Change Management

MBA 6113Unit 1Organizations and Their Changing Environments

The Organization as a System

• Origins in Kantian thinking (Immanuel Kant)*

• Organisms in nature can be considered “as if” they are systems• Systems are wholes comprised of parts that interact in self-

generating, self-organizing ways• These interactions lead to emergent design• Systems are purposive moving in a developmental pattern (e.g.

embryonic to maturity)• Causality is formative with regard to the developmental path (i.e.

unfolding that which was already “enfolded” in the beginning)

*Further reading: Strategic Management and Organisational Dynamics – Ralph D. Stacey

Systems Thinking Now• Peter Senge – The Fifth Discipline: The Art and Practice of the

Learning Organization• Systems thinking as the fifth discipline that integrates

• Personal mastery• Mental models• Shared vision• Team learning

• Seeking “Strategic Logic” – (Strategic plan objectives matches organization’s capabilities)• Evaluated via

• SWOT Analysis• Industry Structure and Value Chain Analysis• Product Life Cycle Analysis• Experience Curve Analysis• Product Portfolio Analysis

Systems Thinking Now – Cont’d

Systems Thinking Now – Cont’d

Historical Context for Change Mgmt

• Industrial Age• Scientific management• Emphasis upon task-oriented activities• Rigid structures• Lack of creativity (e.g. Ford’s Model T)

• Neo-Industrial Age – the new economy• Value oriented activities• Knowledge management• Driven by innovation, creativity, change, customization

PEST Factors and Organizational Change