Week 6 – HRMT20019

Carnall, C, 2007, ‘Theories of change: critical perspectives’ in Managing Organisational Change, 5th ed, Prentice Hall

Synopsis

Proponents of the systems theory of change management assert that it is necessary to ensure that an organisation’s inter-connecting processes and work units are structured towards the attainment of a common goal. Contingency theorists, however, do not support this concept of a universal method suitable for all situations, maintaining instead that organisations are largely at the mercy of unexpected events (contingencies) and should base decisions only after considering which part of the organisation is affected by current events and then managing that specific situation accordingly. Carnall (2007) noted that complexity of tasks can often be the catalyst for innovation with people designing more efficient work methods and practices and then adapting them as they seek improvements. This continuous process of ‘learning, evolution and adaptation’ is the basis of complexity theory.

Critique

Clunky, outdated procedures and hierarchal decision-making pathways which impede its ability to implement new work methods or innovative products will reduce an organisation’s ability to take advantage of opportunities. Leaders must encourage creativity, welcome innovation and support the concept of continuous learning. People need to know that their leaders are receptive to new ideas and the structure and design of the organisation must be able to accommodate any subsequent impacts, whether these impacts are initially positive or negative. This can be confronting, particularly for larger organisations which have historically adopted conservative, risk-aversive strategies but a more laissez-faire style of leadership, where people participate in the decision-making and know that leaders will support initiatives, will increase the willingness of staff to experiment with new, potentially more efficient, ways of doing old tasks.

Reflection

An organisation that wishes to prosper in an ever-shrinking and increasingly competitive market must be able to rapidly integrate emergent technologies into business practice and to have solid, yet flexible and adaptive, processes that encourage creativity to flourish and innovative initiatives to be implemented in an efficient and timely way. In order to find the most suitable approach for managing continuous organisational change Carnall (2007) examined several change management theories, ultimately concluding that this exercise raised ‘more questions than answers’ (p.92). Today’s organisations exist in a constant state of change and a structure which has at its core value a desire to continuously increase innovative capability will better position an organisation to react quickly to changed circumstances.