MSC Presentation

MASTER IN BUSINESS ADMINISTRATION
Managing Strategic Change

Royal Dutch Shell Group
T. PURRYAG
12 Jan 2013
Trilok PURRYAG, 12 Jan 2013
MBA ~ Managing Strategic Change
Page 1 of 34
Q1. Shells uniqueness stems from its structure as the

largest organisation in the world, and due to its
internationality it has been described as one of the worlds
three largest international organisations,
organisations, the other two being
the Roman Catholic Church and the United Nations. It is clear
from the extract that organisation size and internationality of
Shell presents potential challenges for top management. With
reference to these reflections plus the use of relevant theory,
critically discuss how Shells senior management could go
about handling the following organisational development
issues:
(i) Strategic change / leadership
(ii) Organisational change
(iii) Corporate culture
(iv) Resistance management
(v) Organisational transformation
Page 2 of 34
Five Activities Contributing to

Effective Change Management
Page 3 of 34
Five Activities Contributing to Effective Change Management
1. Motivating Change
2. Creating Vision of
Change
3. Developing Political
Support
Effective
Change
Management
4. Managing the
Transition of Change
5. Sustaining Momentum
Page 4 of 34
Sensitise
organisations to
pressure for
change
Motivating change
and creating
readiness for
change
Reveal
discrepancies
between current
and desired states
Convey credible
positive
expectations for
the change
Page 5 of 34
Individual Resistance
Habit
Economic
Factors
Job Security
Individual
Resistance
Fear of the
Unknown
Selective
Information
Processing
Page 6 of 34
Organisational Resistance
Threat to Established
Power Relationship
Threat to Established
Resource Allocations
Structural Inertia
Organisational
Resistance
Limited Focus of Change

Group Inertia
Page 7 of 34
Overcoming Resistance to Change
Education and
Communication
Negotiation
Participation and
Involvement
Manipulation
and Cooptation
Facilitation and
Support
Coercion
Overcoming
Resistance
to Change
Page 8 of 34
2. Creating Vision of Change
Bold and
Valued
Outcomes
Constructing
the Envisioned
Future
Desired
Future
State
Page 9 of 34
3. Developing Political Support
Assessing Change
Agent Power
Developing
Political
Support
Identifying Key
Stakeholders
Influencing
Stakeholders
Page 10 of 34
4. Managing the Transition
Current
State
Desired Future
State
Transition
State
Activity Planning
Change Management Team
Page 11 of 34
Providing Resource for
Change
Sustaining
Momentum
Building a Support System

for Change Agents
Developing New
Competencies and Skills
Reinforcing New behaviours
Staying the Course
Page 12 of 34
Five Activities Contributing to Effective Change Management
2. Creating Vision of
Change
3. Developing Political
Support
Effective
Change
Management
4. Managing the
Transition of Change
Page 13 of 34
Leadership Functions
Leadership is one of the four functions of management.
Page 14 of 34
Effective Leadership ~ Forms of Power

Power
the ability to get others to do what you want them to do
Reward Power
The capacity to offer something of value as a means of
influencing other people
Coercive Power
The capacity to punish or withhold positive outcomes as a
means of influencing other people.
Legitimate Power
The capacity to influence other people by virtue of formal
authority or the rights of office.
Expert Power
The capacity to influence other people by virtue of specialised
knowledge.
Referent Power
The capacity to influence other people because of their desire to
identify personally with you
Page 15 of 34
Effective Leadership ~ Managerial Power

Managerial Power = Position Power + Personal Power
Power of the POSITION:
Based on things managers can offer to others.
Rewards: "If you do what I ask, I'll give you a reward."
Coercion: "If you don't do what I ask, I'll punish you."
Legitimacy: "Because I am the boss; you must do as I ask."
Power of the PERSON:
Based on how managers are viewed by others.
Expertiseas a source of special knowledge and information.
Referenceas a person with whom others like to identify.
Page 16 of 34
Leadership Styles ~ Lewins Theory

Leadership Style
The recurring pattern of behaviours exhibited by a leader
Autocratic Style
Acts in unilateral command and control fashion
Human Relation Style

Emphasises people over tasks
Democratic Style
Encourages participation with an emphasis on both task
accomplishments and development of people
Lassize-faire Style
Is low on both tasks and people

Page 17 of 34
Leadership Styles ~ Fiedlers Contingency Theory

Suggests that the best leadership style depends on the
situation
Page 18 of 34
Leadership Theory ~ McGregors

Theory X and Y
THEORY X
The average employee dislike work and will avoid it if at all possible
People must be controlled and directed and punished, if necessary, to put in
a real effort at work
The typical worker wants to avoid responsibility and has little ambition
Employees look for security above all else at work
THEORY Y
Working is as natural as play or rest for the average employee

The typical worker does not have an in-built dislike for work
Other means exist to motivate workers rather than control and punishment
In the right circumstances, workers seek responsibility
Most employees have imagination and creativity that may be used to help
organisations achieve their goals
Page 19 of 34
Q2. Organisational conflict can arise within and outside the

various units that comprise an organisation for many
reasons. Identify an organisation that is deeply entrenched in
both internal and external conflict matters and utilise relevant
theories to critically analyse the sources of conflict and
provide means through which managers can minimise such
conflict.
Page 20 of 34
Definition of Conflict
A process in which one party perceives that its interests

are being opposed or negatively affected by another
party. (Kreitner & Kinicki, 2001)
Conflict is a disagreement between two or more
parties. (Cook & Hunsaker, 2001)
Page 21 of 34
Functional & Dysfunctional Conflict
Functional conflict serves the organisations interests

Dysfunctional conflict threatens the organisations
interests.
Functional conflict is beneficial to the company as it stimulate
creative resolution of problems and corrective actions and
keeps the people and the organisation from slipping into
complacency (Cook & Hunsaker, 2001)
Page 22 of 34
Effect of Conflict on
Organisational Performance
High
Performance
Optimal level of
conflict
Low
Conflict
High
(Jones & George, 2003)
Page 23 of 34
Sources of Conflict
Goal incompatibility
Structural design
Personal differences
Different role expectations
Role ambiguity
Role conflict
Role overload
Degenerative Climate
Page 24 of 34
Conflict Management Styles
Assertive
Competing
Collaborating
Compromising
Avoiding
Accommodating
Unassertive
Uncooperative
Cooperative
(K. Thomas cited in Robbibs, 2001)

Page 25 of 34
Q3. Identify an organisation you are familiar with that is

currently going through change and using relevant theories,
discuss the possible OD intervention strategies for the
successful implementation of the change program.
Page 26 of 34
Definition of Organisational Development (OD)

Mitchell (1978) defines OD as a long-term attempt to
bring about greater levels of personal and interpersonal
effectiveness in an organisation.
Porras and Robertson (1992) defines OD as change
interventions built on humanistic democratic
values that seek to improve organisational
effectiveness and employee well-being
Page 27 of 34
Characteristics of Organisational Development

(Harvey & Brown (2006))
1. Change
OD is a planned strategy to bring about organisational
change. Obviously, the change is designed to meet
some objective and is dependent on the inputs from the
diagnosis of the problem.
2. Collaborative
OD includes the involvement and participation of the
organisation members affected by the changes. It is
thus a corroborative approach. The input of staff
members affected by change is important to instil a
sense of ownership of the process.
Page 28 of 34

(Harvey & Brown (2006))G
3. Performance
OD programmes include ways to improve the
performance and efficiency of the organisation. After an
effective OD programme the organisation must become
more competitive and efficient.
4. Humanistic
OD programmes rely on a set of humanistic values
about people and organisations with the objective of
opening up opportunities for the increased use of
people so that the organistaion can become more
effective.
Page 29 of 34

(Harvey & Brown (2006))G
5. Systems
OD programmes are concerned with the socio technical
system which focuses on interrelationships between
divisions, departments, individuals, groups and
processes as interdependent subsystems of the total
organisation.
6. Scientific
OD programmes are based on scientific principles and
approaches to increase the effectiveness of
organisations.
Page 30 of 34
Characteristics of Organisational Development (OD)

or Underlying Values of OD, Robbins (2002)
1. Respect for people
OD recognises that employees should be treated with
dignity and respect. Employees are after all the most
valuable assets of the company.
2. Trust and support
Healthy organisations are characterised by trust,
openness, integrity, empathy and a supportive climate.
An organisation operates like a family, where these
value systems are important.
Page 31 of 34

or Underlying Values of OD, Robbins (2002)G
3. Power equalisation
Effective organisations de-emphasise hierarchical
authority and control, devolving some authority to lower
levels as part of employee empowerment.
4. Confrontation
Problems should be confronted and solved promptly.
Ignoring them, or pretending that they do not exist does
not make them go away.
Page 32 of 34

or Underlying Values of OD, Robbins (2002)G
5. Participation
People that will be affected by a change initiative should
be actively involved in the decisions affecting that
change initiative. This will improve acceptance and
commitment to the change initiative.
Page 33 of 34
Types of OD Interventions
Intervention
Objective
Examples
Diagnostic
Activities
To determine the current state of the

organisation or the parameters of a
problem
Interviews
Questionnaires
Surveys
Meetings
Individual
Enhancement
Activities
To improve understanding of an
relationships with others in the
organisation
Sensitivity training (Tgroups)

Behaviour modeling
Life and career
planning
Team Building
To improve team operation, abilities,

cohesiveness
Diagnostic meetings
Role analysis
Responsibility charting
Intergroup
Activities
To improve cooperation between groups
Intergroup team
building
MBA Managing Strategic Change
Page 34 of 34
Types of OD Interventions
Intervention
Objective
Examples
Technostructural To find solutions to problems through

or Structural
the application of technological and
Activities
structural changes
Job enrichment
Management by
objectives
New technology
introduction
Process
Consultation
Agenda setting
Feedback and
observation
Coaching and
counseling
Structural change
suggestions
To disseminate information concerning

the future diagnosis and management
of human processes in organisations
including communication, leadership,
problem solving and decision making,
and intra- and intergroup relationships
Source: Adapted from Wendell L. French and Cecil H. Bell Jr., Organisation Development: Behavioural Science Interventions for Organizational
Improvement, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 1995), p. 165.
MBA Managing Strategic Change
Page 35 of 34
THANK YOU
Page 36 of 34

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MASTER IN BUSINESS ADMINISTRATION

Managing Strategic Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Q1. Shells uniqueness stems from its structure as the

MBA ~ Managing Strategic Change

Five Activities Contributing to

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Five Activities Contributing to Effective Change Management

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

MBA ~ Managing Strategic Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Limited Focus of Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Overcoming Resistance to Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

2. Creating Vision of Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

3. Developing Political Support

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

4. Managing the Transition

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Building a Support System

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Five Activities Contributing to Effective Change Management

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Effective Leadership ~ Forms of Power

MBA ~ Managing Strategic Change

Effective Leadership ~ Managerial Power

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Leadership Styles ~ Lewins Theory

Human Relation Style

Is low on both tasks and people

MBA ~ Managing Strategic Change

Leadership Styles ~ Fiedlers Contingency Theory

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Leadership Theory ~ McGregors

Working is as natural as play or rest for the average employee

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Q2. Organisational conflict can arise within and outside the

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

A process in which one party perceives that its interests

Trilok PURRYAG, 12 Jan 2013

MBA ~ Managing Strategic Change

Functional & Dysfunctional Conflict

Functional conflict serves the organisations interests

Trilok PURRYAG, 12 Jan 2013