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Dynamics of Organizational Change

Explore the base model and the appropriateness of strategy in organizational change. Examine the behavior of the model and factors influencing implementation success. Discover the implications for future research in the field of organizational change dynamics.

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Dynamics of Organizational Change

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  1. Dynamics of Organizational Change Özge Pala Jac A. M. Vennix Nijmegen School of Management Nijmegen University, The Netherlands

  2. Contents • Previous SD models on organizational change • New model: • Base model • Appropriateness of strategy • Implementation success • Behavior of the model • Conclusions • Future research

  3. 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

  4. Base model

  5. Appropriateness added

  6. 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

  7. 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

  8. Appropriateness and success added Young organization Old organization Old organization with high inertia Old organization with high inertia, without threshold

  9. 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

  10. Decay + pulse, old organization old organization, better communication Under severe circumstances, e.g. faster incremental changes W/o info-processing loop, assume appropriateness =1

  11. 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.

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