hyper competitiveness & organizational change
DESCRIPTION
The three main forces driving rapid and continuous organisational change are identified; economic imperatives, spiralling consumer demand and technological innovation. Management consultancy activity is identified as heightening the impact of these 3 key drivers of change.TRANSCRIPT
Hyper-Competitiveness & Organisational Change(Lecture 2, Module 2)
James HuntTrimester 3 2012
GSBS6120: Managing Organisational Change
Preliminary Notes – Aspects of Change
• The increasing intensity of competition on a global scale; the Japanese ascendancy in the 1980s, the technology revolution of the 1990s.
• New forms of employment, and changes in organisation: Shamrock Organisations
• Organisational Development
• Resistance to change
• Approaches to change: structural, job-design, personnel, cultural change
• Restructuring and change: two time horizons – short term, long term
• Transition stages in the organisational change process: denial, resistance, exploration, commitment.
Lecture Outline
1. Background – Globalisation and its Impact on Organisational Change
2. Forces for Change – Hyper-competitiveness and Organisational Change
3. Four Frames for Understanding Change in Organisations
.
Where did accelerated organisational change really begin?
How did we arrive at the age of hyper-competitiveness?
Global Economic Forces for Change
1. Low inflation environments
2. Continued reduction in tariffs
Individual Forces for Change
1. Shareholder demand for increased return on investments.
2. Consumer demand for newer, faster, better services and products.
Technological Forces for Change
1. Rapid developments in communication networks.
2. Rapid developments in computer processing capabilities.
3. The emergence of e-commerce.
What has driven organisational change since the early 1980s?
1. Global economic forces
2. Individual forces
3. Technological Forces
The Rise of Management Consultants
• The Rise of the Management Consultancy Industry has spawned an industry in change management.
• Since the 1980s, management consultants have driven many of the changes in large organisations throughout the world.
• Their presence as drivers of change became more pronounced in the 1990s, and their influence remains pervasive today.
The Growth of the Management Consultancy Industry
0
20
40
60
80
100
120
140
160
$US (billions)
Global Revenue Growth in the Management Consultancy Industry (1991-2002)
UNCTD 25 30 36 43.2 51.84 62 73 84.75 98.39 114.24 132.63 152.98
Kennedy 25 30 36 43.2 51.84 62 71.982 83.57 97.02 112.64 130.775 151.829
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Management Consultants: The Organisational Solutions Market
• TQM
• JIT Management
• Reengineering
• Scenario Planning
• Matrix Management
• Strategic Competitive Advantage
• Competency Building
• Customer Segmentation
• Knowledge Management, Intellectual Capital, Triple Bottom Line
• Learning Organisations
Organisational Responses to Change
1. Increasing drive to capture economies of scale
2. mergers, acquisitions, strategic alliances
3. downsizing: leaner, meaner organisations
4. outsourcing: eliminating the fixed costs of employment
5. The emergence of Shamrock and Network organisations.
Charles Handy’s Shamrock organisation
These Organisational Responses have Combined to Produce:
• The Knowledge Economy
• The Information Era
• The Digital Age
These in turn further fuel global, individual and economic forces for change.
Organisational Change and the Information Era
Forces for Change1. Global Economic Forces
Low inflation
Reduced Tariffs
2. Individual forces
Shareholder demands
Consumer demands
3. Technological Forces
Computer processing speed
Communications networks
E-Commerce
Organisational Change and the Information Era
Forces for Change
1. Global Economic Forces
2. Individual forces
3. Technological Forces
Organisational Responses to Change
1. Economies of Scale
2. Mergers, Acquisitions
3. Downsizing
4. Outsourcing
5. Shamrock organisations
6. Network organisations
Organisational Change and the Information Era
Forces for Change
1. Global Economic Forces
2. Individual forces
3. Technological Forces
Organisational Responses to Change
1. Economies of Scale
2. Mergers, Acquisitions
3. Downsizing
4. Outsourcing
5. Shamrock organisations
6. Network organisations
The Management Consultancy
Industry
TQM
Strategic Repositioning
Re-engineering
Organisational Change and the Information Era
Forces for Change
Organisational Responses
Management Consultants
The Knowledge Economy
The Information Era
The Digital Age
Organisational Change and the Information Era
Forces for Change
Organis-ational Responses
Management Consultants
The Knowledge Economy
The Information Era
The Digital Age
How Might Individuals Respond to all this Change and the Emergence of the New World of Work? Some Emerging trends over the past few decades: 1990 - 2013
More individuals are now more open to discontinuity.
Individuals in organisations have developed a heightened sense of self-reliance.
Individuals now take more responsibility for their own career development.
Personal investment in knowledge acquisition and competency profile building.
Employers are increasingly viewed as temporary partners.
Growing recognition of the importance of building networks and reputation widely
– across industries
– across occupational fields
Greater consideration of self-employment opportunities.
Some Further Reading:
• Hunt, J. (2003) Chapter 1: The Anatomy of Organisational Change in the Twenty-first Century. In Wiesner, R. & Millett, B. (Eds.), Human Resource Management: Challenges and Future Directions, John Wiley, Queensland.
• Semler, R. (1989) ‘Managing Without Managers’, Harvard Business Review, Vol. 67, Iss. 5 (September-October): 76-84.
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