Theme One Organisational Change

Theme 1: Strategic Renewal and Theories of Effective Change Implementation

Managers, intellectuals, people, workers, consultants and practitioners all speak of organizational change…

But this could mean a host of different things. There are various forms of change. E.g.:

• Introducing a new organizational enterprise

• Shutting down a business

• Selling a business

• Using a new pay-performance system as motivation

• Global markets

• Integration with other companies

• Response to external changes to stay competitive

What is strategic renewal? (SR)

“…refers to an alteration of an organization‘s strategy with the intent of regaining sustainable competitive advantage” (Spector, 2007: 2).

• Strategic renewal can be incremental or transformational

• Incremental strategic renewal:

o decisions to expand into new product or service lines

o or develop extensive change in performance improvements in CURRENT/EXISTING lines

o can you think of any examples other than Gap Inc.?

• Transformational renewal:

o Involves redefining customer expectations, industry dynamics, and basis for competition

o Redesign of business processes as well as organizational structures

o E.g. Grand Union changed WHO their customers would be (different target market) as well as HOW they would service their customers (high quality)

o See Grand Union case study

Behavioural change:

Targets patterns of employee ACTIONS and INTERACTIONS to attain and maintain good performance. (think of the Grand Union case study and difference in behaviours of Howard and Lance).

Behaviour: refers to what employees do as well as how they do it

What are change efforts?

N.B: forms of change efforts: (See tables on pg 5-6 in Spector (2007)

• employee involvement

• total quality management

• business process reengineering

•...