Managing change in organizations

382 Pages·2007·2.069 MB·English

by  C A Carnall

Managing Change M
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Managing Change
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in Organizations
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fifth edition
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Colin Carnall i
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in Organizations
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Managing Change in Organizations provides a practical and thorough h
overview of how effective change can be achieved in organizations.
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The text is ideal for advanced undergraduates, MBA and postgraduate Colin Carnall
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students on courses in managing change and organizational change.
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Colin Carnall takes a strategic approach, outlining guidance and

techniques for planning and implementing, evaluating and learning i
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from major organizational change. Reviewing traditional and more fifth edition

recent critical theories, he presents models and frameworks for O
change that are apt for the complex and fast-moving challenges of
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contemporary organizations. g
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In particular this fifth edition provides:
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l a clear five-part structure which covers the theories and themes,
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techniques and models of change management
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l a focus on both traditional models and critical perspectives of change i
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l a new model of Strategic Convergence to address the complexity of
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concurrent change initiatives
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l short case studies, questions and exercises to enable readers to test
and apply their knowledge, skills and techniques
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Colin Carnall is Associate Dean, Executive Programmes and Professor edition
of Strategic Management at Warwick Business School, where he teaches
and researches strategic change, organization design and management
development.
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www.pearson-books.com
9780273704140_05_COVER.indd 1 19/3/07 12:43:34
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Managing Change in Organizations
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We work with leading authors to develop the strongest
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Managing Change in
Fifth
edition Organizations
Colin A. Carnall
Warwick Business School
The University of Warwick
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Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 1990
Second edition published 1995
Third edition published 1999
Fourth edition published 2003
Fifth edition published 2007
© Prentice-Hall International, UK, Limited 1990, 1995, 1999
© Pearson Education Limited 2003, 2007
The right of Colin A. Carnall to be identified as author of this work has been asserted by
him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without either the prior written permission of the publisher or a
licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership

rights in such trademarks, nor does the use of such trademarks imply any affiliation with
or endorsement of this book by such owners.
ISBN: 978-0-273-70414-0
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
10 9 8 7 6 5 4 3 2 1
10 09 08 07
Typeset in 9.5/12.5pt Stone Serif by 71
Printed and bound by Ashford Colour Press., Gosport
The publisher’s policy is to use paper manufactured from sustainable forests.
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Brief contents
Preface xv
Acknowledgements xvii
Part I The challenge of organization change 1
1 The challenge of change 3
2 Organization structures: choice and leadership 12
3 The transformation perspective 37
Part II Theories of organization change 61
4 Theories of change: traditional models 63
5 Theories of change: critical perspectives 78
6 Theories of change: strategic management models 93
Part III Themes and issues in organization change 105
7 Organizations in the twenty-first century:
the value-added organization 107
8 Sustaining organizational effectiveness 120
9 Leadership in practice 148
10 The learning organization 160
11 Strategies for change 172

Part IV Change management techniques 187
12 Diagnosing change 189
13 Managing major changes 224
14 Change architecture 254
15 A strategy for organizational effectiveness 280
Part V Strategic change 293
16 Learning from change 295
17 Culture models and organization change 307
18 Strategic convergence: a new model for organizational change 326
19 Strategies for corporate transformation 340
References 345
Index 355
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Contents
Preface xv
Acknowledgements xvii
Part I The challenge of organization change
1 The challenge of change 3
Introduction 3
The profile of ambition 5
Implementation 7
Change architecture 8
Conclusion 11
Exercises 11
2 Organization structures: choice and leadership 12
Introduction 12
Management structures and management in action 13
The entrepreneurial structure 13
The functional structure 14
The product structure 14
The divisional structure 14
The matrix structure 15

The federal structure 16
Management in action 16
The dilemmas of organization 18
Centralization versus decentralization 18
For centralization 19
For decentralization 19
Global versus local 21
Efficiency versus effectiveness 21
Professionals versus line management 22
From control to commitment 24
Change versus stability 27
Leadership and ‘excellence’ 27
Strategy and structure 29
Managerial performance 34
Conclusion 35
Exercises 36
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Contents
3 The transformation perspective 37
Introduction 37
New ‘rules for the organizational game’ 38
Changing organizations 41
Transforming the organization 46
The value-added organization 49
The network organization 58
Conclusion 60
Exercises 60
Part II Theories of organization change
4 Theories of change: traditional models 63
Introduction 63
The ‘clinical’ approach 67
Linear approaches 68
Systems theory 72
Emergent approaches to change 73
Conclusion 77
Exercises 77
5 Theories of change: critical perspectives 78
Introduction 78
Emerging thinking about organizational change 81
Critical theory 81
Postmodernism 83
Complexity theory 84
Experience-based design 89
Social movements and large-scale change 89
The evolution of theory about organization change 91
Conclusion 92
Exercises 92
6 Theories of change: strategic management models 93
Introduction 93
Strategic management: the resource-based view 93
The level of ambition 95
Radical or transformational change 97
Conclusion 103
Exercises 104
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Contents
Part III Themes and issues in organization change
7 Organizations in the twenty-first century:
the value-added organization 107
Introduction 107
Changing the rules of the game 108
Techniques for a value-added organization 109
Stage A1: Business capability profile 110
Stage A2: Value-added metric 112
Stage B: Process design – mapping the value flow 114
1 Value-added design 114
2 Estimate value-added problems of ‘command
and control’ mode 114
3 Value-added clusters 114
4 Value-added contributions 114
Stage C: The ‘balanced scorecard’ 116
The workshop activity 118
Selecting the measures 118
Creating an implementation plan 118
Conclusion 118
Exercises 119
8 Sustaining organizational effectiveness 120
Introduction 120
Blocks to problem solving and change 120
Perceptual blocks 121
Emotional blo cks 121
Cultural blocks 122
Environmental blocks 123
Cognitive blocks 123
Working through the blocks 123
Limits to problem solving 124
Organizations and rationality 126
An example: organization and counter-rational behaviour 129
Contingency, choice and organizational environments 136
Organization design, resources and complexity 138
Criticisms of the contingency approach 140
The innovative organization 144
Conclusion 146
Exercises 147
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