part – II : Case Study and the Link to the Model Presented in Part I
Part III :Conclusion
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Punctuated Equilibrium Model Tushman and Romanelli (1985) Two Types of Changes – Rapid and Incremental
MODEL - Rapid Changes are relatively shorter periods of time sandwiched between relatively long time spans of incremental changes and adaptation.
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Domains of Organizational Activity
Firm’s Strategic Orientation can be categorized into five domains –
1. Organization Culture
2. Strategy
3. Structure
4. Power Distributions
5. Control Systems
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Punctuated Equilibrium Model(Contd..)
• Double Loop Learning Process
• Four Types of Organization Change –
– Fine Tuning
– Incremental Adjustment
– Modular Transformation
– Corporate Transformation
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Unexplored Issues
• Shapes of Organizational Change
•Role of the Top and Middle Management
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INCREMENTAL CHANGE
RADICAL CHANGE
Issue 1 – Shapes of Organization Change
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Issue 2 – Role of Management
• According to Tushman and Romanelli – Top management is the only one which can bring the “Radical Change” While middle management brings about the “Incremental Change”
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Heineken
• 1940’s Radical CEO decision – Controlled , Rational Adaption theory
• 1980’s -Changing Preferences– Executive Myopia
– Snoep –The Outsider
– Oostra – The outsider part 2
– Van Soest –Ivory Tower
– Strobos – green book • Internal Politics
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The CEO search
• Management By Edict
• Status Quo Tendency
• Self cloning
– Homosocial reproduction
• Heir Influencer
From the familiar to more universal
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Change in Distribution System – Radical Change followed by incremental changes
• New distribution strategy targeting supermarkets as well as pubs post 2nd World War. Wholesalers were given importance.
• Strategy as a response to environmental changes viewed as an opportunity.
• Middle management carried out & fine tuned the change initiated by top management
• Resistance from commercial managers, lower management & sales people
• Observed, unexpected challenge triggers initial radical change succeeded by incremental changes
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Structural Inertia & CEO succession: Incremental Change followed by Radical Change
• Environmental changes in 1990s necessitated changes, which were blocked by incumbent CEO Freddy Heineken.
• All subsequent general directors were unable to change the organization due to inertia.
• Retirement of CEO Freddy Heineken provided an opportunity for change.
• His successor Van Schaik couldn't implement the changes as he was viewed as transitory & Freddy had a huge background influence.
• Schaik’s successor Vuursteen was able to radically change the organization. His success was attributed to the fact that his appointment was approved by Freddy & also the latter’s influence had become less prominent.
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Thank you!!