Page 77 - Managing Change in Organizations

CarnCh03v3.qxd 3/30/07 4:11 PM Page 60

Chapter 3 ■ The transformation perspective
this is real only by understanding the contribution of all – hence the focus on
value added throughout the organization. There was the practical and psycho-
logical consequence in terms of consistent behaviour and cohesion.
If some are deemed not to contribute then this leads to disruption, a sense of
‘unfairness’ to tension and conflict. This implies evaluative criteria linking
rewards to effort based on ideas such as reciprocity, contribution (or perform-
ance), capacity, need or the fulfilment of commitments. Often evaluative criteria
will be based on a complex mix of such ideas. The important point here is to note
that ultimately cohesion in an organization arises out of perceptions and I argue
that a primary focus of perceptions of an organization relates to issues of value
(see Carnall (1986) for a fuller treatment of these issues).

Conclusion

In this chapter I have suggested that various ‘drivers’ for change have created a crit-
ical mass of organizational change. This appears to have led to a fundamental shift
in the way we configure and manage organizations. Moreover, the mechanisms we
use to achieve change are also changing. Where once planned approaches held the
field, now increasingly market mechanisms play a vital part. New forms of organi-
zation have emerged based on a horizontal and value-added metaphor (as com-
pared with a vertical or command and control metaphor). These create new
management concerns and challenges, not least that of how to achieve integration.

EXERCISES

1 Can you think of examples of market-induced change in your own organization?
Have such changes under- or overperformed in terms of the achievement of
objectives? Has their introduction been easy or has it raised new issues and anx-
ieties for the people involved?

2 Is your organization beginning to think about horizontal value chains? Does this
lead to a rethinking of the role of senior management? How?

3 Can you identify examples of cluster or network structures in your own or any
other organization? How well do they work?

60