Week 10 Organising (2) PDF

Management & Organisations: Organising Change and Innovation DR SHUKRULLAH FASSEHI  IMPORTANT INFORMATION Essay Feedback  Class average: 20.5/30  What students generally did well: Defining key concepts and theories Taking a clear position Selecting a relevant organisation to supp...

Management & Organisations: Organising Change and Innovation DR SHUKRULLAH FASSEHI  IMPORTANT INFORMATION Essay Feedback  Class average: 20.5/30  What students generally did well: Defining key concepts and theories Taking a clear position Selecting a relevant organisation to support their position Writing the self-reflection  Areas for improvement in the future: Supporting key ideas and statements with academic sources Correctly using APA referencing style Use of poor-quality sources Linking theories to practices of the organisation Overall cohesiveness / logic of essay structure The University of Western Australia  IMPORTANT INFORMATION for MCQ 2 MCQ 2 Opens 5pm on Wednesday, 16th October and closes at 11:59pm on Thursday, 17th October Covers lecture content from weeks 7 to 11 inclusive Same format as MCQ 1 Exam Lecture The final lecture of the semester is the exam lecture (no new content) which will give you all the key information you need for the final exam. The University of Western Australia Overview Define organisational change Lewin’s three-step change model:  Unfreezing  Changing  Refreezing Kotter’s eight-step change model Define innovation & different approaches to innovation The University of Western Australia An introduction to Organising  Organising The process of arranging people and other resources to work together to accomplish a goal. Involves creating a division of labour (work specialisation) for task performance and coordinating results to achieve a common purpose.  Given a clear mission, core values, objectives and strategy, organising begins the process of implementation by clarifying jobs and working relationships. The University of Western Australia Change in action… Please move to the front of the class and take a seat. The University of Western Australia Take a moment to discuss with the person next to you: 1. How did you feel about changing your seat? 2. Do you like your new seat better? 3. Was this change valuable to you? 4. Did this change disrupt your status quo? The University of Western Australia  Organisational change Change occurs when an organisation adopts a new idea or behaviour. Change at UWA BUT… is it easy to implement change? Consider a time when you were asked to change (maybe at work, university, sport team, by your parents, friends) how did you feel about it? The University of Western Australia The Challenge of Change The University of Western Australia Kurt Lewin’s Approach to Change Lecture Reading: Burnes, B. (2004). Kurt Lewin and the planned approach to change: a re‐appraisal. Journal of Management Studies, 41(6), 977-1002. Field Theory – ‘understanding group behaviour by trying to map out the totality and complexity of the field in which the behaviour takes place’ (Back 1992 cited in Burnes 2004: 981). Quasi-stationary equilibrium – a recognition of the idea that ‘there might be a rhythm and pattern to the behaviour and processes of a group, these tended to fluctuate constantly owing to changes in the forces or circumstances that impinge on the group’ (Burnes 2004: 981) The University of Western Australia Kurt Lewin’s Approach to Change Group Dynamics - Lewin’s definition of a ‘group’... ‘it is not the similarity or dissimilarity of individuals that constitutes a group, but interdependence of fate’(1939: 165). Consequently, the focus of change must be at the group level i.e. Group Dynamics - and therefore change should concentrate on factors such as group norms, roles, interactions and socialization processes to create ‘disequilibrium’ and change. The University of Western Australia Kurt Lewin’s Approach to Change Action research – ‘First…emphasizes that change requires action and is directed at achieving this. Secondly, it recognizes that successful action is based on analysing the situation correctly, identifying all the possible alternative solutions and choosing the one most appropriate to the situation at hand’ (Burnes 2004: 984). ‘Action Research stresses that for change to be effective, it must take place at the group level, and must be a participative and collaborative process which involves all of those concerned’ (Burnes 2004: 984). The University of Western Australia Models For Thinking About Change: Force-field analysis  Based on Kurt Lewin’s idea that change is as a result of competition between driving forces and restraining forces. Source: Samson et al. 2018: 475 The University of Western Australia Change resistance Self interest Fear of personal loss Lack of understanding & trust Not knowing the purpose of change/lack of trust Uncertainty Fear of the unknown Different assessments & goals Not being on the same page The University of Western Australia Overcoming resistance  A need for a change can be developed through creating a sense of urgency.  A need for change is a disparity between existing and desired performance levels (also known as performance gap)  Managers can identify a need for change through SWOT analysis (which we discussed last week): Strengths Weaknesses SWOT ANALYSIS Opportunities Threats The University of Western Australia Models For Thinking About Change: Kurt Lewin’s three-step change process Changin g Making Reinforcing people Implementin new aware of a behaviour g the change need for (celebrate change successes, and reward Unfreezi Refreezi positive behaviour) ng ng The University of Western Australia Kotter’s eight-step change model Lecture Reading: Mento, A., Jones, R., & Dirndorfer, W. (2002). A change management process: Grounded in both theory and practice. Journal of Change Management, 3(1), 45-59 1. Create a sense of urgency 2. Form coalitions 3. Develop the change vision 4. Communicate the change vision 5. Empower others to work toward change 6. Celebrate short-term wins 7. Never let up 8. Embed change into organisational culture Kotter, J. P. (1995). Leading change: Why transformation efforts fail. Harvard Business Review, 73(2), 59-67. The University of Western Australia Implementing change: Organisational Change at Australia Post  Australia Post has been delivering letters for over 200 years. However, this communication has given way to email, text, social networks etc. Indeed, in 2015 the Australian population sent roughly 1 billion few letters than in 2008 (equating to a $AUS300 million loss of revenue per year). Subsequently Australia Post’s business and organisational model is failing.  What 1 change does Australia Post need to implement?  Identify 3 restraining forces to the implementation of your change?  How would you best reduce those restraining forces? The University of Western Australia Scepticism about change…  Some critics argue we are living in times of unprecedented change.  Firms need to adapt more rapidly than ever before! Thompson’s (2003) ‘Disconnected Capitalism’ argues that the disappearance of the ‘old economy’ characterized by large firms, mass production and standardized work; supplanted by flexible, creative, knowledge-based labour in a largely service context. The substitution of hierarchy by networks, ‘boundaryless’ or decentralized units in a globalized world in which private capital is the only significant actor, with the state and labour marginalized. - In reality, Thompson argues that the vast majority of organisation and management are characterised by lean and mean approaches (i.e. nothing much has changed) The University of Western Australia 20 Circle: Can you transform as many circles as possible into different objects in 2 mins?  Any self-imposed rules that prevented you from drawing outside the circle?  That you could not connect several circles to create a shape? 20 The University of Western Australia Change is key to organisational survival… Organisations need to innovate to stay ahead of competitors BUT…what is innovation? Innovation refers to “significantly improved goods, services, processes or methods” Source: Innovation in Australian Business, 2014-15, ABS, CAT no. 8158.0 process innovations versus product innovation The University of Western Australia  Schumpeter’s definition…  Schumpeter was the first person to define innovation in late 1920s who emphasised on novelty.  “doing things differently” is the heart of innovation.  Invention vs. Innovation “An invention is an original or scientific insight, whereas an innovation is something new in practical life: a product, process or service meeting a real demand or need...” Creative Destruction - “the essential fact about capitalism” Amazon’s Gamification Experiment Crossan, M. M., & Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6), 1154-1191. Hansen, S. O., & Wakonen, J. (1997). Innovation, a winning solution? International Journal of Technology Management, 13, 345–58. The University of Western Australia Disruptive innovation  Innovation in products, services or processes that change an industry’s rules of the game  Can you think of some examples of disruptive innovation? The University of Western Australia Ambidextrous approach to innovation  An ambidextrous approach – is about incorporating structures and processes that are appropriate for both the creative impulse and for the systemic implementation of innovations.  Bottom-up vs. top down approach Flow of ideas from higher levels Flow of ideas from lower levels The University of Western Australia  Exploration approach  Creativity: The generation of novel and useful ideas that can meet needs or respond to opportunities  Innovation: The implementation of creative ideas  Idea incubator: A mechanism that provides employees the opportunity to innovate without company bureaucracy or politics Reality TV – Shark Tank UWA Innovation Quarter – “The UWA Innovation Quarter (UWA IQ) strives to foster enterprise, industry engagement and entrepreneurship for UWA researchers, student and staff” The University of Western Australia Cooperation: Internal coordination  Several department collaborate to  Poor cooperation of different innovate division at Sony to bring an idea (a  Innovation in this setting is like a music player similar to iPod) team sport e.g., soccer before Apple developed it. The University of Western Australia Cooperation: External coordination  Open innovation: Valuable ideas can come from inside/outside an organisation Crowdsourcing – human capital (Amazon Mechanical Turk, Upwork etc. also crowdfunding.  Innovation by acquisition: Acquiring small innovative/entrepreneurial firms The University of Western Australia Concluding Remarks Change as Fetish: Despite decades of research 60-70% of organizational change projects fail! Organising, and Change, is both a human, management and organisational obsession, but should be grounded in improvement not simply ‘change’. Next week: Lecture Topic: Leadership The University of Western Australia