BAO 2203 Corporate Accounting Assignment Semester 2 2014 Newcrest Mining Ltd (NCM Ltd) - Impairment of assetsPlease read through the articles provided on VU collaborate and answer the following questions. Please note that in order to gain a superior result you will need to undertake extensive research on the topic of impairment and of NCM Ltd. Marking scheme:

Question		Total marks	Student score
1	When should companies undertake an impairment test?	10
2	In the case of Newcrest Mining Ltd (NCM), was the cause of the impairment operational, financial or both? Explain.	6
3	What effect will the impairment have on the cash flows, balance sheet and financial performance of a company? Why is it NCM Ltd.’s preference to have a debt ratio of 15%? Explain.	8
4	How does the impairment of assets affect the strategic decision making of NCM Ltd? Why and from whom is NCM Ltd “under pressure” to conduct a capital raising?	6
5.	Is the impairment material? How do you know? Discuss any additional disclosure requirements NCM Ltd should make with respect to the impairment of assets.	6
	Presentation, grammar, spelling, references.	4
Total		40
Converted		20%

Student advice in undertaking this assignment:You should undertake an extensive literature review on the topic of impairment to gain an understanding of its application. Refer to relevant accounting standards, the Framework and ASX requirements in answering the questions. Refer to other companies that have had to undertake an impairment to gain general knowledge of its application. Relate this knowledge with the NCM Ltd case. You may need to go back and refer to your previous accounting studies, for example to improve your knowledge on ratio analysis. Ensure you undertake a “spell check” of the assignment. Use the Academic Support for Students www.vu.edu.au/language-learning or e-mail studentlearning@vu.edu.au.
ASSIGNMENT PREPARATION AND SUBMISSION GUIDELINEThis is a group assignment (2 students per assignment). Individual submission without the permission of the unit coordinator will NOT be accepted. The assignment question will be provided in the unit space of the VU Collaborate.THE ASSIGNMENT MUST BE HANDED IN TO YOUR LECTURER IN THE LECTURE THEATRE AT THE END OF THE WEEK 8 LECTURE.Students must submit both the printed copy along with an assignment cover sheet and an electronic copy of assignment through the Assessment Dropbox in the VU Collaborate unit space assigned for the assignment submission. Failure to submit both a printed copy and an electronic copy through VU Collaborate will result in a fail grade.DO NOT HAND IN YOUR ASSIGNMENT UNDER YOUR TUTOR’S OFFICE DOOR OR VIA E-MAIL.This assignment counts towards 20% of the total assessment. Any assignments handed in late without prior permission of the lecturer/tutor will be penalised 1 (out of 20) mark per day. Special Requirements for assignment that must be adhered to:Hand in one assignment per group of two students and read drafts of each other’s work to ensure quality and consistency.The two partners must be from the same tutorial class.Assignments are to be no longer than 2000 words in length. Font: size – 12-point; style – Calibri;Line spacing: one and a half (1.5) line spacing, write on one side of the (A4) paper. Page margin: 2.54 cm/ 1 inch on each side (right, left, top and bottom)Insert page numberCollege of Business Assessment declaration form: must be completed, signed by all the partners and included.Ensure that the front page contains the title, your name, your ID number, and importantly, your tutorial day and time.Your report must display headings (as presented in the marking scheme) and sub-headings to help establish its structure and aid the marking process. The referencing system you are required to use is the Harvard System. It is important you show evidence of research for the assignment beyond Deegan 7e and the articles. Ensure these are referenced appropriately in your bibliography. Assignments not using the Harvard system, showing no evidence of research for information or are obviously plagiarised will be returned unmarked.The similarity percentage must NOT exceed 20 per cent.Assignments will be penalised severely where plagiarism (copying directly from textbooks, journal etc. without due recognition) has occurred. Do not use plastic covers or folders for your assignment. Simply staple it together. Assignments will be handed back to students in their tutorial in WEEK 12.You need to RESEARCH the topic in depth to gain a favourable mark.

Semester 2-2014ASSIGNMENT This assignment is to be completed in groups of three and carries 30 per-cent of the marks in this unit.Question 1.(15 marks)Initiative DShakeit Ltd is considering investing in a new wonder drug for motivating belligerent university studentswhich has an estimated life-span of three years. ShakeitLtd has determined the following discrete probability distributions for net cash flows generated by the contemplated investment.

Period One (000s)		Period Two (000s)		Period Three (000s)
Probability	Cashflow	Probability	Cashflow	Probability	Cashflow
0.10	$ 1200	0.20	$ 1400	0.20	$ 1600
0.15	$ 1260	0.15	$ 1505	0.20	$ 1760
0.25	$ 1323	0.20	$ 1618	0.30	$ 1936
0.30	$ 1389	0.30	$ 1739	0.15	$ 2130
0.20	$ 1459	0.15	$ 1870	0.15	$ 2343

Assume the probability distributions of cash flows for future periods are independent. Also assume that the after-tax risk-free rate is 6 per cent. The proposal will require an initial outlay of $3.75 millionCalculate the Expected Value of the Net Present Value. The Expected Value of the probability distribution of possible net present values is: (Assuming there is no causal relationship between cash flows from one period to another – I.e. Assumption of Independence.

Determine the Standard Deviation about the Expected Value. Under the assumption of serial independence of cash flows for future periods the Standard Deviation of the probability distribution of net present values is -

If the total distribution is approximately normal and assumed continuous, what is the probability of the net present value being zero or less?The expected value and the standard deviation of the probability distribution of possible net present values give us a considerable amount of information with which to evaluate the risk of an investment proposal. If the probability distribution is approximately normal, we are able to calculate the probability of a proposal providing a net present value of less or more than a specified amount. The probability is found by determining the area under the curve to the left or to the right of a particular point of interest. To determine this probability, we first calculate the difference between zero and the expected value for the project. To standardise this difference, we divide it by the standard deviation of possible net present values.This formula is:

What is the probability that the net present value will be greater than zero?What is the probability that the present value index will be 1 or less?What is project’s current present value index?What is the probability that the present value index will be greater than 1.5?If the probability distribution is approximately normal, we are able to calculate the probability of a proposal providing a net present value of less or more than a specified amount. The probability is found by determining the area under the curve to the left or to the right of a particular point of interest.To determine this probability, we first calculate the difference between zero and the expected value for the project. To standardise this difference, we divide it by the standard deviation of possible net present values.This formula is:

Question 2. (8 marks)Lumber Ltd is evaluating a new machine with a life of 2 years. The machine costs $3,000 and future after-tax cash flows depend on demand for the company's products. The tabular illustration of a probability tree of possible future cash flows associated with the new saw is given below:

Year 1		Year 2		Branch
Initial	Net	Conditional	Net
Probability	Cash	Probability	Cash
P(1)	Flow	P(2/1)	Flow
		0.25	1000	1
0.45	1500	0.25	1500	2
		0.5	2000	3


		0.4	2000	4
0.55	2500	0.2	2500	5
		0.4	3000	6

What are the joint probabilities of occurrence of the various branches?If the risk-free rate is 10 per cent, what is (i) the net present value of each of the 6 complete branches; and (ii) the expected value and standard deviation of the probability distribution of possible net present values?Assuming a normal distribution, what is the probability that the actual net present value will be less than 0 (zero)? What is the significance of this probability?Question 3. (7 marks)Discuss the major differences between the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT): Does one outperform the other?BUHRM5912 Group Assignment 2Written report & oral presentation due in week 10 classStructureCover Page TemplateTable of ContentIntroduction Of topicCompany backgroundBody (refer below)ConclusionReference ListMarking Criteria (3/4 +1 + 1)BodyOne Problem (ongoing current problem etc. high turnover, low profit, high grievances, etc)Analysis of problem (measurable data & impact of problem on the company, employees, customers,etc)Causes of problem (2 causes – HR related – based on the syllabus)Solutions to problem (2 solutions – HR related)Implementation of solutions (2 implementation – don’t just recommend show clearly how you will implement the solution to solve the problem such as who is in-charge, when, how, where, the costing)

1 problem (eg: High Turnover)

Cause A (eg: Poor Training) Cause B (eg: Poor compensation & benefits)

Solution A (eg; Provide Training) Solution B (eg: Improve C & B package) Implementation of Solution A Implementation of Solution B (types of training, who conduct, when, where)(new C&B package, by how much, who is in-charge, how to go about it, Assignment 2

Description	Marks out of	Wtg(%)	Due date
Assignment 2 (MIS Project)	100	35%	15 September 2014
Activity A is to be electronically submitted through the EASE system in the CIS8000 StudyDesk. Email submission will NOT be accepted.It should contain a URL link to Activity B – your video presentation on YouTube or any other presentation system of your choice, you must test the link to ensure it works effectively.

Learning objectives This assignment specifically addresses the following learning objectives of the course:LO5 Demonstrate effective communication by composing writing that communicates ideas, meaning and/or argument in a format that broadly follows conventions in the information systems field.LO6 Apply technology and online skills to locate relevant information for the assignments, analyse the presented problems and data, and engage in the use of the resources provided on UConnect.Individual submissionStudents should complete this assignment individually. You are encouraged to discuss the assignment with others to improve your understanding and clarify requirements but you should develop the solution to the assignment on your own. Case StudyYou are the CIO of a successful insurance firm with offices in cities across the nation. You provide all major categories of insurance to consumers who include companies and individuals. You recently attended a technology seminar on Cloud computing. It occurred to you that this would offer potential benefits to your organisation and would be well-received by management and staff.At the seminar you learnt there were many issues to consider, policies to be developed or modified, and newinvestments to be made to manage a Cloud environment. These included upgrading your ICT Data Security System to accommodate Cloud Computing to protect clients’ and your firm’s data; this needs to synchronise and ensure the integrity of data on servers and end-user devices.You plan to present your Business Case for Cloud to your CEO, Board and executives. You are required to research the background for a project to implement and manage Cloud, determine the scope for the extent to which you recommend use of the Cloud, use Microsoft Excel to model a business plan, perform sensitivity analysis to validate assumptions, and create a presentation to seek funding and authorisation from senior management to implement and manage Cloud Computing. As Board members and executives are dispersed across the nation you plan to use YouTube or other medium for your presentation. You will also prepare an Executive Handout containing your spreadsheet and will provide this along with the link to the URL which is where the Executives can access your presentation.Activity A: Journal (maximum 500 words) Prepare a journal which records your activities and progress related to completing this assignment. In date order, clearly list the following: ● Date of research activity/discussion ● Topic researched or discussed ● Time duration ● Brief description of research activity/discussion. Submit this journal as a separate reportthrough EASE.A sample of the journal will be provided in the StudyDesk.Activity B: Presentation to Senior Management NOTE: If you are unfamiliar with the business case and sensitivity analysis concepts you should make an effort to read appropriate material, including those from the Internet, to learn about them.Part 1: Research the background for the Cloud projectConduct an Internet search to gather relevant background information of Cloud. In particular, you should address the following:How Cloud is utilised and its associated risksExperiences of other companiesAdvantages and disadvantagesThe scope to which you recommend your Company utilise Cloud servicesThe infrastructure required, andBest-practice for how Cloud should be managed.Part 2: Develop the Excel model of the business case Once you have completed Part 1, develop a spread-sheet model of your business costs over a 6 year period. Some of the materials provided in the MIS Projects may help you to come up with a simple modelling. For the purpose of modelling, assume a discount rateof 10 per cent. Your business model should include the following analysis to ascertain the financial viability of the project:Payback periodNet present value (NPV) Internal rate of return (IRR), andProfitability indexHINTS: To obtain the payback period you would first need to calculate the cumulative net cash flow. Use the NPV and IRR functions provided in Microsoft Excel. You may need to search the Internet for information if you are not familiar with how to use these functions. Interpret your results. Part 3: Perform a sensitivity analysis for the business case Using the results you obtained in Part 2 as the base case, conduct a sensitivity analysis to examine the impact of the critical cost and benefit variables on the viability of the Cloud project. Provide three specific scenarios of consideration. You must clearly specify the basis of the three scenarios i.e. which critical cost variables they are examining in the sensitivity analysisCarefully analyse your results and make appropriate recommendations to the company’s senior management as to how the critical cost variables should be managed to ensure that the Cloud project is both viable and sustainable in the long term.Part 4: Create a presentation to senior management 4.1 Consolidate and cross-analyse your results and findings from Part 1, 2 and 3. Then prepare a presentation to the company’s senior management to seek their financial support and authorisation to embark on the project.
You will submit a handout for the Executives containing the Journal and Spreadsheet through EASE along with a link to a URL where you recorded audio/visual presentation YouTube is the preferred mode for submission; if you are in a country that does not have access to YouTube or there are other issues preventing you from posting to YouTube then you must submit a PowerPoint presentation with embedded autoplaying audio through EASE. If you do not wish for your video in YouTube or other system to be publically available then you may explore security features or options of YouTube such as having your video in a closed group. You are responsible for ensuring the link to your presentation will work for the Examiner marking your assignment - you should ask someone to test it.What needs to be submitted to EASE is:Journalyour Executive Handouts that contain your spreadsheets and any other material you wish to sharethe URL link to your presentation addressing all the points in the Assignment 2 instructions and with any further information. The presentation should include lessons learnt in undertaking your research.Format:Provided your Examiner can click on the URL and it works then any common video format is OK; for example you can save ppt as wmv and YouTube will accept that.If you do not feel comfortable with YouTube you may wish to explore the many alternatives (Vimeo, Viddler, Sprout, Vzaar etc); the markers need only to be able to link to a URL to see your presentation. It does not need to be professionally produced and you can use a mobile phone, movie camera, the video tools that are available to download to use your PC, voice capture in Powerpoint or whatever. There is the option of submitting Powerpoint and some people have no alternative but to do that as they are in circumstances where they can't do video - note the file size limits in EASE.The purpose of the presentation is to present a compelling business case to the executive management team to persuade them to adopt the new initiative (the financial analysis is a key part of the business case)Lessons learned –there will be many things that you would have learned that you did not know before that you might want to share with your executive management team?As a guide, your presentation should be around 15 slides and should be no more than 10 minutes, it should be developed and structured according to the following:The presentation should be made up of :An introduction: your FIRST slide should show the title of your presentation and details of the author(s); the SECOND slide should provide the agenda i.e. outline of your presentation; the THIRD slide should clearly state the purpose of your presentation and what you want to achieve from it.A body: contains the results and findings from Part 1, 2 and 3.A conclusion: recaps the main points and summarises your recommendations.Lessons learned: Two slides highlighting lessons learned from conducting this project.The LAST slide should contain a “List of references”. There should be at least 8 references (including those from Internet sources) and they should be listed according to the Harvard referencing convention as described in Chapter 2 (referencing) of the Communication Skills Handbook 3ed.Insert Excel tables and charts and suitable graphics at appropriate places in your presentation to reinforce your argument.Search the Internet for information and guidance on how to produce an effective PowerPoint presentation, including the slide design and layout. Ensure that your PowerPoint file does not exceed the specified size indicated in EASE otherwise you would not be able to upload your work.
Marking criteriaYou are strongly advised to read the marking criteria carefully before starting on your assignment. Note that the journal, the organisation of the PowerPoint presentation and slide design and layout are each worth 10% of the total marks. Your speaker note or embedded voice recording is worth 15%.Marking Sheet for CIS8000 S2.2014 Assignment 2Student name: CIS8000 Assigment 2 (MIS Project) marking sheet

Marking Criteria			Maximum Marks	Marks Obtained
Part A: JournalThe journal should record your activities and progress relating to the completion of this assignment. You should make reference to the items in your “List of references”.>			10
Activity B: Presentation to senior management	Organisation of PowerPoint presentationThe content of the presentation should be organised in a logical, interesting sequence that is easy to follow.>		10
	PowerPoint slide design and layoutEach slide should present one central idea and a few supporting facts, and is visually pleasing and not overloaded.>		10
	Delivery (speaker note or embedded voice recording)The speaker note or embedded voice recording should convey a clear, cogent and coherent argument to support your case for project go-ahead and funding.>		15
	Content of presentation	Introduction & project backgroundAn appropriate title, details of the author(s), an agenda and the purpose of the presentation should be stated. This should be followed by relevant background information available in the assignment and those you obtained in Part 1.>	15
		Excel model of the business case.The calculation and interpretation of your Part 2 results should be clear and convincing to the audience.>	15
		Sensitivity analysis The calculation and interpretation of your Part 3 results should be clear and convincing to the audience.>	15
		Conclusion and recommendationsThe conclusion should summarise the key points of your presentation. The recommendations should highlight the funding sought and a specific course of action. >	5
		List of referencesYour list of references should adhere to the Harvard referencing style.>	5
	Total (I) =		100	0.0
Penalties	· Evidence of plagiarism or collusion
	· Spelling and grammatical errors
	· Late submission (rate indicated in course spec)
	·
Total (II) =			(Max. – 100)	0.0
Final marks (I) – (II) =				0.0
Overall Comments:

COIT20228 CASE STUDY SUBMISSION TEMPLATE

Due date:	Thursday Week 10 (2PM AEST)
Part:	Case Study – assignment 2
Weighting:	35% of total assessment.
Submission:	Electronic (see course website for details)

InstructionsThis Microsoft Word template should be used as instructed in the Assignment Two Case Study PDF, which is available from the course website.Please ensure you reference any materials you use to complete this assignment. DO NOT copy content directly from either the text or Internet resources: this assignment is to be in your own words.Please complete your assignment using this submission template file, inserting your answer beneath each question.

Please fill in the following details:
Student Name
Student Number

The questions are listed on the next page. They are all on one page for convenience only. You can add more pages in order to complete your answers.
Q.1 The business models of Google, Apple, and Microsoft are described as they were about 5 years ago – 2009-10. Contrast their business models and comment on their strengths and weaknesses in the light of today’s marketplace. Explain your reasoning, using examples where appropriate.Q.2 Given your research into disruptive technologies or trends in the first assignment, how will these impact the three large companies and their current business models?Q.3 Describe the mobile platform offerings of Google, Apple, and Microsoft as described in the case and use current literature to bring them up to date. Which company do you think is going ahead of its rivals and why? Explain your reasoning.Q.4 In your considered view, are mobile wireless technologies disruptive, or no longer disruptive, or does it still have some way to go in deeply affecting business and society? Explain your reasoning, using literature and examples to back up your points.
References

ACTIVITY 1: “SMC Support Services Scavenger Hunt” 1.) Go to the SMC website www.smc.edu 2.) Explore the SMC website and search for one   SMC support service that has not been covered in   detail in this unit. Try to avoid repeating a service   someone else has already posted.3.) After you are done exploring go to the threaded   discussion for this unit titled "SMC Support   Services Scavenger Hunt"and answer the   questions listed there.

ACTIVITY 2: “The VAK System” For this activity you will complete a short assessment from your textbook on page 51 to see what your preferred learning style is. When you have completed the “VAK Inventory” and totaled up your scores, read on pages 51-52 of your textbook for strategies to help build on your current preferences and develop new option for learning. Make sure to respond to the threaded discussion for this unit titled “The VAK System.” This is part of this week’s participation points so make sure to do this. 

_____________________________________________________________________________________________________________
Directions: After completing the "Scavenger Hunt" activity, please post your answers to the following questions. Make sure to answer each question using complete sentences. Some questions will require a longer response than others.1.) What SMC student service did you find when searching through the SMC web site?2.) What services are provided?3.) Are there any program requirements? If so, what are they?4.) What is the web address to the SMC support service?5.) What is the contact information for this service?Respond discussion :1.) What SMC student service did you find when searching through the SMC web site?The student I found using the Santa Monica College website was the Health and Safety Information. There were many useful things I found through this resource I never knew that SMC offered such things which makes me glad to know I now know what this campus has to offer its students. The one that really caught my eye was the Office of Student Judicial Affairs which "The mission of Student Judicial Affairs is to work collaboratively with the campus community to uphold the Student Conduct Code, the Academic Code of Conduct and the Honor Code in order to promote a safe learning environment for students, staff, and faculty." (http://www.smc.edu/StudentServices/StudentJudicialAffairs/Pages/default.aspx). I found this very interesting because not everyone knows how the rules work around college and this prepares you to better know what you must to do stray away from breaking the rules. 2.) What services are provided?Many services are provided such as Campus Police. Crisis Prevention Team, Ombuds Office, Psychological Services, Sexual Violence Prevention and Education, Student Judicial Affairs or Disciplinarian 3.) Are there any program requirements? If so, what are they?There are no program requirements, anyone can join!4.) What is the web address to the SMC support service?Student Judicial Affairs or Disciplinarian http://www.smc.edu/StudentServices/StudentJudicialAffairs/Pages/default.aspx5.) What is the contact information for this service?You can easily contact this student services by simply. Copied straight from the website " Contact Information Student Judicial Affairs  Admissions Complex, Room 103 (Office of the Vice President of Student Affairs)  Phone: 310-434-4220  email: student_judicial_affairs@smc.edu"Directions: Answer the following questions. Provide complete, college level responses. All responses must be in paragraph form. Complete sentences and appropriate use of grammar are required. 1. What did you learn about yourself after completing this activity? What kind of a learner are you? 2. Were you surprised by these results? If so, why? If not, why not?3. List one specific strategy you will use to help strengthen your learning style preference AND one specific strategy you will use to develop a learning style that you are less strong in ? ***You can type your responses directly in here or in MSWord first and then cut and paste your text from MSWord into here._______________________________________________________________________________________________________________
Respond discussion: After completing this activity I realized that I am a kinesthetic learner. I need to be working with the material, I am not able to understand the full concept of the material without actually doing something with the material. For me I see that just by listening or visuals I am not able to fully grasp what I need to. The concept of actually doing something with the material helps to have a better understanding of what it means because, when you are doing something with the material you are not only visualizing what you are learning but you are actually experimenting and actually feeling what you need to know. I was not very surprised by these results. I always thought I was just a auditory learner not needing to take any notes or not needing to not needing to actually do something with the material. I soon began to realize that just listening was not enough for me, I would not be able to understand what the professor just said or make something of the concept. I would either have to walk around or do different movements such as stretches that would trigger something in me that would help me later understand later what the professor was talking about. These things helped me learn that I needed more than just looking or listening to someone or something. A specific strategy that would help me to better strengthen my learning style is to carry my materials with me to practice in different locations therefore allowing me to no the confined to one place learning many different things. By studying in different places I can better remember multiple different things because, if I stay in one place and study my thoughts would just keep going to other places but by moving locations my mind is more organized. I would like to be more of a visual learner. I can achieve this by coloring my flashcards and notes different colors by topic to better help me remember topics. Assignment #2: “The Late Paper”For this assignment you will be providing answers to the following questions. Step 1 – Preparation

► Be clear of any distraction or interruptions.► Read The Late Paper in your packet or click on the link.► Complete this assignment using MSWORD and save this document using the following format:Last name_assign2.doc ACC1101 Accounting for decision making

Step 2 – Answer Questions

► After reading "The Late Paper" provide clear and complete answers to the following questions below. One or two sentence answers will not cut it. Remember, this is a college course and you need to provide thorough and well thought out responses. (Double spaced 12 point font.) ► Write a paragraph (minimum) for each question below.1.) Who did you rank as most responsible for Kim’s failing grade in Psychology   101? Explain your answer. Give supporting details and examples.2.) Are there people you rely on instead of relying on yourself? Why?   What will you do to address this? Give supporting details and   examples.

Individual Case Study 1Problem Statement:You need to consider how you will identify the range of issues and problems in the followingproblem statement.Lee Bineesh is a highly qualified but aggressive Singaporean CEO educated in Sydney who has just taken over as CEO of a company we shall call VRD Industries located in Singapore. Lee had a track record of working in fast cycle markets and achieving above average growth in developing industries. Lee’s arrival at VRD was greeted with much initial surprise followed by a steely resolve to change things. For over 40 years, the company manufactured component parts for the auto industry in both Europe, GM in the US and other US automakers. Recently, VRD has also exported to GM in China which has been identified as a growth market. VRD operated as three product-divisional strategic business units (SBUs) all located within the same industrial complex: 1) Automotive Parts 2) Infotainment and 3) Electrical & Energy. Each SBU has its own Divisional General Manager with a small office staff, a manufacturing manager, Quality Control Engineers, Process Supervisors, leading hands and upwards of 150 staff working within each factory centre. The three SBUs shared the normal Head Office functions of R&D, Technical, HR, Sales & Marketing, Accounting and Warehouse and Distribution. The top management team comes from the main VRD Head Office structure (8 senior managers). Middle management consists of about12 managers in each factory. Functional or line managers consist of another 6 managers. Lee took over from Frank Delacy who had worked his way up in the business from the factory and had retired at age 70. For over 30 years, Frank had a steady team of managers at each of the SBUs including middle managers. Staff turnover was low with most managers (functional staff included) having been with the company for over 20 years. Staff loyalty to Frank was extremely high. Changes had been few. Despite discontinuities within the auto industry, Frank and some senior sales staff had built up long-term relationships at Detroit resulting in a fairly consistent sales growth with consistent supply contracts to Europe. Recently, discontinuities and the relentless pace of competition from China, Taiwan and Vietnam for component exports placed heavy pressure on VRD to compete. A new line ofmanagers at Detroit following the GFC and aggravated supply contracts out of Europe meant sales had halved. This coincided with Frank’s retirement placing heavy pressure on Lee and the top team. Lee also appointed a change manager, May Wong, to assist the divisional and manufacturing managers to implement a change agenda. After some weeks of constant review, Lee realised that the company was too slow in production, had old job design methods and that conflict existed between the SBU divisional managers and their teams and between each SBU. The basis of the conflict related to maintaining the current processes and systems that had held the company in good stead for many years and the type of change being imposed by Lee. For his part, Lee wanted an agile company, highly responsive to shifting markets, a cooperative team, and a highly efficient production process. It was no surprise then that each divisional manager had been advised that a staff reduction of 10 per cent had to occur within the next 6 months. This was difficult for senior management who had long-standing friendships with lower managers and line staff dating back to the 1990s and in some cases, the 1980s. Indeed, some factory staff had been on the same machine and processes for over 20 years. That processes needed to change and that manager’s had to “get off their backsides and do some real work” had suddenly become the ‘new’ culture. This shocked the senior team as they were more familiar with Frank’s easier fine-tuning and collaborative style. The problems and issues facing VRD came to a head for Lee after May’s quite detailed interviews and assessment of staff practices and policies. Mays exit polls consisting of qualitative questionnaires and several focus groups revealed further issues. Warehousing and Distribution staff accused sales and marketing of imposing unrealistic delivery estimates. Sales and marketing accused warehousing of being ‘too slow’. Fractious lines of communication started to appear within groups in each factory since more pressure was being placed on divisions for more efficiency. Also, following Frank’s departure, the impact of less capital expenditure and funds for resources appeared to create conflict between each SBU manager competing for a decreasing slice of the pie. This led to falling morale, a clash between managers for updating technical processes, and lower-level staff accusing managers of ruining a perfectly good company. After 6 months of constant conflict and falling sales, Lee asks May to also hire an outside change consultancy firm to assist the organisation deal with its next phase of growth. Lee was struggling for control and May was being flooded with an increasing list of day-to-day issues. Task -required: Based on less than perfect information supplied about the VRD problem statement, you are required to act as an external change consultant to assist the firm to:1. Develop a set of realistic assumptions that you can add to the issues and problems expressed. These might typically be related to each other at: a) the organisational level, b) the group level, c) the individual level. For instance, you might develop assumptions about leadership, about teams at each level, about creative thinking or lack of creative thinking, about innovation. List each assumption and discuss in a paragraph why you have chosen this assumption. (Total 150–200 words)2. In reference to the classic article by Larry Greiner, explain what is happening between growth and change in VRD industries. (150–200 words) 3. May Wong advises Lee that the experiences of the company relate to incremental change and that solutions will gradually come to be realised. Is that right? Why or why not? Explain your answer with reference to three or more readings cited in the course Why is the company finding it difficult to change given the theory-to-practice link? (100–150 words)5. Using the open system model outlined in your study book and text, identify the issues (from the problem statement and from your own assumptions) by redrawing and populating each connecting box. Complete this exercise for as many times as you see connecting systems within (or external to) the company that is influencing change. (600– 700 words excluding boxes).6. Evidence: From point 5, use theory to justify your selection of the open systems identified. Here, you should use at least 7-10 separate references from the study book that support your selections and systems’ linkages. (900–1000 words).Note: Please use all theory based on the readings in Module 1 and 2 including your texts and references included on the StudyDesk. Please use the Style Guide below for listing and quoting references. More marks will be gained by students showing adequate evidence of readings in their case answer by using theory in ways that solve the problem. Please see marking criteria and guidelines below. Note: these marking criteria will be used to assess your case study.Guidelines to Case Study 1Please note the course ‘Leading Organisational Change’ is an advanced Masters course and requires much reading and study on your part. We expect to see evidence of your readings in the case study answers.The main guidelines for case study 1 are stated below. In addition to these, please note the following:1. Please write between 2000 to 2400 words. Words in Tables and Figures are not included in the total word count;2. Please quote from the references for module 1 listed on page 30 of module 1 particularly reading 1.2, 1.5, 1.6 and 1.7 or 4 references in total. From module 2, chapters 5, 6, 7 & 8 of Waddell, Cummings and Worley (your text), Di Pofi (2002) or reading 2.1, Stace & Dunphy (2001), Burke and Litwin (1992), and Harvey and Brown (2005).For Module 2, you need to refer to at least these eight (8) readings. Since case study 1 is addressing systems issues, please pay particular attention to Chapters 5 and 6 of your text Waddell, Cummings and Worley. Please also note the following references that are specific to casestudy 1 which are included throughout module 1 of your study booka. Greiner (1972)b. Tushman & O’Reilly (1996),c. Gersick (1991),d. Brown & Eisenhardt (1997),e. Murray & Donegan (2003),3. To reflect a minimum of readings expected at this level, please quote and use a minimum of at least 12 references from the ones listed above. You should use these references in ways that inform and assist the case problem related to VRD industries. Case study assessment criteria can be found below. Good luck with your case study and I’m looking forward to reading it.MGT8033Leading organisational changeCourse plannerSemester 2 2014Published byUniversity of Southern QueenslandToowoomba Queensland 4350Australiahttp://www.usq.edu.au© University of Southern Queensland, 2014.2.Copyrighted materials reproduced herein are used under the provisions of the Copyright Act 1968 as amended, oras a result of application to the copyright owner.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by anymeans electronic, mechanical, photocopying, recording or otherwise without prior permission.Produced by Learning Resources Development and Support using the ICE Publishing System.Table of contentsPageGetting started 1Course introduction 2Welcome 2Approach to this course 2Announcements 3Communications 3Course overview 4Course resources 5Textbooks 5Recommended reference materials 5Online databases 5Course outline 7Module 1: The nature of organisational change 7Module 2: Diagnosis and interventions 7Module 3: Issues in managing organisational change 7Study schedule 9Assessment 13Assessment scheme 13Assignment guidelines 13Assignment assistance for business students 14Assignment 1 15On-line quiz 15Assignment 2 16Individual Case Study 1 16Guidelines to Case Study 1 18Assignment 2 - Case study 1 Marking criteria sheet 19Assignment 3 20Individual Case Study 2 20Guidelines to Case Study 2 21Assignment 3 – Case study 2 Marking Criteria Sheet 22Guidelines for late Assignments 23Module 1 – The nature of organisational change 25Course objectives 25Module objectives 25Learning resources 26Text 26Selected readings 26Recommended references 27Introduction 271.1 The nature of organisational change 281.1.1 Change variations 281.2 Meta-models of change 291.2.1 Radical or revolutionary change 291.2.2 Incremental or evolutionary change 301.2.3 Punctuated equilibrium model of organisational change 311.2.4 Continuous transformational model of change 321.3 Internationalisation of the organisation development approach and the need for continuedevolution 341.4 The importance of change management models – local and global 341.5 Complexities of change – contradictory approaches and lack of empirical support 35Interim (Section) Summary 351.6 Understanding change 351.6.1 Drivers of change 361.6.2 Managing change 391.6.3 Guiding principles of change 391.6.4 Resolving the dilemmas of change 40Interim (Section) Summary 421.7 New forms of organising 421.7.1 Designing organisations 431.7.2 New forms of organising 451.7.3 Changing structures, processes and boundaries 461.7.4 Patterns of innovative forms of organising 471.7.5 Complementarities 471.7.6 Internationalisation of organisational change 48Summary 49Reference list 50Module 2 – Diagnosis and interventions 53Overview 53Course objectives 53Module objectives 54Learning resources 54Text 54Selected readings 55Introduction 55Organisational diagnosis and data collection 552.1 Diagnosis 562.1.1 Diagnosing organisations 582.1.2 Collecting and analysing diagnostic information 612.1.3 Feeding back diagnostic information 632.2 Designing and implementing interventions 642.2.1 Self-designing organisations 652.2.2 The learning organisation 662.2.3 Interventions for people and process 672.2.4 Interventions for strategy and structure 672.3 Diagnosis and Interventions for Organisational Transformation and change in unpredictableenvironments 692.3.1 Organisation transformation 692.3.2 Change in a chaotic and unpredictable environment 702.4 Reflections on the module 70Reference list 71Module 3 – Issues in managing organisational change 73Overview 73Course objectives 73Module objectives 74Learning resources 74Text 74Selected readings 74Recommended references and/or helpful web sites 753.1 The pressures to change 753.2 The diversity of change 793.3 Change paths 813.4 Managing change 823.4.1 Organisation culture 833.4.2 Motivating change 843.4.3 Creating a vision 853.4.4 Developing political support 853.4.5 The transition 863.4.6 Sustaining momentum 873.4.7 Feedback and evaluation of change interventions 873.4.8 Evaluating organisation development interventions 873.4.9 Institutionalising interventions 883.5 Soft vs hard methods 903.6 Final point 923.7 Future directions: Change in a global setting 933.8 A few summary points 93Reference list 95MGT8033 – Leading organisational chnage 1Getting startedThe Current Students website <http://www.usq.edu.au/current-students> provides links toessential information which will assist you in your studies at USQ. Use this site as areference point to find information on:● getting started● organising enrolment● assessment● learning support● student services● student support● opportunities● graduation and beyond.© University of Southern Queensland2 MGT8033 – Leading organisational chnageCourse introductionWelcomeWelcome to the course Leading Organisation Change. In the following pages, we will outlinethe course and provide details related to the study modules, assessments and work requiredon your part. We are confident you will enjoy the course. Much of the study book materialdoes require you to do more detailed reading as this is a high level conceptual course. It isalmost impossible to pass it without these readings and it is not based on the textbook only.From the study material, the readings, the interesting posts on the social forum, we areconfident that MGT8033 will be a great learning experience for you.We look forward to interacting with you throughout the semester. Best wishes with yourstudyApproach to this courseThe course Leading Organisation Change is a high level conceptual course and does requireprior learning knowledge from courses such as Organisational Behaviour. The course is acore foundational unit in the MBA. The material covers the planned approach to change andintroduces ideas related to meta-models of change. The latter are ways of thinking aboutchange, both from a life-cycle approach, a systems approach and a situational approachwhich is often called ‘situated learning’ within the organizational learning literature. We takeyou on a journey of discovery here by first exploring how the various meta-models establishways of thinking about and implementing change. We next examine interventions of change.Interventions are used as a solution for implementing change approaches. So if a CEO or aGM decides that a hard change approach is required such as restructuring the organization,interventions can be used to help her achieve various process milestones. The course seeksto explore both learning and change given that there are reciprocal relationships betweenthinking, behavior and action. Change processes do not just happen. They have to becarefully planned out, linked to broader organizational goals and strategies and involve keysystems and processes. We will learn in the course why change is about context, how contextis (re)produced on a dialy basis providing the basis by which people learn. But we will alsolearn how to challenge the context through change and learning.There is much to do on your part. First, the course includes an extensive reading list whichhas been carefully selected. We encourage you to read outside of the set text. This ismandatory for the case study requirements and will facilitate learning. The assessments havebeen carefully designed to provide greater student interest and we continue to receive greatfeedback about the opportunities for learning that these provide. The course examiner willuse the Study Desk regularly to place interesting topics and we encourage your input. In factin prior semesters, this has been a great learning experience for students. Finally, wewelcome you again to the course and look forward to our mutual learning experiences..© University of Southern QueenslandMGT8033 – Leading organisational chnage 3AnnouncementsThere are a number of important announcements that need to be made:● There is important information in the course planner. You need to read it very carefully ifyou are to successfully complete this course.● The instructional package for this course consists of the course planner, a textbook andresources on the course CD and in the course content on the USQStudyDesk includinglearning modules, discussion forum and other resources.● Online facilities are used extensively for this course. For example, assignments arerequired to be lodged electronically, other facilities include formal communication fromthe course examiner about any matter associated with the course Further, there isprovision for extensive use of discussion groups, access to external resources associatedwith the course, for instance various administrative links such as course specificationsand the university extension policy. You are required to use the online resources andfacilities offered for this course through the course home page for two reasons. First,specific advice is provided by the course leader for each of the modules contained in thecourse. Second, the course leader will be engaging with students through the discussionforum regarding various aspects of the course throughout the semester.CommunicationsCommunication is organised on the MGT8033 USQStudyDesk. If you have any questions ofa general nature, then please use one of the discussion forums. However, should you haveany questions of a private nature, please use e-mail to the course examiner. This will ensurethat you get the fastest response that we can give you. Please note that all announcementsand official email contact from your learning facilitation team are made through the intranetfor MGT8033.Accessing MGT8033 from the course homepageYou can access MGT8033 on the StudyDesk through UConnect. UConnect is a computersystem, which provides you with convenient access to information, services and programresources for your studies from a convenient, central point. This integrated approach meansyou are assured of wide-ranging, up-to-date information via a consistent and easy-to-useinterface.To access UConnect, click on the UConnect button on the USQ homepage. You will berequired to enter your username and password to access the system.UConnect Log on and PasswordYour student number is ten (10) digits and your username is the last seven (7) characters ofyour ten character student number, with the leading number entered in lower case. Forexample:Student number 00(1)1234567 (1) = q Username q1234567Student number 00(3)1234567 (3) = d Username d1234567Student number 00(5)1234567 (5) = w Username w1234567© University of Southern Queensland4 MGT8033 – Leading organisational chnageYour password is included in your enrolment notice, which is sent to you at the beginning ofeach semester and whenever you make an enrolment change.Once you have connected to UConnect click on the ULearn tab and then on theUSQStudyDesk tab. This will provide you with a list of the courses that you are doing. SelectMGT8033. This will take you to the StudyDesk for MGT8033, the starting point forinformation and communication within the course.Course overviewIn this course you will be required to demonstrate your practical ability to evaluate changemanagement programs and interventions in particular contexts. The course starts with atypical introductory perspective which assists you to understand the nature of change, somemeta-models of change and consider change complexities and drivers of change. It considershow to manage change and provides some guiding principles for change and how to resolvesome of the dilemmas of change. The first section ends with a consideration on designingorganisations and the internationalism of change. The course then moves on to the key areaof diagnosis and interventions and provides information on the processes involved anddetails information on such interventions as self-designing organisation, the learningorganisation, interventions for people and process, interventions for strategy and structureand closes with diagnosis and interventions for organisational transformation and change inunpredictable environments. The last module considers issues in managing organisationalchange, including change paths, key factors in managing change processes, the differencesbetween hard and soft interventions and their impact. The course ends with a considerationof change in a global setting.In order to survive as a field of study, organisation change and development has evolved in ashort period of time as a response to the diverse challenges that leaders and managers arenow facing. This has been necessary because:● To advance more useful and workable change techniques, the field of study must have abroader theoretical framework than that of its origins.● Although ‘people change’ remains a primary focus, there must be a more integrativeapproach in the development of change techniques with respect to the major variables tobe changed; that is people, strategy, structure, process etc.● Leaders, managers and students of management, want to talk in terms of positiveoutcomes and hence the change technologies must be practical and developed frommultiple perspectives such as long-term/short-term, macro/micro hard/soft data, andtheory/practice.Already, most of you have had some exposure to organisational change and development inthe foundation course MGT5000 Management and Organisational Behaviour. MGT8033moves the focus from the macro view to a much more intensive scrutiny of the changeprocess, and to an examination of the contribution of leadership in describing effectivechange.© University of Southern QueenslandMGT8033 – Leading organisational chnage 5Course resourcesALL textbooks and materials are available for purchase from USQ BOOKSHOP (unlessotherwise stated). Orders may be placed via secure Internet, free fax 1800642453, phone07 46312742 (within Australia), or mail. Overseas students should fax +61 7 46311743, orphone +61 7 46312742. For costs, further details, and Internet ordering, use the ‘TextbookSearch’ facility at <http://bookshop.usq.edu.au> click ‘Semester’, then enter your ‘CourseCode’ (no spaces).TextbooksYou will need to purchase the following textbook for this course:Waddell, DM, Cummings, TG & Worley, CG 2014, Organisation change development &transformation Asia Pacific, 5th edn, Cengage Learning Australia , South MelbourneAustralia.Please note: You should be able to purchase this text On-line with the publisher.Recommended reference materialsReference materials are materials that, if accessed by students, may improve their knowledgeand understanding of the material in the course and enrich their learning experience.Ackerman-Anderson, L & Anderson, D 2010, The change leader’s roadmap: how tonavigate your organization's transformation, 2nd edn, Pfeiffer, San Francisco.Balogun, J & Hailey, VH 2008, Exploring strategic change, 3rd edn, Financial Times PrenticeHall, Harlow, England.Carnall, C 2007, Managing change in organisations, 5th edn, Financial Times Prentice Hall,Harlow, England.Dunphy, D, Griffiths, A & Benn, S 2007, Organizational change for corporatesustainability: a guide for leaders and change agents of the future, 2nd edn, Routledge,London.Graetz, F, Rimmer, M, Lawrence, A & Smith, A 2011, Managing organisational change,3nd Australasian edn, John Wiley & Sons, Brisbane, Australia.Online databasesYou will find the electronic databases available through the USQ Library home page mostuseful when searching for material related to the courses you are studying. The electronicdatabases can be accessed from the USQ Library home page by clicking on the ‘Journals &databases’ tab under the ‘Find it...’ heading. You will need your username and password toaccess the databases. We particularly recommend the EBSCOhost and Emerald databases.© University of Southern Queensland6 MGT8033 – Leading organisational chnageThere are many other business’ databases available through USQ Library, which you mayfind useful for your studies. Further information can be found from the library homepage<http://libcat.usq.edu.au/> by clicking on ‘Finding information for your assignment’ underthe ‘Ask for help’ button on the left. The following URL links to a presentation on databasesearching<http://www.usq.edu.au/library/Breeze/Fac_Business/Using_Databases/index.html>.The ‘My Business Study and research’ page may also be of use<http://usqstudydesk.usq.edu.au/course/view.php?id=6383>. Specific guides are available at<http://www.usq.edu.au/library/getting-help>.Also please take note that you will be provided with detailed information about relevantreadings to be accessed – and this will happen via the UConnect platform.© University of Southern QueenslandMGT8033 – Leading organisational chnage 7Course outlineThe course is made up of the following three modules:Module 1: The nature of organisational changeThis module is a typical introductory module that will assist you in understanding the natureof organisational change and the different perspectives found in the literature. The moduleoutlines abroad view of managing change. It emphasises new areas that recent research hasshown are essential for organisational survival. The module details various definitions,perspectives, theories and other material that provides the background to change techniquessuch as an open systems approach..As teachers, our goal is to help you develop key skills inthese change techniques. As learners, your role will be to explore the novel approaches ofmanaging change including how to prepare and motivate people towards changeModule 2: Diagnosis and interventionsThis second module introduces you to various interventions and techniques that include selfdesigningorganisations, the learning organisation, interventions targeted at people andprocesses and interventions targeted at strategy and structure. Additionally, information onchange in a chaotic and unpredictable environment is considered. It is important for anyleader or manager to identify needed change initiatives through proper diagnosis and selectan appropriate intervention to maximise the desired outcome. Effective study in this modulewill help to provide you with the understanding and skills to apply to organisationalsituations to which you can negotiate access. In simple terms, diligence in studies inmodule 2 should result in a very good understanding of the tools that change agents, leadersand managers have at their disposal, and an appreciation of how and when some of these canbe utilised.Module 3: Issues in managing organisational changeThis third module is concerned with some of the issues relating to the management oforganisational change. There is the issue of what process a leader, manager or change agentwill use to bring about effective change. There is the issue of who actually manages changein organisations. We are also concerned with the barriers that impede organisational changeand tactics we may use to overcome those barriers. Resistance to change is a concept thatneeds to be explored more fully. Finally, we consider the future of organisational changeitself. These and other issues are introduced and help round out the beginning of anunderstanding in organisational change.© University of Southern Queensland8 MGT8033 – Leading organisational chnage© University of Southern QueenslandMGT8033 – Leading organisational chnage 9Study scheduleWeek Module Activity/Reading Assessment121–25 JulyModule 1: Thenature oforganisationalchangeActivity –1. Independent research on the natureof change2. Access discussion board and learningmodule materials and information onthe USQStudyDeskSet reading –Preliminary required reading on criticalthinking, referencing and backgroundreading on the nature of organisationalchange plus readings as directed inmodule 1228 July–1 AugustActivity –1. Independent research on the natureof change2. Access discussion board and learningmodule materials and information onthe USQStudyDeskSet reading –Continue preliminary required readingon critical thinking, referencing andbackground reading on the nature oforganisational change plus readings asdirected in module 134–8 AugustModule 2: Diagnosisand interventionsActivity –1. Independent research on diagnosisand interventions2. Access discussion board and learningmodule materials and information onthe USQStudyDeskSet readingCommence readings as directed inmodule 2411–15 AugustActivity – Independent research ondiagnosis and interventionsSet reading –Continue with readings as directed inmodule 2Reminder: End of week 4 is the last date to drop S2 courses without academic or financial penalty.10 MGT8033 – Leading organisational chnageWeek Module Activity/Reading Assessment518–22 AugustActivity – Independent research ondiagnosis and interventionsSet reading –Continue with readings as directed inmodule 2Assignment 1 Online testdue: 22 August 2014(see study desk for details)625–29 AugustActivity – Independent research ondiagnosis and interventionsSet reading –Continue with readings as directed inmodule 271–5 SeptemberActivity – Independent research ondiagnosis and interventionsSet reading –Continue with readings as directed inmodule 288–12 SeptemberActivity – Independent research onissues in managing organisationalchangeSet reading –Continue with readings as directed inmodule 2Reminder: End of week 8 is the last date to drop S2 courses without academic penalty.915–19 SeptemberContinue with readings as directed inmodule 2Assignment 2 Case Study 1due: Friday,19 September 2014Lodge electronically viaEASE on the study desk1022–26 SeptemberBREAK1129 Sept–3 OctBREAK126–10 OctoberModule 3: Issues inmanagingorganisationalchangeActivity –1. Independent research on issues inmanaging organisational change2. Access discussion board and learningmodule materials and information onthe USQStudyDeskSet reading –Continue with readings as directed inmodule 3Continue work on assignment3 and build on your initialdraft.MGT8033 – Leading organisational chnage 11Week Module Activity/Reading Assessment1313–17 OctoberActivity –1. Independent research on issues inmanaging organisational change2. Access discussion board and learningmodule materials and information onthe USQStudyDeskSet reading –Continue with readings as directed inmodule 31420–24 OctoberN/A Assignment 3 (Case Study 2)due: Friday 24 October, 2014– Lodge electronically viaEASE on the study desk.No hard copies accepted.1527–31 OctoberN/A16–173–14 NovemberEXAMINATION PERIODPlease note, there is no exam for MGT803312 MGT8033 – Leading organisational chnageMGT8033 – Leading organisational chnage 13AssessmentAssessment schemeDescription Markout ofWtg(%)Due date NotesOn-line test (see study desk) 20 10 22 Augustl 2014 1Individual Case study 1 (2000 – 2400 words) 100 45 19 September 2014Individual Case study 2 (2000 – 2400 words) 100 45 24 October 2014NOTES:1. On-Line Test (Available from 18 August 2014 for completion by 22 August 201411.59pm AEST)Assignment guidelinesThree assignments have been set to test your competence in understanding and applying thesignificant concepts and material presented in this course. The purpose of the threeassessment pieces is to enable you to:● demonstrate your understanding of the material presented in the course● relate the material to a context that is relevant and of interest to you● support your career development by enhancing your competence at change management.More specifically, the assessment is aligned with the objectives of the course. Theseobjectives are detailed within the course specifications. You can access the coursespecifications on the USQStudyDesk..While the assessment is designed to test whether you have satisfactorily achieved theseobjectives, I am also conscious of the fact that the assessment is central to your learningexperiences throughout the duration of this course. Hence, I have designed the assessmentrequirements to meet the objectives of this course and to ensure that your experiencesthroughout the semester are constructive and focused on what is relevant to you.The assessments are based on a range of tasks that attempt to relate the material in boththeoretical and practical terms.On-line quiz – 10%Individual case study 1 – 45%© University of Southern Queensland14 MGT8033 – Leading organisational chnageIndividual case study 2 – 45%The assessment for this course will involve an online quiz worth 10% and two case studieseach worth 45%. Students must obtain a passing mark in aggregate from the threeassessments to pass the course.Assignment assistance for business studentshttp://www.usq.edu.au/library/getting-helpThis page is designed to bring together some tools to assist you in successfully completingyour assignments and may be particularly useful to students who are returning to study.Always remember however, to read your assignment instructions very carefully as yourlecturers may require specific formats or layouts. The page details and links are shown belowfor your convenience.Academic SkillsUniversity of New South WalesCovers assignment writing, quotations, punctuation, exam skills, note taking, referencing,getting organised and giving presentations.Study Guides and StrategiesThis site covers many aspects of learning - study and writing skills, project management,evaluating web sites and more. You can choose to view the contents in any one of 30languages!Writing an EssayInteractive module from Uni of Otago‘Essay Writing with Readings – how to analyse your topic, find resources, plan and writeyour essay’Writing a Business ReportFrom the University of WollongongA guide to the purpose and layout of a business report.How do I search the Databases?Try the USQ Library's Database GuidesI Need help Finding informationThe USQ Library Finding Information Tutorial will provide you with the skills and tools tofind and manage information effectively. It is arranged in modules, so you can progress atyour own pace and contains demonstration and interactive exercisesHow do I avoid plagiarism?From the University of New South Wales – Try yourself out on the ‘Can you recognisePlagiarism Exercise’Plagiarism is taken very seriously at universities so make sure you are aware of whatconstitutes plagiarism.© University of Southern QueenslandMGT8033 – Leading organisational chnage 15Assignment 1Description Marks outofWtg(%) Due dateOn-line quiz 20 10 22 August 2014 (11.59pm AEST).This assignment deals with the material covered in your text. Please see Guidelines to OnlineTest on the Study Desk.On-line quizPlease note, the online test relates to 20 multiple choice questions based on Selectedreading 1.2 Armenakis, AA & Bedeian, A 1999, ‘Organisational change: a review of theoryand research in the 1990s ’, Journal of Management, vol. 25, no. 3, pp. 293-315 and fromChapter 2 and 3 of your text Waddell, DM, Cummings, TG Worley, CG 2014,Organisational change: development & transformation, Asia pacific 5th edn, CengageLearning. Melbourne. To pass this test, you must have acquired a copy of the textbook. Youcan acquire a copy of the text by contacting the USQ cooperative bookshop. Please see thestudy desk in week 1 under the heading ‘ON-LINE TEST’. A ‘Guidelines for the OnlineTest’ to be completed in week 5 of the course will be posted in this section. This guidelinewill outline when the test must be undertaken. It will also outline the time to complete thetest once you log on to the test link. A computerised model will assess results. Please note:your test results will be available after the ‘close-off’ date for completing the test.© University of Southern Queensland16 MGT8033 – Leading organisational chnageAssignment 2Description Marksout ofWtg(%) Due dateIndividual case study 1 (write between 2000– 2400 words)approximately 4-5 typed pages singlespaced100 45 19 September 2014(11.59pm AEST).You should write the case study in such a way that you start your answers from line 1. Thatis, there is no need for large introductions that we see in essays. You should apply theprinciples you have learned from lecture material/tutorials/readings that are specific to thecase study. Case study 1 answers should be written in narrative form (i.e. sentences not bulletpoints), and should be 2000 words long, single spaced. Each case study should be referencedby including these at the end of the case. More marks are gained by the quality of researchapplied in practice and the overall quality of the answer.Task/Questions for the case can be found at the conclusion of the case.Individual Case Study 1Problem Statement:You need to consider how you will identify the range of issues and problems in the followingproblem statement.Lee Bineesh is a highly qualified but aggressive Singaporean CEO educated in Sydney whohas just taken over as CEO of a company we shall call VRD Industries located in Singapore.Lee had a track record of working in fast cycle markets and achieving above average growthin developing industries. Lee’s arrival at VRD was greeted with much initial surprisefollowed by a steely resolve to change things. For over 40 years, the company manufacturedcomponent parts for the auto industry in both Europe, GM in the US and other USautomakers. Recently, VRD has also exported to GM in China which has been identified as agrowth market. VRD operated as three product-divisional strategic business units (SBUs) alllocated within the same industrial complex: 1) Automotive Parts 2) Infotainment and 3)Electrical & Energy. Each SBU has its own Divisional General Manager with a small officestaff, a manufacturing manager, Quality Control Engineers, Process Supervisors, leadinghands and upwards of 150 staff working within each factory centre. The three SBUs sharedthe normal Head Office functions of R&D, Technical, HR, Sales & Marketing, Accountingand Warehouse and Distribution. The top management team comes from the main VRDHead Office structure (8 senior managers). Middle management consists of about12managers in each factory. Functional or line managers consist of another 6 managers.Lee took over from Frank Delacy who had worked his way up in the business from thefactory and had retired at age 70. For over 30 years, Frank had a steady team of managers ateach of the SBUs including middle managers. Staff turnover was low with most managers(functional staff included) having been with the company for over 20 years. Staff loyalty toFrank was extremely high. Changes had been few. Despite discontinuities within the autoindustry, Frank and some senior sales staff had built up long-term relationships at Detroit© University of Southern QueenslandMGT8033 – Leading organisational chnage 17resulting in a fairly consistent sales growth with consistent supply contracts to Europe.Recently, discontinuities and the relentless pace of competition from China, Taiwan andVietnam for component exports placed heavy pressure on VRD to compete. A new line ofmanagers at Detroit following the GFC and aggravated supply contracts out of Europe meantsales had halved. This coincided with Frank’s retirement placing heavy pressure on Lee andthe top team. Lee also appointed a change manager, May Wong, to assist the divisional andmanufacturing managers to implement a change agenda. After some weeks of constantreview, Lee realised that the company was too slow in production, had old job designmethods and that conflict existed between the SBU divisional managers and their teams andbetween each SBU.The basis of the conflict related to maintaining the current processes and systems that hadheld the company in good stead for many years and the type of change being imposed byLee. For his part, Lee wanted an agile company, highly responsive to shifting markets, acooperative team, and a highly efficient production process. It was no surprise then that eachdivisional manager had been advised that a staff reduction of 10 per cent had to occur withinthe next 6 months. This was difficult for senior management who had long-standingfriendships with lower managers and line staff dating back to the 1990s and in some cases,the 1980s. Indeed, some factory staff had been on the same machine and processes for over20 years. That processes needed to change and that manager’s had to “get off their backsidesand do some real work” had suddenly become the ‘new’ culture. This shocked the seniorteam as they were more familiar with Frank’s easier fine-tuning and collaborative style. Theproblems and issues facing VRD came to a head for Lee after May’s quite detailedinterviews and assessment of staff practices and policies. Mays exit polls consisting ofqualitative questionnaires and several focus groups revealed further issues. Warehousing andDistribution staff accused sales and marketing of imposing unrealistic delivery estimates.Sales and marketing accused warehousing of being ‘too slow’. Fractious lines ofcommunication started to appear within groups in each factory since more pressure wasbeing placed on divisions for more efficiency. Also, following Frank’s departure, the impactof less capital expenditure and funds for resources appeared to create conflict between eachSBU manager competing for a decreasing slice of the pie. This led to falling morale, a clashbetween managers for updating technical processes, and lower-level staff accusing managersof ruining a perfectly good company. After 6 months of constant conflict and falling sales,Lee asks May to also hire an outside change consultancy firm to assist the organisation dealwith its next phase of growth. Lee was struggling for control and May was being floodedwith an increasing list of day-to-day issues.Task -required: Based on less than perfect information supplied about the VRDproblem statement, you are required to act as an external change consultant to assistthe firm to:1. Develop a set of realistic assumptions that you can add to the issues and problemsexpressed. These might typically be related to each other at: a) the organisational level,b) the group level, c) the individual level. For instance, you might develop assumptionsabout leadership, about teams at each level, about creative thinking or lack of creativethinking, about innovation. List each assumption and discuss in a paragraph why youhave chosen this assumption. (Total 150–200 words)2. In reference to the classic article by Larry Greiner, explain what is happening betweengrowth and change in VRD industries. (150–200 words)3. May Wong advises Lee that the experiences of the company relate to incremental changeand that solutions will gradually come to be realised. Is that right? Why or why not?Explain your answer with reference to three or more readings cited in the course© University of Southern Queensland18 MGT8033 – Leading organisational chnage4. Why is the company finding it difficult to change given the theory-to-practice link?(100–150 words)5. Using the open system model outlined in your study book and text, identify the issues(from the problem statement and from your own assumptions) by redrawing andpopulating each connecting box. Complete this exercise for as many times as you seeconnecting systems within (or external to) the company that is influencing change. (600–700 words excluding boxes)6. Evidence: From point 5, use theory to justify your selection of the open systemsidentified. Here, you should use at least 7-10 separate references from the study book thatsupport your selections and systems’ linkages. (900–1000 words).Note: Please use all theory based on the readings in Module 1 and 2 including your texts andreferences included on the StudyDesk. Please use the Style Guide below for listing andquoting references. More marks will be gained by students showing adequate evidence ofreadings in their case answer by using theory in ways that solve the problem. Please seemarking criteria and guidelines below. Note: these marking criteria will be used to assessyour case study.Guidelines to Case Study 1Please note the course ‘Leading Organisational Change’ is an advanced Masters course andrequires much reading and study on your part. We expect to see evidence of your readings inthe case study answers.The main guidelines for case study 1 are stated below. In addition tothese, please note the following:1. Please write between 2000 to 2400 words. Words in Tables and Figures are not includedin the total word count;2. Please quote from the references for module 1 listed on page 30 of module 1 particularlyreading 1.2, 1.5, 1.6 and 1.7 or 4 references in total. From module 2, chapters 5, 6, 7 & 8of Waddell, Cummings and Worley (your text), Di Pofi (2002) or reading 2.1, Stace &Dunphy (2001), Burke and Litwin (1992), and Harvey and Brown (2005).For Module 2,you need to refer to at least these eight (8) readings. Since case study 1 is addressingsystems issues, please pay particular attention to Chapters 5 and 6 of your text Waddell,Cummings and Worley. Please also note the following references that are specific to casestudy 1 which are included throughout module 1 of your study booka. Greiner (1972)b. Tushman & O’Reilly (1996),c. Gersick (1991),d. Brown & Eisenhardt (1997),e. Murray & Donegan (2003),3. To reflect a minimum of readings expected at this level, please quote and use aminimum of at least 12 references from the ones listed above. You should use thesereferences in ways that inform and assist the case problem related to VRD industries.Case study assessment criteria can be found below. Good luck with your case study andI’m looking forward to reading it.© University of Southern QueenslandMGT8033 – Leading organisational chnage 19Assignment 2 - Case study 1 Marking criteria sheetExtensive <----> Minor level of evidencePossibleMark Criteria 10 9 8 7 6 5 4 3 2 1 YourMark1 10 Quality of assumptions linkedat different levels2 10 Interplay between growth andchange3 10 May Wong’s statement andexplanation4 10 Theory-to-practice link5 20 Open systems approachacross levels6 25Evidence: Discussion oftheory linked to open systemsand changeCommunication aspects ofyour presentation7 5 Referencing (if applicable)8 5 Writing clarity9 5Tertiary standard: does youranalysis reach a high standardof research?100 TOTAL FORASSIGNMENT© University of Southern Queensland20 MGT8033 – Leading organisational chnageAssignment 3Description Marks out of Wtg(%) Due dateIndividual case study 2 (writebetween 2000 – 2400 words)100 45 Friday 24 October 2014(11.59pm AEST)You should write the case study in such a way that you start your answers from line 1. Thatis, there is no need for large introductions that we see in essays. You should apply theprinciples you have learned from lecture material/tutorials/readings that are specific to thecase study. Case study 2 answers should be written in narrative form (i.e. sentences not bulletpoints).Individual Case Study 2Use the VRD Industries case information from Case Study 1.Required: Based on your analysis of VRD Industries in Case Study 1, you are nowrequired to continue the external change consultancy role. Case study 2 requires you toimplement change intervention models to solve the company’s range of change issues.Use the same list of issues and problems and assumptions from Case Study 1. However,if needed, add additional relationship and behavioural assumptions based on less thanperfect information as follows:1. Intervention 1: Use the ideas presented on P191-210201. Be creative. Design anintervention based on organizational learning to solve the problems of VRD (400-500words). Justify why the intervention will be useful and how it will work. Note: You mayalso use the process interventions in Chapter 7 of your text if it relates to organizationallearning;2. Intervention 2: Use the team building process intervention on P240. Justify why theintervention will be useful and how it will work (300-500 words)3. Intervention 3: Use the integrated strategic change intervention in Chapter 9 of your text.Justify why the intervention will be useful and how it will work (400-500 words).4. In relation to intervention number 2, design a team building survey similar to (but not thesame as) Table 7.2, page 241-242 in your text. Your survey should be related to the factsin the case. Include the survey as a Table(s) in text. Then explain in 400-500 words whyyou have chosen the variables in the survey.5. Evidence: From the information relating to intervention 1, 2 and 3, use 7-10 separatereferences from the study book that support your selections of interventions and why youused them (900-1000 words). How can theory here be used as evidence to support yourclaims?© University of Southern QueenslandMGT8033 – Leading organisational chnage 21Guidelines to Case Study 2Required: Based on your analysis of VRD Industries in Case Study 1, you are now requiredto continue the external change consultancy role. Case study 2 requires you to implementchange intervention models to solve the company’s range of change issues. Use the same listof issues and problems and assumptions from Case Study 1. However, if needed, addadditional relationship and behavioural assumptions based on less than perfect informationas follows:A. Intervention 1: This intervention is asking you to be creative in choosing anorganisational learning technique to get people to work more cooperatively and yet morecreatively. For instance, if you used a ladder of inference, how would this work and howwould it help to solve the issues in VRD? Please quote from some classical articles inthis field such as Espedal, B. (2008), Murray, P (2002), Argyris, C (1993)B. Intervention 2: Use the team building process intervention. Describe and explain whythis process will be useful and how it can be implemented within VRD given the facts inthe case. For the team building exercise, use the intervention techniques explained onP240 through 242 of Waddell et al. Try to use team skills or behaviours that seemapplicable for VRD, not what is in the text. Use the text table structure however as abasis to build and describe your team building process intervention. Please use and quoterelevant theoretical points from at least the following readings in your Module booksincluding Bulla, R. Bell, C. (1986), Murray, P. Millett, B. (2011), Kirkman, B.L., &Rosen, B.( 2000).C. Intervention 3: Use the integrated strategic change intervention explained on P311through 314 of Waddell et al. Please note that this intervention is not asking you to do aStrategic Plan as in Strategic Management. Rather, it is focused on developing anIntegrated Strategic Change Process. Please use and quote relevant theoretical pointsfrom at least the following readings: Cummings, TG 1997, Greiner, L. Bhambri, A.(1989).D. In relation to intervention number 2, design a team building survey similar to (but not thesame as) Table 7.2, page 241-242 in your text. Here, have a closer look at the problemsand issues in the case. Now if you were May or Lee, what things would you like to see inyour team? (e.g. innovative thinking).E. Evidence: This is very explicit in Point 5 above. There are enough references listedabove for you to demonstrate how theory is linked to practice.Good luck with Case Study 2 and I look forward to reading it!© University of Southern Queensland22 MGT8033 – Leading organisational chnageAssignment 3 – Case study 2 Marking Criteria SheetExtensive <----> Minor level of evidencePossibleMark Criteria 10 9 8 7 6 5 4 3 2 1 YourMark1 15Intervention 1: Quality oforganisationl learningintervention2 15 Intervention 2: Quality ofteam building intervention3 15Intervention 3: Quality ofintegrated strategic changeintervention4 15 Team building survey design5 15 Evidence: Clear use ofrecommended references6 5Quantity of your research –did you collect enoughinformation and write enoughto explain the problem and itssolutions5The overall structure andlogical development of yourcase report7 Communication aspects ofyour presentation8 5 Referencing (if applicable)9 10 Writing clarity100Tertiary standard: does youranalysis reach a high standardof research?© University of Southern QueenslandMGT8033 – Leading organisational chnage 23Guidelines for late AssignmentsPlease note that unless prior arrangements are made with your lecturer/tutor, all assignmentsare due to be uploaded onto EASE on the study desk by the due date. Due to fairness andequity for all other students who submit their assignments on time, if a student submits anassignment after the due date without (prior) approval of the examiner then a penalty of 5%of the total marks gained by the student for the assignment may apply for each working daylate up to ten working days at which time a mark of zero may be recorded.If you require an extension for a legitimate reason (e.g. ill health, personal circumstances notincluding work commitments, or for some other critical reason), please seek an extension onor before the due date by writing to the course examiner listed earlier.© University of Southern Queensland24 MGT8033 – Leading organisational chnage© University of Southern QueenslandMGT8033 – Leading organisational chnage 25Module 1 – The nature of organisational changeCourse objectivesAt the successful completion of this course a student should be able to● demonstrate an understanding of the complex nature of change as well as those factorsthat affect and enhance prospects for planned organisational change● articulate a perspective on the contextual and conceptual foundations of organisationalchange● demonstrate an understanding of the processes and many of the strategies and techniqueswhich can be applied to lead, manage and facilitate organisational change● demonstrate their ability to take part in or evaluate some change management programsand interventions, in different contexts● identify and solve complex organisational problems creatively and practically to increasethe effectiveness of change management● apply critical thinking – evaluate, synthesise and critically review theoretical frameworkswith other evidence to provide solutions to real world problems● demonstrate an understanding of the impact of interpersonal communication on specificmanagement processes and outcomes using relevant theories and concepts as applied tochange● comprehend and address complex ethical dilemmas as applied to change● demonstrate an understanding of complex sustainable dilemmas and the need forresponsible leadership in change● demonstrate the skills required for leadership of others, working in teams and workingwith people from diverse cultural and professional backgrounds in real time spaces● communicate professionally and effectively in written communication to variousaudiences to achieve targeted outcome.Module objectives● generally describe the development of OD over the last two decades● conceptualise the hard-versus-soft approaches to change and examine the implications ofthis dichotomy for change agents● describe and explain the systems approach to change and examine why this systemsperspective is important● compare and contrast the meta-models of change, and explain why these distinctions areimportant● critically discuss ‘discontinuous change’ and the implications for effective changemanagement© University of Southern Queensland26 MGT8033 – Leading organisational chnage● analyse the dilemmas of change and examine how these might be reconciled by prudentmanagement● compare and contrast ‘traditional structures’ and new forms of organisation.Learning resourcesTextWaddell, D, Cummings TG & Worley CG 2014, Organisation change development &transformation Asia Pacific, 5th edn, Cengage Learning Australia , South MelbourneAustralia chapters 1 and 2.NB reference is made to Graetz et al. (2006) for several reading activities. You shouldconsider obtaining a copy of this text from the library or obtaining a copy of relevant pages.Several chapters of this text will be available under the Assessment file on the Study Desk.Selected readingsSelf-source this article:Selected reading 1.1: Thompson Learning 2005, ‘Critical thinking’.<http://infotrac.thomsonlearning.com/infowrite/critical.html>Selected reading 1.2: Armenakis, AA & Bedeian, A 1999, ‘Organizational change: a reviewof theory and research in the 1990s’, Journal of Management, vol. 25, no. 3, pp. 293–315.Selected reading 1.3: Greiner, L. (1972), ‘Evolution and revolution as organizations grow’Harvard Business Review, July-August.Selected reading 1.4: Tushman & O’Reilly (1996), ‘Ambidextrous organizations: Managingevolutionary and revolutionary change’, California Management Review, Summer.Selected reading 1.5: Burnes, B 1996, ‘Approaches to change management’, Managingchange: a strategic approach to organisational dynamic, Pitman Publishing, London,pp. 170–98.Selected reading 1.6: Gersick, C. (1991), ‘Revolutionary change theories: A multilevelexploration of the punctuated equilibrium paradigm’, Academy of Management Review,vol. 16. no. 1.Selected reading 1.7: Coghlan, D & Coughlan, P 2004, ‘Collaborative research acrossborders and boundaries: action research insights from the co-improve project’, Research inOrganizational Change and Development, vol. 15, pp. 275–95.Selected reading 1.8: Brown & Eisenhardt (1997), ‘The art of continuous change: Linkingcomplexity theory and time-paced evolution in relentlessly shifting organizations’,Administrative Science Quarlterly, vol. 42, no. 1.© University of Southern QueenslandMGT8033 – Leading organisational chnage 27Selected reading 1.9: By, RT 2005, ‘Organisational change management: a critical review’,Journal of Change Management, vol. 5, no. 4, pp. 369–80.Selected reading 1.10: Murray & Donegan (2003), ‘Empirical linkages between firmcompetencies and organizational learning’, The Learning Organization, vol. 10. issue 1,pp. 51–62.Recommended referencesBurnes, B 2000, Managing change – a strategic approach to organisational dynamics,3rd edn, Prentice Hall, Harlow, England, chapter 7, pp. 250–8.IntroductionBackground readingBefore embarking on your journey, it is important that you apply a critical mind to what youread. Consequently, please make sure that you familiarise yourself with the content of thearticle on critical thinking before you commence your reading and research on LeadingOrganisational Change. Subsequent to reading the article on critical thinking, you shouldthen read selected readings 1.2 through to and including 1.4. These articles will provide youwith a solid background to the various works that have been done in the organisationalchange area in the last few decades. You should read these before proceeding with thelearning module.Three interrelated themes – change, globalisation and sustainabilityFrom the early readings you may get diverse understandings about change. However, in thiscourse leading and managing change is concerned with how organisations respond and adaptto contexts, both local and global, in an effort to manage uncertainty in both an organic andsystemic fashion. Global circumstances require that managers must be aware of theinterconnectedness of business operation and management decisions on the widerinternational community. To ensure business sustainability management skills are neededthat result in businesses that are viable and competitive in the long term without negativeimpact on the environment, the economy or society. Consequently, this course seeks to helpdevelop your skills in these endeavours.© University of Southern Queensland28 MGT8033 – Leading organisational chnage1.1 The nature of organisational changePick up any business journal, newspaper section or latest ‘how to’ management text and youwill notice that ‘change’ is the most constant concept identified. Stories abound onorganisations (and their individuals), that have succeeded in change, failed in change,accepted change, predicted change or ignored change. Recommendations are common onhow to change; how not to change; how to manage change; how to lead change; how to movethrough change transitions and how to help others move through change. Why is somethingas simple as change, the topic of so much conversation, argument, research and reflection?Change is a permanent feature of our lives, yet it is often viewed as disturbing andthreatening and it is regularly done with devastating results. Many people would viewfavourably one simple change theory that resulted in speedy and effective outcomes ofchange. However, in reality there are many theories, models and approaches to change andthey are often confusing and at times quite contradictory. The discussion that follows willinclude an overview of the various meta-models of change in order to appreciate the differentperspectives regarding change, its speed, its magnitude and its elements.Many leading writers on change suggest that organisations are changing at a faster rate thanever before. Champy and Nohria (1996) claim there are three major drivers of organisationalchange, technology (particularly information technology), government, and globalisation.However there are disagreements regarding the nature of the change and the pace of changethat organisations experience. Hussey (1996) suggests that it is competition, increasinglymore demanding customers, and pressures for shareholder value that are the major long-termdrivers of change. Dunphy et al. (2003) argue that corporate sustainability within finiteresource boundaries is the new driver for change. Because there are an infinite number ofarguments as to the needs and drivers of change, Burnes (2000) suggests that we need toexamine the main models of organisational change currently being promoted in order tojudge the appropriateness of the particular approaches to actually manage change. ‘Wecannot understand organizational change sufficiently nor implement it effectively unless wecan map the range of approaches, and evaluate what they seek to achieve, how and wherethey can be applied, and, crucially, the evidence which underpins them’ (Burnes in Dunphyet al. 2003, p. xiv).Reading activity 1.1Read selected reading 1.1: Thompson. See also Waddell et al. 2014, chapter 1.Three major trends are currently shaping change in organisations 1)Globalisation, 2) Information Technology and 3) Managerial Innovation.Consider this position and whether you agree or disagree with it. What has beenyour experience? Does your experience differ? If so reflect on the differencesand come up with your personal position for future application.1.1.1 Change variationsAs well as differences in the argument on the drivers of change, research shows differencesin the argument on the variations within change itself. Burnes (2000) identifies thatorganisational change is changing. Change, he suggests is more fundamental, that is, it ismore deep-seated or elementory than ever before and that this fundamental change occurs at© University of Southern QueenslandMGT8033 – Leading organisational chnage 29a much faster rate. Genus (1998, p. 7) believes that the variables in organisational change arebased on ‘different guiding assumptions concerning the relative influence of humandiscretion and action on the one hand, and the environmental exigency on the other’. That is,the balance between the amount of control the organisation and its individuals have over aparticular situation and the force of the environment upon that situation varies. These issuesof the context and uncertainty of change as well as the content and scale of change haveimplications for the way that change is viewed in organisations, the process used toimplement the change (including leadership, commitment, and participation) and the methodof change (including the time frame). The following models offer a means of recognising aspecific approach to change, its features and perspective. Such models ultimately allow forthe determination of appropriateness of a particular change approach to manage change inspecific circumstances.Learning activity 1.1Consider an organisation that you are working for, or have worked for resultingin a good understanding of the organisations recent history. Review its activitiesin the change area and classify the type of change according to your ownthoughts of change. Retain your ideas of change for the organisation and thenconsider the following meta models of change and identify which meta model ofchange would most apply to the change at your selected organisation. Make surethat you can justify why the particular meta model is most appropriate.1.2 Meta-models of changeMeta-models are so called to identify that these models offer a big picture framework foranalysing and understanding change. Four meta-models are prominent in the literature.Reading activity 1.2Read selected reading 1.2 Armenakis & Bedeian and 1.3 Greiner and1.4 Tushman & O’Reilly.1.2.1 Radical or revolutionary changeRadical or revolutionary change occurs when organisations change all aspects of theiroperation in a single move in a short time frame. While some research acknowledges that thisis across the organisation, others recognise that it may involve specific areas or sections.Dunphy and Stace (1992) refer to this type of change as Structural Change by edict. Itimplies the use of authoritative power to force change in a rapid way to addressorganisational and environmental fit or intra organisational fit. The benefits include rapidchange that follows the specific direction of a leader with measurable outcomes againstplanned goals. The limitations are that individual change and inclusivity is often overlooked.© University of Southern Queensland30 MGT8033 – Leading organisational chnageHowever in emergency or dangerous situations this process of change has considerablevalidity. But, it may not be successful without a strong authoritarian leader able to identifyspecific areas requiring change and planning the appropriate change.Figure 1.1: Radical or revolutionary change1.2.2 Incremental or evolutionary changeThe evolutionary approach to change suggests a continuous process while incrementalsuggests an ever-increasing involvement through consensus building. This process of changeencourages the viewing of change as management response to pressures in internal andexternal environments that are dealt with over time, by individual parts of the organisation ina logical problem solving process, one goal at a time. The belief is that change occursthrough successive, limited and negotiated shifts. Burnes (2000) recognises that this view ofchange has been around for a relatively long time, although different periods of success havesupported its legitimacy as a change approach. Burnes (2000) suggests that Japanesecompanies through the 1970s and 80s have produced an enviable track record for achievingfierce competitiveness through pursuing incremental change year in and year out. Dunphyand Stace (1992) suggest that an approach of managed incrementalism avoids bothstagnation of doing little or nothing and the brutality associated with rapid corporatetransformations.Incremental change programs include changes to the way that people work, changes to anorganisation’s processes, systems and technology and are usually developed through totalquality management, service quality, and/or team building programs. Leadership should beconsultative. It does not include change that is undertaken in quantum leaps, or dramaticpolicy decisions (Dunphy et al. 2003).An incremental approach to change provides the means for various levels of change withinthe organization, including the development of a learning approach for individuals, and theopportunity for groups to participate in the development of processes that increaseinnovation, productivity and quality. From a systems view it provides the means for systemsfine-tuning or adjustment. See figure 1.2.This approach may be limiting when fast or fundamental change is required, and Burnes(2000) identifies that it can indeed lead to a slow death. While some writers believe that this© University of Southern QueenslandMGT8033 – Leading organisational chnage 31approach is relatively unimportant (Dunphy & Stace 1992) others identify that it can be partof an overall plan to transform an organisation (Burnes 2000).Figure 1.2: Incremental change1.2.3 Punctuated equilibrium model of organisational changeThe punctuated equilibrium model of change suggests that change is not continuous. Whilemany organisations do appear to fit the incrementalist model of change for a period of time,organisations go through a period of rapid and fundamental change (Gersick 1991), mostlikely because they have failed to keep pace with their environment. Some suggest that thismodel of change is really a combination of a radical change processes and an incrementalfine tuning approach. Dunphy and Stace (1992) identify change as discontinuous in thatmanagers encourage change to confront dilemmas. The strength of this model of change is itslink to, and recognition of the importance of the external environment and the need to ensurethe environment fit. However, very little research has explored the empirical validity of themodel’s basic arguments. Brown and Eisenhardt (1997) cited in Burnes (2000) suggest thatboth the incremental and punctuated models of change have been rejected because of thislack of empirical support.Figure 1.3: Punctuated equilibrium model of change© University of Southern Queensland32 MGT8033 – Leading organisational chnageReading activity 1.3Selected reading 1.5 Burnes and 1.6 Gersick.Read these critical approaches and theories. Gersick for instance critiques thepunctuated equilibrium model which is important in understanding how suddenchange intervenes in organizational daily life.1.2.4 Continuous transformational model of changeThe continuous transformation through change argues that in order to survive, organisationsmust develop the ability to change continuously and fundamentally. The rationale for thecontinuous transformation model is that the environment in which organisations operate ischanging and will continue to change, rapidly, radically and unpredictably. Only bycontinuous transformation will organisations be able to keep aligned with their environmentand thus survive. This is particularly the case in fast-moving industry sectors.For firms such as Intel, Wal-Mart, 3M Hewlett-Packard and Gillette, the ability tochange rapidly and continuously, especially by developing new products, is not only acore competence, it is also at the heart of their cultures. For these firms, change is notthe rare, episodic phenomenon described by the punctuated equilibrium model but,rather, it is endemic to the way these organisations compete. Moreover, in high-velocityindustries with short product cycles and rapidly-shifting competitive landscapes, theability to engage in rapid and relentless continuous change is a crucial capability forsurvival.(Source: Brown & Eisenhardt 1997 in Burnes 2000, p. 255)There is growing support for this model. However there is also some confusion. Is it very fastincremental change or more frequent punctuated-equilibrium change? Brown andEisenhardt’s (1997, p. 28) description of continuous change highlights ‘…the rate and scaleof innovation within the industry (computer) and our firms was such that the term‘incremental’ seemed, in retrospect, stretched. Yet it was not radical innovation such as DNAcloning, either. As one manager observed, ‘I don’t know if I’d call this innovation abreakthrough, but it’s probably somewhere in between that and next generation’. Similarly,managers described ‘constantly reinventing’ themselves. This too seemed more thanincremental…but also not the massive, rare and risky change of the organisational strategyliterature. And so we realised that we were probably looking at a third kind of process that isneither incremental nor radical and does not fit the punctuated equilibrium model.’Reading activity 1.4Read selected reading 1.7: Coglan and 1.8: Brown & Eisenhardt.The Brown & Eisenhardt article in particular gets to the heart of continuouschange which in many respects challenges the earlier approaches to change© University of Southern QueenslandMGT8033 – Leading organisational chnage 33Dunphy, Griffiths & Benn (2003) recognise that organisational transformations are on theincrease for a variety of reasons. Some organisations, they suggest will be required totransform to meet community expectations, that is, to be sustainable from an environmentalpoint of view. Others may choose transformational change for strategic businessopportunities and/or ideological commitments to social justice or philanthropy.Transformational change programs involve wide spread change throughout the organisationthat incorporate value change, strategy change, structure change, systems change, culturechange that includes all stakeholders. Indeed new measurement criteria and newcommunications are part of the requirement to encourage new roles and new outcomes. Topmanagement leads this change process and should determine the process of change and theareas of non-negotiability. Areas of joint decision-making are required to be clearly defined.Often, change agents are recommended as drivers for this process of change, which hasaccording to some cynics encouraged an increase in the number of change consultants.Figure 1.4: Transformational change modelTransformational change provides the means for organizations to re-establish a fit betweenthe organization and its environment through the establishment of operational efficienciesthat influence organization wide behavioural change and/or developing a strategicsustainable competitive advantage to meet market opportunities. Blumenthal and Haspeslaghcited in Graetz et al. 2006 identify a number of different types of corporate transformationsincluding improvements to operations; strategy or corporate renewal.However the transformational approach to change can be difficult to achieve without goodcommunication systems that allow appropriate information transfer and learning. Further,‘Without effectively informing and demonstrating to people what needs to be changed andhow, or providing a framework of strategic intent, any attempt at operational improvementsand strategic transformation is doomed to fail’ (Graetz et al. 2006, p. 40).© University of Southern Queensland34 MGT8033 – Leading organisational chnageLearning activity 1.2In the organisation that you identified earlier in learning activity 1.1 and withthe benefit of hindsight identify the steps taken and, make recommendations thatyou believe would improve the process. In addition, think about organisationswith which you have some familiarity, and which have experienced change, andcritique the process. Which meta-model best summarises or reflects each changeexperience and what is the evidence to support your assertion?1.3 Internationalisation of the organisation developmentapproach and the need for continued evolutionWaddell, Cummings & Worley (2014, chapter 1) detail how organisation development hasevolved over time, The contributions of laboratory training, action research/survey feedback,participative management, quality of work life and strategic change provided the basis oforganisation development up to the current period. However, they note that today the field isbeing influenced by globalisation and information technology trends.Additionally, organisation development is being applied in many more countries and withinorganisations that operate on a worldwide basis. This internationalisation of organisationdevelopment is requiring new and different interventions and adaptation of establishedorganisation development practices. Contexts not previously conceived of prior totechnological advances, bring new and exciting opportunities for further development. Thecapacity to manage change processes in cyberspace for example, in addition to traditionalface to face interaction requires such a generation of a new set of interventions.1.4 The importance of change management models – local andglobalA model offers a representation of reality, different from a theory, which offers anexplanation (Emory & Cooper 1991). ‘A model is… any highly formalised representation ofa theoretical network, usually designed through the use of symbols or other such physicalanalogues’ (Davis & Cosenza 1985, p. 30). As a representation, a model is rarely perfect;however, if it is to be of assistance and guidance, it must mirror reality. A model offers theuser a map of a territory, but it should not be confused with the territory itself (Capra 1983).Despite these limitations, models offer the business researcher and manager a valuable wayof describing, applying or simulating a system or some aspect of a system in order tounderstand it (Emory & Cooper 1991).The meta-models of change provide representations that may be applied in local or globalcircumstances and should not be easily dismissed. They draw our attention to serious issuesand debates. The models make us aware of the broad range of change situations thatorganisations experience and equally of the need to judge approaches to change managementaccording to their appropriateness for the different forms of change. Also whatever formchange takes, and whatever objectives it seeks to achieve, success is not possible unless© University of Southern QueenslandMGT8033 – Leading organisational chnage 35those responsible for managing the change understand the different approaches on offer andcan match them to their circumstances and preferences.1.5 Complexities of change – contradictory approaches andlack of empirical supportIt is important when considering any change that an individual responsible for change shouldconsider the many theories, models and approaches available and decide upon a suitabletheory, model or approach. This is not easy as many of the theories, models and approachesto change management are contradictory, often they lack empirical evidence and tend to besupported by untested hypothesis on the very nature of contemporary organisational changemanagement (Rune 2005).Reading activity 1.5Read selected reading 1.9: by Rune (2005), Organisational changemanagement: a critical review. In reading this work you should keep in mind theearlier literature reviews that you have read as background reading. Collectivelythey provide you with a solid base and coverage of the literature inorganisational change management from its early beginnings to recent times.From the reading be aware of the different classifications of organisationalchange that the author uses.Interim (Section) SummaryThis section of the module examines the main views on the process of change, the radical,the incremental, the punctuated equilibrium and continuous transformation models. Themodels offer a framework for considering change both local and global and although theymight cover all forms of organisational change in a combination, they do not individually doso. Therefore, when considering a change situation these models need to be assessed on theirapplicability to meet certain change criteria. Specifically, how do the models apply to theindividual, the group, the system and the context of the change? If learning flows from theindividual, to the team, to the organization, then knowledge embedded at the organizationallevel needs to be continually challenged. We could expect that each of these models goessome way to doing this. In the next section we will consider the drivers of change.1.6 Understanding changeThis section of the module deals with the drivers of change. Organisational development wasdeveloped in Western societies, with Western underlying values and assumptions of Westerncultural settings. However the internationalisation of organisation development requiresunderstanding of different cultures and values. Without a good understanding, it may bequite difficult or even impossible to successfully implement change as needed. In addition,understanding change requires knowledge on the drivers of change and the means available© University of Southern Queensland36 MGT8033 – Leading organisational chnageof managing change to achieve desired outcomes. It also requires skills in decision makingthat address the complexities of change. This section investigates these areas of changedrivers and change principles and suggests that the ability to view these complexities fromdifferent perspectives recognising the different needs and styles of change managementultimately affects change management itself and its outcomes.1.6.1 Drivers of changeOver the past 40 years Australian industry and work opportunities have changed. Increasingopportunities have developed in the tertiary sector (trade and finance etc.) and the quaternary(communications etc.) and quinary (hospitality etc.) sectors. Opportunities in the primary(agricultural) and secondary (manufacture) sectors have diminished.Unfortunately in many cases the organisation of the work involved in these sectors has notchanged fast enough to ensure appropriate growths in productivity and profits. Researchcontinues to point to a number of factors including the design of work and the structure oforganisations and the lack of commitment to skills development of workers as weaknessesthat hamper the ability of organisations to adapt to a changing business environments.Learning activity 1.3Brainstorm the changes in social, economic and technological areas of oursociety during the past twenty years. Consider how these changes have impactedon work and the management and organisation of work.Learning activity 1.4Read chapter 2 of Waddell, Cummings & Worley (2014). Note that Waddell,Cummings & Worley argue that ‘the increasing pace of global, economic andtechnological development makes change an inevitable feature of organisationallife’. Their emphasis is on planned change and they provide a series of theoriesand their comparison. Consider your position and after brainstorming thechanges in the past twenty years and reading chapter 2 whether you agree withtheir position that planned change would have been sufficient for anorganisation in this recent context to necessarily make themselves moreeffective.© University of Southern QueenslandMGT8033 – Leading organisational chnage 37Exercise 1.1DiscussionThe first part of this exercise is relatively simple but the second part has anelement of much harder analysis. The effects of changes on work and itsmanagement is more difficult to determine. The benefits of hindsight howeverassist us in this exercise. Berger et al. (1989) identified six systematicweaknesses of change, as described below, viz.:● outdated strategies● neglect of human resources● failures of cooperation (between organisations)● technological weakness in development and production● government and industry working at cross-purposes● short time horizons.1. Outdated strategiesTwo specific outdated strategies were identified and these involved an overemphasis on mass production of standard commodity goods and aneconomic and technological parochialism. The first suggests thatconsumerism has changed from a willingness to purchase what themanufacturer makes to the need for customisation of goods to meet theconsumer demands. Economic and technological parochialism refers to thelack of inclusivity of other economies and technologies. No longer can weexpect that all the information we need to be innovative or creative to comefrom within our own market sphere. The growth of economic, scientific andtechnological innovation from other markets can shape our own.2. Neglect of human resourcesWorker responsibilities and input have progressively narrowed andmanagement tend to treat workers as a cost, rather than an asset. Thissuggests that workers in the post industrial age, with their greater skills baserequire different human resource management processes including access tobetter training and rewards management.3. Failure of cooperationA third weakness of the US production system that emerged from this studywas the failure of many organisations to cooperate with others.Organisational hierarchies and strict boundaries prevented cooperationinternally and externally. This suggests that new measures are needed tocooperate better with suppliers, customers, unions and others includingcompetitors in order to build systems that improve the production of goodsboth bought and sold. It also suggests the benefits in the rise of jointprojects, for instance, in areas of research and development.© University of Southern Queensland38 MGT8033 – Leading organisational chnage4. Technological weakness in development and productionMany firms were outperformed in the design and manufacture of reliableand high quality goods. e.g. The survey found that the number of defects inautomobiles produced in America were almost twice as high as thoseproduced in Japan. The results indicate that organisations fail to coordinateproduct design and operations management.5. Government and industry working at cross purposesThe commercial development and application of new technologies have forthe most part been considered to be the responsibility of the private sector,while government focus has been on basic research. The research suggeststhat greater cooperation between governments and industry can result inincreased productivity through a better research and development agenda.6. Short time horizonsThe literature reflects a growing preoccupation with short term profits ratherthan long term effectiveness. Often organisations through their seniorexecutives or their stock holders are motivated to maintain a steady growthin earnings, particularly when compensation is tied to the organisation’sperformance. This can encourage short term results. Increases inproductivity over time also depend on innovation and technology and thiscan implicate long term strategic decisions in finance and capital allocation.Learning activity 1.5Do these change issues affect Australian Industry? Yes. Read any businesssection of a newspaper or journal or the Financial Review and you will seesimilar arguments and issues raised regarding the change of industrialorganisations and work in the post industrial era and the need for differentprocesses to encourage increases in productivity.Read the Business Section of your newspaper or the Financial Review andidentify the current issues in workplace change and industrial productivity. Howdo they relate to those identified in 1989?© University of Southern QueenslandMGT8033 – Leading organisational chnage 391.6.2 Managing changeRather than the slow and continuous and often predictable change of the industrial era,change in the post industrial era has been determined as discontinuous. That is, change todayis faster, comes in ‘fits and starts’, can come from any direction, is often traumatic and quiterevolutionary, as many things happen at once. Discontinuous change is difficult, if notimpossible to predict. Discontinuous change requires a holistic approach in its management.An holistic approach recognises the need for a balanced approach to change across all thefunctions of the organisation and all its processes, involving all of its people.Reading activity 1.6Tushman and O’Reilly 1996 (cited earlier), argue that global businessenvironments are characterised by complexity, uncertainty and turbulence. Readselected reading 1.10: Murray & Donegan. Here the authors demonstrate howthese complexities might be related to developing important competencieswithin the organization1.6.3 Guiding principles of changeIdentifying management and change issues between industrial and post industrial eras withinorganisations is only the first step in understanding change. What we have effectively done isidentify where current organisations stand, and where they need to move to. The next stepinvolves understanding how the organisation can change. What are the guiding principles ofthis process of change? The MIT study (Berger et al. 1989) found that successful changeemphases:a. simultaneous improvement in quality, cost and speed of commercialisation of products toavoid trade-offs in one areab. competitive benchmarking against other product leaders to improve quality and servicec. closer ties to the customer to better determine needsd. closer ties to the supplier to cut inventory costs and speed-up flow of producte. integration of technology into marketing, manufacturing and learning strategies to gainvalue from investmentf. less hierarchical and compartmentalised organisations to promote increasedresponsiveness in changing marketsg. greater worker responsibility and commitment through training to encouragedevelopment and learning and lower turnover.© University of Southern Queensland40 MGT8033 – Leading organisational chnageExercise 1.2DiscussionYou should now be able to identify how the guiding principles relate to the keyimperatives/drivers for change identified earlier. No longer can organisationsencourage restrictions on people and processes that confine thinking, learning,and leading to rigid functions within inflexible, highly controlled systems.Integrated management approaches encouraging holistic and interactive decisionsystems to meet rapidly changing market demands have become the priority.The dilemmas of changeKnowing the current situation and the desired end result and even the basic principles inmoving from one situation to another is only part of the problem in developing an approachto change within a specific organisation. There are a number of dilemmas in determining anoperational approach to change. The models discussed in this first module identify one issuerelative to change – radical transformation or incremental adaptation. One is fast andinvolves all elements of the organisation and often involves coercive application and isdiscontinuous. The other is slow, continuous change which is often incorporated in a linearfashion throughout the organisation with the involvement of all participants. As discussedearlier these meta models of change are both valuable in different situations. Other dilemmasor decision choices in change are explored in depth in later modules.1.6.4 Resolving the dilemmas of changeMaking the decision regarding the dilemmas of change may be difficult but Stace andDunphy recognize the influence of culture and power in the decision-making. The wholecrux of their model is that there is no one way of implementing change that will work in allsituations. Sometimes participation and consultation work; sometimes direction and coercionare necessary. Note that the model argues that incremental adjustment may be consultative ordirective but transformations are more likely to be coercive or directive.© University of Southern QueenslandMGT8033 – Leading organisational chnage 41Figure 1.5: Which approach to corporate change?(Source: Stace & Dunphy 2001, Beyond the boundaries: leading and recreating the successful enterprise,McGraw Hill, Sydney.)Stace and Dunphy (2001) define transformational strategies as involving ‘discontinuouschange’ rather than continuous change. They suggest that power strategies may be necessarywhen the organization is out of ‘fit’, when there is no time for extensive participation and nosupport within the organization for radical change, but radical change is vital toorganizational survival and fulfilment of the basic mission.These authors are among the few who advocate coercion as a legitimate primary strategy forchange. When Dunphy and Stace first published their work, the culture literature argued itwas not possible to be successful in major transformational change, i.e. culture change, byusing power-coercive strategies. The literature reflected that you had to use one (or both) ofthe other two strategies, namely empirical/rational or normative re-educative strategies.Empirical-rational strategies (often called cognitive) assume that people are rational andwill change their behaviour when they are given information showing them the changes arein their own self-interest.Normative-re-educative strategies attempt to create a symbolic environment that peoplecan relate to. They do not rely on information so much as upon on people’s need to sharemeanings and to have a commitment to those things.© University of Southern Queensland42 MGT8033 – Leading organisational chnagePower-coercive strategies rely upon the application of power in some form, eitherlegitimate or political. While power is an ingredient in almost all human actions, powercoercivestrategies differ from empirical-rational and normative-re-educative in theingredients of power used and the way power is generated and applied. That is, whileempirical-rational strategies stress knowledge as a major ingredient of power and normativere-educative strategies stress values, attitudes, feelings, beliefs, norms and relationships,power-coercive strategies emphasise political and economic sanctions.The literature since then has slowly come to accept the idea that sometimes change needs tobe made fast if the organisation is going to survive in a rapidly changing environment – andnot only made fast, but performed in short, sharp bursts of activity, followed by periods ofconsolidation; that is, discontinuous change.Interim (Section) SummaryWith so many different drivers of change acknowledged and the different perspectives onchange implementation discussed above, it is understandable that the arguments formanaging change and appreciating the principles upon which effective change operates willbe contentious. Indeed, this section of the module demonstrates the dilemmas in balancingand integrating the processes of change. Without a comprehensive and strategic approach tochange that integrates all management and organisational processes, effective change isunlikely. In the next section of this module, we will consider designing organisations andnewer forms of organising.1.7 New forms of organisingMany organisations today are in transition. There is no single cause, no single purpose andno single market in which they operate. Therefore there can be no single design, and nosingle process for transition. As you have seen in the previous modules and readings it is thecomplementarity of the various processes and relationships that herald the paradigm shift inorganisational design acknowledged by post-industrial researchers.A post industrial society is one in which the majority of those employed are not involved inthe production of tangible goods. The manual and unskilled worker class has reduced and theclass of knowledge workers has become predominant. The character of knowledge alsochanges and an emphasis is put on theoretical knowledge rather than empirical. Theoreticalknowledge is the impetus for innovation and growth.Another feature of the post industrial society is the speeding up of the change so thatintervals between the initial forces of change and their application have been radicallyreduced. Davis and Meyer (1999) call this the ‘blur’ of change. Ultimately people seek toanticipate change, measure the course of its direction and impact, control it, and shape it forpredetermined ends.Some suggest that the beginning years of the post industrial society were 1945–50. Your textsuggests that it was a little later, namely 1960s. Whatever the date, it is recognised that thedevelopments of nuclear energy established the important relationship between science andgovernment; cybernetics introduced ‘social physics;’ and a new ‘future-orientation’ arose.© University of Southern QueenslandMGT8033 – Leading organisational chnage 43During this time, the fundamental themes of the technocratic age (rationality, planning, andforesight) were developed.Increasingly in post industrial societies, technical skill becomes an overriding condition ofcompetence for place and position. Property decreases in importance as ‘new’ forms ofproperty arise. These new forms arise from a new definition of social rights whereby peoplemake claims on the community to ensure equality and other rights (Bell 1974).Ultimately the way that post industrial organisations determine the work, structure the newprocesses of work, determine the reporting relationships internally and interact externallywith the society, the competitors, the customers and others has changed. This point is easilyreconciled at the intuitive level when we reflect on how many contemporary businesses pourresources into interacting with the community (company reputation has far more traction anddollar value than at any other time in the past), being seen to be energy efficient and so on.This section of the module investigates the influences on organisations to develop new formsof organising and the mechanisms of change.1.7.1 Designing organisationsMax Weber (1927 in Pettigrew et al. 2003) suggested that particular forms of organisationappear at specific moments in time embedded in the current social, economic andtechnological conditions. The industrial age with its exclusive societies, isolated economiesand limited technology encouraged pockets of industrial stability. Traditional organisationstructures were based on two basic principles. First, the division of work into narrowrepetitive tasks. Second, locating decision-making at one hierarchical level above the levelwhere the tasks in question are carried out. Maximising the division of work helpedmaximise efficiency. Separating decision-making from task performance ensured that,starting with the CEO and ending with first-level supervisors, superiors always had controlover subordinates (Pettigrew et al. 2003).Waddell et al. 2014 depicts a typical traditional structure based on functions. Traditionalorganisation structures (and by this we are typically focusing on the functional form) aresupposedly strong on vertical information linkages, such as hierarchical referral, rules andplans, and vertical information systems, but they deemphasise horizontal linkages.A widely used alternative to the functional structure is the divisional structure. When, forexample, an organisation manufactures and markets several main products, the company maybe structured on the basis of divisions, each of which is responsible for one of the products.Alternatively, the structure may follow a spread of responsibilities by geographic location.Regardless of the building block used, the divisional form allows greater operationalflexibility but, rather than solving the problems of horizontal coordination that arise invertically oriented functional structures, it tends to shift these problems to the divisions. Theheads of the divisions enjoy more autonomy but divisional structures tend to duplicate thefunctional structure of headquarters.Traditional vertical structures are strong on vertical information linkages. But are they allthat good in reality? Take a minute to pause and reflect.© University of Southern Queensland44 MGT8033 – Leading organisational chnageLearning activity 1.6Try an exercise to check this out. Write out a message that contains severalpieces of information and give the same message to two individualssimultaneously. These individuals each pass the message on to a different groupof people. But one individual gives the message to a second individual whorelays it to the group. The other individual you told passes the message straighton to the group without going through an intermediary. Then you ask the twogroups questions about the content of the message. This exercise has beenconducted many times, and the second group typically gives 20 to 30 percentmore correct answers than the first group, which got its information through anintermediary.Exercise 1.3DiscussionThe results indicate that the less vertical structure provided a more reliablevertical information system than the more vertical structure did. This suggeststhat although traditional hierarchical structures ensure vertical information andcontrol, they are prone to error.The matrix structure brings out the basic dilemma that confronts all alternativesto traditional vertical functional structures. This dilemma concerns the growingneed for horizontal coordination while, at the same time, maintaining verticalcontrol. Matrix structures attempt to accommodate both but, to the extent thatthey achieve this, it is at a cost. Your earlier studies in organisation theory oryour work experience will probably give you some insights into what these costsare.Industrial age organisations grew with an emphasis on the means to ensurecontrol of workers (usually with limited education) to produce commoditiesefficiently through controlling systems. Bureaucratic organisations developedhierarchies and departments to determine the division of labour, span of control,decision structures. Comparatively speaking the industrial age experiencedstability in social, economic and technology areas. Today with increasedcompetition at an international level, globalised economies, globalised marketsand advances in communication and information technology, organisations are nolonger working in stable environments. This post industrial age is experiencingnew social, economic and technological conditions. ‘New skills, knowledge,attitudes and standards are now required in industries and firms previouslysheltered from competition’ (Pettigrew and Whipp 1991 in Pettigrew et al. (eds)2003). Such conditions encourage new forms of organisation.Reading activity 1.7Re-read your text, Waddell, Cummings and Worley 2014, chapter 2, Do youagree with the position of Dunphy and Stace that change management shouldbe approached from a situational perspective?© University of Southern QueenslandMGT8033 – Leading organisational chnage 451.7.2 New forms of organisingIt is argued that organisations today need to place greater emphasis on flexible and agileorganisational forms which support and encourage innovation and experimentation andlearning rather than the traditional command and control systems of the past (Graetz et al.2006). Traditional structures are designed for internal efficiency and control. New formsneed to be designed for internal collaboration and external responsiveness.There are several structural mechanisms for achieving these flexible forms, includingchanging the boundaries of the organisation through the re-evaluation of the relationshipsamong structures, systems, people and processes. Another mechanism is the development ofa knowledge-rich organisation through the encouragement of the valuing of the intangibleelements of work such as skills, values, personal and leadership styles. A further mechanismis the encouragement of the importance of relationships that occur through the sharing ofknowledge, information, resources etc. Kanter (cited in Graetz et al. 2006, p. 156) refers tothe three key strategies for such organisations: developing synergies, alliances and newstreams while Ghoshal and Bartlett (1995) suggest encouraging initiatives to link andleverage competence and to manage rationalisation and revitalisation. Organisations thatutilise such mechanisms are seen to be network organisations (Graetz et al. 2006.) or asorganisations that have horizontal coordination (Daft 2001).The Gore-Tex organisation has a rather interesting slant on structuring their organisation.Each organisational unit is no larger than 200 people. There are no hierarchies within eachunit and each unit is connected to other units through the relationships between the peoplethemselves. They call this structure a lattice structure because it looks like a piece of lattice.It encourages innovation through communication. The company attributes this structure asinstrumental in the invention and marketing of many new products and uses for the famousGore-Tex fabric which offers protection from extremes in climatic conditions.Many organisations try to combine elements of different structures, hoping that theadvantages of one structural type will offset the disadvantages of another structural type. Thechoice of organisational structure reflects the struggle for priority between internal efficiencyand control and flexibility and external responsiveness. The more preoccupied anorganisation is with internal control, efficiency and stability the more likely it will have afunctional structure. Organisations that place greater importance on change, learning,innovation and flexibility are more likely to have network structures that encouragehorizontal linkages.Project management is another alternative to traditional departmental structures. The projectdraws needed staff from the functional departments and the Project Manager is shown asequal in reporting status to the heads of the functional departments. Projects such as newproducts are likely to suffer from lack of horizontal coordination in traditional structures.Project teams provide greater horizontal coordination, but they consume additionalresources, they take time and effort to develop into effective units, and there may be conflictbetween the goals and needs of the project teams and those of the functional departments.If an organisation gets the structural choice wrong, structural deficiencies become evident.Some common symptoms of structural deficiencies in organisations are delayed and poordecisions, failure to respond to external change and departments working at cross purposesand in conflict with each other.© University of Southern Queensland46 MGT8033 – Leading organisational chnageLearning activity 1.7Consider your own organisation or an organisation with which you are familiarand work through the following tasks.1. Identify the forces compelling and constraining change within theorganisation.2. Identify, as far as possible, changes across all nine key indicators of changewithin the systems view of interrelationship within and among differentperspectives or organising for success in the 21st century (refer Graetz et. al.(2006) pp155)3. Identify whether the organisation has neglected any of the change indicatorsso far. Are the omitted indicators contained in only one of the designdimensions or spread over all three?4. Consider the implications of any omissions (either at the design dimensionlevel or change indicator level) to the success of the overall change program.Exercise 1.4DiscussionNumerous alternatives to traditional organisation structures have emerged. Butthe choice of organisation structure really comes down to just two basicalternatives – the traditional vertically oriented structure designed for internalefficiency and hierarchical control and the horizontally oriented networkstructure designed for lateral coordination and flexible responsiveness. How farorganisations actually move away from vertical towards network structuresreflects the relative priority given to traditional conceptions of internalefficiency, control and stability versus the perceived need for horizontalcoordination, learning, innovation and flexibility. In reality organisations existwith many variations from the traditional to the truly horizontal. So it isimportant to understand all corporate structures and their respective strengthsand weaknesses in particular environments.What changes influence the new organisation structures of the future? TheINNFORM project on innovative forms of organisations for the twenty-firstcentury identified three organisational design dimensions of structure, processand boundaries and key indicators of change.1.7.3 Changing structures, processes and boundariesThe INNFORM project (Innovating Forms of Organising) consisted of a number of studiesacross three continents involving 9 universities in 9 different countries mapping the extent ofinnovation in forms of organising in a large sample of over 450 organisations (Pettigrew etal. (eds) 2003). Its primary goal was to identify innovative forms of organising. The researchteam portray the INNFORM program as a network studying networks. Figure 3.1 summarisesthe nine areas of change across the three dimensions measured in the INNFORM survey.© University of Southern QueenslandMGT8033 – Leading organisational chnage 47Figure 1.6: New forms of organising: the multiple indicators(Source: Pettigrew, A, Whittington, R, Merlin, L, Sanches-Runde, C, van den Bosch, F, Ruigrok, W &Numagami, T (eds) 2003, Innovative forms of organising, Sage, London UK, p. 12.)1.7.4 Patterns of innovative forms of organisingThe results of the INNFORM project identify the common direction of change but fromdifferent starting points and at a different pace across the three continents. There isoverwhelming evidence that organisational structures are moving toward flatter, more fluidand decentralised structures with strong development of project structures and operationaldecentralisation. Underlying these structural changes in Europe were considerable processchanges in the areas of horizontal and vertical linkages and investment in IT. Japan had themost developed operational decentralisation, project forms of organising and vertical andhorizontal linkages. The US on the other hand had the most strategic alliance formulations.1.7.5 ComplementaritiesPettigrew et al. (2003) suggest that although the elements of structure, process andboundaries appear unrelated they in fact complement each other. Change in one elementwithout regard for the effects on another can limit the success of change in other areas. Forexample, developing strategic alliances without decentralizing and building horizontalcommunications that encourage knowledge transfer would defeat the purpose of encouragingincreasing innovation and creativity across boundaries. If those strategic alliances werecross-cultural, new communication processes would be essential in expanding the value of© University of Southern Queensland48 MGT8033 – Leading organisational chnagethe increased connectivity of the organisation and may require also the encouragement ofnew human resource initiatives to enhance the exchange of ideas in cross-cultural teams.Reading activity 1.8Read selected reading 1.7: to get a full picture on recent empirical evidencefrom the CO-IMPROVE project on changes in this area. The following is theextract from this article and gives an overview of what to expect.Increasingly, competition is moving from inter-company rivalry to thatbetween supply chains and networks. In the field of manufacturing, suchcollaboration between companies may develop into an ExtendedManufacturing Enterprise (EME), a chain or network comprising all therelevant functions of the partners. EME competitiveness depends on howeffective the partner companies are as innovative and knowledge creativeplayers within dynamic, complex integrated networks. The CO-IMPROVEproject explores this premise, focusing in particular, on the learningrequired to enhance collaborative improvement of the performance ofEMEs and among researchers. The CO-IMPROVE project was undertakenin Europe through a collaborative research approach where theresearchers were both managing the project and studying it at the sametime. The company networks were comprised of the managers from thesystem integrators and their suppliers, while the researcher network wascomprised of academic researchers and the system integrator managersworking in outsider-insider researcher teams. This chapter identifiesemergent challenges in collaboration in both settings and exploresimplications for such collaboration.(Source: Coghlan & Coughlan 2004, pp. 275–95)1.7.6 Internationalisation of organisational changeIt is vital that organisations that operate across and within different cultures are aware of theeffect of that culture on their change efforts. Hempel and Martinsons (2009, p. 459)investigated business process engineering across eight cases in China and found:change context is found to influence not only the process of change, but also the contentand even the objectives of change. Since specific practices carry implicit values, thecongruence with existing values influences OC implementation significantly.Multinational organizations must recognise that a specific practice or policy canrepresent very different changes in different contexts.© University of Southern QueenslandMGT8033 – Leading organisational chnage 49SummaryStructuring organisations involves establishing formal reporting relationships, groupingpeople into departments and departments into the whole organisation, with systems to ensureefficient communication, coordination and integration of effort. Organisation chartsrepresent reporting relationships and departmental groupings, as illustrated in your text.Check out your own organisation’s chart. What can you learn from this?The changes identified in the latest research involving such a paradigm shift (defined as anew way of thinking) regarding the design or form an organisation takes is not withoutdifficulties. The path of such change is not linear, nor universal (Pettigrew et al. 2003). Eventhe most radical organisation today is likely to have traces of the previous era in terms of thetraditional vertically oriented structure designed for internal efficiency and hierarchicalcontrol. As the old and the new forms co-exist we as participants, leaders, agents of changeand analysts need to recognise the variants if we wish to be involved in understanding thecurrent form and shaping any change process to achieve the desired form. It is important thatyou are as aware of the history of organisational structure and design as you are of thecurrent drivers of change and the mechanisms that encourage change. Cultural and historicalawareness and sensitivities are important in any change program.As a result of the changes you have been reading about and discussing, most organisationsundergo periods of transformation or at the very least, incremental change, regularly. Oftenthis change is driven by the need for survival. Choices as to how this will occur througheither increases in productivity, reductions in cost, or changes in workplace flexibility orvalue adding influence the choices in managing the process of change. Understanding theimportance of the change agent role and the tools of change becomes a vital strategy inchange management. In the next module, we will consider the diagnostic process and theinterventions that change agents may use in order to effect the different forms of change.© University of Southern Queensland50 MGT8033 – Leading organisational chnageReference listBell, D 1974, The coming of the post-industrial society: a venture in social forecasting,Heinemann Educational, London.Bell, D 2004, ‘Who will rule? Politicians and Technocrats in the Post-Industrial Society’,viewed 16 December 2005, <http://ssr1.uchicago.edu/PRELIMS/Political/pomisc1.html>.Berger, S, Dertouzos, M, Lester, R, Solow, R & Thurow, L 1989, ‘Toward a new industrialAmerica’, Scientific American, vol. 260, no. 6, pp. 21–9.Brown, SL & Eisenhardt, KM 1997, ‘The art of continuous change: linking complexitytheory and time-paced evolution in relentlessly shifting organizations’, AdministrativeScience Quarterly, vol. 42, no. 1, pp. 1–34.Burnes, B 2000, Managing change – a strategic approach to organisational dynamics,3rd edn, Prentice Hall, Harlow, England.Capra, F 1983, The turning point: science, society and the rising culture, Bantam Books,USA, Canada.Champy, J & Nohria, N 1996, Fast forward: the best ideas on managing business change,Harvard Business School Press, Boston.Coghlan, D & Coughlan, P 2004, ‘Collaborative research across borders and boundaries:action research insights from the co-improve project’, Research in Organizational Changeand Development, vol. 15, pp. 275–95.Daft, R 2001, CIS 3009 semester,2013Organizational theory and design, 7th edn, Thomson Learning, Cincinnati,Ohio.Davis, D & Cosenza, R 1985, Business research for decision making, Kent, Massachusetts.Davis, D & Meyer, C 1999, Blur: the speed of change in the connected economy, TimeWarner, USA.Dunphy, D, Griffiths, A & Benn, S 2003, Organizational change for corporatesustainability, Routledge, London.Dunphy, D & Griffiths, A 1998, The sustainable corporation: organisational renewal inAustralia, Allen & Unwin, St. Leonards.Dunphy, D & Stace, D 1992, Under new management: Australian organisations intransition, MacGraw-Hill, Roseville, NSW.Emory, C & Cooper, D 1991, Business research methods, 4th edn, Irwin, Homewood.Genus, A 1998, The management of change, perspectives and practice, Thompson BusinessPress, London.Gersick, C 1991, ‘Revolutionary change theories: a multilevel exploration of the punctuatedequilibrium paradigm’, Academy of Management Review, vol. 16, no. 1, pp. 10–36.© University of Southern QueenslandMGT8033 – Leading organisational chnage 51Ghoshal, S & Bartlett, CA 1995, ‘Changing the role of top management: beyond structure toprocesses’, Harvard Business Review, Jan-Feb, p. 86.Graetz, F, Rimmer, M, Lawrence, A & Smith, A 2006, Managing organisational change,2nd Australasian edn, John Wiley & Sons, Brisbane.Hempel, PS & Martinsons, MG 2009, ‘Developing international organizational changetheory using cases from China’, Human Relations, vol. 62, pp. 459–99.Hussey, D 1996, Business driven human resource management, John Wiley, Chichester.Pettigrew, A, Whittington, R, Merlin, L, Sanches-Runde, C, van den Bosch, F, Ruigrok, W &Numagami, T (eds) 2003, Innovative forms of organising, Sage, London, UK.Rune, TB 2005, ‘Organisational change management: a critical review’, Journal of ChangeManagement, vol. 5, no. 4, pp. 369–80.Stace, D & Dunphy, D 2001, Beyond the boundaries: leading and recreating the successfulenterprise, 2nd edn, McGraw Hill, Sydney.© University of Southern Queensland52 MGT8033 – Leading organisational chnage© University of Southern QueenslandMGT8033 – Leading organisational chnage 53Module 2 – Diagnosis and interventionsOverviewAlready we have examined change by investigating the meta-models or influencers of overallchange, the drivers of organisational change and the principles that guide any change processas well as the difficulties of determining which principles, models and influencers will shapeany change process. In this module we will be concentrating on the change process itself.This is the opportunity to see change as a process or a development. Also in this section wewill be investigating the tools that change agents use to assist in the development of theprocess. In other words we are getting practical now, moving away from models thatrepresent change; the theories that explain it; and the principles the guide it, to the tools andprocesses that actually execute the change. Those of you who are practical learners will beexcited to actually investigate the hands-on tools that are used to achieve change goals. Don’tworry if you are more a reflective learner or a conceptualiser, your knowledge of the modelsand theories is required in the interplay with the tools and processes in order to assist the bestand most appropriate selection of the tools and processes.Course objectivesAt the successful completion of this course a student should be able to● demonstrate an understanding of the complex nature of change as well as those factorsthat affect and enhance prospects for planned organisational change● articulate a perspective on the contextual and conceptual foundations of organisationalchange● demonstrate an understanding of the processes and many of the strategies and techniqueswhich can be applied to lead, manage and facilitate organisational change● demonstrate their ability to take part in or evaluate some change management programsand interventions, in different contexts● identify and solve complex organisational problems creatively and practically to increasethe effectiveness of change management● apply critical thinking – evaluate, synthesise and critically review theoretical frameworkswith other evidence to provide solutions to real world problems● demonstrate an understanding of the impact of interpersonal communication on specificmanagement processes and outcomes using relevant theories and concepts as applied tochange● comprehend and address complex ethical dilemmas as applied to change● demonstrate an understanding of complex sustainable dilemmas and the need forresponsible leadership in change● demonstrate the skills required for leadership of others, working in teams and workingwith people from diverse cultural and professional backgrounds in real time spaces© University of Southern Queensland54 MGT8033 – Leading organisational chnage● communicate professionally and effectively in written communication to variousaudiences to achieve targeted outcome.Module objectives● explain the importance of diagnosis in the overall organisational change process● understand principles that facilitate effective diagnosis● understand the three levels of diagnostic analysis that can be performed● understand the basic principles of data collection and analysis● explain why change agents feedback diagnostic information● understand how diagnostic information is best fed back to the organisation members● discuss criteria for effective interventions● discuss issues, considerations, constraints, ingredients, and processes associated withintervention design● define what an intervention is● detail the four types of targets of change● give an overview of the various interventions● identify which interventions should be used with which targets of change and at whatlevel or levels of analysis the interventions apply.Learning resourcesTextWaddell, D, Cummings TG & Worley CG 2014, Organisation change development &transformation Asia Pacific, 5th edn, Cengage Learning Australia , South MelbourneAustralia chapters 5, 6,7 and 8.It is assumed that you will familiarise with the relevant nominated chapters from your text ortexts in their entirety.© University of Southern QueenslandMGT8033 – Leading organisational chnage 55Selected readingsSelected reading 2.1: Di Pofi, JA 2002, ‘Organizational diagnostics: integrating qualitativeand quantitative methodology’, Journal of Organizational Change Management, vol. 15,no. 2, pp. 273–91, viewed 23 January 2006, Emerald Management Xtra database, item:10.1108/09534810210429309.Selected reading 2.2: Stace, D & Dunphy, D 2001, ‘Choosing change intervention tools’,Beyond the boundaries: leading and re-creating the successful enterprise, 2nd edn,McGraw-Hill, Sydney, pp. 221–42.Selected reading 2.3: Argyris, C, ‘Education for leading-learning’, OrganizationalDynamics, vol. 21, pp. 5–17.Selected reading 2.4: Espedal, B 2008, ‘In the pursuit of understanding how to balancelower and higher order learning in organizations’, The Journal of Applied BehaviouralScience, vol. 44, no. 3, pp. 365–390.Selected reading 2.5: Murray, P, Syed, J and Roberts, Z 2009, ‘Structures of learning fordynamic markets’, Management Decision, vol. 47, no. 2, pp. 271–288.Selected reading 2.6: Bulla, P F Bell, C H 1986, Effects of team building and goal settingon productivity: A field experiment, Academy of Management Journal, vol. 29, no. 2.Selected reading 2.7: Murray, P Millett, B 2011, The influence of learning behavior on teamadaptability, International Journal of Learning and Change, vol. 5, nos.3/4.Selected reading 2.8: Kirkman, B L, & Rosen, B 2000, Powering up teams. OrganizationalDynamics, Winter.Students MUST seek further articles through the electronic full-text journals availablethrough USQ library or on the Internet to support their understanding and for arguments inassignments. Please note that if you use the Internet, you must apply critical thought to thequality of the source and the information provided. Many sources on the Internet are of poorquality as they have not been vetted in any way and often merely represent a particularindividual’s opinions, which can have very strong bias or misinformation. Part of the skillsdevelopment for students at this postgraduate level is to be able to make decisions on therelevance and worthiness or otherwise of sources of information.IntroductionOrganisational diagnosis and data collectionWaddell, Cummings & Worley (2014) note that diagnosis is a broad concept that iscollaborative in its application and can be used in assessing overall performance for futuredevelopment in addition to identifying problems. Effective organisational diagnosis enableschange agents to determine an appropriate organisational change path to follow.Understanding the material in this section is therefore essential for students to be able tobecome change agents or to be involved with the implementation of change in an© University of Southern Queensland56 MGT8033 – Leading organisational chnageorganisation from a human resources or general management point of view. This courseprovides learners with both the sound theoretical underpinnings of organisation change andthe means to implement change.Diagnosis is a process that involves data collection and problem analysis. Diagnostic modelsare conceptual ways of looking at organisations so that we have a better understanding ofwhat the variables or components of organisations are and what the relationships are betweenthese variables and components. Students will be exposed to a number of different diagnosticmodels in this module.This section also looks at the process of data collection that is part of the diagnostic process.Data collection requires particular attention in this module because students need to be verymuch aware of the different data collection strategies that can be employed, and the strengthsand limitations of each. Not all strategies are appropriate for all situations. For example, onewould not commit all the resources to designing and developing a questionnaire if the groupwith which you have an interest is small. So in diagnosis, students must be able to evaluatedifferent data collection strategies and select the ones that are appropriate for the situationunder review.2.1 DiagnosisEffective organisational change requires specific problem diagnosis (Harvey & Brown2005). The purpose of organisational diagnosis is to determine how the organisation isoperating and performing and to determine if and where there are variations between theorganisation's ideal functioning and its current functioning. In order to identify problems it isnecessary to be able to identify symptoms and to decide how best to conduct the diagnosis inorder to discover the underlying problem(s).It is important to note that visible signs of a problem are usually just symptoms of ahidden problem. For example, if a manager has noticed conflict between workers then themanager may decide to train the workers in interpersonal skills and conflict resolution butthis approach assumes that it is the workers' inability to deal with conflict that is the problem.This approach does not attempt to identify the source of the conflict. A better approach maybe to interview the workers involved. This provides an opportunity for the workers to discussany problems they may be experiencing and it also provides management with theopportunity to deal with the problem. It may be discovered, for instance, that groups are notworking together as planned because the payment system rewards individual efforts insteadof team efforts. This may be resulting in individuals pursuing their own goals rather than thegoals of the team.Diagnosis provides the basis for making decisions regarding the design of the intervention.Depending on the situation the intervention may be simple and may only involve one system.This would only be the case where a single system is not congruent with either the culture orother systems within the organisation. Clearly in the example in the previous paragraph, thepayment system needs to be reviewed as it is not in line with the organisation's teamstructure. In this situation providing training is not likely to resolve the situation in the longterm. In other situations the problem may be multi-causal or there may be more than oneproblem.© University of Southern QueenslandMGT8033 – Leading organisational chnage 57Diagnosis is a process of data collection and analysis. In undertaking the steps of problemsolving,the change agent develops hypotheses through initial data collection and sets abouttesting the hypotheses to establish what the problems and issues are and to better understandthe operation of the organisation. This understanding and problem identification thenprovides a more objective basis for developing strategies for change. Given the considerablestakes, and the resources used in any organised change activity, the rationale andjustifications for change really must be robust, if the energies, time, budgetary allocation andother resources have to be redirected. Diagnosis provides this necessary rigour.Diagnosis takes various forms. However, as Johnson (1993, cited in Harvey & Brown 2006,p. 128) observes, there are a number of key characteristics which, in combination, maximisethe chances of an effective, accurate and relevant diagnosis. These characteristics are:Simplicity: Keep data as simple as possible and use simplicity in presentationsVisibility: Use visible measures of what is happeningInvolvement: Emphasise the participation and involvement of organisation membersin the diagnosis phasePrimary factors: Use undistorted collection of primary operating variables in diagnosisMeasure what isimportant:Pursue the straightforward assessment of variables that are critical tosuccessA sense of urgency: During diagnosis, engender an overall sense of urgency for change.The wisdom of Johnson’s advice begins to make more sense when you imagine how thediagnosis may proceed if any of the above elements are missing. For example, sophisticateddata collection may require sophisticated data analysis and result in multiple interpretationsof the items of interest. The validity of your diagnosis is then suspect.So far we have discussed the purpose of diagnosis, why we need to diagnose and how thediagnosis provides the basis for designing interventions. However, as yet we have notdefined diagnosis in a useful and accurate way. This is because diagnosis occurs at more thanone level within an organisation, and what constitutes proper diagnosis at the organisationwideor strategic level doesn’t transfer readily to other levels, which will be demonstrated alittle further on in the discussion. The construct of organisational levels forms a conceptualframework whereby many of the issues arising in organisations can be understood anddiagnosed (Coghlan 1994). Further, Coghlan noted different authors have noted up to sixlevels incorporating; individual, interpersonal, group, inter-group, organisation and the widersociety.To address the idea of diagnosis Waddell, Cummings & Worley (2014) introduce the idea ofsystems theory;describing systems theory as “a set of concepts and relationships thatdescribes the properties and behaviours of things called systems – organisations. groups, andpeople, for example” A system may be closed or open, indeed an open system may have aclosed system within it. For example, a production line may be a closed system where onecould easily establish a direct cause and effect relationship. If the temperature setting is kepttoo low, when the production requires a higher setting to enable the mixtures of ingredientsto produce the product, then the resulting product will be faulty. If you directly alter thetemperature to the required level holding all other factors constant, then the product shouldbe produced fault free. Unlike a closed system, however, in an open system this is generally© University of Southern Queensland58 MGT8033 – Leading organisational chnagenot possible. This is simply the case as one is not able to hold all possible variables constantin an open system, making it impossible to attribute causality. Waddell, Cummings &Worley detail in figure 5.1 a model of how one may view an open system, considering thatan open system is contained within an environment, the system has particular inputs,transformations and outputs with a feedback process among these parts. There earlierexample of organisation, group and people give rise to a three level approach that dovetailswith their interventions, and propose that there is a hierarchical ordering in which eachhigher level comprises lower level systems. This may be represented as :1. organisation: which includes strategy, structure and processes2. group: which includes the design and devices for structuring interaction among memberssuch as norms and work schedules3. the individual level or job level: which includes how jobs are designed to evoke desiredbehaviours.The approach of Waddell, Cummings & Worley (2014) may be viewed as a simplification offormer models and is used in this course because it is intuitively appealing and encompassesmost if not all the elements of the other conceptual models. If you have studiedorganisational behaviour then you probably learnt that the three levels of analysis are at theindividual, groups and the organisation. The same goes for organisational change diagnosis.Diagnosis can be limited to one or two of these levels but may also occur at all three levels.Therefore if one is using a three level approach to diagnosis, the key to effective diagnosisthen is to know what to look for at each level, and the interrelationships among levels(Waddell, Cummings & Worley 2014). The following section will define and discussdiagnosis within each of these levels.2.1.1 Diagnosing organisationsHarvey and Brown (2005) define diagnosis as a way of determining the performance gap,that is, examining an organisation to determine the difference between what it does and whatit could or should do by virtue of the opportunities that arise from the environment. Firstly,this definition concerns diagnosis that takes place at the organisational level. Secondly, thisdefinition indicates that data on the current or actual state and data on the ideal or desiredstate of the organisation need to be collected so that we can determine the performance gap.Diagnosis at the organisational level includes the examination of the organisational structure,organisational culture, the strategies, goals and objectives of the organisation, work design,organisational policies and such systems as payroll and accounting (Smither, Houston &McIntire 1996). When we are conducting diagnosis at this level we must also consider theorganisational politics, as this can greatly impact upon decision making and can also directlyimpact upon organisational performance.Diagnosing organisations refers to our ability to look, see, and describe the effectiveness oforganisations. The process of diagnosis presumes that those people managing the process,that is the change agents, have a sound understanding of how organisations function andwhat’s involved in organisations. This understanding is represented by conceptual models oforganisations.© University of Southern QueenslandMGT8033 – Leading organisational chnage 59Fundamental to the principles of OD is that organisations consist of groups. Therefore it isoften necessary to conduct diagnosis of groups. Within this context, groups can include largegroups such as departments, divisions or regions, or small work groups or teams (Smither,Houston & McIntire 1996). Groups have five major components that impact upon theireffectiveness: goal clarity, task structure, group composition, group norms and theinterpersonal relationships between group members. Although the organisational designaffects these components it is also necessary to consider other aspects that may be reducingeffectiveness such as organisational policies or practices and individual aspects such aspersonalities, values and attitudes.Just as organisations consist of groups, groups consist of individuals. Collecting informationabout individuals and individual jobs within an organisation allows us to gain anunderstanding of personal characteristics such as job satisfaction, skill levels, attitudes andperceptions. At this level we may be, for instance, compiling information on training needs,perceptions regarding incentive programmes or work conditions. Individual analysis mayalso allow us to collect information about jobs. In particular, we may be interested in theindividuals’ perceptions of their skill variety, task identity, autonomy, task significance andjob feedback.Reading activity 2.1You should now take the time to read Waddell, Cummings & Worley chapter 5.Follow this with selected reading 2.1: Di PofiThe text further explains the need for diagnosis and then goes on to explaincharacteristics of an open systems model. Pay particular attention to theparagraph on equifinality (p. 140) as it argues that one may get similar resultsdespite starting from different initial conditions and that those results may comein different ways. It is important to remember that we are dealing with humanbehaviour and that humans do not always make rational decisions. In that regardthere is a big difference between a leader, manager or change agent and aphysical scientist. The physical scientist is able to determine cause and effectbut for the change agent this is more difficult; some would argue that it isimpossible.Why is it more difficult to determine cause-effect relationships in socialsystems?In these pages the authors integrate organisational diagnosis with open systemstheory. This is necessary to demonstrate that not only are we analysing theorganisation per se, we are also analysing how the organisation interacts with itsenvironment and how it is influenced by external forces. In today's businessenvironment, this often means an international or global environment requiringdecisions that can be implemented across countries, borders, cultures,boundaries and communities with varied and peculiar interests. The need for abusiness to remain sustainable in such an environment is an important one andrequires broad thought.Use the open system model detailed in figure 5.1 of your text and apply it to anorganisation that you work for or that is known to you. Identify each of theelements within the model as it applies to your chosen organisation.© University of Southern Queensland60 MGT8033 – Leading organisational chnageUnderstanding organisations is obviously a key factor in organisational diagnosis. But howdo we gain an understanding that is useful. Our experience of different situations and globaland local contexts is vital. However, we have come across people who have a wealth ofexperience but who cannot ‘see’. Why is that? Unfortunately, for one reason or another, theyhave not been able to develop their experiences into theoretical and conceptual models; thatis, explanation of what is going on around them.As a postgraduate student, you have no doubt realised that theory and practice go hand inhand. You have also realised that sound theoretical and conceptual explanations are vital todiscussing and influencing reality. Let’s look at what David Collins has to say on this matter:A key problem with much of the study of change management in organisations is that theauthors active in the field tend not to discuss, explicitly, the theoretical models andframeworks which guide their analysis. This is a crucial oversight. Theoretical modelsare essential to our thinking. Any type of thinking about our world requires some kind oftheoretical model, implicit or otherwise, which structures and guides our thinking andrenders it meaningful.(Source: Collins 1998, p. 1)What does this mean in practice? Consider the Burke and Litwin (1992) model displayed infigure 2.1.© University of Southern QueenslandMGT8033 – Leading organisational chnage 61Figure 2.1: Burke and Litwin’s model of organisational change(Source: Burke, WW & Litwin, GH 1992, ‘A causal model of organizational performance and change’,Journal of Management, vol. 18, no. 3, p. 528)Queensland Health use this conceptual representation in their internal corporate planningdocuments as a framework to provide meaning to the change strategies they have adopted.Noted Australian consultant, Ken Gilbert uses the same model for his work in companiessuch as Qantas.In this course, it is essential that you are explicit about the theory or theories andmodels that are guiding or informing your strategy development for change.2.1.2 Collecting and analysing diagnostic informationData collection is crucial to the success of any change intervention. The first decision thatneeds to be made concerns the type of information that is required. This will depend on thelevel of analysis and also the problem being faced by the client organisation. The next© University of Southern Queensland62 MGT8033 – Leading organisational chnageconcern is where the information will come from. Are there secondary data already availableor do we need to collect primary data?If the decision has been made to utilise secondary data then this will have to be gathered.However, in most cases primary data are needed. If this is the case then we need to considerthe best way to collect the information we need and also the sources of this information.Whether qualitative or quantitative data are collected will largely depend upon thepreference of the change leader, manager or agent and also the depth of information required.The general rule is that while quantitative data are easy to collect and analyse statistically,they do not provide the same depth as qualitative data. However, the analysis of qualitativedata is generally more time consuming and subjective.Some common methods of data collection include questionnaires, focus groups andinterviews. Whichever technique is chosen, the change leader, manager or agent needs toconsider the level of structure that the questions will have. For instance, will questions beopen-ended, multi-choice or dichotomous. Again, there is a trade-off between depth and easeand speed of analysis. The change leader, manager or agent must also decide about thecontent, phrasing and sequence of the questions. The questions must be easy for therespondents to answer and the entire process must be an appropriate length. If thequestionnaire or interview is excessively lengthy respondents are likely to give quickanswers rather than accurate answers.One final point about data collection is that an effort must be made to collect accurate data.In some instances respondents may not answer accurately because they are concerned aboutthe consequences if they are identified. If face-to-face interviews or focus groups areconducted then it is essential that respondents feel confident enough to provide honestresponses. Similarly, questionnaires should be administered in a way that ensuresconfidentiality of respondents. Other strategies to maximise the accuracy of data includeensuring that respondents are not prompted in any way (leading questions should be avoided)and ensuring that respondents are able to answer accurately (i.e. don’t ask them aboutsomething they may not know about or may not remember). As part of the process ofcollecting accurate data, steps should be considered for the integration of both qualitativeand quantitative methodologies. The above points are so important. Managers makedecisions based on the data they can collect. It follows then that inaccurate data can easilylead to poor problem resolution.© University of Southern QueenslandMGT8033 – Leading organisational chnage 63Reading activity 2.2You should now take the time to read Waddell et al. chapter 5. See alsoselected reading 2.2: Stace & Dunphy, 2001http://ezproxy.usq.edu.au/login?url=http://www.emeraldinsight.com./Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0230150204.pdfwhich provides a ‘process of conducting an organisational diagnosis reflectingcurrent practices of using theory-based assessment models’, p. 156. Althoughthis reading uses the Burke and Litwin model of individual and organizationalperformance (1992) it provides an alternative model to that provided byWaddell, Cummings & Worley (2011) and is a good example of the applicationof theory as a guide for diagnosis.1. Assuming you have the position and role of an external change consultant,how would you go about gaining the trust of a focus group and encouragingthem to provide honest and detailed responses about the client organisation?2. Assuming you now have the position and role of a manager in the entity,how would you go about gaining the trust of a focus group and encouragethem to provide honest and detailed responses about the client organisation?3. If you were in the focus group, what obstacles might you encounter inattempting to deliver honest and open feedback?2.1.3 Feeding back diagnostic informationMembers of the organisation are usually very keen to find out the aggregate informationfrom the data they provided. Offering to feed back information is also a useful tool toencourage organisational members to provide data in the first instance. As such, the feedbackof data must be conducted in such a way that the information can be understood by allmembers of the organisation – even those with little or no knowledge of organisationalchange. This helps the employees to feel that they are being kept informed and that they haveownership of the changes that are occurring. Hence, resistance to change is less likely to be aproblem. Feeding back diagnostic information is also a useful way of clarifying that the datahave been correctly interpreted by the change agent.Reading activity 2.3You should now take the time to read Waddell, Cummings & Worley chapter 5,and chapter 6. See also selected reading 2.3: Argyris.Consider the organisation with which you are currently working. When feedingback diagnostic information, which level within the organisation would youbegin? Why?© University of Southern Queensland64 MGT8033 – Leading organisational chnageEvery time you look into the mirror, what do you see? Do you see someone who is confidentwith high self-esteem and self-efficacy? Or do you see someone who is struggling with achanging environment? As a final thought for this section on diagnosis, change starts withyou and your ability to change and is based on your ability at honest self-evaluation. Howcan you know others if you don’t know yourself?This section has revealed diagnosis and data collection to be difficult and time consuming.However, their accuracy is also of paramount importance to the change programme. Anumber of important considerations have been highlighted. Firstly, this organisationaldiagnosis can be conducted at varying levels, namely individual, group, and organisationwide. Change agents must recognise the difference between these and ensure that the datacollection techniques used are appropriate. Another important factor is the feeding back ofdiagnostic information to the organisation. One important suggestion which can be added toour earlier discussion is that information regarding the process can also be diffusedthroughout the organisation. This is particularly relevant in the context of organisationallearning, and can assist organisational members in becoming less dependent upon the‘change agent’.The next process is designing and implementing interventions (Waddell, Cummings &Worley 2014). It is here that the results of diagnosis and data collection are applied, andspecific solutions to organisational problems are formulated.2.2 Designing and implementing interventionsThis section is concerned with the design and implementation of interventions. Manytextbooks on change management demonstrate that a range of interventions have beendeveloped from research and practice. These interventions are designed for particular typesof problems and organisational issues. While they also have their limitations, the range ofinterventions provides a change leader, manager or agent with a powerful range of tools todeal with the general question of organisational improvement, innovation and survival.Waddell, Cummings & Worley (2014 chapter 5), define intervention as ‘a set of sequencedplanned actions or events intended to help an organisation increase its effectiveness’. It is animportant term in change management for obvious reasons. Earlier in this module wehighlighted the importance of diagnosis and data gathering in the change managementprocess. On the basis of the diagnosis, the change manager must be able to develop anintervention that will address the issues identified. Of course, there can be a range of issuesthat need to be addressed and this can mean that a number of interventions are implementedacross different time periods to address the different issues.The authors have used a particular way of classifying the types of interventions that could bedesigned and applied. Their categories include strategic interventions, techno-structuralinterventions, human resource management interventions, and interpersonal interventions.The types of interventions are generally linked to the type of problems to be encountered.You can see in figure 5.4 on page 153 of the text, the authors link their four interventiontypes to their four problem/issue types which are the same. Problems/issues are complexrather than simple. How we define organisational problems impacts upon our resolution ofthe problem. Wrong problem definition can lead to undesired consequences. The link back toeffective and accurate diagnosis, as a stimulus for action during this intervention stage,should be clearly evident here.© University of Southern QueenslandMGT8033 – Leading organisational chnage 65There are a number of criteria for effective interventions. These criteria are largely based oninformation gathered during the diagnosis stage. It therefore follows that a change agentcannot expect to design a successful intervention without diagnosing the organisation in thefirst instance.Reading activity 2.4You should now read the remaining part of chapter 5 from Waddell, Cummings& Worley 2014. From this section take particular note of the contingenciesrelated to the change situation: readiness for change, capabilities for change,cultural context, capabilities of the change agent and how Waddell, Cummings& Worley link organisational issues and their corresponding interventions. Seealso chapter 5 and selected reading 2.4: Espedal.We have looked at the general situation in designing interventions and had an overview ofthe various types of interventions noted by Waddell, Cummings & Worley. In this sectionyou will delve deeper into the various interventions and their categories as detailed in yourWaddell, Cummings & Worley (2014) text. You will also consider an alternative view oncategorisations.One of the meta-models detailed in module 1 was continuous transformational change. Thistype of change has impacted on how and what leaders, managers and change managers mustdo to enable their organisations to be sustainable in a more demanding, turbulent and anoften global context. Two organisational development approaches have evolved that seek toenable organisations to continually remake themselves: self-designing organisations andlearning organisations.2.2.1 Self-designing organisationsThe idea of self-designing organisations was borne out of the organisational need tocontinually adapt in response to turbulent environments. According to Waddell, Cummings& Worley (2011, p. 198)continuous change interventions extend transformational change into a non-stop processof strategy setting, organisation designing and implementing the change. Rather thanfocus on creating and implementing a particular strategy and organisation design,continuous change addresses the underlying structures, processes and activities forgenerating new forms of competitive advantage. Thus, the focus is on learning, changingand adapting – on how to produce a constant flow of new strategies and designs and notjust how to transform existing onesThis is quite a different approach and requires organisations to change themselvesfundamentally and continuously to a position where the organisation develops the capabilityto improve constantly. Thus the organisation should be a more sustainable business.Reading activity 2.5Waddell, Cummings & Worley, chapter 6. See also selected reading 2.5:Murray et al.© University of Southern Queensland66 MGT8033 – Leading organisational chnageReflectionConsider the organisation in which you are working or one that you know. Is theenvironment turbulent for the organisation? If it is, think what steps theorganisation has taken to adjust to its circumstances? Has reading the section onself-designing organisations given you any new ideas on how you mightimplement or recommend how change should be implemented to improveoutcomes in the future?2.2.2 The learning organisationSimilar to the self-designing intervention, the learning organisation is a continuous changeintervention approach. However, it incorporates two specific interventions: organisationlearning and knowledge management. According to Waddell, Cummings & Worley (2014,chapter 6) Organisation Learning (OL) ‘emphasises the organisation structures and socialprocesses that enable employees and teams to learn and to share knowledge,’ whereas,Knowledge Management (KM) emphasises “the tools and techniques that enableorganisations to collect, organise and translate information into useful knowledge”. Takespecial note when you read Waddell, Cummings & Worley (2014) of figure 6.2 on page 193,which provides a diagram of how (OL) and (KM) work together to help improveorganisation performance.Reading activity 2.6You should now read Waddell, Cummings & Worley, chapter 5. See alsoselected reading 2.6: Bulla and BellExerciseReview Self-designing organisation and the learning organisation interventions.Draw a table and compare the two forms of intervention. Make sure that youhave the differences between these two forms of intervention clear in your mind.ReflectionThe learning organisation intervention is a particularly useful intervention foreffecting change in organisations. However, many leaders, managers and changeagents have failed to use it to its potential. Consider the organisation that youare in at present. How does it differ from a learning organisation at present.Consider the qualities detailed in Waddell, Cummings & Worley (2014). Whatwould you need to do in order to convert your organisation to a learningorganisation? Consider any past history you may have with change and note ifyou would change any of the processes that were done previously in light of thisnew information.© University of Southern QueenslandMGT8033 – Leading organisational chnage 672.2.3 Interventions for people and processIn this section we turn to the more traditional organisation development interventions. Yourtext has categorised interventions in a particular way that relates the interventions toproblems normally associated with them. However, when you read the material make surethat you recognise that these interventions are not necessary stand alone. For example, let usconsider an individual who is considered as not performing well. Where should thediagnostic process start. Should the individual’s qualities be considered? Perhaps it should bethe structure of the job itself: is there something in the design of the job that inhibitsperformance? If so, the problem may be located elsewhere. Usually, when we deal with anindividual's performance, we think that the individual has poor performance. However, itmay not be the individual, it could be related to the group make up or perhaps the strategyand design of the organisation is inappropriate and consequently it is impacting on how theindividual is performing.ReflectionFor a moment reflect on your experience and see if you can remember an eventthat you were not able to perform at your best, because of constraints out ofyour control. What were those constraints? What would have needed to be doneto allow you to perform better?Reading activity 2.7You should now read Waddell, Cummings & Worley, chapter 7. See alsoselected reading 2.7: Murray & Millett & 2.8: Kirkman & Rosen.2.2.4 Interventions for strategy and structureOrganisations are open systems and consequently, interventions in this section are aimed atthe organisation as a whole and how the organisation fits with its environment. Anorganisation must be able to obtain resources and information that enable it to be sustainableover the long term. This requires an ongoing vigilance and interaction in a way that requireongoing changes to strategy and structure.Reading activity 2.8Read chapter 8 from the Waddell, Cummings & Worley text, which addressesinterventions of strategy and structure that are aimed at organisations and theirenvironment relations.At the end of your reading answer the questions below as a guide to your levelof understanding.Although the categorisation of interventions by Waddell, Cummings & Worley is not theonly basis of categorising interventions, their categorisation provides a solid and detailedexplanation of the various interventions that can be applied. Other authors have slightlydifferent categorisations and it is important that as a graduate student you can recognise the© University of Southern Queensland68 MGT8033 – Leading organisational chnagedifferences and similarities in approaches among authors. Your broader reading andunderstanding will increase your ability to apply a critical mind to any proffered interventionfrom within or outside your organisation.Reading activity 2.9Read again selected reading 2.2: Stace and Dunphy.Reading 2.2 takes a critical look at a number of intervention options available tochange agents. While they identify a number of specific intervention tools thathave been used in recent times, Stace and Dunphy focus on several majorfactors which, they believe, differentiate successful change interventions frommore faddish approaches. These are:A strong link to the vision and emergent strategy of the organisationFocus on the appropriate intervention level (i.e. individual, group, business unit,or organisation-wide)Appropriate depth, including a variety of inter-related practices and processes,ensuring ‘intellectual coherence’ throughout.While the breadth of change is represented by intervention level, and is thusfairly self explanatory, the ‘depth’ of the intervention needs a bit moreexplanation. According to Stace and Dunphy (2001), the depth of changeindicates how ‘hard’ interventions and ‘soft’ interventions are utilised. Hardinterventions are associated with the more tangible aspects of an organisation.These include mergers and acquisitions, strategic repositioning andrestructuring, and changes to technical or structural systems. Soft interventionsare concerned with human aspects, such as work design, human system design,and organisational culture. The argument here is that successful, lasting changeinitiatives involve the correct blending of depth and breadth. The correctbalance of these will depend upon a number of factors. After completing thisreading, you should be able to discuss how leadership characteristics and changeagent orientation will impact upon both breadth and depth.The second half of this reading is dedicated to discussing four of the dominantchange intervention tools; the balanced scorecard, total quality management andbenchmarking, re-engineering of work processes, and e-change. This discussioninvolves a brief introduction to each, as well as a critical evaluation of theireffectiveness, as well as associated risks. While the level (breadth) of theirapplication has been explicitly stated, it is important for you to give somethought to the depth implicated in each according to Stace and Dunphy’sframework. The typical intervention practices listed for each will provide a goodstarting point for such consideration.© University of Southern QueenslandMGT8033 – Leading organisational chnage 69Learning activity 2.1Some researchers use the terms ‘Hard’ and ‘Soft’ in describing interventions.Do some investigations and then classify the interventions that you have learnedabout in this module into their respective grouping of hard or soft. Make surethat you understand the logic behind the groupings so that you could furtherclassify any new intervention that may be detailed into their respective groupingof hard or soft.2.3 Diagnosis and Interventions for OrganisationalTransformation and change in unpredictable environments2.3.1 Organisation transformationAccording to Waddell, Cummings & Worley (chapter 8) organisation transformation is about‘changing the basic character of an organisation, including how it is structured and how itrelates to its environment.’ This type of change is triggered by environmental and internaldisruptions . It is usually systemic in nature and revolutionary. It demands a new organisingparadigm, with the change being driven by senior executives and line management andinvolves significant learning and innovation.Reading activity 2.10You should read Waddell, Cummings & Worley (2014) chapter 9 and take noteparticularly of the three key interventions applied in this section: integratedstrategic change, organisation design and organisational culture.ReflectionOrganisation culture is a difficult area. There is considerable debate in theliterature as to whether one can successfully change an organisation's cultureand as to the time that this may take. Think of the organisation in which youwork or an organisation with which you are familiar. Consider the culture of thisorganisation and reflect on what you believe would be needed to change thisculture? How would you go about it? Do you agree with the application stagesnoted in Waddell, Cummings & Worley pages 347–8? If not, why not?© University of Southern Queensland70 MGT8033 – Leading organisational chnage2.3.2 Change in a chaotic and unpredictable environmentGlobalisation has seen the rise of international, transnational, multi-national and globalorganisations that operate across many international borders. This section addresses suchorganisations and provides information on these different orientations that may be adopted.Reading activity 2.11You should now read chapter 10, pp. 355–89 of your text. When you do thistake special note of how change interventions may need to be adapted beforethey are capable of being accepted in differing cultural settings. You shouldprocess this information from your own cultural setting. For example, if you areChinese and operating within a large multi-national business in China withoperations in Australia; what impact might this have on an intervention in yourorganisation that applies to part of the organisation in Australia. Whatadjustments do you think may be needed, if any, to ensure acceptance inAustralia.2.4 Reflections on the moduleThis module has demonstrated the importance of diagnosis as well as outlining some of thebasic principles involved in diagnosis. The collection and analysis of diagnostic informationwas also considered. Although discussed briefly, collection and analysis of data isfundamental to the process of diagnosis and cannot be over-emphasised. Finally, in thecoverage of diagnosis, a discussion on feeding back diagnostic information to the clientorganisation provided students with an understanding of why this stage is important ingaining commitment from workers and management. Students also need to be aware thatfeedback allows them to verify information with respondents as diagnosis cannot be effectiveif data are misunderstood.In winding up this module, the focus shifted to some classifications of interventions.Discussion has included some consideration of the principles involved in designing effectiveinterventions. In particular, it was shown that an effective intervention should be tailor-madefor the organisation, it should be based on valid information and should assist members indeveloping skills related to change. The approach preferred and highlighted in this module isthe range of interventions as detailed by Waddell, Cummings & Worley (2011) in their fourcategorisations of interventions, though this should not be interpreted to mean that otherapproaches are not similarly imbued with coherence and relevance. Finally transformationalchange and change in chaotic and unpredictable environments were considered.© University of Southern QueenslandMGT8033 – Leading organisational chnage 71Reference listBurke, WW & Litwin, GH 1992, ‘A casual model of organizational performance andchange’, Journal of Management, vol. 18, no. 3, pp. 523–45.Coghlan, D 1994, ‘Organization development through inter-level dynamics’, InternationalJournal of Organizational Analysis, vol. 2, no. 3, pp. 264–79.Collins, D 1998, Organisational change: sociological perspectives, Routledge, London.Harvey, D & Brown, DR 1996, An experiential approach to organization development,Prentice-Hall International, Upper Saddle River, New Jersey.Harvey, D & Brown, DR 2005, An experiential approach to organization development,Prentice-Hall International, Upper Saddle River, New Jersey.Smither, RD, Houston, JM & McIntire, SD 1996, Organization development: strategies forchanging environments, Harper-Collins College Publishers, New York.Stace, D & Dunphy, D 2001, Beyond the boundaries: leading and re-creating the successfulenterprise, 2nd edn, McGraw-Hill, Sydney, pp. 221–42.Waddell, D, Cummings, TG & Worley, CG 2007, Organisational development and change,Asia Pacific 3rd edn, Thomson Learning, Southbank, Victoria .Waddell, D, Cummings, TG & Worley, CG 2011, Organisational change development andtransformation, Asia Pacific 4th edn, Cengage Learning Australia, South Melbourne,Victoria .© University of Southern Queensland72 MGT8033 – Leading organisational chnage© University of Southern QueenslandMGT8033 – Leading organisational chnage 73Module 3 – Issues in managing organisational changeOverviewIn the previous two modules you were exposed to the nature and development oforganisational change in all its complexity, and to the diagnostic and intervention processes.You will have noted that change in organisations is a pervasive thing, impacting on systems,processes, lines of authority, morale, people and behaviour in general. Effective changedemands that change implementers must be aware of both the central and more collateraleffects of substantial change, which means that planning for meaningful and effective changemust be orderly and comprehensive. In this module, we will be considering the many changemanagement issues that a change leader must consider in the development of an integratedapproach to their strategy development.Course objectivesAt the successful completion of this course a student should be able to● demonstrate an understanding of the complex nature of change as well as those factorsthat affect and enhance prospects for planned organisational change● articulate a perspective on the contextual and conceptual foundations of organisationalchange● demonstrate an understanding of the processes and many of the strategies and techniqueswhich can be applied to lead, manage and facilitate organisational change● demonstrate their ability to take part in or evaluate some change management programsand interventions, in different contexts● identify and solve complex organisational problems creatively and practically to increasethe effectiveness of change management● apply critical thinking – evaluate, synthesise and critically review theoretical frameworkswith other evidence to provide solutions to real world problems● demonstrate an understanding of the impact of interpersonal communication on specificmanagement processes and outcomes using relevant theories and concepts as applied tochange● comprehend and address complex ethical dilemmas as applied to change● demonstrate an understanding of complex sustainable dilemmas and the need forresponsible leadership in change● demonstrate the skills required for leadership of others, working in teams and workingwith people from diverse cultural and professional backgrounds in real time spaces● communicate professionally and effectively in written communication to variousaudiences to achieve targeted outcome.© University of Southern Queensland74 MGT8033 – Leading organisational chnageModule objectives● identify and substantiate the various pressures for change● discuss the factors that give rise to diversity of change● describe and discuss the circumstances that give rise to various change paths● demonstrate an understanding of the key factors in managing change● demonstrate an understanding of the processes that humans undergo in change processesand be able to link those processes to suitable interventions from module 2 to addressthose issues● identify the differences between Soft and Hard issues.Learning resourcesTextWaddell, D, Cummings TG & Worley CG 2014, Organisation change development &transformation Asia Pacific, 5th edn, Cengage Learning Australia , South MelbourneAustralia chapters 4, 12.It is assumed that you will familiarise with the relevant nominated chapters from yourtext or texts in their entirety.Selected readingsSelected reading 3.1: Cummings, TG 1997, ‘The role and limits of change leadership’, inJA Conger, GM Spreitzer & EE Lawler (eds), Leader’s change handbook: an essential guideto setting direction and changing action, Jossey-Bass Publishers, San Francisco, pp. 301–20.Selected reading 3.2: Walinga, J 2008, ‘Toward a theory of change readiness: the role ofappraisal, focus and perceived control’, Journal of Applied Behavioral Science, vol. 44,no. 3, pp. 315–47.Selected reading 3.3: Elrod II, PD & Tippett, DD 2002, ‘The “death valley” ofchange’,Journal of Organizational Change Management, vol. 15, no. 3, pp. 273–91, viewed23 January 2006, Emerald Management Xtra database, item: 10.1108/09534810210429309.Selected reading 3.4: Stewart, TA & O’Brien, L 2005, ‘Transforming an industrial giant’,Harvard Business Review, vol. 83, no. 2, pp. 114–22.Selected reading 3.5: Senior, B 1997, ‘Soft systems models of change’, Organisationalchange, Prentice Hall, Sydney, pp. 254–91.Selected reading 3.6: Sirkin, HL, Keenan, P & Jackson, A 2005, ‘The hard side of changemanagement’, Harvard Business Review, vol. 83, no. 10, pp. 108–18.© University of Southern QueenslandMGT8033 – Leading organisational chnage 75Selected reading 3.7: Struckman, CK & Yammarino, FJ 2003, ‘Organizational change: acategorization scheme and response model with readiness factors’, Organizational Changeand Development, vol. 14, pp. 1–50.Selected reading 3.8: Hilmer, FG & Donaldson, L 1996, ‘Management redeemed’,Management redeemed: debunking the fads that undermine our corporations, The FreePress, Sydney, pp. 193–204.Selected reading 3.9: Hirsch, PM & De Sourcey, M 2006, ‘Organizational restructuring andits consequences: rhetorical and structural’, Annual Review of Sociology, vol. 32, no. 1,pp. 171–89.Selected reading 3.10: Hempel, PS & Martinsons, MG 2009, ‘Developing internationalorganizational change theory using cases from China’, Human relations, vol. 62, no. 4,pp. 459–99.Students MUST seek further articles through the electronic full-text journals availablethrough the USQ library or on the Internet to support their understanding and for argumentsin assignments. Please note that if you use the Internet, you must apply critical thought to thequality of the source and the information provided. Many sources on the Internet are of poorquality as they have not been vetted in any way and often merely represent a particularindividual’s opinions, which can have very strong bias or misinformation. Part of the skillsdevelopment for students at this postgraduate level is to be able to make decisions on therelevance and worthiness or otherwise of sources of informationRecommended references and/or helpful web sitesBasic content for organisational change<http://www.mapnp.org/library/mgmnt/orgchnge.htm>The 7S model (working)<http://www.themanager.org/Models/7S%20Model.htm>EBSCOhost direct (HBR shown, but other journals may be accessed)<http://ezproxy.usq.edu.au/login?url=http://search.epnet.com/login.aspx?direct=true&db=buh&jid=HBR>3.1 The pressures to changePressures to change can emerge from any quarter, some of which may be anticipated andplanned for, while others may not be so accommodating. The complex nature of manycontemporary business operations exposes organisations to a range of risks and catalysts forchange which authoritative writers on the subject of change will argue is unprecedented.Consider the current global financial crisis (2008–9) and its far reaching impact on theeconomies of countries around the globe and on the operations of many organisations. One© University of Southern Queensland76 MGT8033 – Leading organisational chnagecan readily see how the impact of some of the more influential triggers for change identifiedby Senior (1997), namely:1. political and economic triggers2. sociocultural influences3. the interaction between these various triggers can have on organisations which have tooperate within the global system.The following is a report by Heather Stewart of the Guardian (2009) available at<http://www.guardian.co.uk/world/2009/apr/03/g20-recovery-package>The report provides examples of many political and economic changes or at least pressuresthat are being imposed on organisations worldwide and will require some to change andencourage others to change.G20 summit recovery package: ‘A global plan on unprecedented scale’ Reformingbanks, restoring growth and boosting trade at heart of historic communiqueGordon Brown and his fellow G20 leaders put together a package of measures which they claimed amounted tomore than $1tn (￡748bn) of new resources to be injected into the moribund global economy, and a radical cleanupof financial markets.“We start from the belief that prosperity is indivisible; that growth, to be sustained, has to be shared; and thatour global plan for recovery must have at its heart the needs and jobs of hard-working families, not just indeveloping countries but in emerging markets and the poorest countries of the world too; and must reflect theinterests, not just of today's population, but of future generations too,” they said in their communique. “Togetherwith the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedentedscale.”Here are the key measures.Reforming the world's banking systemCity firms will face a new super-regulator. The Basel-based Financial Stability Forum, which was set up adecade ago as an informal network of central banks, finance ministries and market regulators, will be renamedthe Financial Stability Board, and given sweeping new powers to oversee banks and international markets. TheG20 promised to create a “stronger, more globally consistent, supervisory and regulatory framework for thefuture financial sector, which will support sustainable global growth and serve the needs of business andcitizens.”The FSF immediately made its intentions clear by issuing a series of edicts:Bankers’ pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess therisks they are taking.Accounting rules will be radically rewritten to end the practice of “mark to market” valuations, whichexacerbated the crash by forcing banks to keep slashing the value of their toxic assets.Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world'smarkets, can no longer be sold “over the counter” between one financial institution and another - instead, therewill have to be a central clearing house, so the trades can be carefully controlled.Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more© University of Southern QueenslandMGT8033 – Leading organisational chnage 77closely supervised.The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises atan early stage.The G20 also announced a dramatic crackdown on tax havens.Cleaning up the banksMost major economies have been wrestling with the challenge of rescuing failing banks and removing billions ofdollars of dodgy assets from their balance sheets. Barack Obama's treasury spokesman, Tim Geithner, hasstruggled to convince the markets that Washington's plans will work. But Brown said the G20 leaders hadagreed a common global approach and promised to take “aggressive action” to patch up banks' balance sheets,and help them unblock lending to families and firms. The Japanese prime minister, Taro Aso, had pressed hisfellow leaders to act fast to clear up toxic assets, or face a “lost decade” like that suffered by his country in the1990s.The G20 said international rules on banks’ capital will also be radically rewritten, forcing them to hold morereserves in good times so that they are less exposed in future crises.Restoring growth to the global economyDespite failing to persuade his fellow leaders to sign up to fresh stimulus measures, Brown said the world was inthe midst of “an unprecedented fiscal expansion”. The G20 countries totted up the fiscal stimulus measures theyhad already agreed to take, which they said would amount to a total of $5tn by the end of 2010 - and promised to“do whatever is necessary” to nurse the world economy back to health and create or safeguard millions of jobs.Central banks will keep interest rates at rock bottom levels for as long as is necessary to restore growth.The International Monetary Fund's resources will be trebled to $750bn.Special Drawing Rights - the mechanism that gives IMF members the right to borrow from each other's foreigncurrency reserves - will be increased for the first time since 1980, to $250bn, more than 10 times the currentlevel. The G20 hopes the ability to borrow will give struggling economies more confidence and prevent thembeing picked off by financial markets.Other multilateral development banks, such as the Asian Development Bank, will be given a further $100bn.The G20 asked the IMF to monitor the success of these policies and let them know whether more is needed; theywill meet in New York in the autumn for a progress report. But Brown said these measures would bring recoveryto the world economy faster than would otherwise have been possible.Strengthening international institutionsBrown declared the death of the “Washington Consensus” of financial market liberalisation, privatisation andunfettered capitalism promulgated by the Bretton Woods institutions - the IMF and the World Bank. The IMFwill be asked to take a stronger role in supervising the world financial system.The bank and the fund will be modernised to give a bigger role to developing countries, and fit them for thechallenges of the 21st century global economy: “in order for our financial institutions to help manage the crisisand prevent future crises we must strengthen their longer term relevance, effectiveness and legitimacy”.The IMF has been asked to accelerate its ongoing review of “quota and voice” - the representation of poorcountries in its decision-making - and come up with reforms by 2011.In future the heads of the bank and the fund will be chosen "on merit", instead of the current stitch-up whichguarantees the fund job to a European and the bank to an American.Boosting international tradeG20 leaders promised a total of $250bn, made up partly of private contributions as well as government money,© University of Southern Queensland78 MGT8033 – Leading organisational chnageto help finance international trade deals which have ground to a halt as firms in poor countries struggle toborrow from dried-up credit markets.Brown said they had extended until the end of 2010 the pledge they made in Washington in November to avoidthrowing up new protectionist barriers. They asked the World Trade Organisation to report quarterly and “nameand shame” countries that fail to comply with this pledge. Those countries will then be asked to rectify theirpolices immediately. The World Bank recently reported that 17 of the countries in the G20 had increased tradebarriers since the November summit.They repeated their pledge to conclude the Doha round of WTO talks, launched in 2001; but there was no repeatof the deadline mooted in Washington for negotiations to be concluded. An attempt will be made to relaunch theround at the G8 summit in Sardinia in July.Ensuring a fair and sustainable recovery for allThey promised “not only to restore growth but to lay the foundation for a fair and sustainable world economy”.The G20 countries reaffirmed their commitment to meeting the Millennium Development Goals and hitting theirGleneagles aid commitments to double aid to the world’s poorest countries by 2010. In total, they said theirmeasures would provide an extra $50bn to the pool, including $6bn to be raised from IMF gold sales, newcontributions to the World Bank's “vulnerability fund”, and $19bn of the new IMF Special Drawing Rights,which will be allocated to low-income countries.Back at home, they pledged to “support employment by stimulating growth, investing in education and training,and through active labour market policies, focusing on the most vulnerable”.They also promised to push for a tough new climate deal at the Copenhagen Summit in December.Five things we learned1. The emergence of G2 While everyone was still trying to find a way to remember all 20 nations of the globalelite, the US and China quietly emerged as the new elite partnership.2. The development lobby proved far stronger than the environmental lobby There was much moreemphasis, and hard cash, given to development than a low-carbon recovery.3. The IMF is back An institution that was cash-strapped and in danger of irrelevance only a year ago is nowstronger than ever. Whether it will be successfully reformed as promised is still an open question.4. Another special relationship survives Obama held a bilateral session with Saudi King Abdullah. Oil prices,faltering Middle East peace efforts, and maybe a veiled discussion about the king's recent shake-up in successionplans were on the agenda.5. Obama needs an off switch The age of oratory is back, but we learned that you can get too much of a goodthing, especially if you try to sit through his hour-long press conferences.This is not an exhaustive list of the factors contributing to the need to change. You may alsowish to consider any technological components for example. However, you should be ableto begin to appreciate the complexity of change, from your studies in this course to thispoint, and the variety of factors that can precipitate it in today’s turbulent and globalbusiness environment.© University of Southern QueenslandMGT8033 – Leading organisational chnage 79Reflection 3.1It is important that you take time to consider the implications of these intendedchanges on financial arrangements and their impact on organisations withindifferent contexts. Particularly consider the internationalisation of the statementand how one would expect this to play out for say a small business in Africacompared to a medium sized business in China and a large multinationalbusiness operating out of the USA.We can see from the foregoing that managing change is anything but simple. It requires skillsand experience of reading the environment, of knowing our organisations and having a goodfeel for the consequences of any actions we might take. Based on our analysis, we makechoices about what needs to be changed and how we will bring about the change. We musthave a good grasp of the means and ends. What sort of organisation do we need toreconstruct to meet what we perceive to be the changing conditions? How do we do thereconstruction? How do we know if we have made the right selection of tools, techniques,programs and approaches?That’s what we need to get better at, that is, knowing which approach suits which situation.The approach obviously is referring to change management. In the next section of thismodule, we will consider the diversity of change and various change paths that result fromthe varying circumstances in which organisations operate.3.2 The diversity of changeAs discussed earlier in module 1, differences in industry and markets and countries havemeant that organisations need to make decisions differently on their structure, design ofwork, systems of operations and production, and processes of management, in order toaddress the new environmental influences and fit with global markets. This has beenidentified as a paradigm shift from an industrial to a post industrial perspective that hasforced organisations to change in fundamental ways of thinking and acting. Consider for amoment the components of an industrial organisation. Remember that the industrial erabegan in the 19th Century and continued until approximately 1960. Revise yourunderstanding of management theory. During this time, management theory took a classicalapproach. Productivity was important and management control over labour, and the divisionof labour were important elements. Operationalising the industrial perspective oforganisation involved structures and operations that utilised the principles of Taylorism andFordism.Learning activity 3.1Review your understanding of the principles of scientific management andFordism. Read the relevant chapter of your Management text. What are theprinciples of scientific management?Taylor devised the principles or steps in Scientific Management that he believed would leadto a more efficient and productive workplace. Don’t be seduced by arguments that suggest© University of Southern Queensland80 MGT8033 – Leading organisational chnageTaylorism has lost its relevance. Many organisations practice aspects of this type ofmanagement today. The steps typically include:● Develop a science for each element of the job to replace old rule of thumb standards.● Scientifically select employees and train them to do the job according to the scientificelements of the job.● Supervise employees to ensure they follow the prescribed methods for performingtheir jobs.● Continue to plan the job but get the work done through employees.Henry Ford exploited the concept of specialisation and division of labour on the assemblyline in the early 1900s. Workers were

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assigned a specific task. In assembling the Ford ModelT Car one worker might put on the right front
wheel, another, the door, and another, the seatetc. Breaking up the whole task of building a car into small standardised tasks that could berepeated over and over enabled Ford to produce cars at the rate of one every ten secondsusing employees with relatively limited skills. There have been differing views on whetherorganisations are changing their approaches to management and organisation, away from thescientific principle of the industrial era to meet the new conditions of the post industrial era.The ramifications for managers and change agents include that they must be familiar with awide variety of change perspectives, paths and processes as well as traditional organisationalforms and processes and how to have a discourse about them. No longer will it beappropriate for managers or agents of change to have an understanding of one or twoapproaches to organisation and change. Organisations will be utilising various combinationsof change perspectives, paths and processes to develop new and innovative forms oforganising. In addition, it will not be unprecedented to have organisations using differentcombinations in different areas and at different times. Innovative managers and changeagents may also be required to develop their own unique approach to organisation or change.They will be required to show support for it and to be able to critically analyse it in order tomeet the often unique problems and issues developing in different spheres of very differentglobal markets, and, they will need to be quick about it!© University of Southern QueenslandMGT8033 – Leading organisational chnage 813.3 Change pathsIn addition to the arguments as to whether organisations are indeed moving from industrial topost industrial (or Taylorist to post Fordist) there are also arguments as to whether thoseorganisations that are changing are doing so in the same way. You will have seen in module1 that Stace and Dunphy (2001) identified different change paths according to the scale ofchange and the style of change management, whereas Graetz et al. (2006) suggested anotherreason that organisations take diverse paths in the change process may relate to thedichotomous relationship of agency and environment. Agency refers to the ‘relativeinfluence of human discretion and action’ and environment refers to environmentalexigencies or necessities (Genus 1998, p. 7). Genus (1998) believes that each of these offersa perspective of change with agency offering a perspective that the individual decision makerinfluences the change and outcomes through strategy, design, planning and positioning of theorganisation. At the other end of the spectrum, the environmental perspective suggests that itis the environment that determines the choice of change (or lack of it) through the constraintsof the environment including market, economic forces etc.Reading activity 3.1Locate the recommended reading text of Graetz et al. 2006, and read pages 112–13. You will note a number of change theories that suggest the differentperspectives of Agency and the Environment in choosing change paths.Consider the arguments put and what your perspective is in relation to thesedifferent change paths.The structural contingency theory and strategic choice theory suggests that organisationsadapt to fit their environment. You might like to go to your management text and re-read thework of Mintzberg and Porter and others on strategic design. It is the premise of thesetheories that the individual organisation/manager influences their own innovation, design andchange process.The population ecology theory, institutional theory and resource independence theory eachsuggest the opposite. These theories suggest that organisations are forced to fit theirenvironment by factors outside the organisation.Learning activity 3.2What do you think might be factors that determine the perspective of change(either agency or environment) taken by management? Consider factorsincluding organisational size; the technological expertise; employeequalifications; complexity of task; competition; market; governmentintervention; organisational culture; management style.In helping to define the difference between the two perspectives on the path of change,Genus (1998, p. 7) suggests the following:© University of Southern Queensland82 MGT8033 – Leading organisational chnage● Issues of context and uncertainty, linked to questions of the ‘why’ of changeand the way in which the external environment is conceivedIssues of content and scale, in other words the ‘what’ of change, connected tohow fundamental (or strategic) relevant decisions are and the implications of thescale of choice● Issues of process, linked to questions of the leadership of change, commitment toand participation in organisational decision-making and the portrayal ofobjectives and values.● Issues of method, where the question of what time frame is applied tounderstanding change arises.(Source: Genus 1998, p. 7)Of course no one organisation will be totally at one end of the ‘agency versus environment’continuum or the other. The ‘middle ground’ of their position will be determined by some ofthe factors identified in module 1. You should also reflect on the G20 communique presentedearlier and whether these unprecedented change initiatives would change normal thoughtson the differences between agency versus environment or whether they support oneperspective or the other.3.4 Managing changeWhen you consider the following information on managing change, you must balance thefollowing information which tends to apply to change in general with the information frommodule 1 on the guiding principles of change with reference in particular to discontinuouschange. That is, you must read the new information presented here against the backdrop ofthe guiding principles discussed in module 1, which is a balancing act not withoutdifficulties.We noted above that it is the premise of structural contingency and strategic choice theoriesthat the individual organisation/manager or change leader influences their own innovation,design and change process. However, there are limits to what can or can not be done.Reading activity 3.2Read selected reading 3.1: Cummings. A key message from this reading is thatleaders can make a difference in transformational change because of the rolethey play in sense-making among observers and members of the organisations.What you may find particularly helpful is Table 11.1 which suggests wherechange leadership matters the least and most across three key categories.In Table 11.2, Cummings suggests the use of substitutes for CEO changeleadership functions. Using the functions noted in the table, identify individualsin your organisation or an organisation known to you who perform thesefunctions. This can help you in identifying individuals to take on changemanagement roles in various change circumstances and improve the quality ofyour strategy.© University of Southern QueenslandMGT8033 – Leading organisational chnage 83In order to design and implement effective interventions you need to understand some of theprinciples relating to the management of change. How we manage change is likely to impactupon the success of the change. Managing change requires that we take into considerationsuch issues as motivating change, the need for a vision, political support, managing thetransition period and sustaining momentum. These are examined below. The moreindustrious among you will find the topic has been addressed in some detail by variousauthoritative writers in the field of organisation change (See Graetz et al. 2006).3.4.1 Organisation cultureOrganisational culture may act as an enabler or barrier to change. Consequently, it is vital toconsider the culture of the organisation as it currently is and as it needs to be in the changedorganisation. This is important in any organisation, but becomes more important whenorganisations operate outside of their national borders. Historically, management theorieswere strongly influence by American and Western European practitioners. Consequently,their underlying values and assumptions have infused their work. An outcome may be thatthe traditional approaches to planned change may be in conflict with values in othercountries. This requires change leaders, managers and agents to account for two importantcontingencies: 1) alignment between the host country and traditional organisationaldevelopment values and 2) the host countries level of economic development.Importantly, a context based approach to change can assist. According to Waddell,Cummings & Worley (2011, p. 118):this involves fitting the change process to the organisation’s cultural context, includingthe values held by members in the particular country or region. These beliefs informpeople about behaviours that are important and acceptable in their culture.Reading activity 3.3You should now read Waddell, Cummings & Worley, chapter 4. Take particularnote of the values and organisational customs. detailed in table 4.6 and theplacement of countries in figure 4.1.ReflectionFrom the information in figure 4.1 above, what do you think might be some ofthe differences in approach needed by an Australian business seeking toimplement change in its operations in South Africa compared to its operationsin the Middle East? Do you perceive any general difficulties?© University of Southern Queensland84 MGT8033 – Leading organisational chnage3.4.2 Motivating changeMotivating change comprises two aspects: creating readiness for change and overcomingresistance to change. Creating readiness for change involves preparing employees for changeand creating a perceived need for change. The underlying assumption is that employees willnot change unless they see a need for change. In other words, they must be dissatisfied withtheir current situation in order to see the need for the creation of a new situation.Overcoming resistance to change is linked to this idea. The aim of creating a readiness forchange is to prevent resistance to change from occurring. Hence, the process is proactiverather than reactive.Overall, motivating change allows employees to be gently eased into the idea of change.However, one of the dangers is that allowing time for this acceptance can also create theconditions in which alarm and rumour abound within the workforce. Management needs tobe aware of the power of the grapevine in developing fear and reducing morale. Steps mustbe taken at this stage to keep employees informed and to prevent rumours from developingwherever possible, which usually means effective and honest communication about thechange programme must be forthcoming. Given that substantial change impacts at so manydifferent levels, as described earlier in this module, you might begin to see some of thedifficulties inherent in this open and candid approach.In most change programs there are changes that individuals will perceive as positive ornegative for themselves. In some cases, many employees will feel real grief at the loss of acircumstance with which they have felt comfortable or happy. However, just as there aremany different change paths, there are many different individual processes that individualsgo through.Reading activity 3.4First read selected reading 3.2: Walinga, J, ‘Toward a theory of changereadiness: the roles of appraisal, focus and perceived control’. This articledescribes and constructs a model of performance readiness and highlightscritical variables for consideration. Next , read selected reading 3.3: Elrod IIand Tippett. This article provides an overview of the literature on the humanresponse to change and transition. Transition is the emotional or psychologicalspace the individual enters when confronted by substantial disruption to routine.It is fitting and proper at this juncture in the course to examine this dimension ofhuman behaviour. Indeed, the foibles and unpredictability of individualbehaviour when faced with crisis, real or perceived, may take us some waytowards an understanding of why change interventions sometimes fail inspectacular ways. When you read this article, you should begin to get a feel forthe breadth of response that a change agent can get during a change program.Contingencies need to be considered in any change program, particularly for anyindividual or group of individuals that are known to have a major loss.© University of Southern QueenslandMGT8033 – Leading organisational chnage 853.4.3 Creating a visionVisions and strategies are crucial in shaping and directing change. According to Samson andDaft (2009, p. 263) ‘At the top of the goal hierarchy is the mission – the organisation’sreason for existence. The mission describes the organisation's values, aspirations and reasonsfor being. The formal mission statement is a broadly stated definition of basic business scopeand operations that distinguishes the organisation from others of a similar type’. A visionprovides an indication of the desired state of the organisation and it is something that allorganisational members should be motivated to work towards.We often speak of visions coming from leaders and those near the apex of the organisationalhierarchy. However, if employees are to be truly involved in each step of the change processthen it is appropriate that they are involved in creating a vision. Furthermore, involvement isa useful tool for encouraging the levels of commitment and motivation that will be needed torealise the vision. This is HR at its most basic. As demonstrated and explained throughmotivation theory, individuals are somewhat more likely to engage with or take ownership inwhole or in part of decisions in which they have had some opportunity to contribute.In creating a vision for the future, change leaders often are faced with the daunting task ofhaving to change the corporate culture. This is not an easy task and can take considerabletime depending on the particular organisation.Reading activity 3.5Read selected reading 3.4: by Stewart and O’Brien. This article covers aninterview with Heinrich von Pierer concerning the transformation at Siemens.Pierer originally thought that it would take two years to change the culture,though he now agrees that it takes 10 years. This article shows the growth inSiemens from 1992 to 2004. This is an interesting article and it merits furtherexamination. The following questions should give some structure to enable youto interrogate the arguments and find a position or stance.1. However, do you agree with Pierer about the longer interval required forculture change, or do you think culture can be changed more quickly?2. Pierer felt that being a German CEO was different from CEO’s from othercountries. Why do you think Pierer made this assertion?3. Do you agree or disagree with Pierer's argument? If there is substance to hisargument, then what could this mean for change targeting cultural change ingeneral?3.4.4 Developing political supportWhen conducting a change programme within an organisation it is important to consider thedynamics of the organisation. It is often not enough just to change the technology or workprocesses, for instance. Organisations are political systems in that they consist of coalition ofinterests (Burnes 2004). Many writers view political behaviour as being dysfunctional. Thatis, they believe that politics undermine the interests and goals of the organisation. While thisis often the case, political activity can also have a positive effect by reducing complacencywithin an organisation (Burnes 2004). When any change is occurring, change agents must© University of Southern Queensland86 MGT8033 – Leading organisational chnageconsider the current organisational culture, organisational politics, the organisational powerstructure and other changes that are occurring within the organisation. This is where many ofthe change models are inadequate.It is important to realise that power and politics can greatly affect the way change occurs andthe level of success that eventuates. Organisational dynamics can affect the actions of changeagents (who have their own agendas) and it can prevent seemingly logical and common senseoccurrences from taking place. Furthermore, the change programme can falter if the changeagent is not perceived by organisational members to have the legitimacy (appropriate rank orpower) to carry out the change. To illustrate, performance management systems havedescended in recent times on academics in universities. Historically, academics resisted anymoves which threatened their autonomy, so in many universities, academic staff could workfor several years without undergoing any formal review of their work performance. Mostsuccessful university efforts to install new performance management systems for academicswere headed by professors or highly respected senior persons. Status and legitimate powerenabled change because the legitimacy of the change agent wasn’t questioned.In addition, much has been written in the last 20 years on the learning organisation, which isbased on the sharing of knowledge which accumulates as the entity goes about its day to dayactivities. However, to some this is tantamount to sharing of power. Hence, some individualsprefer not to share their knowledge as this could diminish their own importance andrelevance.3.4.5 The transitionThe emphasis so far, both in this module and the unit in general, has been on preparing forchange. Certainly, planning and preparation are important and will impact upon the successof a change strategy. However, the importance of a transition period should not be underestimated. Even with effective planning, the transition may last some time and will causesome disruptions to varying levels and to all those involved in the change program.When implementing a TQM programme, for example, it may take up to five years for theinitial goals to be realised. This time may involve staff training across the organisation, thedevelopment of new policies to reflect a quality service culture, the development of newwork processes, the implementation of new technology to assist in the delivery of highquality service and/or products, the development of an induction training programme or newstaff and the like. There is also a change in culture involved and this takes time to evolve.The foregoing highlights the need for effective management of the transition process. Thisinvolves the mapping of proposed changes, gaining commitment from key players andeffective management from people within the organisation (i.e. not just the change agent). Itis also important for management to keep in touch with what is happening to the workers.Clearly, some element of trust and respect will be required to enable this necessary exchangeof information, and one can probably foresee that some organisational cultures andmanagement regimes could limit or prevent this from occurring.© University of Southern QueenslandMGT8033 – Leading organisational chnage 873.4.6 Sustaining momentumSustaining the momentum for change refers to the need to maintain the levels of energy andcommitment that are necessary to carry on the change process. This sustenance is necessarybecause of the incremental nature of change that occurs during an OD change programme. Aparticular change programme may also be highly complex and may attempt to changedifferent systems within the organisation. It is therefore essential that energy is sustainedwithin the various departments. It is also important to sustain commitment at all levels of theorganisation. While we tend to consider those at the lower levels of the organisation asrequiring motivation there can also be problems with motivation at the upper levels.The necessity for sustaining momentum has been heightened in recent years. For manyorganisations the environment is so dynamic that they are undergoing almost constantchange. As the environment changes so too do change goals and activities. The changeprocess never really ends. Rather, it is a continuous process that is constantly beingmonitored and re-evaluated. Therefore, for those that prefer to think of equilibrium as thenorm and change as an undesirable event, change is becoming more arduous. The challengeis to encourage organisational members to see change as an opportunity and a necessity, or aseries of opportunities, rather than a chore.You have now been exposed to various aspects of managing change. These are aspects whichare important to the development, selection and implementation of interventions. One couldbe forgiven for asking, if the implementation is complete, what is left in the changeprogramme? However, further work is required in managing the transition, whichincorporates providing feedback, institutionalisation and evaluation of the changeinterventions. In essence, ‘management of change’ necessitates a long term view. Feedbackcan largely be considered to be a contribution to organisational learning, by adding toknowledge, not only regarding the physical elements affected by the change process, but alsoto our understanding of the change process itself. Institutionalising change involves thereinforcement of behaviour, to ensure that it lasts after the euphoria of the change processhas subsided. Evaluation is concerned not only with results, but also how the changeprogramme has affected the gap between desired and actual performance levels, as well asaspects of the project which could be improved on. By feeding-back the lessons learned fromboth the successes and failures of the programme, future initiatives should be able to benefitfrom this.3.4.7 Feedback and evaluation of change interventionsThis final part of this section considers the feeding back of evaluative information tomembers of the organisation and institutionalising, or reinforcing, changes that have beenshown to be effective.3.4.8 Evaluating organisation development interventionsThere is a need to evaluate change so that we can determine whether we have reached thegoals that were initially set. You may remember that in an earlier module we discussed theneed to examine the performance gap, that is, an examination of the current and desiredstates. And so, evaluation requires that we examine this once again to determine whether thegap has begun to close. In order to be able to effectively evaluate change it is imperative thatthe goals are set in such a way that we can determine whether they have been met and to© University of Southern Queensland88 MGT8033 – Leading organisational chnagewhat extent they have been met. This means that we must be able to measure the outcome insome way. In some instances this will be straight forward and we can use quantitativemeasures. In other situations our measurements will be more subjective.The evaluation of change also involves feeding back information to members of theorganisation. While the necessity of feeding back may seem obvious it is essential that this isdone effectively. Not only do members need to know whether the change has been effectivebut unless members of the organisation are involved in the evaluation and are able to conductevaluations on their own in the future then the aims of the change program in all likelihoodhave not been met. Classic change management theory (and this holds today) reflects that theenterprise relies on the change agent at outset, but the real value adding is where the entitythen learns from the experience and rapidly develops the problem-identification, problemsolvingand other skills inherent in the change management role. Ideally, organisationallearning reflects widespread adoption and dissemination of these skills and competencies,and the subsequent decrease of reliance on the change leader.3.4.9 Institutionalising interventionsThe second issue related to evaluation is that of institutionalisation. This step is aboutreinforcing and stabilising effective change in order to make it a more permanent part of theorganisation (Waddell, Cummings & Worley 2011; Harvey & Brown 2005). Without dueconsideration of institutionalisation, organisational members are likely to revert to previouswork methods and processes.In addition to consultation during the change process, it is also necessary to continue someform of consultation until institutionalisation has occurred. The reason for this is that it isessential to identify possible barriers to implementation and to overcome any such barriersthat may exist. Consultation is one process to assist institutionalisation.Reading activity 3.6Read Waddell, Cummings & Worley, chapter 5, pages 175–178 and considerhow you as a change leader could use discourse models to help institutionaliseinterventions.Consider practical ways in which you could feed back evaluative information inyour organisation if you were a change agent for the company taking intoaccount the various discourses that exist in your organisation. Do you think themethod would depend on whether you were an internal or external changeagent? What are some of the other factors that may determine how informationis fed back?Pay particular attention to the range of institutionalisation processes available.Consultation may help to identify some of these issues if they are likely to beproblematic. For instance, if the organisation has moved to a team-basedstructure and the reward system is based on individual rewards thenorganisational members are likely to identify this as being a problem. The pointis, listen to workers and do not underestimate their ability to identify suchproblems.© University of Southern QueenslandMGT8033 – Leading organisational chnage 89Think about how you would go about institutionalising change at yourworkplace. In doing so, you should consider some of the factors that mayundermine a change initiative and contemplate how you would deal with thesefactors.1. What are the two kinds of feedback involved in evaluation and what do theytell us?2. Define institutionalisation and discuss specific institutionalisation processes.From the different surveys undertaken regarding change interventions and theireffectiveness it is apparent that results are divided. It has even been suggestedthat organisational change does work half of the time (Garcia & Haggath1989). However to increase the success rate of OD interventions Garcia andHaggath have suggested certain measures that will assist both OD professionalsand organisations in the implementation of organisational developmentprograms:● Proper diagnosis of the organisation and its problems. This needs to bethorough and feedback should be obtained from all levels of theorganisation.● Greater understanding of OD. Management need to review the history ofthe organisation, look at the theory of OD, educate all concerned in theimplementation of OD (how will it affect them, what are their roles in theimplementation) and nurture trust.● Review structure, technological and behavioural aspects. Do not focusentirely on one aspect. Research indicates that in the past a lot of time hasbe spent on behavioural aspects only.● Compatibility between OD and cultural values. Assess the culture beforeimplementing any change. The OD intervention can be tailored to suit theculture.● Support and commitment. Management need to be supportive andcommitted to the OD intervention. They need to be positive in regard tofeedback from subordinates ensuring open communication between alllevels. There also needs to be a strong relationship between the practitionerand the client. Practitioners must not get too close or too involved with theorganisation or with one particular group within the organisation.● Management need also to follow through until the process has beencompleted. If for instance a manager has been transferred, the replacementmanager needs to be briefed on what stage has been reached and his/her rolein the completion of the program.The above suggestions should help reduce the failure rate of change interventions. Anotherfactor that should help with reducing the failure rate is a greater understanding of soft andhard methods. Much of the early work on organisational change focused on hard methodswithout much consideration of soft methods. The next section will consider the differencesbetween soft and hard methods.© University of Southern Queensland90 MGT8033 – Leading organisational chnage3.5 Soft vs hard methodsSenior (1997) identifies two broad categories of change management strategies, a hardsystems model of change and a soft systems model of change. A hard systems model ofplanned change is designed to handle situations of ‘hard’ complexity, in change initiativeswhere difficulties and resistance is expected. Soft systems models of planned change refer tochanges that involve ‘soft’ complexity. This may include issues relating to culture andcapability. While these terms of soft and hard may be unclear at the moment, they shouldbegin to crystallise as you move through the rest of the module. Many change initiatives willinvolve issues of both ‘soft’ and ‘hard’ complexity, so it is important that we have anunderstanding of both. We will begin with a discussion of the hard systems model of plannedchange.Senior identified the following characteristics of hard and soft problems.Hard problems are bounded in that they:● tend to be smaller scale● are less serious in their implications● can be considered in relative isolation from their organisational context● have clear priorities as to what might be done● generally have quantifiable objectives and performance indicators● have facts which are known and which can contribute to the solution● have agreement by the people involved on what constitutes the problem● tend to have solutions of which the type at least is known● have known time scales● are ‘bounded’ in that they can be considered separately from the wider organisationalcontext and have minimal interactions with the environment.Soft problems are unbounded in that they:● tend to be larger scale● have serious and worrying implications for all concerned● are an interrelated complex of problems which cannot be separated from their context● have many people of different persuasions and origins involved in the problem● have subjective and at best semi-quantifiable objectives● have an absence of knowledge of factors and uncertainty as to what need be known● have little agreement on what constitutes the problem let alone what might be possiblesolutions● have usually been around for some time and will not be solved quickly, if at all; bringingabout an improvement may be all that can be hoped for● have fuzzy time scales● are ‘unbounded’ in that they spread throughout the organisation and, sometimes, beyond.© University of Southern QueenslandMGT8033 – Leading organisational chnage 91According to Senior (1997), hard systems models of change are based on the assumption thatproblems can be solved in a systematic and logical way. Moreover, they are heavilydependant upon clear, largely quantifiable objectives. Senior argues that in response to‘hard’ problems, organisations should adopt a systematic process for managing and directingthe required change. The hard systems model of change as noted by Senior (1997) involvesthree sequential and interrelated stages; the description phase, the options phase and theimplementation phase. Each of the phases of Senior’s model of change is described below.1. The description phase is largely concerned with diagnosis (Senior 1997). The first stepinvolved here is gaining a comprehensive understanding of the system, which can involvea number of sub-processes including a clarification of the need to change, identificationof an opportunity that can be seized upon, and ensuring that the problem faced is indeed‘hard’ in its nature. Next, the parameters for the intervention need to be established, withthe most important of these being the system objectives, but also including constraintsand barriers (Senior 1997). Finally, Senior notes that specific measures must beidentified, in order to monitor progress and effectiveness.2. The second phase outlined by Senior (1997) is the options phase, which is concernedwith identifying potential responses within this 'hard systems' framework. The firstsubordinate process here is the identification of a broad range of options and thediscussion concerning the practicality of each of those options (Senior 1997). Thisdiscussion according to Senior should cover each option being explored in detailincorporating such factors as costs, time requirements, and evaluation of each optionagainst performance measure. According to Senior, by comparing options against thecriteria identified earlier in phase 1, the contribution of each option to the overall issuecan be identified.3. The third and final phase of the hard systems model is the implementation phase (Senior1997), which is basically the ‘action’ phase whereby the options chosen in the previousphase are enacted. Senior notes a strategy must be developed for introducing all of therequired changes and this strategy must embrace three important considerations:participation, the allocation of resources and responsibility, and monitoring progress toensure that the objectives identified are being adhered to (Senior 1997).Take the time to consider this hard model of change. How effective do you think such anapproach would be for ‘soft’ or system wide change initiatives?A number of issues have been highlighted in relation to this ‘hard systems’ approach whichmust be considered. In most cases, organisation-wide or ‘soft’ problems will encounterelements of resistance. In many cases it will be appropriate to use this hard systems model ofchange to deal with peripheral difficulties, in conjunction with a soft systems model formanaging the ‘bigger picture’. The hard systems model is useful in terms of situationanalysis, identifying barriers against successful change, and establishing objectives andguidelines. However, it is limited in terms of its understanding of cultural and politicalelements of the change process (Senior 1997). As such, while it is applicable to a ‘breadth’of surface issues, the hard systems model of change may not be sufficiently ‘deep’ to bringabout transformational and organisation-wide change.© University of Southern Queensland92 MGT8033 – Leading organisational chnageReading activity 3.7Read selected reading 3.5: Senior. This reading provides details andclassifications of soft systems.Follow this with selected reading 3.6: Sirkin, Keenan and Jackson and notetheir DICE framework in terms of the factors that they suggest determine theoutcome of any transformation initiative.Finally read selected reading 3.7: Struckman and Yammarino. They provide acategorisation scheme and response model with readiness factors.Compare and contrast the two approaches by Sirkin et al. and Struckman andYammarino. What similarities and dissimilarities can you see? Relate the twoapproaches to the hard and soft categorisation of Senior.The work of Sirkin et al. and Struckman and Yammarino represent recentmodels of organisational change which have evolved using the conventionalapproach to change. Hence any differences that you note from earlier workrepresents the developmental thinking of theorists who approach organisationalchange using conventional reality. You should consider alternate views, whichare not based on the thinking of conventional reality in an endeavour to stretchyour thinking about change and change models.3.6 Final pointThis section will provide you with a unique perspective, challenging many of theassumptions commonly held in relation to the management of change. Hirsch and DeSourcey (2006), posit a sociological view of organisational change that argues ‘that thelanguage of restructuring is regularly used to mask, reframe, and sugarcoat economic slumpsas possessing positive social outcomes. We conclude by positioning restructuring as animportant component of the current American export of managerial ideology to transnationalcontext and suggest further examination of how restructuring affects the culture of businessin these other national contexts’ (p. 171). Additionally, Hempel and Martinsons (2009)reported the impact of change in eight case studies in China which indicated that Chineseorganisations diverged consistently from initially planned changes. These authors found that'change context is found to influence not only the process of change, but also the content andeven the objectives of change. Since specific practices carry implicit values, the congruencewith existing values influences OC implementation significantly. Multinationalorganizationsmust recognize that a specific practice or policy can represent very differentchanges in different contexts' (p. 459).Consider the above arguments and perspectives, and then take into account the views oftheorists such as Hilmer and Donaldson (1996) who suggested that effective changemanagement cannot be reduced down to a few basic ideas or principles. They argued againstsuch prescriptive fixes, while at the same time discussing how a number of organisationaltools can and should be used. The message is that we need to move away from fads indealing with what they identify as the five important levers of management; structure, action,techniques, clans, and boards of directors. The assertion is that while none of these can be© University of Southern QueenslandMGT8033 – Leading organisational chnage 93ignored, they must be dealt with in a way that is appropriate for the organisation itself, andmanaged using both head and heart. Further they now need to be balanced within aninternational context that may be quite different to the parent source of the change.Reading activity 3.8Selected reading 3.8: Hilmer and Donaldson (1996) introduces students to analternative understanding of what is involved in good management. It criticises‘canned’ programs, suggesting that good management involves both the headand the heart. The head is needed for the development of concepts, following alogical process, and the heart is needed to ensure that key stakeholders areinvolved in, and support the same initiatives. As you are reading, keep thisthought in the back of your mind – ‘success cannot come pre-packaged – it hasto be worked at’ (Hilmer & Donaldson 1996, p. 194). Follow this withselected reading 3.9: by Hirsch and De Sourcey (2006) and the consequencesof restructuring from a sociological perspective. Finally readselected reading 3.10: by Hempel and Martinsons (2009) which features theeight case studies from China. When you have done this consider your positionon how effective you believe change programs would be in an internationalcontext without due consideration of the differences in values in those contexts.3.7 Future directions: Change in a global settingThere is no doubt the business of change is becoming more globalised and more complex.The contribution of organisation development is significant with organisation development’snew methods and interventions. According to Waddell, Cummings & Worley (2014) threetrends are occurring within organisation development:traditional, pragmatic and scholarly.They argue that it is likely that this will result in short term conflict but improved and moreintegrated organisational development in the long term. Further they contend that severalinterrelated contextual trends will affect the context within which organisation developmentmay be applied.Reading activity 3.9You should now read Waddell, Cummings & Worley (2014) chapter 12. Payspecial attention to figure 12.2 and reflect on what is being argued by the textauthors in connection to these trends and their effects on OD. Do you agree withthem?3.8 A few summary pointsThe approach in this course, in the main, has been to provide you with the more traditionalapproach to the nature and type of organisational change. Many students may feel that byfollowing this traditional approach they will have the necessary skills and processes foracting as a change agent by applying these skills and processes with some degree of skill.© University of Southern Queensland94 MGT8033 – Leading organisational chnageThis is likely due to the fact that this would be following conventional wisdom on the natureand types of organisational change. One may be forgiven for coming to this part of the coursethinking that the tools of change will provide the change agent or manager with the necessaryskills and processes to remedy any change situation; that this is your guarantee for effectivechange.Alas, authoritative writers in the organisational change area often fail to draw out the dangersof working with change. Among other things you’ve been exposed to thus far in this courseare various models of change. You will no doubt be aware that the very nature oforganisational change is changing. Product cycles are getting shorter and many organisationsare looking to reinvent themselves more frequently and more dramatically than in any otherperiod in history. Organisations are more mindful of the increased role various stakeholdersin any change episode have and the entity must take account of all their perspectives. Whatthis means is that many of the models we’ve used in the past to explain or predictorganisation change and its effects need to be reassessed for currency and relevance. You areencouraged to delve a little deeper into effective management of organisational change whenwhat we seem to have is more complexity and more chaotic organisational behaviour on aglobal scale.It is important to highlight to you that change is not a black and white issue, and even whenarmed with conventional wisdom and conventional interventions, a change agent is notguaranteed success. Naturally to all perspectives, one of the best tools that a change agentcan bring to bear is a critical mind.Further, no one course can deal with all aspects of change in all situations and that there areseveral areas that we have not considered or only touched on superficially. We havementioned that a change agent must be aware of the cost effectiveness of changeinterventions; however, we have not considered any laws connected with different types ofchange. For example, different organisational sizes can have a great impact on a changeprogram where the organisation is a multi-national, transnational or global organisation.Countries have different laws that can impact on what can be done in their jurisdiction,particularly when it comes to forced changes due to financial problems in an organisation.This can have a significant impact on the shape of an organisation and the strategies that canbe developed. Nevertheless, you have covered in this course enough material to provide youwith a good basis of organisational change such that you should be able to demonstrate anunderstanding of the processes and many of the strategies and techniques which can beapplied to lead, manage and facilitate change. By using the material and your criticalanalytical skills you should be able to take part in or evaluate various change programs andinterventions in a variety of contexts.© University of Southern QueenslandMGT8033 – Leading organisational chnage 95Reference listBurnes, B 2004, Managing change: a strategic approach to organizational dynamics, 4thedn., Financial Times Prentice Hall, Harlow.Cummings, TG & Worley, CG 1997, Organization Development and Change, WestPublishing, Minneapolis.Elrod II, PD & Tippett, DD 2002, ‘The “death valley” of change’, Journal of OrganizationalChange Management, vol. 15, no. 3, pp. 273–91, viewed 23 January 2006, Emerald Insightdatabase, item: 10.1108/09534810210429309.Garcia, J & Haggath, C 1989, ‘OD interventions that work’, Personal Administrator,pp. 90–4.Genus, A 1998, The management of change, perspectives and practice, Thompson BusinessPress, London.Harvey, D & Brown, DR 2005, An experiential approach to organization development,Prentice-Hall International, Upper Saddle River, New Jersey.Hirsch, PM & De Sourcey, M 2006, ‘Organizational restructuring and its consequences:rhetorical and structural’, Annual Review of Sociology, vol. 32, no. 1, pp. 171–89.Hempel, PS & Martinsons, MG 2009, ‘Developing international organizational changetheory using cases from China’, Human relations, vol. 62, no. 4, pp. 459–99.Hilmer, FG & Donaldson, L 1996, Management redeemed: debunking the fads thatundermine our corporations, The Free Press, Sydney, pp. 193–204.Kakabadse, A 1984, ‘Politics of a process consultant’, in A Kakabadse & C Parker (eds),Power, Politics and Organizations: A Behavioural Science View, John Wiley, NY.Robbins, SP, Millett, B, Cacioppe, R & Waters-Marsh, T 1998, Organisational Behaviour:Leading and Managing in Australia and New Zealand, 2nd edn, Prentice Hall, Sydney.Samson, D & Daft, RL 2009, Management, third Asia Pacific Edition, Cengage learningAustralia Pty Limited, South Melbourne.Senior, B 1997, Organisational change, Prentice Hall, Sydney, pp. 254–91.Sirkin, HL, Keenan, P & Jackson, A 2005, ‘The hard side of change management’, HarvardBusiness Review, vol. 83, no. 10, pp. 108–18.Stace, D & Dunphy, D 2001, Beyond the boundaries: leading and re-creating the successfulenterprise, 2nd edn, McGraw-Hill, Sydney.Stewart, H 2009, “ G20 summit recovery package “A global plan on unprecedented scale”restoring banks, restoring growth and boosting trade at the heart of the historiccommunique.” the Guardian 3rd April 2009, viewed 27th April 2009,<http://www.guardian.co.uk/world/2009/apr/03/g20-recovery-package>.Stewart, TA & O’Brien, L 2005, ‘Transforming an industrial giant’, Harvard BusinessReview, vol. 83, no. 2, pp. 114–22.© University of Southern Queensland96 MGT8033 – Leading organisational chnageStruckman, CK & Yammarino, FJ 2003, ‘Organizational change: a categorization schemeand response model with readiness factors’, Organizational Change and Development,vol. 14, pp. 1–50.Waddell, D, Cummings, TG & Worley, CG 2011, Organisational development and change,Asia Pacific, 3rd edn, Thomson Learning, South Melbourne.© University of Southern QueenslandChapter One& TwoHow are the ideas of distance, accessibility, and connectivity related to the processes of human interaction?Q2)What kinds of distance transformations are suggested by the term relative distance? How is the concept of psychological distance related to relative distance?Q3)What does the term culture landscape imply? Is the nature of culture landscape dictated by the physical environment?Q4)From a word atlas, determine, in degree and minute, the locations of New York City; Moscow, Russia; Sydney, Australia; and St. Louis, MOQ5) Explain the concept of scale. What does it mean to be a small-scale or a large-scale map?Q6)What is the difference between a choropleth map and cartogram?COIT20228AssignmentTwoTerm2,2014July 2014 KHCase Study (35%)GeneralInformationInthisassignmentyouwillrespondtoaseriesofquestionsbasedonacasestudy.ThequestionsrelatetocontemporaryaspectsofICTthataffectorganisations.TheassignmentallowsyoutoextendyourknowledgeandcriticalthinkingaboutICTbeyondwhatisstrictlyinthetextbookorcourselectures.Youneedtoreferenceexternalmaterialotherthanthetextbookinordertocompletethisassignmentsuccessfully.UseHarvardformatforallcitationsandthebibliography.CaseStudyThecasestudyistitled“Google,Apple,andMicrosoftStruggleforYourInternetExperience”andissourcedfromtheLaudon&Laudontextbookchapter7.DownloadacopyoftheCaseStudyfromtheOverviewsectionofthecoursewebsite.ThefileisnamedLaudon_CaseStudy_ch7--‐v2.PDF.Downloadthisfilenowifyouhavenotyetdoneso.YourTaskTocompletethisassignment,answerthefourCaseStudyQuestionsoutlinedbelowafterreadingthecasestudyintheLaudon_CaseStudy_ch7--‐v2file.Thesequestionsaredifferentfromtheonesfoundinthetextbook–donotanswerthequestionsfoundinthetextbook.The Case Study Questions1. The business models of Google, Apple, and Microsoft are described as they were about5 years ago – 2009-10. Contrast their business models and comment on their strengthsand weaknesses in the light of today’s marketplace. Explain your reasoning, usingexamples where appropriate.2. Given your research into disruptive technologies or trends in the first assignment, howwill these impact the three large companies and their current business models?3. Describe the mobile platform offerings of Google, Apple, and Microsoft as described inthe case and use current literature to bring them up to date. Which company do youthink is going ahead of its rivals and why? Explain your reasoning.4. In your considered view, are mobile wireless technologies disruptive, or no longerdisruptive, or does it still have some way to go in deeply affecting business and society?Explain your reasoning, using literature and examples to back up your points.COIT20228AssignmentTwoTerm2,2014July 2014 KHWhatyouneedtosubmitYouarerequiredtosubmitasingledocumentinMicrosoftWordformat(.docor.docx).Ifyouuseanyotherwordprocessor,youwillneedtosaveyourworkinWordformat(.docor.docx)beforesubmittingit.MostwordprocessorsallowyoutodoaSave--‐AstoWordformat.UsetheWordtemplateavailablefromthecoursewebsite(Assessmentpage)asablankdocumentintowhichyoucaninsertyourdetailsandassignmentresponse.Warning: penalties are severe for plagiarism. Plagiarism includes copying the work of otherstudents, using purchased answers from Internet services, or un-referenced copying from anyother sources. All submitted files are processed through TurnItIn, a copy detection service.HintsTrytolimiteachresponsetoaround500--‐700words.Ifyoucansaywhatyouneedtosayinless,thenthatisfine–don’twriteforthesakeofwriting.Thereisnosingle“correct”response.Youneedtogiveaconsideredvieworopinionasappropriateandjustifyyourresponsebasedonthecaseandexternalliterature.Youmayusethecoursenewsforumtoaskortodiscusstheissueswithothers.ASESTUDYASSIGNMENT--‐PAGE4COIT20228AssignmentTwoTerm2,2014July 2014 KHAssessmentCriteriaCriteria Mark Range Mark GivenQuestion 1QuestionQuestion 1Limited response that fails to address most or all ofthe discussion points; external literature not used oris not relevant to informing the response.0 - 5Response addresses some but not all of thediscussion points; references used6 - 10Thorough response to discussion points (andpossibly beyond) with good linkage to and use ofexternal literature11 - 15Question 2Question 2Limited response that fails to address most or all ofthe discussion points; external literature not used oris not relevant to informing the response.0 - 5Response addresses some but not all of thediscussion points; references used6 - 10Thorough response to discussion points (andpossibly beyond) with good linkage to and use ofexternal literature11 - 15Question 3Question 3Limited response that fails to address most or all ofthe discussion points; external literature not used oris not relevant to informing the response.0 - 5Response addresses some but not all of thediscussion points; references used6 - 10Thorough response to discussion points (andpossibly beyond) with good linkage to and use ofexternal literature11 - 15Question 4Question 4Limited response that fails to address most or all ofthe discussion points; external literature not used oris not relevant to informing the response.0 - 5Response addresses some but not all of thediscussion points; references used6 - 10Thorough response to discussion points (andpossibly beyond) with good linkage to and use ofexternal literature11 - 15General (Penalty)Referencing (-1 per error, to maximum of -10)Note: this criteria relates to citation format oromission errors (i.e. source appears in reference listbut not cited or not cited correctly). Plagiarism(unreferenced/copied) material will result in a referral to theoffice of Learning and Teaching for action. Severe penaltiesapply should plagiarism be proven.Total possible marks 0 – 60** The total will be expressed out of 35 for results purposes.TERM 2 2014 CQUniversity HRMT11011 – Human Resources in Organisations 1 ASSESSMENT TASK - Written Assessment: Business Report Individually prepare a Business Report that addresses the human resource issues raised in the case study below. Please note: The questions should be used only as a guide for preparation of your analysis and justification in the Business Report. Numbered headings and sub-headings as appropriate are to be used in the report. Your report should be presented within the word limit of 2500 words +/- 10% (excluding the reference list). The Stressed Sales Executive David Welch, marketing manager for Widget International, based in Australia, had an extremely successful year. Sales had exceeded budget by 30 per cent. Units sold were at an all-time high and cost of sales had been reduced by 10 per cent. The only problem David had was with Pauline Cheng. Until this year, Pauline had been the department‘s top sales representative. Popular with customers and her fellow employees, Pauline was ambitious, hardworking and persistent. Pauline, until recently, had been a low maintenance high achiever with considerable potential. Pauline’s behaviour and work performance had changed, however, over the past two months. David had initially ignored her lateness, sudden temper outbursts and frequent absences because of her past performance. Last night at a company social function, however, she had become extremely abusive to Bob Ripley, a manager in the HR department. David decided he had to discuss Pauline’s behaviour and the effect that it was having on her work and her relations with her co-workers. When David broached his concerns with Pauline, she became visibly upset and said she had some personal problems that were making life stressful. When asked if there was anything he could do, Pauline said no. David then suggested that Pauline should talk to someone in HR. Pauline immediately dismissed the suggestion, saying that she didn’t want those ‘do gooders’ interfering in her personal life. Somewhat taken back, David said he needed to know how he could help Pauline as he appreciated her past efforts and valued her as a key member of his team. Pauline replied that all that she needed was for people to ‘keep their noses out of her affairs’. David again attempts to elicit what was wrong, but received no response from Pauline. Shortly after his meeting with Pauline, David received an anonymous email claiming that Bob Ripley was sexually harassing Pauline. Based on The Stressed Sales Executive p 347 in Stone Raymond J, 2014, Managing Human Resources, 4th Edn, John Wiley & Sons, Milton, Queensland. Guide Questions (The questions are not to be transcribed and used as Headings in the report) 1. Who are the major stakeholders in this case? Explain your answer including their respective roles 2. If you were David, what would you do? Justify your response with reference to relevant sources. 3. What ethical and legal matters are involved? Refer also to relevant specific legislation and appropriate jurisdiction.TERM 2 2014 CQUniversity HRMT11011 – Human Resources in Organisations 2 4. What are the responsibilities, including legal requirements, on a manager to pursue matters if an employee refuses to discuss an issue? This assessment item involves research of the academic literature as well as other relevant references, including relevant legislation. Avoid using only textbooks, but the prescribed textbook for the course must be cited in regard to broad requirements highlighted by the case. You are expected to present information and evidence from, and cite at LEAST SIX (6) relevant peer reviewed journal articles, the textbook, plus key legislation (six relevant and well applied peer reviewed academic journals, plus the textbook and key legislation will gain a pass mark for this criterion 8/15). Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to respond to the topic. Written Assessment: Business Report - Marking criteria for individual business report

Each submission will be assessed on the extent to which it meets each of the following criteria: CONTENT: Does your essay demonstrate:CIS3007 EnterpriseSolutions Project	Weighting
a thorough knowledge and critical analysis of the human resource issues identified in the case study expressed within a well-developed and referenced Business Report.	20%
a critical review of the academic literature and legislative framework relevant to the issues identified in the case study? (Should be embedded in the discussion, not presented as a separate section.)	20%
appropriateness of evidence-based responses to the case study topic guide question(s) including an effective analysis of the situation along with relevant commentary on the issues?	20%
appropriate use of argument within the paper, including a properly structured introduction and comprehensive conclusion?	10%
relevant and accurate use of the literature? (minimum to pass - 8/15- this criterion is SIX (6) relevant academic peer reviewed journal articles plus appropriate reference to the prescribed textbook plus reference to and citing of key legislation)	15%
PRESENTATION: Does your essay demonstrate:
clarity of expression/grammar and correct spelling using Australian English?	5%
strict conformity to referencing style of the Author-date system of referencing as set out in the Australian Government Publishing Service 2002, Style Manual for Authors, Editors and Printers, 6th Edn, AGPS, Canberra? (Refer to the most recent CQU Abridged Harvard Referencing Guide)	5%
appropriate presentation of the Business Report formatted as required by the specified Business Report Guidelines and presented within the limit of 2500 words +/- 10% (excluding the reference list)	5%

TERM 2 2014 CQUniversity HRMT11011 – Human Resources in Organisations 1 ASSESSMENT TASK - Written Assessment: Business Report Individually prepare a Business Report that addresses the human resource issues raised in the case study below. Please note: The questions should be used only as a guide for preparation of your analysis and justification in the Business Report. Numbered headings and sub-headings as appropriate are to be used in the report. Your report should be presented within the word limit of 2500 words +/- 10% (excluding the reference list). The Stressed Sales Executive David Welch, marketing manager for Widget International, based in Australia, had an extremely successful year. Sales had exceeded budget by 30 per cent. Units sold were at an all-time high and cost of sales had been reduced by 10 per cent. The only problem David had was with Pauline Cheng. Until this year, Pauline had been the department‘s top sales representative. Popular with customers and her fellow employees, Pauline was ambitious, hardworking and persistent. Pauline, until recently, had been a low maintenance high achiever with considerable potential. Pauline’s behaviour and work performance had changed, however, over the past two months. David had initially ignored her lateness, sudden temper outbursts and frequent absences because of her past performance. Last night at a company social function, however, she had become extremely abusive to Bob Ripley, a manager in the HR department. David decided he had to discuss Pauline’s behaviour and the effect that it was having on her work and her relations with her co-workers. When David broached his concerns with Pauline, she became visibly upset and said she had some personal problems that were making life stressful. When asked if there was anything he could do, Pauline said no. David then suggested that Pauline should talk to someone in HR. Pauline immediately dismissed the suggestion, saying that she didn’t want those ‘do gooders’ interfering in her personal life. Somewhat taken back, David said he needed to know how he could help Pauline as he appreciated her past efforts and valued her as a key member of his team. Pauline replied that all that she needed was for people to ‘keep their noses out of her affairs’. David again attempts to elicit what was wrong, but received no response from Pauline. Shortly after his meeting with Pauline, David received an anonymous email claiming that Bob Ripley was sexually harassing Pauline. Based on The Stressed Sales Executive p 347 in Stone Raymond J, 2014, Managing Human Resources, 4th Edn, John Wiley & Sons, Milton, Queensland. Guide Questions (The questions are not to be transcribed and used as Headings in the report) 1. Who are the major stakeholders in this case? Explain your answer including their respective roles 2. If you were David, what would you do? Justify your response with reference to relevant sources. 3. What ethical and legal matters are involved? Refer also to relevant specific legislation and appropriate jurisdiction.TERM 2 2014 CQUniversity HRMT11011 – Human Resources in Organisations 2 4. What are the responsibilities, including legal requirements, on a manager to pursue matters if an employee refuses to discuss an issue? This assessment item involves research of the academic literature as well as other relevant references, including relevant legislation. Avoid using only textbooks, but the prescribed textbook for the course must be cited in regard to broad requirements highlighted by the case. You are expected to present information and evidence from, and cite at LEAST SIX (6) relevant peer reviewed journal articles, the textbook, plus key legislation (six relevant and well applied peer reviewed academic journals, plus the textbook and key legislation will gain a pass mark for this criterion 8/15). Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to respond to the topic. Written Assessment: Business Report - Marking criteria for individual business report

Each submission will be assessed on the extent to which it meets each of the following criteria: CONTENT: Does your essay demonstrate:	Weighting
a thorough knowledge and critical analysis of the human resource issues identified in the case study expressed within a well-developed and referenced Business Report.	20%
a critical review of the academic literature and legislative framework relevant to the issues identified in the case study? (Should be embedded in the discussion, not presented as a separate section.)	20%
appropriateness of evidence-based responses to the case study topic guide question(s) including an effective analysis of the situation along with relevant commentary on the issues?	20%
appropriate use of argument within the paper, including a properly structured introduction and comprehensive conclusion?	10%
relevant and accurate use of the literature? (minimum to pass - 8/15- this criterion is SIX (6) relevant academic peer reviewed journal articles plus appropriate reference to the prescribed textbook plus reference to and citing of key legislation)	15%
PRESENTATION: Does your essay demonstrate:
clarity of expression/grammar and correct spelling using Australian English?	5%
strict conformity to referencing style of the Author-date system of referencing as set out in the Australian Government Publishing Service 2002, Style Manual for Authors, Editors and Printers, 6th Edn, AGPS, Canberra? (Refer to the most recent CQU Abridged Harvard Referencing Guide)	5%
appropriate presentation of the Business Report formatted as required by the specified Business Report Guidelines and presented within the limit of 2500 words +/- 10% (excluding the reference list)	5%

CIS8010_Assignment 3 SPECIFICATIONSDescription Marks out of Wtg(%) Due dateAssignment 3 (MS Project) 100 35% See the study scheduleThis written assignment is to be electronically submitted through the EASE system inthe CIS8010 Study Desk. Hardcopy or email submission will NOT be accepted andwill NOT be acknowledged. (You MUST use a plagiarism application to ensure that thepart is plagiarism free)Student requirementsThe objective of this assignment is to assess your understanding of basic project managementconcepts and your proficiency in using project management software to produce projectcharts and reports. In particular, the assignment focuses on the following projectmanagement knowledge areas in the PMBOK: project integration management, project scopemanagement, project time management and project resource management.ScenarioCompany XYZ is in the software games application development and has been aware thattheir production of a popular game application will not continue to satisfy consumer demands.This application has seen an increase of about 10 – 12% for the past five years. Currently thegames are sold as individual packs. However, sales forecast has indicated that this will notcontinue due to other products emerging in the market, customer preferences, marketdistribution and price competition.The CEO had asked an internal team to review current processes and propose changes, alongwith upgrades to software to meet the demands for the future. The proposed changes includewriting new games to suit young audiences, licensing options, access to games throughmobile devices and smartphones. The CEO also wanted an upgrade to equipment used todevelop software applications as well as test them, and a redesign of the processes in softwaredevelopment processes with solid metrics relating to the increase in customer markets.This has necessitated XYZ in specific anticipated changes such as team composition,procurement of skills to write software to the mobile and smartphone markets, distribution oftheir applications through telephone companies, and providing ongoing support for access.The above specific changes also warranted XYZ to think about their software teamcomposition, marketing team composition, finance team composition, game writing processaspects, and customer care team composition. XYZ is keen to make changes to their HRcomposition as well as software writing processes, and would like to investigate, if thesechanges were made to the organisational process, whether they would be able to manage thoseprocess changes.The Project PlanXYZ would like to see an outline of a project plan with tentative timelines and cost ranges sothat serious consideration can be given to the process changes. The project plan that XYZwould like to see should include included identification of needs for increased production, aswell as identification of affected departments and/or processes if the increase in productionwere carried out.XYZ knew from experience that changes to software writing (specific to games) wouldimpact other areas. For example, procurement had a set budget for hiring software engineers.The expenditure necessary for software libraries that were not ready to be used in softwarewriting would impact cash flow and require consideration as to how this can be handled asprocurement of software takes time. Further, additional vendors may be sub-contracted in thesoftware development, as XYZ doesn’t have all the skills required. Should the current vendorsbe unable to meet increased demands, then alternative vendors needed to be in place beforeany supply issues arose.So, XYZ is keen to see a proper project plan for identifying the stakeholders and how theywould proceed to gather the data necessary to accurately document the change managementprocesses in order to develop new gaming software. The plan that XYZ is keen to see shouldinclude a detailed list of requirements to achieve the market share, and list HR, software,hardware and other resources.XYZ is also interested in the identification of potential risks and strategies for managing themshould they come to fruition. They wanted to be sure that once they finalise the processchanges for gaming software development, they could accommodate potential changes toother processes. They knew that changing one process would likely have a domino effectthroughout the company. For example, during one of the scenario planning sessions, theproject team found that if procurement was unable to fulfil the skills needs of softwarewriting, without a back up vendor in place, there would potentially be a disaster. As XYZ iskeen to advertise their process changes and advertise that a new game is going to be releasedto the market on a certain date, this would be unacceptable to XYZ and would ultimatelycause customer dissatisfaction, which could lead to a loss of business to competitors.XYZ would like to see a proper breakdown of skill and other procurement options, andseveral milestones, to allow the company to move forward with working with new processesand upgrades to resources without interrupting the current schedule of activities. At eachmilestone, there were several tasks for measuring progress and comparing it to expectedresults and baselines. Assessments were completed regularly to ensure the current plan heldtrue to the objectives. At any point during the project, if the assessments showed deficienciesfrom the objectives, then an evaluation and correction strategy would be required. The WorkBreakdown Structure should also include an induction and training time to get individuals upto speed.The Risk Management Plan should include contingencies should current employees beincapable of delivering the new game software and performing their role in a timely fashion.Part of the contingency plan was to use employees who adapted quickly to the new vision andmix with other employees in the organization. An integrated team concept, includingmentoring, will be put in place to assist people in getting up to speed on new vision.The current status of the company is that XYZ is selling about 250,000 games (the mostpopular game of their product line) per quarter. At the time of the undertaking of the processimprovement initiative, client demand had just reached 240,000, and demand forecastindicates a potential decline by 30% half-annually over the next 3 years.The directive from the executives is to pitch the sales of the new game at 300,000 for the firstquarter in 2016. Based on current projections, the company would experience a five-yeartimeline before having to undertake another increase in production to satisfy growing clientdemand. At that point, if client demand continued to increase, the company would be in abetter position to invest in another production site in order to meet demands after the five yearmark.Additionally, in the current production line there was, on average, a 3.6% defect rate insoftware produced. One of the directives specific to this project was to attempt to reduce thisdefect rate by at least half within the first two years.The following were discovered during the current process analysis:1. Capacity for procurement was limited due to cash flow and budgetary issues, as wellas storage. Any new process needed to take this into consideration once productionincreased and would have to allow for a smooth flow between skill procurement andproduct manufacturing and distribution.2. It became apparent that once the number of game sales increased, demands onwarehousing and delivery would increase accordingly. A plan was put in place tochange warehousing and delivery processes to reduce the strain on these functions.3. The project is allowed to run slightly (8 weeks) over the projected timeline, butshould remain within budget. The increase in the timeline may result from anunderestimate of the skill required, procuring this skill, contractual obligations etc.4. If the decrease in the defect rate was .06%, then this will significantly exceed the goalof 1.8%, thus causing an increase in storage and distribution. Although this is notanticipated in a contingency plan it will not cause the executives to be unhappy. It is agood problem.Your task is to develop a project case for XYZ within the above scenario. If any parts of thescenario in unclear, you are allowed make necessary assumptions, but the assumptions shouldbe realistic. Your task is to develop a project management document to provide an initialidea and scope as to the cost in procuring various resources and timelines. Yoursubmission should include the following documents:1. A complete project plan (PERT & GANTT Chart)2. A Time Schedule for procuring the resources to meet 2016 implementation3. A resource document detailing the type of resources required, cost to procure the resourceand the involvement of the resource in the development4. A set of potential risks that you are anticipating in implementing the systemThe above documents should clearly be developed using a project tool that is available to you.You are required to state your assumptions clearly and package the documents in a professionalreport to the top management for their consideration.Report Submission:Your report submission should be in four parts. The first part should provide a comprehensiveanalysis of your research. This is a simple document, written with supporting arguments as tovarious aspects highlighted, includes proper references etc. You will base this report on yourresearch conducted. The report should be contained within 2000 words. This report is pitchedto the management board and you are asked to use simple language as board members aredrawn from both technical and non-technical domains.The second part of the report contains the project aspects. The four key aspects required forthe development should be explained and properly annotated.The third part of your report should highlight the set of anticipated risks and you plan tomitigate these risks.The final part is the development of a complete project plan through PERT & GANTT ChartOther Report Submission Requirements:1. Remember state your assumptions clearly prior to developing the above documents andyour modeling.2. Only PDF format of the final report is to be submitted through EASE system availablethrough UConnect. (All other mode of submissions are considered as assignment is notsubmitted)OTHER REQUIREMENTSMarks can be deducted for the following errors:1. Problems with format and structure of report2. Lack of referencing (Harvard referencing format is the acceptable standard)3. Spelling, grammar and expression error4. Indication of plagiarism/collusion5. Inappropriate use of in-text references6. Late Submission as per USQ policies and proceduresPlease use the following naming convention when saving your digital document:Student last name_assignment #_CIS8010_Student USQ IDFor example, the first assignment for CIS8010 submitted by Poul Moller, student #005890420163. If I (Mr. Poul Moller) were uploading this assessment item, file would benamed as follow:Moller_A1_CIS8010_005890420163.doc

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