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SUMMARY: "BIG SHOES TO FILL"

> Innostat founded by CEO Jack Donally

> Best known maker of prosthetic limbs and surgical implants

>Decline in business performance and

innovation

>New CEO Stephanie Fortas

>Fundamental change is needed

ORGANISATIONAL CHANGE

- Create incentives such as gift vouchers for the worker of the month = allows workers to contribute their efforts and build a good work culture

- Send recognition emails/posts

MOTIVATION

The emergent approach assumes change is beyond managements knowledge and power, and is something that emerges out of the course of events.

Frank acknowledged that the “main problem” was MOTIVATION. He suggested that the company needs more powerful incentives to get people thinking out of the box!

is defined to be ‘any form of effort or initiative undertaken to alter an aspect of the organisation’.

In this regard organisations such as Innostat can choose between three commonly known approaches used by business’ desiring to undergo change under various circumstances:

1- Naïve approach to change

2- Planned approach to change

3- Emergent approach to change

Stephanie can also implement McGregor's theory Y = more empowerment to the employees so that they can form effective and efficient cross functional teams

“Corporate culture is the pervasive values, beliefs and attitudes that characterize a company and guide its practices”

Stephanie can adopt motivational strategies

- Offering opportunities for self-development

- Establish the greatest relationship with her inmates, listen to them, solve their problems and impact them, in order to succeed productivity improvements and new product opportunities.

- Create weekly/monthly surveys to communicate employee’s ideas and thoughts.

Three step model includes:

The ‘Unfreeze’ stage: involves identifying problems that need to be changed through using methods such as the force field analysis and overall challenging the norm of the organisation to form controlled action by management and those resisting change,

  • In regards this would involve resisting board members of Innostat and Stephanie who is for such change.

Force field analysis :

  • The processual approach:

Recognises the interconnectedness of the

unique aspects of an organisation

  • The systematic approach:

Emphasises the interdependence of the

varying aspects of an organisation

Locke’s goal-setting theory = raise incentives for employees to complete work quickly and effectively. It is what it needs right now!!

PLANNED APPROACH

ORGANISATIONAL CHANGE

views the organisation as an iceberg where aspects such as social and human qualities i.e. resistance and anxiety towards change is found below the surface.

A specific change model under the planned approach that Innostat could adopt is Lewin’s ‘Three step model’, which is a change process that follows a set of steps, that ensures time for preparation and the undertaking change process and evaluation of change on the organisation.

Q6-Under organisational change, which of the three approaches could not be used for this case study and one reason why

PK Henderson report suggests that change is needed in various areas within the organisation.

  • Forms of motivation should be altered and also in the long term the report recommended fairly major change to the company’s management practices.
  • For instance, decision rights for new product development were to be taken out of R&D and given to cross-functional new product development teams headed by senior marketing people.

Issues arose due to Stephanie’s eagerness towards taking on such changes as many members of Innostat both old and new believed that it should remain the same and under the same control.

Movement stage: is where the actual change process occurs and results in people such as board members like Teddy in Innostat, to begin to resolve their uncertainty.

Freezing: This stage in the model occurs post the change process, it involves evaluating the change undertaken and decide on whether any further changes need to occur or could future change be avoided.

ANSWER

CONSEQUENCES TO ADOPTING THE PLANNED APPROACH: Three step approach

Positive consequences of such approach;

- And also give such change the time needed to occur

- This will assist in the gradual acceptance by members within the organisation resisting.

- May improve current financial and innovative turmoil of Innostat

Negatives consequence for both the members of Innostat and the overall organisation include;

- Time and resources are needed in the abundance.

- No definite answer on whether it will lead to the success Innostat is aiming for.

- Stephanie may not even be within the company to see the plan follow through and its outcome.

 Naïve approach

  • Organisation as building blocks
  • Simple, solid structure
  • Knowledge-what can be measured and calculated
  • No place for resistance
  • Neglects messy
  • Underestimates resistance
  • Structure-ignores human interactions

Livne-Tarandach and Bartunek argue that;

“Leaders should not longer be considered...solely as initiators and implementers of pre-planned organisational change; nor should they be seen...solely as reactive agents to emergent change forces. Rather they should develop the ability to connect the two to create synergy.”

Social Identity Theory

Leadership is the

foremost essential

factor to an

organisations

success.

  • Psychological theory

  • Individual's identity is derived from being part of a group

Leadership Style

ANSWER

  • Organisation requires a leadership style that promotes interdependence throughout each sector of the company.

  • A participative leadership style

  • Emphasises initiative, involvement, originality and creativity

  • Opposes previous leadership style that hindered creativity, which is describes as being "autocratic".

- Traditional command

and control methods

are less effective.

- All individuals are

required to take

initiative.

 Unfreeze stage

  • Identifying problems that need to be changed
  • Organisation is shaken out of its current state and prepared for the need for change
  • Challenging the norm of the organisation to form controlled action by management and those resisting change

Transformational Leadership

As mentioned by Saragina, Innostat requires a participative leadership style. List 4 characteristics as stated earlier

ORGANISATIONAL CHANGE

Q5-In reference to what Mantoura said define the unfreeze stage inLewins three step model and give specific examples of the driving and restraining forces found under the unfreeze stage of the force field analysis

Q2-As mentioned by Saragina, Innostat requires a participative leadership style. List 4 characteristics as stated earlier

ANSWER

  •  Sparks initiative
  •  Involvement
  •  Originality
  •  Creativity
  •  Group leader overall final decision
  •  Participation
  •  Takes into consideration others people views (open to suggestion)
  •  Team builder
  •  Empowerment

EMERGENT APPROACH

  •  Sparks initiative
  •  Involvement
  •  Originality
  •  Creativity
  •  Group leader overall final decision
  •  Participation
  •  Takes into consideration others people views (open to suggestion)
  •  Team builder
  •  Empowerment

The emergent approach believes in the natural emergence of numerous factors during the change implementation phase that were not initially forecasted.

CONCLUSION

ANSWER

ACTIVITY

Q1-Motivation is a critical issue for Stephanie to consider to turn the organisation around. What were the three motivational strategies stated by Maryana that she can adopt?

Q4-Give an example of how the processual and systematic approach affected Innostat

Q3-What is the difference between the processual approach and systematic approach mentioned earlier by Alana under the emergent approach

  • 3 groups-red, blue, green
  • 6 questions
  • correct answer 5 points
  • bonus round 10 points
  • winning team gets lollies
  • Innostat can benefit by adopting one or both planned/emergent approach
  • Leadership style and motivation will help lift Innostat from its current financial and innovative hardships

ANSWER

  •  Offering opportunities for self-development
  •  Establish relationships with employees-listen to them, help solve problems
  •  Forming effective and efficient cross functional teams-give more empowerment to teams (McGregors theory Y)
  •  Allocate challenging and specific goals in the company (Locke’s goal setting theory)
  •  Create weekly/monthly surveys to communicate employees ideas and thoughts
  •  Offer incentives-gift vouchers for the worker of the month
  •  All will help in building a positive work culture, complete work efficiently and effectively

 Processual

  • How the current employees of Innostat will react to hiring new people in order to compliment the team established in the organisation
  • Focusing on power and position in the company

 Systematic

  • High amounts of time and resources on R&D-rarely engaging with co-workers in the decision making process
  • (marketing sector not utilised) Innostat began to lose their competitive edge and innovative flair and sales declined dramatically

 Processual approach

  • Organisational change as being a composite of complex and dishevelled system of individual and political perceptions
  • Recognises the interconnectedness of the unique aspects of an organisation
  • Messy and political nature of change
  • Human and social elements (fear, anxiety) are political battles

 Systematic approach

  • Views the organisation as a structured system that is composed of different roles and functions which are exclusively interdependent on each other and operates as a body
  • Change in one area will have consequences and knock on affects in other areas

ORGANISATIONAL CHANGE

"BIG SHOES TO FILL"

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