The document discusses various organizational structures and aspects of managing change. It describes line management relationships between managers and subordinates, and staff relationships between different functional departments in an advisory capacity. It also discusses project structures used for complex multi-disciplinary projects that disband upon completion. When describing organizational structure, it identifies five key elements: specialization, departmentalization, chain of command, span of control, and decentralization. The document also covers reasons for change, managing resistance to change, models for change management, the role of change agents, and stakeholders in the change process.

1. Staff Relationships
• Line management describes the direct
relationship between a manager and his/her
subordinates.
• "Staff" relationships describes the indirect
relationships between different functional
departments where some interact in an
advisory capacity with managers in other
departments

3. Matrix Structure

4. Project Structures
• Similar as Matrix
• The emphasis is on multi-disciplinary teams
involved in complex projects
• Few members drawn from lower and higher
levels of specialists departments
• Disband when the project is completed
• Higher flexibility

5. Project Structures

6. • The structure of an organisation, then, is the formal pattern or
framework of interactions and co-ordination designed by
management to link the tasks of individuals and groups in the
achievement of organisational goals.
• Mintzberg, identifies five key elements to an organisation's
structure.

7. Elements

8. The virtual organization
• The possibility of international or global
business for relatively small organisations
• Less need for office bound staff.

9. The virtual organization

10. CHANGE AND THE BUSINESS
ENVIRONMENT

11. What is change?
• Change = any situation where conditions differ from
one time to another
• Development = planned change to accomplish
objectives
• Change can be the result of many factors
• The rate of change has never been greater
– internal and external environments are subject to constant
change.
• To survive and prosper, every organisation must
identify the changes that affect it and adjust its
operations to maximise or minimise these effects as
best as it can.

12. What are the Reasons why
organizations need to change to
survive?
• The external environment (PEST Analysis)
– What are the threats and opportunities from the
external environment in the short and longer
term?
– How can we minimise these threats?
– How can we take maximum advantage of the
opportunities which may exist?
– What advantages do we have over our
competitors and how do these changes help us?
– What are our limitations?

13. The PEST
• Political
– Organisations are influenced by politics,
government policies, laws and other regulations
• Economic
– Firms operate in conditions of economic booms
and lows (recession)
– Rates such as interest and tax change
– Investment levels go up and down.

14. The PEST …
• Social
– Organisational culture is affected by the culture of
the society in which it operates.
– Changes in lifestyles affect the market not only
employee.
– Social mobility, demography, family size, etc. have
an effect on the human resources inputs and the
market.
• Technological

15. How can the firm influence its external
environment ?
• Plan ahead for foreseen threats and
opportunities
• React quickly if changes happen suddenly?
• Use technology
• Corporate responsibility initiatives
• Marketing and other activities

16. How does the internal environment
respond to change?
• Constantly monitor progress in achieving objectives
– Changing the organisational structure, working procedures
and systems, and management methods
• Be aware of the areas in which change is most likely
– Staffing levels
– Location of employment
– Working practices
• Change is best implemented incrementally
– Small entrepreneurial vs big multi national
– Transformational change in bureaucratic organizations

17. Change and the context of the
organization – Johnson and Scholes

18. MANAGING THE CHANGE
PROCESS

19. Why does change often meet
resistance?
• Fear of loosing power and authority
• Fear of loosing jobs, friends, status quo
• Uncertainty of the change results

20. Planning and Communication
• Resistant to change is a normal human behavior
• A change manager must have skills to minimize
resistance by proper planning and communication
– Involve other managers such as the HRM
– Effectively communicate
• The reasons for change must be communicated effectively by
focusing on the main points
• Communicate points in a manner that indicates their significance
and
• acknowledges the challenges for all involved in the organization
• Make communication two-way by involving all employees in
planning the change itself.
– Union representatives need to be involved as early as
possible

21. • Communication channels for change
– Group meetings
– One-to-one sessions
– Online questionnaires
– Telephone and video conferencing
– Traditional written mechanisms such as memos,
circulars and using notice boards

22. • Disadvantages of using written mechanisms
– They are impersonal and make the employee feel
isolated from the change
– They can cause low esteem and alienation if their
opinions and feelings seem not relevant.
• Therefore , where proposed changes are
significant and particularly when they involve
complex issues, the use of memos and notices
should be minimised

23. Change Models
• Schein's "unfreeze-change-refreeze" model
• Lewin’s "force field analysis" model
– Driving forces vs Restraining forces
– There are two ways to deal with change:
• Strengthen driving forces
– Encourage those who are associated with it
– Educate those who are against it
• Weaken restraining forces
– Win over opponents through change agents
– Buy them off through the offering of concessions
– Involve them in participation principles such as quality circles
– Use management position and powers to convince opponents
into accepting change

25. • Never force change
• Eliminate or weaken restrainning forces first
• Increasing driving forces before reducing
restraining forces often increases the
restraining forces in reaction

26. The role of change agents
• New CEO and/or senior managers are recruited
to effect change
• Ensure that the conditions are right for the
change agent to have the desired effect

27. Change agent programmes
• Some companies develop change agent
programmes where they bring together a group
of people who are given specific training and
tasks to assist the organisation in making the
planned change
• Change agents are not limited by the traditional
organisational structure
• They implement new processes, directly or
indirectly, train employees on new procedures
and act as role models to demonstrate new and
better ways to work

28. Change agents programme
requirements
• Careful recruitment and development of
personnel
• Close integration between the change agent
team and the organisational areas targeted for
transformation
• Highly detailed programme design

29. Stakeholders and change
• Managers
• Employees
• Customers
• Shareholders
• The community

30. STRATEGIC CHOICES
CHAP 3

31. THE LIFE CYCLE CONCEPT

32. THE NATURE OF STRATEGIC
MANAGEMENT
• Every organisation’s decisions are influenced by a
number of factors:
– Its purpose
– The external environment
– The internal environment
– The stage in its life cycle.
• Strategic management is concerned with deciding
on the organisation’s long term goal and making
choices about how to achieve that goal within the
parameters in which it is working

33. The Strategic Planning Format