QCF

Unit Title: Managing Organisational Change and Development

Learning Outcome:
1. Know how to examine and critically assess the strategic direction of an
organisation within its business environment and be able to apply the results to
develop a strategic plan.
Please note that the content of this Lecture Guide is listed in its recommended
teaching order, rather than in numerical order.
Indicative Content:
1.1.1 Demonstrate understanding of the STEEPLE (socio-cultural, technological,
economic, environmental, political, legal and ethical opportunities and threats from
the environment) and SWOT (strengths, weaknesses, opportunities and threats from
inside and outside the organisation) models for strategic analysis of the business
environment, being able to prioritise outcomes.
1.1.2 Critically engage with current trends in the business environment, supporting
analysis with evidence, such as examples from professional and business news,
where possible.
1.1.3 Distinguish between the internal and external focus of SWOT and demonstrate
understanding of stakeholder analysis. In stakeholder analysis, ensure there is
understanding of how to identify stakeholders (such as management, staff,
customers, suppliers, directors or trustees, shareholders, community groups, press
etc.) and how to prioritise them e.g. latent, aware and active. Stakeholders tend to
have conflicting objectives, so students should be able to discuss difficulties in
prioritising such conflicts, e.g. customers may want better customer service, but
spending too much on customer service will affect funds available for employee
reward, investment in new machinery or plant etc. which are desired by other
stakeholder groups.
1.2.1 Demonstrate understanding of the marketing environment of organisations and
the nature of competition in different sectors, in particular public, private and
voluntary or not-for-profit sectors.
1.2.2 Critically evaluate competitive environments, using tools such as Porters Five
Forces model and basic market indicators (share, turbulence, growth rate etc.).
1.2.3 Assess the impact of factors affecting global markets, both virtual and physical.
Basic distinctions between a company trading abroad and a global company which
aims for a coherent vision and strategy across different local sites of operation.
Understanding the impact of global competition on locally operating companies.
Examiners tips:
When using any model for discussion such as STEEPLE, SWOT, Porters Five
Forces etc., students should be strongly encouraged to develop conclusions from the
analysis, rather than just presenting a table or list and imagining this is sufficient.
Students often confuse shareholders with stakeholders in stakeholder analysis, the
words are similar but of course shareholders are just one kind of stakeholder.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
1. Know how to examine and critically assess the strategic direction of an
organisation within its business environment and be able to apply the results to
develop a strategic plan.
Indicative Content:
1.3.1 Explore and critically evaluate theories of organisational culture, such as those
of Handy and Schein, plus cultural differences between different regions of the world
based on the work of Hofstede, Trompenaars and Hall. The aim is to be able to apply
these ideas to an organisation in order to suggest how organisational and regional
culture will affect strategy and, in particular, people management.
1.3.2 Apply techniques such as Lewins gap analysis and force field analysis,
Ansoffs strategy matrix, Johnson, Scholes and Whittingtons culture web and their
strategic option screening process to outcomes from strategic analysis. The culture
web is a way of characterising what organisations are like to work in now, and
identifying what needs to change. The strategic option screening process covers
ways of looking at alternative options for the organisation by analysing suitability,
feasibility and acceptability which may take financial measures as well as cultural
and operational issues into account.
1.3.3 Appraise ways in which the resource base of the organisation (financial, capital
and human assets) may affect strategic planning. For example, the extent of gearing
(long-term loan liability in relation to assets), strengths and weaknesses of staff
employed or contracted.
1.3.4 Assess the extent to which the HR function can contribute to the development
of mergers, acquisitions and strategic alliances, including the audit of cultural due
diligence (Goffee and Jones). Students should be clear about the difficulties implied
in merger and acquisition as old and new cultures and operational practices come
into conflict. This may cross-refer to lecture 11 (learning outcome 7) on
organisational conflict.
Examiners tips:
Most editions of Exploring Corporate Strategy by Johnson, Scholes and Whittington
a popular book for business context and strategy include their culture web model
and strategic option screening.
This lecture is not intended to go into too much detail but to give students a variety of
options for analysing and evaluating strategic change. You may wish to use case
studies (there are many in the Johnson et al book) to show how these techniques are
applied.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
2. Know how to develop and evaluate an effective human resource strategy.
Indicative Content:
2.1.1 Define and evaluate business and HR strategy: vision, objectives, plans.
2.1.2 Understand the concept of vertical integration of HR with business strategy, for
example discussing the implications of an HR strategy which is not integrated with
overall business strategy and exploring the option of deriving HR strategy from
business strategy.
2.1.3 Defend a rationale for the linking of business and HR strategy to meet
organisational needs and be able to reflect critically on the barriers to achieving this
linkage. In particular how language and jargon on both sides, as well as the
corporate perception of the HR function, can limit the extent to which HR can
influence business strategy.
2.2.1 Critically evaluate the need to integrate strategies for the range of HR activities
across the organisation. Students should understand how, in larger organisations,
separated functions of HRD, payroll, resourcing and relations can lead to a lack of
coherent HR strategy.
2.2.2 Examine how organisational culture and structure may affect the horizontal
integration of HR processes and policies. This cross-refers to lecture 2 (learning
outcome 1).
2.3.1 Evaluate a range of HR models (including hard and soft HR, business partner,
shared services models).
2.3.2 Critically review how strategic fit might be achieved between HR structure and
function models and type of organisation.
2.3.3 Critically evaluate the development of e-HR. Students should be able to assess
the value of HR database systems and intranet responses to enquiries in terms of
staff time on dealing with queries and the time available to think and act strategically
and responsively to major business decisions.
2.3.4 Examine the impact of outsourcing HR activities on organisations.
Examiners tips:
In previous examinations, students often confuse hard HR with hard-hearted or
ruthless HR. This is clearly not the case, referring to a resource model not an
emotional perspective.
Ulrichs HR roles (in most current HR textbooks) can be helpful here when discussing
the different ways in which HR can operate, especially the concept of business
partner (that HR representatives are attached to separate parts of the organisation to
specialise in the understanding of that part of the business).

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
3. Understand external and internal factors affecting people resourcing activities
such as HR planning, job analysis and design, recruitment, selection, development
and release.
Indicative Content:
3.1.1 Explain and critically review the impact of national and/or regional employment
law, data protection law and employee consultation regulations on people resourcing
activities. Regional legislatures may include economic blocs such as Europe or
geographical areas such as South East Asia, Africa etc. Recent trends in the law and
regulations, as well as controversial employment law issues should be reviewed in
relation to the recruitment, selection, employment and release of employees.
3.1.2 Critically review the impact of socio-cultural trends (for example growth in
demand for flexible working, portfolio working, and lifelong learning) and
demographics on people resourcing activities.
3.1.3 Critically review the impact of labour market issues and changes in competitive
markets on people resourcing activities. This topic may include local, national and
global issues in resourcing the organisation.
3.1.4 Critically review how information and communication technologies (ICTs) affect
people resourcing activities. ICTs include the impact of web-enabled communications
(for example on online recruitment, as well as email, mobile communications,
messaging etc.), knowledge management within the organisation and knowledge
sharing with key stakeholders. An awareness of the features and benefits of HR
information systems would be included here.
Examiners tips:
This session covers a very wide range of external factors affecting people resourcing.
There is no requirement for a deep knowledge of these topics - students are
encouraged to develop a broad appreciation of the impact of law, socio-cultural
trends, competitive trends and technologies on the HR function. There is a clear
connection with the work on STEEPLE analysis in lecture 1. You may wish to use
either the UK CIPD magazine People Management, or similar professional literature
to support this session with information on current trends.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
3. Understand external and internal factors affecting people resourcing activities
such as HR planning, job analysis and design, recruitment, selection, development
and release.
Indicative Content:
3.2.1 Critically review the impact of multi-site, home and mobile working on people
resourcing activities. HR support of line managers working across multiple sites and
working from home or on the move can be problematic, for example with
performance management, advice and guidance, and employee consultation.
3.2.2 Critically review the impact of internal recruitment and career planning on
people resourcing activities. An analysis of the benefits and disadvantages of internal
versus external recruitment is helpful here, and a discussion of who takes
responsibility for career planning individual, line management, HR?
3.2.3 Critically review the influence of consultative structures on people resourcing
activities. Consultative structures will vary according to national and regional
legislation. In Europe there are models involving some high levels of worker
participation in a formal structure, particularly in larger organisations. In other
cultures, staff consultation may not be a norm. Students should be encouraged to
debate the advantages and disadvantages of formal involvement of staff in business
decision-making, and should be aware of a range of models, not simply autocratic
exclusion of employee voice.
3.2.4 Critically review the impact of business ethics, including diversity management
and equality of opportunity, on people resourcing activities. Students should be
encouraged to recognise the distinction between equality of opportunity and the
management and promotion of diversity. Students should also understand how
these issues affect every aspect of HR function, from the scheduling of training
courses to reward policies, through to decisions on flexible contracting and work-life
balance.
Examiners tips:
All these topics require critical review - in other words a balanced and objective
analysis of the issues. Wider reading may help with this, including the HR
professional literature, academic journal articles (e.g. Personnel Review) and a
generalist HRM textbook such as Fundamentals of HRM (Torrington, Hall, Taylor and
Atkinson). ISBN 978-0-273-71306-7.
It is common for students to fix on equality and diversity as unquestionably correct
and good practice. This is good; however, they must be aware of the costs implied by
such policies and be able to propose cautious arguments in favour, rather than
sweeping generalisations.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
4. Understand the impact of motivation and engagement on the management of
performance.
Indicative Content:
4.1.1 Evaluate a range of leadership and management styles, drawing attention to
differences and similarities among different theories, such as situational leadership
and transformational leadership. Students should be aware of trait theories, styles
and behavioural models such as those discussed by Blake and Mouton (1964),
Hersey and Blanchard (1988), Goleman (2000), and Bass (1985) and to be able to
argue in support of these theories, while recognising the importance of organisational
context and environmental turbulence on leadership roles.
4.1.2 Assess the role of motivation in employee engagement at a theoretical and
practical level in organisations. An understanding of motivation theory will be helpful
in applying the concept of motivation to people management. Students should be
familiar with the difference between Hard and Soft HR approaches and how
engagement, motivation and leadership are likely to be linked.
4.1.3 Assess how job design considerations may affect motivation. Basic familiarity
with the Hackman and Oldham Job Characteristics model (1976) involving the
meaningfulness of work, responsibility and knowledge of how outcomes affect
motivation, and how flexibility of options may affect job satisfaction and employee
retention.
4.2.1 Critically analyse the concept of the psychological contract, relating this to
performance management. An understanding of both the notion of psychological
contract and the varying forms of performance management is required here,
particularly where the latter focuses on target-setting alone, rather than a more
holistic approach to performance management.
4.2.2 Assess notions of power and influence within organisations, for example power
typologies, and how they may affect the management of performance.
Examiners tips:
There is a wealth of academic literature on these issues. One useful source on the
psychological contract may be: Lester, Scott W, Kickul, Jill, Psychological contracts
in the 21st century: What employees value most and how well organizations are
responding to these expectations, Human Resource Planning, 24(1): 10 (2001).
However, most good HRM texts should give a sufficient overview to support this
lecture.
The aim is to help students understand the effect or application of theories of
motivation within an HRM context, rather than to rote-learn such theories!

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
4. Understand the impact of motivation and engagement on the management of
performance.
.
Indicative Content:
4.3.1 Critically evaluate theories of High Performance Working (HPW), in particular
how high performing teams may be developed and what barriers to high performance
teams may experience. HPW generally relates high employee involvement practices
such as quality circles or self-directed teams with strong HR practices such as
sophisticated recruitment, performance appraisal, work redesign and opportunities
for choice and flexibility in reward and contracts.
4.3.2 Critically review how the measurement of performance may help or inhibit team
development. This links back to the previous lecture on psychological contract and
relates to a forthcoming topic Giving Feedback (Lecture 8). Using a case study on
performance management may help to see the measurement and monitoring of
performance in an organisational context.
4.4.1 Critically evaluate the concept of employee engagement and organisational
citizenship. These concepts relate to individual commitment to the objectives and
values of an organisation. Going further than job satisfaction and motivation, they are
associated with strong employer brand and high staff retention.
4.4.2 Assess how engagement may be measured and improved. In particular
students should be introduced to staff attitude surveys and other communication
mechanisms to ensure senior management stay in touch with staff concerns and
level of commitment.
4.4.3 Assess how engagement may influence organisational change initiatives.
Engagement, like trust, is likely to be influential in change as it refers to attempts to
get feedback and ideas from staff, developing strong two-way communication.
Examiners tips:
The UK professional HR body - Chartered Institute of Personnel and Development produces useful factsheets on High Performance work practices and Employee
Engagement, both available from their website www.cipd.co.uk, as is a report from
CIPD on Creating an Engaged Workforce (January 2010).
You may also like to look at Colin Carnalls book Managing Change in Organisations
(ISBN 978-0-273-70414-0) which is also useful for the remaining lectures in this
module.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
5. Know how to use employee development and reward strategies to achieve
successful change in organisations.
Indicative Content:
5.1.1 Critically review a range of reward strategies, both traditional and new,
including team based pay, performance related pay and bonus systems, suggesting
their advantages and disadvantages of development, measurement and outcomes.
5.1.2 Critically review the notion of Total Reward, which includes a focus on
employee development and elements of preference in the reward package. The role
of non-financial rewards is important here, and this idea links to areas of motivation
and engagement in previous lectures.
5.1.3 Assess the relative importance of reward strategies in achieving organisational
change. Discuss the role of incentive systems such as Payment By Results (PBR)
and performance-related pay (PRP) based on merit or goals set, and Total Reward,
when introduced as part of an organisational change.
5.2.1 Critically review a range of employee development activities which may be
used to improve performance including training, e-learning, mentoring, coaching and
secondment. Students should be familiar with all these development methods and be
able to identify appropriate areas of development and context in which the methods
may be particularly helpful.
5.2.2 Critically review the ways in which talent management can be used to influence
and implement change in organisations. While there is no set definition of talent
management, the meaning here relates to the development of potential key players
in organisational success.
5.3.1 Assess the potential problems associated with offering developmental feedback
to individuals, from line managers, HR, trainers, mentors etc. and how such problems
may be overcome. Power relationships will be relevant here.
5.3.2 Assess the impact of self-efficacy (Bandura) on individual development. A
useful case study may be self-efficacy in relation to using web technology.
5.3.3 Examine the issues arising from combining performance appraisal with reward
outcomes. Students should be aware of the potential limiting effect of scoring
performance at appraisal which is later used for determining pay, particularly the
impact on openness in the appraisal meeting.
Examiners tips:
I would recommend M Armstrong & D Brown (2006) Strategic Reward: making it
happen (Kogan Page) for discussion of reward strategy in organisational change.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
6. Know how to plan and evaluate organisational change and development.
Indicative Content:
6.1.1 Critically evaluate models of change including Lewin and Kotter and Kaizen,
with reference to their practical application to business examples, distinguishing
between radical and evolutionary change. Students should be introduced to a range
of change models from linear theories (Lewins unfreezing and freezing model,
Kotters (1996) eight stage model, Hussey (1996) EASIER model) to emergent
change ideas which may take more account of unintended consequences. It is
important to recognise that linear models do not replicate real world environments,
but are tools for planning and describing organisation development and change,
rather than necessarily providing directive action plans.
6.1.2 Critically evaluate models of change associated with individuals including
Fishers transition curve, coping strategies and emotional impacts of change (e.g.
Kbler-Ross grief cycle model 1969, and Carnalls coping cycle: Denial, Defence,
Discarding, Adaptation and Internalization 2007), and survivor syndrome following
organisational downsizing or redundancies.
Examiners tips:
Useful summaries of theoretical perspectives on change can be found in
Organisational Change and Development, by B. Hamlin, J. Keep and K. Ash ISBN
978-0-273-63886-5, as well as Colin Carnalls Managing Change in Organisations
mentioned previously in this lecture guide.
Most examination questions on this area are likely to ask students to apply theories
or models of change to particular contexts, so once again it may be helpful to use
case studies for this purpose.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
6. Know how to plan and evaluate organisational change and development.
Indicative Content:
6.2.1 Assess a range of drivers for organisational change and development including
market, organisational and product life-cycle, legislative, economic and reputation
drivers. This links back to earlier lectures involving the analysis of internal and
external environment, in particular global competition and opportunities, and
technological change.
6.2.2 Critically review examples of organisational change and discuss the role of
change agents and champions (the individual or group who seeks to effect strategic
change in an organisation).
6.3.1 Demonstrate the importance of goal-setting for clarity of communication of
change and for measurement of progress. This topic links back to the discussion on
performance management.
6.3.2 Assess the value of techniques such as Gantt charting and critical path analysis
in planning and implementing change programmes. Students are not required to
construct CPA or PERT diagrams, but must understand their purpose and the kind of
information required to build such visual diagrams in order to schedule a series of
potentially interdependent activities effectively.
Examiners tips:
This lecture gives ample scope for practical activity: breaking tasks down into goals
and milestones, producing Gantt charts of an activity or project and conducting a
STEEPLE analysis of an organisation known to students.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
7. Understand the role of conflict in organisational and individual change.
Indicative Content:
7.1.1 Critically evaluate the role of conflict in the development of high performing
teams, for example using Tuckmans model 1965 (forming, storming, norming,
performing and mourning).
7.1.2 Assess the role of trade unions, staff associations, works councils and similar
bodies in using conflict constructively to achieve organisational objectives. A
discussion of pluralist and unitarist perspectives may be helpful here. Local
legislation will vary in relation to the amount of time which may be used for trade
union activities by employees, and their rights and those of staff called to disciplinary
interviews or grievance interviews. In the UK, for example, there is a statutory right to
be accompanied in such interviews, and this may be by a friend or colleague, or a
trade union representative.
7.1.3 Assess the role of the HR function and external mediation agencies in handling
organisational conflict. Consultation with representative groups will be an essential
part of introducing major organisational change.
Examiners tips:
Students may be unfamiliar with structures such as works councils and staff
associations and may need to refer to specialist employee relations textbooks which
discuss these ideas.
It will be very important on this topic to ensure that students do not discuss employee
relations and conflict in a partial and one-sided way, as often happens.
The UK website of the Advisory, Conciliation and Arbitration Service (ACAS
www.acas.org.uk ) may be helpful as it contains a wide range of resources for
organisations and individuals to resolve conflict. It would be helpful to mention similar
bodies active in any other country in questions concerning the resolution of
organisational conflict.

QCF
Unit Title: Managing Organisational Change and Development
Learning Outcome:
7. Understand the role of conflict in organisational and individual change.
Indicative Content:
7.2.1 Critically review the Thomas-Kilman conflict mode instrument, offering five
outcomes: avoidance, accommodation, compromise, competition and collaboration.
Apply this theory to negotiation of change with individuals.
7.2.2 Assess the relative importance of Fisher and Urys negotiation principles in
Getting to Yes (1981) in relation to reducing conflict.
7.2.3 Assess the importance of the line manager in handling conflict within teams.
This relates again to structures for employee relations, but is focussed particularly on
the immediate response of the line manager and their management style.
7.3.1 Critically evaluate the importance of resistance to change: how this may be
overcome and whether it may be of constructive value in a change process.
Examiners tips:
There are many web resources which offer information about the Thomas-Kilman
instrument and Fisher and Urys principles for negotiation.
There are a number of negotiation exercises which might be helpful to explore these
principles a useful source is www.businessballs.com.
You may like to use Mark Hughes book Change Management: a critical perspective
(ISBN 10-1 84398 070 3) which devotes a chapter to resistance to change.
A common attitude in student examination answers to questions on conflict and
change suggests their objective is to control change. It might be helpful to discuss
how influence and persuasion, together with genuine employee involvement, may
reduce conflict and produce positive approaches to change.