NATURE OF ORGANIZATIONAL

CHANGE

Importance
We cannot become what we need to be by remaining what we are. Max DePree It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin

Importance
Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy The road to excellence is always under construction. Anthony Robbins

Importance

When the rate of change outside exceeds the rate of change inside, the end is in sight. Jack Welch

Change and Organization

Organizations

dynamic field of complexity challenged by ever present demands of change (Pettigrew, 2001). - an inevitable feature of organizational life, determining its success and survival.

Change

75

percent of all American corporations have gone through some type of systematic change program (Attaran, 2000).

Change and Leadership

70

percent of new programs from reengineering, installing new technology to changing culture fail (Beer and Nohria, 2000).

Startlingly

low record of change success (Sturdy and Grey, 2003).

of European firms by the Economist (2000) 20 percent substantial success with change and 63 percent only temporary success.

Survey

Concept
Change The only constant Moving to a new (better) state of being Organizational change A process by which organizations move from their present state to some desired future state to increase their effectiveness.
Implementation

of new ways of doing or being in order to realign with the new demands of the environment or to

Concept
Goals
To

find improved ways of using resources and capabilities in order to increase an organizations ability to create value and improve returns to its stakeholders.

Research Findings on Organizational Change

Needed for both the failing organizations (e.g. IBM or GM) or thriving organizations (e.g. Wal-Mart) to use resources in a way that improve their fit with the environment.

Over half of all Fortune 500 companies have undergone major organizational changes to allow them to increase their ability to create value.
Of the 1970 Fortune 500 companies, one third ceased to exist by 1983 because of

Two modes of Change

1.

Accidental or inevitable change Happens to the organization

2.

Planned change Purposively designed and executed by the organization

Types of Organizational Change

Evolutionary change Gradual, incremental, and narrowly focused.

A constant attempt to improve, adapt, and adjust strategies and structure incrementally to accommodate to changes in the environment. E.g. TQM, flexible work groups, employee training.

Types of Organizational Change

Revolutionary change Rapid, dramatic and broadly focused. A bold attempt to quickly find new ways to be effective. Radical shift in ways of doing things, new goals and new structure. E.g. Reengineering, restructuring,

Work in historical context

How has work changed over the years? How is it being transformed by changing technologies, new ideas on how to organize work--on the factory floor, in offices, working at home or on the road, or in globally dispersed teams and organizations?

Work: a brief history

Medieval Days: work was for the Serfs!
Marx Do we work to live or live to work? Today: Source of Identity, Economic Necessity, Social Contribution.

Past
Industrial Economy

and

Present

Information Economy Global Competition Services--size varies Diverse groups with blurred boundaries Mixed modes--conflict and cooperation Men & Women at Work-varied families

Domestic Competition Big Industrial Firm Two groups: managers and workers Adversarial Relations Male Breadwinner with Spouse at Home

The Problem
Nature of work and the workforce have changed dramatically, but our institutions, policies, and practices for governing and managing work still reflect their origins in the industrial economy of the past

Our challenges
Update practices, institutions, and policies to catch up with the changes in the workforce and in work--to meet the needs of the modern economy, and the modern workforce and modern families!