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Managing change in organizations PDF

382 Pages·2007·2.069 MB·English
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Managing Change M a Managing Change n in Organizations a fifth edition g Colin Carnall i n in Organizations g C Managing Change in Organizations provides a practical and thorough h overview of how effective change can be achieved in organizations. a The text is ideal for advanced undergraduates, MBA and postgraduate Colin Carnall n students on courses in managing change and organizational change. g e Colin Carnall takes a strategic approach, outlining guidance and techniques for planning and implementing, evaluating and learning i n 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 r contemporary organizations. g a n In particular this fifth edition provides: i z l a clear five-part structure which covers the theories and themes, a techniques and models of change management t l a focus on both traditional models and critical perspectives of change i o l a new model of Strategic Convergence to address the complexity of n concurrent change initiatives s l short case studies, questions and exercises to enable readers to test and apply their knowledge, skills and techniques fifth 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. C a r n a l l www.pearson-books.com 9780273704140_05_COVER.indd 1 19/3/07 12:43:34 CarnFMv3.qxd 3/30/07 4:42 PM Page i Managing Change in Organizations CarnFMv3.qxd 3/30/07 4:42 PM Page ii We work with leading authors to develop the strongest educational materials in Change Management, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk CarnFMv3.qxd 3/30/07 4:42 PM Page iii Managing Change in Fifth edition Organizations Colin A. Carnall Warwick Business School The University of Warwick CarnFMv3.qxd 3/30/07 4:42 PM Page iv 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. CarnFMv3.qxd 3/30/07 4:42 PM Page v 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 v CarnFMv3.qxd 3/30/07 4:42 PM Page vi CarnFMv3.qxd 3/30/07 4:42 PM Page vii 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 vii CarnFMv3.qxd 3/30/07 4:42 PM Page viii 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 viii CarnFMv3.qxd 3/30/07 4:42 PM Page ix 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 ix

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