Understanding Organizational Change

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1 Understanding Organizational Change Jean Helms Mills, Kelly Dye and Albert J. Mills Routledge Taylor & Francis Croup LONDON AND NEW YORK

2 List of figures ix Acknowledgements x 1 Making sense of organizational change 1 Vignette: Business as usual. A day in the life of the business world 1 The development of change management 9 The importance of change management 10 Objectives of this book 14 End of chapter questions and exercises 21 2 The discourse of change: from theory to practice 22 Vignette: Air Canada and change 22 Early management theories and the changing nature of work 24 Types of change 31 Forces of change 33 Levels of change 34 Making sense of the evolution of programmatic change 35 Making sense of the traditional models of change 37 Conclusion 37 End of chapter questions and exercises 37 3 From Lewin to OD: planned approaches to change 39 Vignette: ASDA moves into Northern Ireland 39 An introduction to planned change 41 Kurt Lewin and organizational change 42 Organizational Development (OD) 50 Summary 54 End of chapter questions and exercises 54 ^

3 vi 4 Organizational culture and culture change 56 Vignette: cultural clashes 56 The roots of organizational culture 57 Culture and culture change 59 Making sense of organizational culture 60 From theory to practice 64 Planned culture change 64 Successful planned culture change 66 Unsuccessful culture change 68 Pre-packaged change programmes 70 Conclusion 70 End of chapter questions and exercises 71 5 Organizational learning, the learning organization and appreciative inquiry 73 Vignette: British Petroleum creates a learning organization 73 Vignette: organizational learning in a Canadian hospital 74 Organizational learning 76 The learning organization 77 Making sense of the organizational learning literature 81 The future of organizational learning research 83 Appreciative inquiry 83 Conclusion 86 End of chapter questions and exercises 86 6 The quality movement - TQM and business process re-engineering 88 Vignette: The big three auto makers in the news 88 The history of the quality movement 90 What is Total Quality Management? 92 Business Process Re-engineering (BPR) 96 Summary 99 End of chapter questions and exercises 99 7 A measure of change: Six Sigma and the Balanced Scorecard 100 Vignette: Measuring change at General Electric: from Balanced Scorecard to Six Sigma 100 The Balanced Scorecard 102 An outline of the Balanced Scorecard approach 103

4 Six Sigma 107 An outline of the Six Sigma method 110 Making sense of BSC and Six Sigma 113 Change and the change management approach 115 End of chapter questions and exercises 116 vii 8 Leading change 118 Vignette: HealthSouth CEO faces 36 criminal charges 118 A look inside today's companies - the leadership factor 120 Do leaders matter? 121 Traditional theories of leadership 122 Leading change 125 Overcoming resistance to change 132 Must the leadership of change happen from the top? 134 Leaders as sensemakers of change 135 End of chapter questions and exercises Power and resistance 137 Vignette: Power and Resistance at Nova Scotia Power 137 Antecedent theories of power 140 Resistance and power in theories of organization and change 145 The five bases of power 146 Ranter's notion of organizational power 147 New approaches to power 149 End of chapter questions and exercises Diversity management. 155 Vignette: General Electric Aviation Materials sued for discrimination 155 What is diversity management? 157 Significant success factors 159 A more critical look at diversity 166 Some concluding thoughts 167 End of chapter questions and exercises Institutionalization and change 169 Vignette: Obituary: Ben's Restaurant, Montreal, Making sense of change and stability 171 A look inside today's companies 173

5 viii Institutionalization 174 Discourse and organizational knowledge 177 Call centres and the management of change 179 Sensemaking, institutionalization and change management 180 End of chapter questions and exercises 185 Endnotes 187 Bibliography 200 Index 215

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