Hello, freshwafer-ga!
Thank you for your clear clarification in describing what you wanted
to cover in your paper. I tried to focus on a general overview of
organizational change, stresses upon managers, and then highlight some
real-world examples of how company managers have dealt with
reorganization in successful ways.
Because I am unsure how you want to tie the various theories (and
there are many) into your work, I have provided a references at the
end which discusses organizational theory. I have also provided two
links to webpages that have extensive information on reorganization.
If you feel you need more, or want to change information around to
focus on some different aspects of the topic, you can find most
everything you need in these two references.
Needless to say, the following information should provide you with a
good start to your paper.
Word Count in Body of Paper - 2376 (not counting footnotes, or
reference information)
Overview of Organizational Change?
*********************************
Organizational change typically encompasses sweeping changes in the
organization as a whole as opposed to smaller modifications like
adding a new employee or re-structuring an existing program. Large
changes might include redefining the organization's Mission statement,
restructuring the operations systems, downsizing or upsizing, new
mergers, and addition of new programs. Organizational change is often
viewed as a "radical reorientation in the way the organization
operates."
Organizational change generally occurs in response to a change in
goal or direction. Often the addition of a new CEO will initiate
change in organization structure due to personality change and
initiation of new idea. Reorganization can also be provoked by
financial cutbacks, desire to enter new markets and provide new
services, or generalized overall growth of the company. Organizational
change usually denotes an evolution in the organization's lifecycle.
Reorganization often meets with roadblocks within the company.
Therefore, it is essential to have a well-directed, top manager at the
helm. The vision for change and the implementation of the change must
be well-organized and realistic. Employees, who often resist change,
must be encouraged and updated continually through excellent
communication about new company strategies.
From "Basic Context for Organization Change," by Carter McNamara,
PhD. (1999)
http://www.managementhelp.org/mgmnt/orgchnge.htm
=======
How Can Organizational Change Effect the Manager?
************************************************
Managers are both overseers of employees, and employees themselves.
Thus, they are subject to the same stress and anxiety as those they
oversee, except more so.
"Managers, because they have obligations to their staff, not only have
to deal with change as employees but also need to carry some of the
concerns of their staffs. In the case of downsizing, the stress
levels can be extremely high, because the manager is charged with
conveying very upsetting information."
It is not unusual for a manager to take the easy way out by "hiding"
from the change and doing the minimal amount of work necessary to see
that the change is accomplished. This avoidance tactic is extremely
detrimental, for it lessens the managers leadership role in the eyes
of employees and allows the manager to remove himself from the day to
day realities of the organization.
Another tactic is to deny the actual impact of the organizational
change on the employees and the manager, himself. The manager takes
the logical approach and ensures that tasks are completed, but tends
to lack sympathy for the magnitude of the effect on the employees
placed under a new situation.
In the long run, the entire organization can deteriorate. Respect and
cohesiveness are lost, and company loyalty can drop significantly.
From "The Effects of Change On The Manager," by Robert Bacal. (2002)
http://www.performance-appraisals.org/Bacalsappraisalarticles/articles/change_man.htm
+++++
Various Methods Managers Can Use to Effect Organizational Change
****************************************************************
Understanding and Responding to the "Tempered Radical"
======================================================
Author Debra Meyerson, in her book, "The Tempered Radical," identifies
those within organizations who work to promote change by making small,
sometimes unnoticed steps, rather than waiting for the fast, but often
unrealistic "reinvention" that CEO's often vow to implement.
Tempered radicals "operate deep within big companies, well beneath the
cultural radar, and are practically invisible to the top brass. They
are part of their organization, yet somehow apart as well,
professional irritants who are tolerated more than embraced. They
survive and persist: Employing many different styles and strategies,
typically waging small battles rather than epic wars, they work slowly
to change the rules."
Myerson feels that such tempered change is a truer picture of how
change is actually effected within organizations. "It's not dramatic.
It doesn't meet our craving for instant transformation. But it's how
real leaders really operate."
One example of tempered radical change initiated by an employee is
highlighted by an individual's desire to spend time with his family as
a coach of his children's soccer teams. By leaving the office a bit
earlier on coaching days, and making it known that he did not want to
receive work-related phone calls between 6pm-8pm, it slowly became
corporate knowledge that employees enjoyed privacy during those hours.
A small step by one employee grew into the "company norm."
From "Practical Radicals. You say you want a business revolution? Not
so fast," by Keith Hammonds. Fast Company. Issue 38 (9/2000)
http://www.fastcompany.com/magazine/38/radicals.html
+++
A company manager can certainly use tempered radicals to effect
organizational change. By becoming aware of "hidden" leaders within
the company and approaching them about their ideas, change can be
effected in a very significant way. "Tempered radicals" have been
shown to be very loyal to their company, preferring to work silently
within the company to bring about desired changes. If they have the
open ear of management, and there can be an equal exchange of ideas,
the desires of employees can be discussed and change can come about
smoothly.
+++
Using Strategic Conversations
==============================
Royal Philips Electronics is Europe's largest electronics outfit. The
problem is that Philips consumer electronics division, while
accounting for a third of sales, contributes nothing to the companies
profits. This presented quite a problem for Philip's President, Gerard
Kleisterlee, who subsequently challenged Philip's employees by
threatening to shut down the electronics division if it did not start
to make profits in the US market.
Kleisterlee made a number of restructuring decisions, such as selling
off noncore businesses and outsourcing production of certain items.
But his most important effort in effecting reorganization change was
something else - talk.
"In order to build internal confidence, stimulate cross-boundary
cooperation, and spark new-product speed to market, Kleisterlee is
sponsoring what he calls "strategic conversations": dialogues that
center around a focused set of themes that Kleisterlee believes will
define Philips' future."
The Philips employees were strongly divided among the companies six
divisions, which had also evolved into acting independently.
Kleisterlee's implementation of open channels of conversations
restored the faith of many into restoring the companies ability to
function as a whole.
Kleisterlee's initial step was to gather numerous division employees,
regardless of rank, to participate in a one-day summit to "exchange
views, debate scenarios, and, ultimately, agree on strategies and road
maps for key projects. "These meetings result in very clear goals and
much better cooperation between the different divisions," says
Kleisterlee."
Kleisterlee is realistic about the company's future, however. He
realizes that the "next 12 months will reveal whether his strategic
conversations are truly inspired collaboration -- or just a whole lot
of talk."
From "Can Philips Learn to Walk the Talk? by Ian Wylie. Fast Company.
Issue 66. (January 2003)
http://www.fastcompany.com/magazine/66/smartcompany.html
++++
Preparation, Hard Work and Constant Scrutiny
============================================
Bill Thomas, founder of Eden Alternative Nursing Homes, has effected
outstanding organizational change among his own chain of elder care
facilities through committed adherence to his own vision, and
continuously works to initiate change in the nursing care industry as
a whole.
In his own organization, however, Thomas admits the task of converting
nursing homes into more homelike environments has been arduous. But
his own particular method or reorganizing has seen great success.
Thomas overseas a plan that allows residents and staff to work
together as partners in the evolution of the nursing facility.
The Eden nursing facilities remove "hierarchical or autocratic
management. Like the residents, the certified nurse assistants, who
make up the bulk of the staff, have more control over their schedules
and help make decisions about how to divvy up work. "What you find is
that as the managers do to the staff, the staff does to the elders,"
says Thomas. "So if you treat the staff well, the elders will
benefit."
Thomas is committed to what her terms a "warm culture." "A warm
culture is open to change, because employees have trust and generosity
for one another, whereas a cold culture is characterized by pessimism
and cynicism. After conducting a survey to determine an organization's
temperature, the Thomases or one of 5,000 Eden associates nationwide
begin "warming the soil." In some cases, managers hold a potluck
dinner at someone's house, where they can't discuss work. Employees
also perform good deeds, or mitzvahs, for their colleagues and the
residents without expecting anything in return. "You open people's
minds by opening their hearts," Thomas says."
"Before virtually every step -- before adding pets, before switching
to self-scheduling -- the staff votes. If the outcome isn't unanimous,
the group continues the education process. "You can't force change on
anybody," says Thomas. "Consensus is the only way. You have to get the
entire staff to see the advantages for themselves and become excited
about what you're going to do. We call it creating 'suction.' "
"Thomas also expects setbacks, or "frost," as he puts it. It's a
natural part of change. "I tell the leaders to expect that what
they're changing will be smashed to bits, and when that happens, they
have to be ready to pick up the pieces and move forward," says Thomas.
"People are going to get scared. They're going to make mistakes."
Every year, about 5% of Eden homes drop the program. But Thomas
doesn't give up hope for them. He prefers to think that they're
experiencing a long frost."
From "Not the Same Old Story," by Chuck Salter. Fast Company. Issue
55. (February 2002)
http://www.fastcompany.com/magazine/55/newwisdom.html
+++++
Involvement, Communication and Internal Growth
=============================================
Washington Mutual has become a stellar example of how to perform
corporate takeovers and acquisitions the right way. They attribute
their success to "homegrown wisdom." The use of employees in the
deal-making process and the strong desire to personally get to know
new employees after an acquisition is a good example of how
reorganization can be successful.
The company doesn't exclude it's staff during major acquisitions. It's
formal team can also include as many as "100 regular bankers who have
day jobs, but who clear out their evening and weekend schedules to
help." The involvement of frontline managers during the acquisition
process allows them to become "much more committed to making the deal
work."
Washington Mutual makes an extra effort to truly get to know all the
employees, and not just the major players, after an acquisition.
"After an acquisition spree between 1997 and 1999 quadrupled
Washington Mutual's workforce, Killinger vowed to meet 10,000 of his
employees during the next 12 months. When the counting period ended,
he had pushed that total to more than 11,000."
"We're not talking about conference calls," Killinger says. "These are
branch visits, off-site meetings, and company events. At each one,
we'll tell our people as much as we tell our board of directors about
the strategies that we have in place."
Washington Mutual has a policy of avoiding stagnation by encouraging
internal growth. It involves what it calls it's "rising stars" in
generating web sites, new bank designs and advertising campaigns that
not only promote the company but create internal excitement and
increased employee loyalty.
From "7 Lessons From WaMu's Playbook," by George Anders. Fast Company.
Issue 54 (January 2002)
http://www.fastcompany.com/magazine/54/chalktalk.html
++++++
Encourage Risk-taking, Diversity and Internal Competition
=========================================================
Chris Bangle, the chief manager of the design team at BMW, has
instituted some radical moves to reorganize the way the company is
approaching vehicle design. The company is taking on these bold moves
at the peak of success, playing "to win" as opposed to many other car
makers who are protecting their success and playing "not to lose."
Bangle brought the design team up the ladder in terms of company
recognition and respect. Before his arrival, they were considered "the
bottom of the corporate food chain."
"The designers had worked for two years without a design director;
they lacked a leader to champion their cause and nurture a point of
view. As a result, the team fell under the thumb of BMW's justly
famous engineering department. "You'd never have a voice at meetings,"
Boyer exclaims, waving his hands dismissively. "The attitude was, 'Oh,
those designers, pshh, pshh. They're nothing but a bunch of picture
makers!' "
Bangle encouraged his designers to take risks and to venture outside
their comfort zones. He also created an atmosphere where they could
communicate freely without fear of repercussion. Bangle allowed the
designers to know that disagreement would most likely occur, and could
even be expected.
He saw the need for a bridge that would encourage collaboration
between the design team and the engineers. In 1966, with a
seven-figure budget, he "formed a project team that was led jointly by
a designer and an engineer and was composed of members from both
groups. He... sent the team to work in the United States at a secret
location of its own choosing. He called the project "Deep Blue."
"The goal was to come up with a radical successor to the X5
sport-utility vehicle, which was being readied for production in
Spartanburg, South Carolina. But there was another equally critical
goal: to get engineers to advocate for design and to get designers to
champion engineering. Deep Blue's members were cut free of the FIZ and
allowed to relocate so that they could work far from prying eyes --
including, says Bangle, his own eyes. The team leased Elizabeth
Taylor's former home in Malibu, California. After six months of
grueling work, it had produced six product statements for what would
eventually become the X3 SUV.
"Both the designers and the engineers learned that the key to a
passionate BMW is a synthesis of engineering passion and design
passion," says Bangle. "They saw that engineers do a better job when
they work with designers, and designers do a better job when they work
with engineers. You can't teach that. They had to learn it for
themselves."
Bangle has also encouraged internal competition among the design
teams, as a means of highlighting diversity and sparking intense
battles for the winning design. "....internal competition is a
fundamental premise of this organization: It gives us this dynamic
exchange of viewpoints. The outcome is far more powerful than what a
single person could produce."
From "BMW: Driven by Design," by Bill Breen. Fast Company. Issue 62.
(September 2002)
http://www.fastcompany.com/magazine/62/bmw.html
++++
Utilizing employee ideas for a Company Manifesto after Acquisition
==================================================================
Fallon Agency faced a company-wide level of uncertainty when it was
taken over by the much larger Publicis Group. Not only was the
company's chairman worried that his employees would think they had
"sold out," but they wondered how they would find their own direction
as a company inside a "vast conglomerate."
""People were worried that we would become more corporate and less
like the home they knew. And if people feel as if a bond has been
broken, then everything is up for grabs."
Fallon's planning director created a five-page manifesto targeted to
higher level managers, asking for ideas about how the company should
conduct itself under the new merger. Word soon spread throughout the
company, however, and the previously restricted manifesto became a
source of communication and idea generation for all the company's
employees. Not only did it generate enthusiasm, but the management's
willingness to listen created a renewed sense of belonging and sense
of purpose in seeing the company evolve.
From "Free to Innovate," by Christine Canabou. Fast Company. Issue 52,
(November 2001)
http://www.fastcompany.com/magazine/52/fallon.html
++++
References
1. "Basic Context for Organization Change," by Carter McNamara, PhD.
(1999)
http://www.managementhelp.org/mgmnt/orgchnge.htm
2. "The Effects of Change On The Manager," by Robert Bacal. (2002)
http://www.performance-appraisals.org/Bacalsappraisalarticles/articles/change_man.htm
3. "Can Philips Learn to Walk the Talk? by Ian Wylie. Fast Company.
Issue 66. (January 2003)
http://www.fastcompany.com/magazine/66/smartcompany.html
4. The above information is from the article "Not the Same Old Story,"
by Chuck Salter. Fast Company. Issue 55. (February 2002)
http://www.fastcompany.com/magazine/55/newwisdom.html
5. "7 Lessons From WaMu's Playbook," by George Anders. Fast Company.
Issue 54 (January 2002)
http://www.fastcompany.com/magazine/54/chalktalk.html
6. "BMW: Driven by Design," by Bill Breen. Fast Company. Issue 62.
(September 2002)
http://www.fastcompany.com/magazine/62/bmw.html
7. "Free to Innovate," by Christine Canabou.
Fast Company. Issue 52, (November 2001)
http://www.fastcompany.com/magazine/52/fallon.html
+++++++++
Additional References:
=====================
"BACKGROUND AND THEORY FOR LARGE SCALE ORGANIZATIONAL CHANGE METHODS."
by Robert H. Rouda, Simulation Software. (1995)
http://alumni.caltech.edu/~rouda/background.html
"Overview of Organizational Change." Assembled by Carter McNamara,
MBA, PhD
http://www.mapnp.org/library/org_chng/org_chng.htm#anchor1260457
"Managing Change in Organizations." Assembled by Carter McNamara, MBA,
PhD
http://www.mapnp.org/library/org_chng/chng_mng/chng_mng.htm
+++++++++++++
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me in a clarification request *before* rating this answer. I will be
more than happy to help if I can.
umiat-ga
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