Drivers of Change – Study notes

  • Change is inevitable. If you do not make a change, the change will change you!
  • Change Management is a critical focus area for Managers
  • Alvin Toffler (former editor - Fortune Magazine) said this some decades ago - “There is only one constant today and that is change”.
  • Some reasons which will force you for a change are, but not limited to:
    • Weak business performance
    • Poor customer satisfaction
    • High rate of project failure
    • Lack of innovation
    • Rapid technology advancement
    • New business models
    • Outsourcing
    • Merging and Acquisitions
    • Collaborative partnership models
    • Greater agility in customer responsiveness.
  • During late 1800s, most of the European organizations were family businesses or owned by single individual.Today’s bureaucracy style of organization structures came later which gave organizations a structure which is independent from individual ties.
  • Max Weber suggested that organizations could be managed on an impersonal, rational basis. Weber’s reasons for introducing bureaucratic management are:
    • There will be formal guidelines on code of conduct of employees. Managers/employees come and go but the rules followed will be same
    • Because of common rules, there is no question of partiality and protects employees from personal wimps from managers.
    • Everybody performs only jobs which are designated to them based on their expertize so it gives employees to work jobs which are easy for them.
    • Hierarchical and Authority Structure
    • Rationality
  • Scientific Management
    • Frederik W Taylor – proposed a theory based on relationships between workers and machine based production systems. He said “the principle object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee”. But main disadvantage of this model (scientific management) was the concentration on finely subdivided tasks that a worker would repeat thousands of times.
  • Human Relations School – believed that the effective control comes from within the individual worker rather than from strict, authorization control. The focus on this thought increased following a series of studies, known as “Hawthorne studies” (Chicago electric company). The studies found that employees will perform better if managers treat them positively.
  • Fordism – Originated by Henry Ford (founder, Ford Motor Corporation). Ford controlled all the stages of production from raw materials to final distribution by a process of standardization – which recognizes the need to embrace quality at all levels of the organization.
  • Knowledge Age – Today’s age is called Knowledge Age where we do continuous learning in the pursuit of intellectual assets is at the heart of competitiveness.
    • Peter F Drucker said “Education will become the center of knowledge society, and the school is the key institution”
  • Environmental Turbulence – It refers to the amount of change and complexity in the environment of a company. The greater number amount of change in environment, the higher level of environmental turbulence. Companies will have to adapt to the rapid changes in environment to stay competitive.
  • You must plan in advance what change and how to make that change. There are three types of changes:
    • Developmental – (first order) It can be planned or an emergent change. This change enhances an existing process of an organization.
    • Transitional – (second order) This is a planned change. This change tries to achieve a known desired state which will be different from the existing state.
    • Transformational – (second order) This change emphasizes on shift in assumptions currently follow to an entirely different one. Almost like developmental mode, which adapts, learns and improves the processes.

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