STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management

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Change Management MGMT625

Lesson # 30

STRATEGIC CHANGE

This lesson is primarily based on the article written by Appelbaum, Steven H. Normand, St-Pierre and

William, Glavas, Title of the article is, "Strategic organizational Change: The Role of Leadership,

Learning, Motivation and Productivity," and it is published in the journal of Management Decision. In

it the model is given identified as Strategic Organizational Change (SOC). Here, in this lesson some

conceptual aspects of SOC are presented. But before we discuss this concept let us first know the

contextual aspects of management theories and models

The Context of Management Theories

Most of the theorist followed in post World War II era, the organizational efficiency model of Fredrick

Taylor with closed system approach, narrowly focussing control-oriented organizations with the

following traits:

Complex organizational structure

Simple, monotonous, routine tasks, while

Ignoring environmental dynamics

In other words mechanistic approach was followed which dehumanised the work and organization. But

today's environment is different as worker/employee and consumer is flexible in its behavioural (or

choice). Imperative for change management student is to observe that most of the time research on the

given subject is oriented towards humanizing work, management techniques etc.

Attributes of SOC Model

The Strategic Organizational Change (SOC) will be referred to as a flexible strategic planning process

as opposed to a static form of strategic planning. Mintzberg talked in one sense about the same as of

intended realised strategy debate. The intended strategy leads to or has two components; realised and

unrealised parts or strategies. The unrealised component is something which is unplanned and not

envisaged by planners is also known as emergent strategy. The emergent strategy gives us an idea that a

policy or strategy and strategy making phenomenon is not a one time phenomenon rather is a

continuously evolved process keeping in view the environmental change and on ground dynamics.

Therefore the strategy should be kept flexible enough to incorporate the emergent aspects.

Intended Strategy

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Realised Strategy

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Emergent (unintended) Strategy

Because organizational change has become an integral part of the planning and formulation of

organizational strategies, while in the classical strategic planning model planning came before

formulation (in isolation) does not apply anymore. It can therefore be suggested that strategic

organizational change encompass ongoing initiatives that are directed from the top to the bottom of the

organization and has a profound effect on the depth of the change effort.

The above perspectives may also imply that SOC in today's environment would involve organizational

transformations from mass production to lean production, the adoption of advance manufacturing

technologies and the implementation of total quality management systems (since demand or consumer

behaviour changes frequently)

Another feature of SOC is that it can be reactive or proactive as well. Similarly SOC can be directed,

intended or continuous, discontinuous, consequential and unconsciously creeping in organization

Sources of change

Strategic organizational change can emanate from two different sources: change can either originate

Change Management MGMT625

from the external environment such as changes in competitors' actions, government regulations,

economic conditions and technological advances.

Example of this change can be as government's policy to de-regulate or privatize industry. In other

words the trade liberalization policy of government and other variety of policies such as import

substitution and zero tariff regimes (opposite to each other) impacts business organization decisively for

change.

Similarly suppliers also have an impact on organizations. According to one scholar, organizations ...

take inputs from the environment (e.g. suppliers), transform some of these inputs, and send them back

into the environment as outputs (e.g. products) (Johns, 1983).

Similarly change can also originate from within an organization. These changes could be new corporate

vision and mission, the purchase of new technology, mergers and acquisitions and the decline in the

morale of the company.

Consequently, among the most common and influential forces of organizational change are the

emergence of new competitors, innovations in technology, new company leadership, and evolving

attitudes towards work

Implications for Management

Rise of uncertainty as was during Taylor's (1911) times, for which he reclined to scientific

management, that was to discover one best way to do things and efficiency based routines. But in

present times rise of uncertainty in environment is dealt with the suggestion of doing best in

different and multiple ways. This is management is perhaps best explained by contingency school

of thought. The crux of this approach is that performance and productivity in organization is

contingent upon its size, location, nature of industry etc.

Another equally important approach which is now widely suggested is of equi-finality which

believes that success can be achieved in following through multiple paths (instead of single path).

Therefore cultural way of doing and decentralized structure is preferred for getting best (higher

productivity) instead of recourse to generalised and universal ways of doing things.

So for managers the imperative is to work in teams and learn multi-disciplinary skills in order to

become not only a functional specialist but also a generalist (cross-functionalist) as well. Hence

general management skills are required more in organisation from this perspective.

Organization should believe in contingency planning and to have an adaptive capacity to meet

environmental challenges.

Dehumanized work place or mechanistic organization should be replaced with organic, open and

interactive environment. Participative and democratization of work practices is suggested going by

this approach.

Appelbaum suggested some key management change variables which should include goals and

strategies, technologies, job design, organizational structure and people. Other focussed on the

intervention strategies that managers (organization) must know and apply. So here we will discuss the

followings:

1. Organizational vision: goals and strategies

The firms' internal capabilities to be evaluated, vision to be communicated with employees (e.g. about

quality and quantity of objectives- setting process). Unrealised goals and poor or lack of

communication, commitment from the top/seniors may impede the change management process. For

Change Management MGMT625

example this is stated to be the requirement of ISO certification that each and every member of

organization undergoing certification should know what their mission, vision and values are. This is

why one can observe that employees wear badges with inscribed quality statement of the company, and

every prominent place at factory and in offices also contain vision and mission statements for the

purpose of enhanced communicability.

References:

Appelbaum, Steven H. Normand, St-Pierre and William, Glavas, "Strategic organizational Change: The

Role of Leadership, Learning, Motivation and Productivity," and published in the journal Management

Decision Vol. 36 No 5, (1998), pp: 289-301

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