Group 1 :

Debdeep Chatterjee

Rakhi Jain

Vinayak Pareek

Shapes Of

Organizational

Change

Presentation Outline

Part – I : Theoretical Framework

Part – II : Case Study and the Link to the Model Presented in Part I

Part III :Conclusion

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.

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

Punctuated Equilibrium Model(Contd..)

• Double Loop Learning Process

• Four Types of Organization Change –

– Fine Tuning

– Incremental Adjustment

– Modular Transformation

– Corporate Transformation

Unexplored Issues

• Shapes of Organizational Change

•Role of the Top and Middle Management

INCREMENTAL CHANGE

RADICAL CHANGE

Issue 1 – Shapes of Organization Change

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”

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

The CEO search

• Management By Edict

• Status Quo Tendency

• Self cloning

– Homosocial reproduction

• Heir Influencer

From the familiar to more universal

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

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.

Thank you!!