ORGANISATIONAL CULTURE AND CHANGE

Session 18

Guest Speaker

• Discussed the culture and its implications for employees and working practices.

• Discussed the working practices and culture at Lastminute.com

• Student presentation on Culture.

Set the pattern and then change it

• Institutional theory is about embedding practice in the organisation – setting rules and parameters – ‘how we do things here’. This is based on the entrepreneurs vision.

• Organisational learning means that it must continue to match its resources and structure to the changing needs of market.

• Organisations must respond to changing contingencies if they are to sustainable.

Cummings and Worley (2009: 23-31)

The learning organisation

Opportunity

Entrepreneur

OrganisationResourcesConfiguration

Focus Fit

Wickham, 2006: 227

Planning Change

• Organisation development is a mechanism for bring about planned change.

• Planned change aims to increase organisational effectiveness and capacity to respond to change itself.

• Three approaches:– Lewin’s Change Model– Action Research Model– Positive Model

Cummings and Worley (2009: 23-31)

Models of Planned Change

Unfreeze

Movement

Refreeze

Problem Identification

Consultation with Behaviour Experts

Initiate the Enquiry

Action

Joint Action Plan

Joint Diagnosis of the Problem

Feedback to Key Group

Gather Data and Preliminary Diagnosis

Data Gather after Action

Investigate Best Practice

Discover Themes

Envision a Preferred Future

Design and Deliver ways to Create the Future

Cummings and Worley (2009: 25)

Kurt Lewin’s Change Model

• Early model of planned change – modification of those forces keeping a systems behaviours stable.

Quasi-stationary equilibrium

Cummings and Worley (2009: 23-31)

Kurt Lewin’s Change Model

• To create pressure for change you need to create more pressure for change. This may be achieved by changing expected norms of behaviour or raising expectations.

Cummings and Worley (2009: 23-31)

Lewin

• Unfreeze – initiate steps that reduce those forces that maintain the status quo. Maybe need ‘psychological disconfirmation’ – demonstrate the differences between current behaviour and desired behaviour.

• Moving – Shift behaviour to the new expected level. Aim to develop new attitudes, values and behaviours, supported by changes in the organisation structure and processes.

• Refreeze – This stabilises the organisation in the new state of equilibrium. These are reinforced with new rewards, culture and structure.

Cummings and Worley (2009: 23-31)

Action Based Model

• Considers change as a cyclical process.

• Places emphasis on data gathering and diagnosis prior to action planning and implementation as well as careful evaluation after action is taken.

• Can help to solve specific organisational problems and also to gather data that can be applied to other settings.

• Often associated with organisational development.

Cummings and Worley (2009: 23-31)

Action Based Research

• Can be scaled up from smaller units to whole organisational approaches.

• Can involve a range of stakeholders and therefore it is more inclusive approach (rather than having it undertaken by consultants).

• Consultant can work with internal stakeholders and ‘co-design’ solutions to problems.

Cummings and Worley (2009: 23-31)

The Positive Model

• While the previous problems focus on the organisations problems (they are deficit based), this approach focuses on what the organisation is doing right.

• The approach focuses on positive organisational dynamics – what is the organisation doing right.

• Positive expectations are exploited to create an approach that anticipates a good outcome. This energises people in advance of the event.

• Helps to create a shared vision which conceives a positive potential outcome.

Cummings and Worley (2009: 23-31)

Comparisons

• All three define the stages in which planned change can occur.

• Each has a preliminary and closing phase. • All involved a behavioural science element – people,

values, processes change. • Lewin and Action Based Research use consultants as

part of the process. More advanced ABR and Positive Models treat the employees and consultants as co-learners.

• Lewin and ABR are concerned with fixing problems, while Positive approach is based on leveraging the organisations strengths.

Cummings and Worley (2009: 23-31)

Reference

• Cummings, T and Worley, C. G. (2009) ‘Organisational Development and Change’ South-Western CENGAGE Learning, Chapter 2.

• Wickham, P. (2006)’Strategic Entrepreneurship’ FT Prentice Hall.