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Change Management

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Steph Lynch

on 27 January 2014

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Transcript of Change Management

Background of papers
Participative management and organizational change
Analyzing the effect of participative management on resistance to change
Largely an empirical study - sample organizations
Two different models
Traditional vs Participative Focus
Sources of resistance to change
The participative paper concludes with the results from their empirical studies which show that participative management doesn't have a direct link to a reduction in the resistance to change whereas the Tesco paper focuses on this method to reduce resistance to change after the resignation of Terry Leahy, it does not undertake a study or review the results of their advice for Tesco.
Change Management
Research Objectives
Link between theory and practical issues
Types of Organisational change
Link 2
Link 3
Literary Review
Reference List
Participative management and organizational change
H1 Participative management reduces resistance to change
H2 Participative management improves change performance
Managing organizational change at Tesco
Identify the changes that Leahy made at Tesco
Analyze the effects these changes had on Tesco
Analyze the effects of different leadership styles
To produce a plan of action for Tesco pending the resignation of Leahy
Participative management
Radical Vs Incremental Change
Resistance to change
Resistance to change
Radical vs Incremental Change
Participative Management
Managing organizational change at Tesco
Briefly explains existing management/leadership styles
Analyzes the changes within managment/leadership styles
Looks at the changes to Tesco under Leahys' leadership
Dynamics of transitional power structure and the staff of Tesco in the wake of this change process
Change management is the process by which
organizations look to stay in touch with their ever
evolving environments to achieve their long term
(Keith Metcalf, 2013, Lecture 7)

"Participative management is a classical concept in business
management literature, since papers on democratic supervision and participative
management have been published regularly since the 1930’s"
(Lawler, 1993).
"It refers to the involvement of employees in decision making"
(Cole et al., 1993; Mitchell, 1973; Vroom and Jago, 1988)
"In any case, participative style does not exclude the need for initial supervision to organize, educate and guide the employees, implying on top of this self control"
(Geroy et al., 1998; Lawler, 1993)
The importance of change management
"Efficient managing of change is key to gaining competitive advantage"
(Worrall & Cooper, 1997)
However it is not always that easy and in some cases the way in which change is managed does not affect the outcome of the change, or any resistance to it
Traditional vs Participative focus
Reasons for change
Types of Organizational change
Types of Organizational Change
Reasons for Change
Kotter's 8 steps
Increase Urgency
Build the guiding team
Get the vision right
Communicate for buy-in
Empower Action
Create short term wins
Don’t let up
Make change stick
Terry Leahy
New Realist
Transactional Leader
Democratic Leadership
Tannenbaum and Schmidt Continuum of leadership behaviour (Harvard Business Review, 1973)
Terry Leahy's position on the Continuum Leadership of leadership
Terry Leahy has a largely Democratic style of leadership, based on McGregor's Theory Y
Terry Leahy also adopts the notion of Employee Participation through effective negotiations with people for the best solutions, an effective conflict resolution with staff and customers and gaining synergy by involving everyone.
Strategies for adopting change management
Diagnosing change
Participative management is a good technique for managers to use in order to implement change well
Participative management can reduce resistance to change
Involving employees in change and those that offer positive information about change impedes change success
For example, at Tesco in Boston, they attempted to change the way in which breaks were carried out by having employees clock out for their breaks and back in when they return. However, this has not proved to be implemented successfully as many members of staff abuse this system and remain to take longer breaks than they should be having.
Parochial self-interest-Lose something of value as a result
Misunderstanding & lack of trust – lack of knowledge leading to perception of losing more than they will gain
Different assessments – assessing situations different to managers
Low tolerance to change – fear of being unable to develop skills & behaviour needed
(Kotter & Schlesinger 1979)
"With regard to the relationship between commitment and lack of resistance on behalf of the employees, it should be considered that, when responsibility for change is shared among executives and employees, the latter do not see the former as a figure of authority to rebel against, thus reducing any resistance that could be
generated by this"
(Zeffane, 1996).
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