1. Shapes Of
Organizational
Change
Group 1 :
Debdeep Chatterjee
Rakhi Jain
Vinayak Pareek

2. Presentation Outline
Part – I : Theoretical Framework
Part – II : Case Study and the Link to
the Model Presented in Part I
Part III :Conclusion

3. Punctuated Equilibrium Model
 Tushman and Romanelli (1985)
 Two Types of Changes – Rapid and Incremental
MODEL - Rapid Changes are relatively shorter
periods of time sandwiched between relatively
long time spans of incremental changes and
adaptation.

4. Domains of Organizational Activity
Firm’s Strategic Orientation can be
categorized into five domains –
1. Organization Culture
2. Strategy
3. Structure
4. Power Distributions
5. Control Systems

5. Punctuated Equilibrium Model(Contd..)
• Double Loop Learning Process
• Four Types of Organization Change –
– Fine Tuning
– Incremental Adjustment
– Modular Transformation
– Corporate Transformation

6. Unexplored Issues
• Shapes of Organizational
Change
• Role of the Top and Middle
Management

7. Issue 1 – Shapes of Organization Change
RADICAL CHANGE
INCREMENTAL CHANGE

8. Issue 2 – Role of Management
• According to Tushman and
Romanelli – Top management is
the only one which can bring the
“Radical Change” While middle
management brings about the
“Incremental Change”

9. Heineken
• 1940’s Radical CEO decision
– Controlled , Rational Adaption theory
• 1980’s -Changing Preferences
– Executive Myopia
– Snoep –The Outsider
– Oostra – The outsider part 2
– Van Soest –Ivory Tower
– Strobos – green book
• Internal Politics

10. The CEO search
• Management By Edict
• Status Quo Tendency
• Self cloning
– Homosocial reproduction
• Heir Influencer
From the familiar to more universal

11. Change in Distribution System – Radical Change
followed by incremental changes
• New distribution strategy targeting supermarkets as
well as pubs post 2nd World War. Wholesalers were
given importance.
• Strategy as a response to environmental changes
viewed as an opportunity.
• Middle management carried out & fine tuned the
change initiated by top management
• Resistance from commercial managers, lower
management & sales people
• Observed, unexpected challenge triggers initial
radical change succeeded by incremental changes

12. Structural Inertia & CEO succession: Incremental
Change followed by Radical Change
• Environmental changes in 1990s necessitated
changes, which were blocked by incumbent CEO
Freddy Heineken.
• All subsequent general directors were unable to
change the organization due to inertia.
• Retirement of CEO Freddy Heineken provided an
opportunity for change.
• His successor Van Schaik couldn't implement the
changes as he was viewed as transitory & Freddy
had a huge background influence.
• Schaik’s successor Vuursteen was able to
radically change the organization. His success
was attributed to the fact that his appointment
was approved by Freddy & also the latter’s
influence had become less prominent.

13. Thank you!!