Power Dynamics in Organisation Change

In: Business and Management

Submitted By ayushag03
Words 374
Pages 2
Power is viewed as the potential ability of an individual agent to influence the target within a certain system or context. Literature says that the different power that can be manifested must be mobized in a proper manner to get the desired output.
As per the Volkswagen case one of the powers that has come up is the Corporate Power. Corporate power can be assessed by looking at the strength of countervailing forces seeking to limit the influence of corporations. In other words, by looking at the forces that oppose the concentration of power in corporations, we can gain some insight into the power of corporations.

The increasing popularity of business ethics and corporate social responsibility over the past 30 years has happened at the same time as the colossal growth of global corporate power.
Two of the key causes of the scandal were that the senior executives did not fully understand the intricacies of the products being used; and that speaking out and challenging decisions were implicitly discouraged.
There are evidences that show that exercise of coercive/ reward power as well ill use of the legitimate power was there in the organizations.
The pressure that was put on the managers at Volkswagen was unusual which led to the crisis perhaps. One of the supervisory members of the company said “We need in future a climate in which problems aren’t hidden but can be openly communicated to superiors”. This shows how senior executives curbed the new ideas or the hidden issues to come up. Much of it is exercise of legitimate and reward power.
Another former VW executive spoke of an authoritarian style, describing how sometimes CEOs of brands could be treated "quite disrespectfully". Such grillings were not typical of the industry, said the executive, who now works for another international manufacturer. A previous VW chief in the United States, Jonathan…...

Similar Documents

Managing Change in a Contemporary Organisation

...Managing Change in a Contemporary Organisation At the beginning of the 21st century the forms of change within organisations have been innovatory and a widespread conviction has arisen as to the revolutionary nature to such changes as a sign of the times, (Pettigrew & Massini, 2003). While Tushman & O’Reilly III (1996) argue that the industry level of studies has not been helpful in illustrating the path of organisation’s change, Greiner (1972) outlines a corporate growth model in order to provide a useful framework in understanding organisational change. Psychologists believe that learning as a human behaviour can be defined as the relatively permanent change in actions as a result of experience or practice, (Baars, 1986). Reflecting and highlighting this concept in relation to an organisation it is subsequently essential to look at organisational change from a historical perspective as organisations learn from their own experiences. Thus innovations in terms of evolutionary and revolutionary change occur at each organisational growth level as determined by Greiner (1972). To answer these fundamental questions about the nature of organisational change it is vital to distinguish between two levels of change. Similarly the factors that directly influence organisational behaviour and organisational features that determine these factors should be examined in turn need to be considered. In line with Greiner’s (1972) theory each of the organisational elements and processes are......

Words: 2902 - Pages: 12

Describe the Changes in Family Dynamics at the Birth of a Child

...closer together in many ways. Many changes take effect in every aspect of everyone involved from the parents, to the siblings, grandparents and extended family. When a new baby is brought into the home, everything revolves around him. Everyone in the home will need to make changes to welcome the new member of the family. Family dynamics endure many changes. Bringing a new baby home is an exciting time for everyone, especially the baby. The baby is now in a new environment outside of it’s warm, safe and quiet cocoon that it was sheltered in for nine months. Newborn’s generally sleep 2-4 hours between feedings and can get very fussy when they wake in order to be fed. The only skill they have is to cry in order to alert that they are hungry. Without this skill they would not be able to alert their caregivers that they are hungry, tired, or need to be changed. Within the first few days, babies become more alert and give cues to their parents. Being more alert means they feed more frequently. But, being alert also means they will be sensitive to all the discomforts of the new world they have entered. Some babies are better than others with dealing with stimulation and calming down when their parents try to soothe them. It is important for parents to be careful not to let them get overstimulated. As the new baby’s cries fill the air, everyone in the household will need to make adjustments in their own way. The mother experiences the most changes, beginning with her physical......

Words: 454 - Pages: 2

Supporting Change in the Organisation

...the impact of change within my organisation. The assignment will include information on why there is a need for change, how change effects organisations, the behavioural responses to change and the support that Human Resources (HR) can provide during these changes. 3G is a communications company focused on bringing the benefits of the internet to the mobile telephone. The 3G network is built for data and future-proofed for 4G technologies. The organisation has invested billions of pounds developing and expanding the network which means 3G can connect more people to the internet in more places, whilst increasing the capacity to meet the ever-growing demand for data. The main customers are consumer based, with over 90% of them choosing smartphones, were they are increasingly opting for all-you-can-eat data plans. These plans give the customers the freedom to get the most out of their smartphone, without fear of how much it will cost. 3G aim to be here to help customers discover all the benefits of the mobile internet. They do this by having a network designed for data, and by inspiring people to explore new things, 3G aim to take away any barriers that prevent the customers embracing it. The organisation has also worked hard to make it easier for customers to manage their accounts and their interactions with 3G, by providing unique services that are made possible by the network and the mobile internet access it provides. 3G strives to challenge and change the mobile......

Words: 1463 - Pages: 6

Organisation Change

...entThe Change Management Life Cycle: How to Involve Your People to Ensure Success at Every Stage +1 (703) 558-4445 • (877) 766-3337 An ESI International White Paper www.esi-intl.com Table of Contents Abstract .................................................................................................................................. 3 Introduction .......................................................................................................................... 4 Why Change?......................................................................................................................... 5 The Elements of Change ..................................................................................................... 5 The Change Management Life Cycle ............................................................................... 7 Phase 1: Identify the Change ............................................................................................. 8 Phase 2: Engage the People .............................................................................................10 Phase 3: Implement the Change ..................................................................................... 12 Conclusion ...........................................................................................................................14 References ......................................................................................................................

Words: 4097 - Pages: 17

Organisation Change

...ORGANISATION CHANGE AND LEADERSHIP 1 Fullstream Transformation Model UPSTREAM CHANGE (Setting the Foundations for Success) DOWNSTREAM MIDSTREAM CHANGE CHANGE (Implementation) (Design) 2 The Change Leader’s Roadmap Hear the Wake-up Call TM I. Prepare to Lead the Change IX. Learn and Course Correct II. Create Organizational Vision, Commitment, and Capability VIII. Celebrate and Integrate the New State III. Assess the Situation to Determine Design Requirements VII. Implement the Change IV. Design the Desired State VI. Plan and Organize for Implementation V. Analyze the Impacts 3 The Change Leader’s Roadmap as a Fullstream Process TM 4 The Change Leader’s Roadmap Hear the Wake-up Call I. Prepare to Lead the Change TM IX. Learn and Course Correct II. Create Organizational Vision, Commitment, and Capability VIII. Celebrate and Integrate the New State III. Assess the Situation to Determine Design Requirements VII. Implement the Change IV. Design the Desired State VI. Plan and Organize for Implementation V. Analyze the Impacts 5 UPSTREAM CHANGE Phase I: Prepare to Lead the Change Phase II: Create Organizational Vision, Commitment, and Capability Phase III: Assess the Situation to Determine Design Requirements 6 PHASE I: PREPARE TO LEAD THE CHANGE CHAPTER 1 START UP, STAFF, AND CREATE YOUR CASE FOR CHANGE 7 Organisation Change • It happens when a group of people......

Words: 3059 - Pages: 13

Ilm Understanding the Forces of Change in an Organisation

...Mike Glaze Park Cakes Understanding the Forces for Change in an Organisation Company overview * Park cakes are a company producing premium cakes and desserts for supply to the major multiples. It consists of two sites Oldham site producing high end speciality cakes and confectionaries and Bolton bakery producing high end market cakes and mid range cakes. * This project is covering the Bolton site which is a medium sized site within a semi built up area consisting of a mix of housing and local small businesses. The site is around 10 acres and has good access and egress and good transport links to major motorways. Having had moderate investment over the past few years the site is in good condition and scores well with external auditors, the site layout is good having a clear intake through production to despatch. Current turnover of approx 45 million with current site capability with current kit and intake despatch capabilities of around 60 million, with around 25% floor space vacant and available to include further investment in new lines. With a permanent highly unionised workforce of around 250 and a variable agency work force of around 100.The majority of equipment is older than 10 years and most operations are semi automated with high opportunity for full automation. With this in mind we conducted a PESTLE analysis to identify opportunities for change within the organisation (see attached) from this PESTLE we identified the following external influences......

Words: 809 - Pages: 4

Critical Analysis of the Impact of Change Management and M&a’s on the Dynamic Business Environment

...Critically Analyse the impact of Change Management and M&A’s on the dynamic business environment Contemporary Issues in Management Joshua Travers Submitted for: BA (HONS) BUSINESS STUDIES BOURNEMOUTH UNIVERSITY Date of submission: 13th December 2013 Joshua Travers i7943443 Introduction The author has interpreted the dynamic business environment to be all of the factors, both internal and external, which influence the function of a business. Internal factors include items such as the company's products or services, employees, assets, and marketing. External factors include competitors, stockholders, customers, and economic conditions (Investor Words 2013). This essay will explore how the two issues addressed in the title can impact the central theme; the employee. Failure of engaging with the employee has been highlighted as a major cause to why 70% (Keller and Aiken 2008) of change and 50% (Sher 2012) of M&A efforts fail. This common pitfall suggests that both of these issues impact heavily on the employee and vice versa. The author aims to critique change management and merger literature to provide an extensive view of these issues in the business environment. Once the relevant context is set, the essay will focus towards the employee perspective of these two issues and will apply significant theory to a range of recent examples within the realm of these topics. Change Management Change management can be defined as “the process of continually......

Words: 4711 - Pages: 19

Organisation Change and Development

...| Organisational Change and Development | | [Type the company name] Date 19/03/13Word count 2874 | | | Contents: Page 2: Introduction Page 3: Situation Problem Solution Consequence Page 4 Change Initiatives (The What) Pages 5 Revenue and Cost initiatives (The How) Cost controlling Page 6 Change Matrix Page 7 Strike Initial change reaction Page 8 TABLE 3: New Recommended changes. Page 9 Recommendations based on failed changes in Table 2: Change Model: Page 10 GSRTC and Kotter Page 11 Managing future change at GSRTC. Recommendations Page 12 Steps to Change: Page 13 Conclusion Page 14 References Introduction: This paper will reflect on the number of changes that Gujarat State Road Transport Corporation went through in response to two events, (1) Government of Gujarat to allowing competition (2) Paying back several years of unpaid wages to employees. These events would cripple Gujarat State Road Transport Corporation if it was not for dynamic changes. The changes that took place after these events proved to be unwelcomed by the employees resulting in a strike, again, impacting Gujarat State Road Transport Corporation. By reviewing this case and analysing change modelling literature, this paper discusses the implementation of Kotter’s eight step change model to assist in the success of managing change. In addition to Kotter’s linear model, Senge’s fifth discipline is suggested to assist build the foundations...

Words: 3398 - Pages: 14

Leading Organisation Change

...LEADING ORGANISATION CHANGE 1.0 Introduction Organisations can consider as dynamic and complex social systems where changes need to be done as whole within the organisation system. Today, OD is counted on to improve organisations that are operating in a quite different environment than that of the 1960s. The nature and forms of organisations are changing dramatically. The field of organization development requires its own evolution to accommodate the evolution of organisations. 2.0 The Philosophy of Change Management In order to understand change management we need to look it as strategy and strategic management. According to Viljoen (1994) defines strategic management as “the process of identifying, choosing and implementing activities that will enhance the long term performance of an organisation by setting direction and by creating ongoing compatibility between the internal skills and resources of the organisation, and the changing external environment within which it operates. Change Management is the process of aligning an organisation‟s people, processes, and culture with changes in business strategy, structure and systems. It can be reactive or proactive and strategic or operational in nature. “Organization Development is the attempt to influence the members of an organisation to expand their candidness with each other about their view of the organisation and their experience in it, and to take greater responsibility for their own actions as organisation......

Words: 2997 - Pages: 12

Organisation Change Management

...difficulties needed to change in Suffolk County Council. Nowadays, according to Doyle (2011), the competitive imperatives of market forces as well as the demands of customer have created the organizations that are less hierarchical as well as more flexible. During the change operation having the trend of paradigm shift, it is essential to make the relationship between management and leadership clear. As said by Caldwell (2003), executives as well as high level senior managers of the organisation are considered as change leaders. They are the people who imagines, initiate as well as funding for extensive strategic change or making the employees believe and empower them to operate. On the other hand, the middle level managers as well as functional experts are usually regarded as change managers because they perform the transition and build the assistance for change in the units of business as well as important functions. According to Kotter (1997), these two roles all have change to succeed in changing in spite of the difference between us because it requires a process having the leadership as well as assistance of management. The management plays an important role in supporting the change process to make it succeed, but in this essay, it is only concentrated on the role of leadership in an organization. In order to do this target, it is necessary to rely on eight general lessons of John Kotter advanced in his eight-step model saying that the most important of a planned change......

Words: 3273 - Pages: 14

Power Dynamics and Job Interviews

...that give it support being reciprocity, trust, power, information exchange, ethics and outcome. This discussion will focus on the element of power and how it applies to job interviews. In particular the way that power is perceived by the interviewee, such that it is seen to be mainly with the interviewer. However, the balance of power shifts during the interview, a factor which can used by the interviewee to improve future negotiations. Power Power is the capacity to influence others (McShane et al. 2013, p. 318). McShane et al. (2013, p. 318) note that power is not “the act of changing someone’s attitudes or behaviour; it is only the potential to do so”. It is also about the perception of dependence, not necessarily the ability to influence another party itself. Therefore it is possible to have power and not realise it or create a perception of power based on a false premise. Fells (2012, pp. 29-31) discusses power having an effect on negotiations in several ways. These are people withholding information on the basis that ‘information is power’; bargaining power and the ability to secure an agreement on one’s own terms (Chamberlain 1986; cited in Fells 2012, p. 30); the power of a solution; and the power of knowing when not to negotiate. The facet of power in negotiations that will be discussed here the different sources of power that each party has and the effect that has on the negotiation process. The different sources of power can be summarised as follows (McShane et......

Words: 3319 - Pages: 14

Organisation Change Management

...Organisational Change Management Name Institution Course Date Organisational Change Management Introduction Currently, the economic pressures and changing political priorities allow the need for organisational change in the public and private bodies (Bauer, 2008). However, carrying out changes in an organisation is a complex process that can lead to negative and positive outcomes, thus it is important to concentrate on accessible evidence that would make the process effective and efficient. Change is considered a multi-level phenomenon. There is a gap on the literature regarding to management change in administration perceptive. Management literatures provide a number of cases of sectorial and organisational in the public sector (Sminia and Van, 2006). This indicates the relevance of exploring a number of literatures to determine the nature and range of evidence that is based on the change within public sector. This paper establishes an exclusive literature review that will provide evidence related to organisational management change (Fernandez and Rainey, 2006). This paper will explore some examples of organisational change, factors that leads to resistance to change before looking at the psychological contract concept of change. The paper will also set out research on sustainability of change and psychological change theories before concluding by exploring a number of literatures to determine in detail information on management change. Due to the technological......

Words: 2349 - Pages: 10

Supporting Change Within Organisations

...REPORT The impact of change in B&H Precision Tooling Ltd Introduction B&H Precision Tooling is a world class supplier of Tooling for the aerospace industry. This report will identify how internal and external factors drive our company to change. How change will impact on both the company and employees. It will identify how important our HR department is to the success of change. Vision People working together as a global enterprise for aerospace tooling leadership. Mission To continually meet our customer’s demands by providing a high level of customer satisfaction through technical innovation. Objective To achieve the above and goals and fulfil B&H Precision Tooling’s mission. Methodology To produce this report I used the secondary methods CIPD website, book and internet. Why B&H Precision Tooling needs to Change Findings – Our business needs to change so we can grow and develop to achieve our goals and meet the demanding market. Change is important for our business because, without change would we lose our competitive edge and fail to meet our customer’s demands. External Factors which has an impact on how are company changes Political – Government: change of government in power the introduction of new policies based on the aerospace industry can have an impact on the need to produce new aircrafts. Economic – Aerospace tooling rely heavily on Airbus requirements to produce new aircrafts a decline on growth......

Words: 1653 - Pages: 7

The Dynamics of Innovation in an Organisation

...there are no fertile grounds that stimulate innovations. All organizations have recognized the truism that is innovate or liquidate. Creating and managing innovation have many dimensions that pervade the entire arena of the organization. Innovation may be understood as transforming a creative idea into a new and useful product/service (Robbins and Coulter, 2002). What constitutes the mechanism of innovation or what stimulates innovation is not exactly understood. Mangers are generally puzzled by the nature of the dynamics of innovation and there is a surprisingly clear absence of understanding of the innovation processes in organizations (Zhuang,et al,1999) and managers fail to encourage it positively within the organization. The contingent conditions that lead to the emergence of innovations are a combination of processes that stem from the inner and outer dynamics of organization. In this paper an attempt is made to understand the nature and dynamics of innovation from the perspective of a new model that leads to innovation...

Words: 471 - Pages: 2

Organisation Change

...May 2001 Accepted May 2001 Resistance to organisational change: the role of defence mechanisms Wayne H. Bovey Bovey Management (Certified Consultants), Queensland, Australia Andrew Hede University of the Sunshine Coast, Queensland, Australia Keywords Organizational change, Resistance, Defence, Humour Abstract Observes that the published literature on resistance to organisational change has focused more on organisational issues rather than individual psychological factors. The present study investigated the role of both adaptive and maladaptive defence mechanisms in individual resistance. Surveys were conducted in nine organisations undergoing major change and responses were obtained from 615 employees. The results indicate that five maladaptive defence mechanisms are positively correlated with behavioural intention to resist change, namely, projection, acting out, isolation of affect, dissociation and denial. The adaptive defence mechanism of humour was found to be negatively correlated with resistance intention. Identifies two intervention strategies which can be used by management to address the effects of defence mechanisms on resistance during periods of change in organisations. Journal of Managerial Psychology, Vol. 16 No. 7, 2001, pp. 534-548. # MCB University Press, 0268-3946 Introduction Individuals go through a reaction process when they are personally confronted with major organisational change (Jacobs, 1995; Kyle, 1993). According to Scott and Jaffe......

Words: 6068 - Pages: 25