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Chapter 14: Implementing Strategic Change

Text by Charles W. L. Hill Gareth R. Jones

Multimedia Slides by Milton M. Pressley

Univ. of New Orleans
Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Preview
Strategic Change Determining the Need for Change Determining the Obstacles to Change Strategic Change and Organizational Politics Managing and Evaluating Change
Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Organizational Change
Strategic Change

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.1: Three Types of Strategic Change

Reengineering Restructuring

Types of Strategic Change

Innovation

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Organizational Change
Strategic Change Reengineering Restructuring
Differentiation and Integration Reduction Downsizing

Innovation

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.2: Stages in the Change Process

Determining the Need to Change

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.2: Stages in the Change Process

Determining the Obstacles to Change Determining the Need to Change

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.2: Stages in the Change Process

Implementing Change

Determining the Obstacles to Change Determining the Need to Change

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.2: Stages in the Change Process

Evaluating Change

Implementing Change

Determining the Obstacles to Change Determining the Need to Change

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Need for Change

Recognize a Gap Between Desired and Actual Performance Analyze Current Position Determine How to Achieve Desired Future State

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change

Types of Obstacles to Change
Corporate Divisional Functional Individual

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Figure 14.3: Stages in the Conflict Process

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Perceived Conflict

Figure 14.3: Stages in the Conflict Process

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Perceived Conflict

Figure 14.3: Stages in the Conflict Process

Felt Conflict

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Perceived Conflict

Figure 14.3: Stages in the Conflict Process

Felt Conflict Manifest Conflict

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Perceived Conflict

Figure 14.3: Stages in the Conflict Process

Felt Conflict Manifest Conflict Conflict Aftermath

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Determining the Obstacles to Change (Continued) Latent Conflict

(Sources of Conflict)

Perceived Conflict

Figure 14.3: Stages in the Conflict Process

Felt Conflict Manifest Conflict Conflict Aftermath

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Strategic Change and Organizational Politics

Organizational Politics

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Strategic Change and Organizational Politics (Continued)

Sources of Organizational Politics

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

Figure 14.4: Rational and Political Views of Decision Making

Rational View
Total Information Available

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Political View
Selected Information Available

Agreement over Organizational Goals Agreement over the Appropriate Means for Achieving Goals Decision Making by Calculated Plan

Disagreement over Organizational Goals

Disagreement over the Appropriate Means for Achieving Goals Decision Making by Negotiation, Bargaining, and Compromise
Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.5: Effect of Organizational Politics on Performance

High

Organizational Performance

Low Low A (Optimal Level) Level of Organizational Politics High

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Strategic Change and Organizational Politics (Continued)

Sources of Organizational Politics
Legitimate Power and Politics Informal Power and Politics

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Figure 14.6: Sources of Power

Ability to Cope with Uncertainty Centrality Control Over Information Nonsubstitutability Control Over Contingencies Control Over Resources
Copyright 1998 by Houghton Mifflin Company. All rights reserved.

Functional or Divisional Power

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Strategic Change and Organizational Politics (Continued)

Sources of Organizational Politics Legitimate Power and Politics Informal Power and Politics Effects of Power and Politics on Strategic Change Managing Organizational Politics

Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Managing and Evaluating Change

Top Down

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Managing and Evaluating Change

Top Down

Bottom Up
Copyright 1998 by Houghton Mifflin Company. All rights reserved.

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Copyright 1998 by Houghton Mifflin Company. All rights reserved.