Presented by: Owais Qazi

2 The nature of
organizational
change
Organizational
Change
2 The nature of organizational change

Learning objectives

By the end of this chapter, we will be able to:
emphasize the complex nature of organizational
change;
describe and discuss the multi-dimensional nature
of organizational change;
analyze change situations in order to choose
appropriate methods of managing and implementing
change;
2 The nature of organizational change

Learning objectives

recognize that there are limitations to the common-
sense approach to managing change because of
cultural, political and leadership influences;
critically evaluate the theoretical perspectives
relating to the types of change that organizations may
experience.
Varieties of change
Smooth incremental:
evolves slowly in a systematic and predictable way
Bumpy incremental:
periods of relative tranquility punctuated by
acceleration in the pace of change
Discontinuous:
which is marked by rapid shifts in strategy, structure
or culture, or in all three
Varieties of change
Organizational convergence and upheaval
Incremental: evolution, adaptation
Big Bang: revolution, reconstruction
Converging change types: fine tuning, incremental
adaptations
Frame-breaking change: industry discontinuities,
product lifecycle shifts, internal company dynamics
Illustration 2.2 Illustration 2.2.docx
Varieties of change
Fine tuning to corporate transformation
Scale Type 1: Fine Tuning
Scale Type 2: Incremental adjustment
Scale Type 3: Modular Transformation
Scale Type 4: Corporate transformation
Illustration 2.3 Illustration 2.3.docx
Predictable change
Lifecycle of organization
Phase 1: Entrepreneurial stage
Phase 2: Collective stage
Phase 3: Formalization stage
Phase 4: Elaboration stage
Phase 5: Decline or reborn
Illustration 2.5
Table 2.1 cont.
Diagnosing change situations
Breakpoints
those times when organizations must change their
strategies in response to changes in competitors
behaviour
Competitive cycle suggests two basic types of
breakpoint:
Divergent Breakpoints associated with sharply increasing
variety in the competitive offerings, resulting in more
value for the customer.
Convergent Breakpoints associated with sharp
improvements in the systems and processes used to
deliver the offerings, resulting in lower delivered cost.
Hard and soft problems
Hard (difficult)
soft (messy) problems
Illustration 2.7 Illustration 2.7.docx
Case Example
NHS revolution breathes new life into private sector
1 To what extent do you consider this change to be frame-
breaking change? Justify your view.
2 In your opinion, which sectors and elements of the
environment do you consider to have had the most influence
on the decisions detailed in the case? Justify your
conclusions.
3 From your knowledge and experience of the NHS and
private healthcare providers, analyze the effects that will be
felt by doctors, other medical staff and administrators in the
NHS and other healthcare providers.
4 What effects, if any, over the longer term might these
changes have for patients?

Part one case study

Orange, a study of change: part 1