Managing Change - Buss 4

Managing Change - Buss 4

1. Culture

   • The way things are done in the business
   • Schein
     • Suggested that culture is formed over time by:
       • Basic Assumptions: individual beliefs and behaviours
       • Organisational Values: mission statement
       • Artefacts: visible and frequently used to show the culture
   • Strong Culture
     • deeply embedded into the ways of the business
     • Everyone understands what is needed of them
   • Weak Culture
     • Core values are not clearly defined
     • Little alignment between the way things are done and the values of the business
   • Types of Culture
     • Entrepreneurial: staff take risks, come up with new ideas, enterprise and risk taking
     • Handy
       • Person: individuals express opinions fully, some conflicts, most creative
       • Task: cooperation & teamwork, groups solve problems
       • Power: power among few people, autocratic, swift decisions
       • Role: clearly defined jobs, operate with rules, little creativity

2. Leadership

   • Autocratic: manager sets objectives, allocates tasks, insists on obedience, organised +employees respond immediately, dependent on tasks, obeying tasks quickly, lower costs - dissatisfied, high level of supervision, poor motivation
   • Democratic: encourages participation in decision making + can tap into the ideas of employees, better decisions are made, may operate quicker and better - consulting others take time, deadlines and targets missed
   • Paternalistic: managers sets the decisions and employees are expected to obey + get the job done how the manager want it to be done - is held responsible for all the decisions
   • Laissez Faire: allows employees to carry out jobs freely, relaxed +more empowered, more input, motivated - poor productivity, free to do what they wish, less motivation, little incentive to work

3. Strategic Change

   • Ansoff's Matrix
   • Scientific Decision Making
     • Is based on data and uses a logical, rational approach to decision making
     • + more secure
     • + Can stop if data suggests failure
     • - takes more time
     • - hard for new businesses
   • Hunch Decision Making
     • Is based on a manager's intuition and does not refer to data at all
     • + Quicker process
     • + Low cost
     • + May have worked in the past / supports culture
     • Does not guarentee success
   • Lewin - Change Management Model

4. Resistance to Change

   • Lewin's Force Field Analysis
     • In order for change to occur the driving forces must be greater than the restraining forces
     • The equilibrium can be changed by either adding forces in the desired direction or reduce the opposing forces
   • Kotter and Schlesinger
     • Causes of resistance to change: -individuals are concerned with the implications for themselves - communication problems / inadequate information - sense of security - different assessments of the situation
     • Overcoming resistance to change: 1) Education & Communication 2) Participation & Involvement 3) Facilitation & Support 4) Negotiation & Agreement 5) Manipulation & Co-option 6) Explicit & Implicit Coercion

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