Organizational Change and Transformation.doc

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1、SCHOOL OF MANAGEMENTASSESSMENT/ASSIGNMENT SUBMISSION SHEETSTUDENTS FULL NAME (In Block Capitals): HONG CHENID NUMBERS: 322779841NAME OF PROGRAMME: MSc Human Resource ManagementCOURSE NAME: Organizational Change and TransformationCOURSE CODE:MANG 6150COURSE LECTURER: Professor Malcolm HiggsREQUIRED S

2、UBMISSION: Thursday, February 12th 2009TITLE OF PAPER: How should an organisation approach the implementation of a significant change and what are the advantages and disadvantages of your suggested approach. It is important that you justify your answer by reference to theories, and recent developmen

3、ts in thinking, relating to organisational change.Surviving in the globalization environment and the fierce competition, the contemporary organisations are facing with challenges and sustaining with great pressures. In order to overcome the difficulties, the organisation should be changed to be more

4、 flexible and efficient. It is not a simplistic way to approach the goal because organisational change is a complex process (Senge, 1999). Therefore, it is a better way to solve this problem by combining the application of HRD within organisation and appropriate change approach based on theories. Ac

5、cording to Rowland Fisher Lexon (RFLC) Change Quadrant (2003), there are mainly divided into four categories of change approaches, namely are Directive Approach, Master Approach, Self Assembly (DIY) Approach and Emergence Approach. Each approach has different advantages and limitations. Thus, it is

6、vital to opt for the suitable approach during the organisational change. In addition, organisational change is part of organisation development. From the perspective of organisation development, it is the right orientation for the organisation to change.Change is a pervasive influence. It is an inev

7、itable part of both social and organisation life and everything is subject to continual change for development (Mullins, 2007). There are several elements forcing the organisation to change, such as: the uncertain economic conditions require the organisation to prepare for the emergency; the globali

8、sation environment and fierce worldwide competition is the chiefly external factors for organisation to change; speedy developments in the new technology and the information era require the organisation to be flexible to update; the level of government intervention, political interests and scarcity

9、of natural resources should be also considered to the forces of change. Thus, change is inescapable. Therefore, it is necessary to follow some theories to manage change.Organizational change mainly related to three theories which are contingency theory, complexity theory and Business Process Reengin

10、eering Theory. Contingency Theory considers that the status and the process of the organisation should be changed with the internal and external needs and requirements (Vecchio, 2000). The core thought of Contingency Theory is that managers should respond to circumstances and variables immediately a

11、ccording to organisational internal and external conditions. The application of information technology has changed the business administration in all aspects of the original pattern. In the new form, in order to improve management efficiency, the managers should run business procedure reengineering

12、by adjusting and changing the management model and methods with innovation. Additionally, the essence of contingency theory is change. The critical key is whether managers keenly observe the changes in both internal and external organisational environment which have impact on all aspects of business

13、, and then carry out innovating for management ways and means.According to contingency theory, organisations should be an organic organisational structure rather than a decisive mechanical structure (Lynch, 2006). That is to say, organisations mission is to be determined by the organisational contex

14、t, and gradually clears up during the process of interaction between workers. In addition, individuals responsibility is not fixed, but extensive. With regard to communication in the organisation, the communication via the horizontal direction is overweight the vertical direction. Moreover, for demo

15、cratic atmosphere of organisation, information transmission and advice are more than a rigid command. Furthermore, general purpose and mission of organisations not only accomplish by the technical means, but also by the expertise and experience of the workers. Contingency Theory focuses on changes a

16、nd revolutions, and always asked managers and staff of organisations to maintain a positive attitude and thoughts to cope with change instead of being passive to transform.Complexity theory suggests that business organisation is a complex, open, and dynamic organic system of life (Reynolds, 1987). I

17、n order to be survival and development, organisation must be continuously carried out exchanging energy, material and information with the external environment. Then, under certain conditions, organisation states in the edge of chaos which means that organisation is a dynamic open systems far from e

18、quilibrium. Additionally, there is a nonlinear interactive phenomenon existing among the organisational internal factors. Therefore, in the complex environments, organisation occurs from the effect of self-organisation, from disorder to order, from lower order to higher order, to make it change and

19、revolute continuously and systematically, and then emerge new structure and morphology of dynamic equilibrium.For the complexity of organisation theory, only in adaptive external environment can organisation proceeds evolution and development (Litchenstein, 1996). Organisational adaptability and evo

20、lution are a symbiosis, and businesss capability and intelligence of self-organizing change is its driving force. There are three ways demonstrating the symbiosis. First of all, the organisation can do self-remodel through various departmental working group. These horizontal structures require exten

21、sive cross-functional and multi-disciplinary internal connective capacity. Secondly, the organisation employs internal prices, markets and similar with market mechanisms to coordinate the group complexity. Third, organisation has also established some sort of partnership to ensure making up for its

22、scarce ability.As far as Business Process Reengineering (BPR) theory considered by Hammer and Champy (2001), the current organizational structure is like a pyramid, which is not just bloated in size and complex and inefficient for internal structure. In this way, business often ignore the customers,

23、 resulting in the value chain confusion, cannot bring value-added to customers. Business Process Reengineering Theory considers that such organizational process must be reengineering to achieve making organization face the customer directly, and aim to meet the needs and desires of customers.The cor

24、e of Business Process Reengineering is business process change. According to Hill and Collins (1998), there are two aspects included into its thoughts. First of all, through the original business process re-shaping, covering the corresponding with resources structural adjustment and human resource r

25、estructuring, it can make business a great advancement which can be seen on numerous critical key indicators, such as the level of profitability, productivity, product research and development capacity and speed, as well as customer satisfaction. Eventually, the goal is to raise the overall competit

26、iveness of business. Secondly, through the re-shaping of enterprise business process, business gets a good deal of improvement on performance. The most important thing is that enterprise business process enables organizational form bring out revolutionary change. It will transform business into a fl

27、ow-oriented enterprise, resulting in realizing fundamental reform of business operating methods and management practices.Base on the theories above, there are many organisation change models arising to guide the management of change. Among these models, Lewins change model (Lewin, 1951) is perhaps t

28、he most influential model of organizational change. Stacey (1996) argues that this model is based on assumption as follow: the first is that the managers are able to select successful transformations before environment changes; the second is that change is a linear process and last is that organisat

29、ions are systems keeping stable equilibrium. However, in recent years, facing with so many uncertain factors, majority of managers fail to do it in advance of environment change. In addition, it is proved that change is not a linear process but a complex process (Pascale, 1999). What is more, the or

30、ganisation is a dynamic system rather than a stable equilibrium one. Although these assumptions are not adapt to the contemporary situation, even opposite to, the critical thinking of dividing the change process into three stages are easy to mange change and execute the organisation approach. Lewin

31、(1951) proposes that three-phase model of organizational change which contains unfreeze, mobilise, re-freeze has plans for interpretation and guidance on how to launch, manage and stabilize change processes. The focus of unfreeze lies in the motivation to create change. Encouraging staff to change e

32、xisting patterns of behaviour and work attitude, adopting new organizational strategies to become accustomed to the development of behaviour and attitudes. In order to achieve this, on one hand, it is needed to be negative of old behaviour and attitudes; On the other hand, it is necessary to make em

33、ployees recognize the urgency of change. Comparative assessment can be used to approach, the overall state of the unit, cooperating indicators and the level of performance or with other competitors to be compared to identify gaps. Helping the staff to change their thinking, unfreeze existing attitud

34、es and behaviour, pressing for change, willing to accept the new work pattern. In addition, attention should be paid to create an open atmosphere and psychological sense of security in order to decrease the psychological barriers to change, enhance the confidence of a successful transformation. Mobi

35、lise is a learning process, it is necessary to provide employees not only new information, new modes of behaviour and new perspective, but also to specify the direction of change, implementing change to form new attitudes and behaviours. In order to consolidate the new attitudes and behaviour, it is

36、 important to set a paradigm, using role models, mentoring, expert lectures, group training and so on. Lewin (1951) believes that change is a cognitive process, which is completed by the attainment of new concepts and information. In the re-freezing stage, it is essential to strengthen the new attit

37、ude and behaviour, so that organizational change can be kept in a stable state. In order to ensure stability, it is considerable for the staff to have the opportunity to attempt and trial new attitude and behaviour, and timely positive enhancement. Meanwhile, it is encouraged to strengthen the stabi

38、lity of behaviour change groups to form a stable of long-term group behaviour. In recent years, the importance of HRD is increasing and it related to the organisational change deeply. Many experts extend the term training and development (T&D) at work and adopt the term HRD instead. According to Swa

39、nson and Holton (1997), HRD refers to a process of developing and or unleashing individual expertise via organisational development and personnel training and development with the aim of enhancing performance. Additionally, Stewart et al. (2002) expand upon, the philosophy of HRD is human resource d

40、evelopment encompasses activities and processes which are intended to have impact on organisational and individual learning. In terms of the feature of definition in HRD is the extent to which organisational change is owing to the interventions during the learning process. Obviously, HRD is not mere

41、ly a new term for training and development (T&D). Furthermore, it is also including organisation development and learning, especially strategic learning methods in organisations. There are wide scopes of HRD activities, covering training, employee development, organisation development and learning,

42、and so on. Through these activities, the change approach can be delivered from individual to the group, then from the group to other groups, until the whole organisation. It is a great drive force to the organisational change.Organisation change is one of the critical features in the organization de

43、velopment (OD), the relationship between OD and change is emphasised by Hamlin, Keep, and Ash (2001), and it is considered that for organisation to manage change effectively, change becomes the driving force to the future success and growth. In these organisations, every change becomes welcomed as a

44、n opportunity for increasing efficiency and improving new organisational structure. Organisation development has emerged both from the demands of a changing environment and from knowledge provided by the evolution of the applied behavioural science (Friedlander and Brown, 1974). Organisation develop

45、ment is a field of applied behavioural science that seeks to develop the principles and practice of managing change and improving effectiveness in organisations. According to French and Bell (1999), organisation development is a long-term effort led and supported by top management, to improve an org

46、anisations visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of organisational culture-with special emphasis on the consultant-facilitator role and the theory and technology of applied behavioural science, including participant action resea

47、rch. Before executing the change approach, organisational diagnosis should be carried out first. It could determine the appropriate interventions to organisations. The purpose of organisational diagnosis is to understand the nature and causes of problems and compare the present condition with a futu

48、re or preferred present. In addition, the main characteristic of organisational diagnosis interventions is chosen which may target members, behaviours and processes, organisational structures, organisational goals, strategies and cultures. In order to bring about effective change, OD makes use of an

49、 amount of interventions. French and Bell (1999) define organisation development interventions as a range of planned programmatic activities clients and consultants participate in during the course of an organisation development programme, such as team building activities, survey research and feedback, T-group, inter-group activities and so on. Team building is the process of estimating task procedures and patterns of human interaction w

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