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Dynamics of Organizational Change. Özge Pala Jac A. M. Vennix Nijmegen School of Management Nijmegen University, The Netherlands. Contents. Previous SD models on organizational change New model: Base model Appropriateness of strategy Implementation success Behavior of the model

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dynamics of organizational change

Dynamics of Organizational Change

Özge Pala

Jac A. M. Vennix

Nijmegen School of Management

Nijmegen University, The Netherlands

contents
Contents
  • Previous SD models on organizational change
  • New model:
    • Base model
    • Appropriateness of strategy
    • Implementation success
  • Behavior of the model
  • Conclusions
  • Future research
previous models on organizational change
Previous Models on Organizational Change
  • 1965: McPherson - Organizational Change: An Industrial Dynamics Approach.
  • 1989: Jacobsen&Samuel - Planned Organizational Change: Theory, Model, Data, and Simulation.
  • 1991: Frechette&Spital - A Model of Organizational Change.
  • 1996: Larsen&Lomi - The Dynamics of Organizational Inertia, survival, and Change.
  • 1997: Sastry - Problems and Paradoxes in a Model of Punctuated Organizational Change
appropriateness added6
Appropriateness added

Old organization

1: base model

2: base model with appropriateness

Young organization

1: base model

2: base model with appropriateness

Old organization

High initial inertia.

Change starts too late when pressure is high and appropriateness low

implementation success

consistency

consistency

+

decrease

increase

-

change percentage

fit decrease

internal

+

consistency

-

+

fit of SO

+

+

-

+

+

performance

+

change in fit

-

perceived fit

-

+

appropriateness

inertia decr

+

+

fit gap

PERFORMANCE

effectiveness

-

+

-

pressure to

+

completed changes

implementation

inertia incr

change

avg perf gap

STRATEGIC FIT

success

+

+

+

+

-

-

accuracy of

change in

+

new changes

perception

process

started

inertia

+

sust perf gap

+

+

-

-

+

INERTIA

INFO PROCESS

ability to

-

change

threshold

-

information

quality of

processing capacity

information

processing

+

resistance to

perc press to change

communicative

change

IMPLEMENTATION

nature

+

duration of

SUCCESS

+

change

effect of duration

+

+

-

+

-

effect of ch in

normal resistance

change in

process

to change

+

-

resistance

+

Implementation Success
appropriateness and success added
Appropriateness and success added

Young organization

Old organization

Old organization with high inertia

Old organization with high inertia, without threshold

different kinds of environment
Different kinds of environment

1: one time (punctuated) change, pulse function

2: incremental changes, fit decay function

3: one time (punctuated) change and incremental changes together

Old organization Young organization

decay pulse old organization
Decay + pulse, old organization

old organization, better communication

Under severe circumstances, e.g. faster incremental changes

W/o info-processing loop, assume appropriateness =1

conclusions
Conclusions
  • Not scanning the environment continuously can have detrimental effects for old, highly inert organizations
  • In environments in which there are incremental changes, organizations should
    • Scan their environment better
    • Be more alert to changes and
    • Have strategies other than punctuated change
  • Both reacting too fast and too slow can be harmful.
    • Too fast => unnecessary amount of changes,
    • Too slow => death
    • Organizational theorists should try to come up with criteria on how soon an organization should react to changes in the environment.