[Review of the Book The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It]

[Excerpt] Overall, this book is an important contribution to the organizational studies literature. The Big-Three Model and the case studies supporting it provide new insights regarding the ways in which changes affect individuals and organizations. Further theoretical developments should build on this framework, and incorporate elements of this model into more detailed schemas of change. The authors have exposed many new research questions and provided many lessons for practitioners. I look forward to additional work from them.

Incremental revolution: Organizational change in highly turbulent environments

Established models for understanding organizational change processes seem inadequate for explaining changes undergone by organizations facing highly turbulent environments. We propose an alternative model that depicts change as constant regeneration rather than revolutionary episodes. We then propose a set of structures and processes that facilitate this constant regeneration.

Trade Liberalization and Organizational Change

We embed a simple incomplete-contracts model of organization design in a standard two-country perfectly-competitive trade model to examine how the liberalization of product and factor markets affects the ownership structure of firms.In our model, managers decide whether or not to integrate their firms, trading off the pecuniary benefits of coordinating production decisions with the private benefits of operating in their preferred ways. The price of output is a crucial determinant of this choice, since it affects the size of the pecuniary benefits. In particular, non-integration is chosen at “low” and “high” prices, while integration occurs at moderate prices. Organizational choices also depend on the terms of trade in supplier markets, which affect the division of surplus between managers. We obtain three main results. First, even when firms do not relocate across countries, the price changes triggered by liberalization of product markets can lead to significant organizational restructuring within countries. Second, the removal of barriers to factor mobility can lead to inefficient reorganization and adversely affect consumers. Third, “deep integration” — the liberalization of both product and factor markets — leads to the convergence of organizational design across countries.

In their own hands: can young people change Australia?

In Their Own Hands: Can young people change Australia? documents and celebrates young people’s active participation in social, political and civic life and describes the many ways in which they are leading vital social change. At the same time, it critically examines the barriers to this participation and questions the degree to which the voice of young people is genuinely valued in Australia.Young people are often characterised as disengaged and apathetic. This book challenges that view while providing a set of needed signposts for change at the level of core social institutions and processes. The book draws on the work of The Foundation for Young Australians and its legacy of significant research into the education, wellbeing and participation of young Australians. It also draws on the expertise of renowned commentators in youth research, policy and practice.

Forms of organising

The study investigated trends in forms of organising in Australian companies between 2000 and 2004. Dual forms of organising emerged as the preferred response to environmental turbulence. A dualities aware perspective was proposed, offering the potential to maintain traditional accountability and control while adopting more flexible, responsive forms of organising.

Psychosocial predictors of intentions to engage in change supportive behaviors in an organizational context

This study utilized the Theory of Planned Behavior (TPB) to understand employee change readiness. The extent to which attitude, subjective norm, and perceived behavioral control predicted employees’ intentions to carry out activities that were supportive of a change event were investigated. The impact of group norm was examined as a further predictor of change-related intentions. The context of the research was a sample of 82 employees in the early stages of a re-brand. Results indicated that direct measures of attitude and subjective norm, as well as group norm, emerged as significant predictors of employees’ intentions to perform re-brand behaviors. To capture the indirect beliefs underlying attitude, subjective norm, and perceived behavioral control, participants also provided an assessment of their behavioral, normative, and control beliefs in regards to the change event, respectively. A series of MANOVAs revealed significant differences between moderate and high intenders on a range of underlying beliefs. Findings are discussed in terms of the application of the TPB for effective change management.

Were regulatory changes in reporting "abnormal items" justified? : evidence of intra-period classificatory earnings management practices in Australia

Purpose Managers generally have discretion in determining how components of earnings are presented in financial statements in distinguishing between ‘normal’ earnings and items classified as unusual, special, significant, exceptional or abnormal. Prior research has found that such intra-period classificatory choice is used as a form of earnings management. Prior to 2001, Australian accounting standards mandated that unusually large items of revenue and expense be classified as ‘abnormal items’ for financial reporting, but this classification was removed from accounting standards from 2001. This move by the regulators was partly in response to concerns that the abnormal classification was being used opportunistically to manage reported pre-abnormal earnings. This study extends the earnings management literature by examining the reporting of abnormal items for evidence of intra-period classificatory earnings management in the unique Australian setting. Design/methodology/approach This study investigates associations between reporting of abnormal items and incentives in the form of analyst following and the earnings benchmarks of analysts’ forecasts, earnings levels, and earnings changes, for a sample of Australian top-500 firms for the seven-year period from 1994 to 2000. Findings The findings suggest there are systematic differences between firms reporting abnormal items and those with no abnormal items. Results show evidence that, on average, firms shifted expense items from pre-abnormal earnings to bottom line net income through reclassification as abnormal losses. Originality/value These findings suggest that the standard setters were justified in removing the ‘abnormal’ classification from the accounting standard. However, it cannot be assumed that all firms acted opportunistically in the classification of items as abnormal. With the removal of the standardised classification of items outside normal operations as ‘abnormal’, firms lost the opportunity to use such disclosures as a signalling device, with the consequential effect of limiting the scope of effectively communicating information about the nature of items presented in financial reports.

Negative change and job outcomes : the impact of subjective fit in public sector health care organization

There is an ongoing level of organizational-wide change (such as empowerment and downsizing) occurring within the Australian health care sector. However, there is a paucity of empirical evidence on how public and nonprofit sector nurses cope with these organizational-wide change initiatives and their consequences on individual and work outcomes. This will be the primary aim of the current paper. To this end, a path model is developed base on an integration of existing theoretical perspectives on occupational stress, change management, and person-organizational fit. Data were collected from 252 public and not-for-profit sector nurses. The path analysis suggests that public and nonprofit nurses experience positive and negative change initiatives. Negative change initiatives resulted in an increase in the level of administrative-related stressors. Nurses with more congruent values report less experience with administrative stressors. As nurses experienced more administrative stressors, they tend to report more job dissatisfaction. Nurses whose values were more congruent during organizational change reported higher level of psychological wellbeing. Nurses who were had higher level of psychological wellbeing were found to have higher job satisfaction, which subsequently led to a higher level of organizational commitment.

Fresh kids: the efficacy of a health promoting schools approach to increasing consumption of fruit and water in Australia

The Fresh Kids programme utilized the Health Promoting Schools (HPSs) framework to design a whole-of-school, multifaceted intervention targeting specific behaviours to promote healthy eating and reduce the risk factors associated with childhood obesity. The aim of the programme was to evaluate the effectiveness of the HPS framework to increase fruit and water consumption among primary school-aged children over a 2-year period. The study design was an interrupted time series. Four primary schools in the inner west of Melbourne, Australia, participated in the programme intervention. Baseline data were collected using a lunch box audit to assess the frequency of children with fresh fruit, water and sweet drinks, either brought from home or selected from canteen lunch orders. The lunch box audit was repeated periodically for up to 2 years following programme implementation to assess the sustainability of dietary changes. Across all participating schools, significant increases between 25 and 50% were observed in the proportion of children bringing fresh fruit. Similarly, all schools recorded increases between 15 and 60% in the proportion of students bringing filled water bottles to school and reductions between 8 and 38% in the proportion of children bringing sweet drinks. These significant changes in dietary patterns were sustained for up to 2 years following programme implementation. Targeting key nutrition behaviours and using the HPS framework is an effective and simple approach which could be readily implemented in similar childhood settings. Effective strategies include facilitating organizational change within the school; integrating curriculum activities; formalizing school policy and establishing project partnerships with local community nutrition and dietetic services.

The never-ending quest : effective strategy-making and change management for high-performing VET organisations

This report summarises the evaluation of projects undertaken in 2001-02 as part of Reframing the Future's sub-program on Strategic Management and Change Management. It argues every Registered Training Organisation (RTO) in the vocational education and training (VET) sector in Australia needs managers who can design effective strategies.

Organizational discourse and change : positions, perspectives, progress and prospects

It has been 10 years since The Journal of Applied Behavioral Science (JABS) published a special issue titled “Discourses of Organizing” (Vol. 36, No. 2, 2000) based on the then emerging field of organizational discourse. A decade on seems to be an appropriate juncture at which to reflect on the range of work produced and the general progress made and consider possible future directions. In addition to briefly taking stock of developments within the field, this opening piece provides an opportunity to introduce the subsequent articles contained in this special issue and locate them within the developing landscape of discursive contributions on organizational change. Given these broad aims, there are three main sections in this introductory article. First, the general trajectory and shifting patterns of “organizational discourse and change” contributions are considered and a way of thinking about different waves of engagement is presented. Then, in the second main section, the focus and general contribution of the articles presented in this collection are discussed. Finally, we conclude by speculating on emerging trends and the scope for further inquiry.

The effects of major change : a case study of an Australian university

Organisational RestructuringLeading higher education organisational restructuring is not an easy task. It involves various degree of engagement, decision making and strategic alliances to make the change a success. Research has shown that organisational restructuring has impact on individuals of the organization and vice versa. Studies have shown that imposed change may create negative emotions such as fear of losing something important, anger and anxiety. On the contrary, planned change is accompanied by excitement and hope. Thus, the call for best practices in leading successful organizational change is greater than ever. Factors such as the fundamental characters and practices of higher education, as well as the presence of various human factors (academics and administrative) need to be taken into account. This paper presents the preliminary findings of a case study on organisational restructuring at a higher education institution in Australia. The restructuring in focus involves the amalgamation of two university faculties into one. This paper seeks to present the experiences and life accounts of faculty members with regards to leadership during the amalgamation process. Interviews were carried out with both the academic and administrative staff. Analysis of the interviews found a variation of views on leadership at different levels of the organisation, the emergence of leadership in times of crisis, the gap between the academics and administrative as well as the importance of organisational members to make the restructuring a success. The paper ends with useful suggestions for leaders and their role towards leading successful change in today’s complex higher education scenario.

Customer-owned banking in Australia: from credit union to mutual bank

Since the 1990s financial sector regulation in Australia has treated credit unions and building societies the same as banks under the designated title of authorized depository institutions. This allows credit unions to choose between different organizational structures: cooperative; convert to customer-owned banks or to demutualize. This article utilizes semi-structured interviews to analyse the key motivations for organizational change. It examines a number of credit unions and their conversion experience to customer-owned banks. It finds that adaptation of the credit union model was necessary to change customer perceptions, ensure future growth in the customer base and assets, and facilitate access to capital raisings with the credit rating of a bank. Despite this change customer-owned banks retain the core principals of mutuality.

Constraints to organizational learning during major change at a mental health services facility

This paper explains what happened during a three years long qualitative study at a mental health services organization. The study focuses on differences between espoused theory and theory in use during the implementation of a new service delivery model. This major organizational change occurred in a National policy environment of major health budget cutbacks. Primarily as a result of poor resourcing provided to bring about policy change and poor implementation of a series of termination plans, a number of constraints to learning contributed to the difficulties in implementing the new service delivery model. The study explores what occurred during the change process. Rather than blame participants of change for the poor outcomes, the study is set in a broader context of a policy environment—that of major health cutbacks.

HRM, organizational capacity for change, and performance:a global perspective

This special issue brings together a variety of articles, each one enriching understanding about whether and how human resource management (HRM) influences organizational performance (however defined) against a backdrop of complex change. We present a preliminary framework that enables us to integrate the diverse themes explored in the special issue, proposing a mediating role for organizational change capacity (OCC). OCC represents a particular subset within the resource-based literature labeled as “dynamic capabilities.” Although not well researched, there is evidence that OCC is positively associated with firm performance and that this relationship is stronger given conditions of high uncertainty. Our framework reflects on external and internal parameters, which we suggest moderate the relationship between human resource management (HRM), OCC, and organizational performance. Our intention is to provide compelling insight for both practitioners and researchers, especially those whose remit extends beyond national boundaries, with reference to areas of the globe as disparate as Greece, Ireland, Pakistan, Switzerland, and the United Kingdom. © 2012 Wiley Periodicals, Inc.