Change has become an inevitable part of business life. Although this is an acknowledged fact and companies are aware of its importance, managing change as well as assuring flexibility is a complex undertaking, often unsuccessfully conducted
(Bacon et al., 2010; Clegg et al., 1997; Gibbs, 1997; Holman et al., 2000; IBM, 2004;Landauer, 1995; Lassen & Nielsen, 2009; Levasseur, 2010; Willcocks & Grint, 1997).
The questions subject to this thesis are: How can the
individual’s attitude towards change be altered? Does thinking in scenarios contribute to gaining a higher degree of openness to change? Does enhanced openness to change find expression in the individuals’ attitude towards new information? And do individuals, who experience an increased individual absorptive capacity, positively evaluate the effectiveness of practices that support the development of the capability to appreciate new information?
Since it represents a conceptual piece of work, propositions will constitute the results. However, a method to test the validation of the presented propositions is suggested, which provides a starting point to engage in future empirical investigations. The structure is the following: First, a theoretical background of organisational inertia (section 2.1), absorptive capacity (section 2.2), and
scenario planning (section 2.3) is given. Subsequently, the introduced deliberations on these theories are utilised to derive propositions that are unique and new in their nature (section
3.1). Furthermore, a possible method is suggested to test the model and to find support for the built up propositions (section 3.2). In chapter 4 the results, i.e. the propositions, as well as their contribution to theoretical understandings within the scope of the research field change,limitations of this work, and managerial implications are discussed. The conclusion (chapter
5) will finalise this thesis.
Contents
1 INTRODUCTION
2 THEORETICAL BACKGROUND
2.1 Organisational inertia
2.1.1 Value of change
2.1.2 Definition of organisational change
2.1.3 Reality of change outcome
2.1.4 Why change actions fail
2.2 Absorptive capacity
2.2.1 Definition
2.2.2 Drivers
2.2.3 Outcomes
2.3 Scenario planning
2.3.1 Definition
2.3.2 Value of scenario planning
3 DOES SCENARIO THINKING MAKE A DIFFERENCE?
3.1 An integrative model
3.1.1 A micro-level perspective
3.1.2 Influence of the individual’s consciousness on his/her openness to change
3.1.3 Role of scenario thinking
3.1.4 Degree of openness to change
3.1.5 How the degree of openness to change determines the organisation’s absorptive capacity
3.2 A proposed method
3.2.1 Sample and data collection
3.2.2 Variables and measurement validity
4 DISCUSSION
4.1 Theoretical contributions
4.2 Limitations
4.3 Managerial implications
5 CONCLUSION
Research Objectives & Key Themes
The primary objective of this thesis is to explore how the concept of scenario thinking can be utilized to shift the individual's mindset and attitude toward organizational change. By focusing on a micro-perspective, the research investigates the relationship between individual consciousness, openness to change, and absorptive capacity, aiming to provide a theoretical model and a methodological framework for fostering innovation within companies.
- Organizational Inertia and its impact on change management.
- The role of individual consciousness and mental models in organizational transformation.
- Scenario thinking as a cognitive tool to enhance openness to change.
- The link between individual openness to change and organizational absorptive capacity.
- Methodological design for field experiments in corporate environments.
Excerpt from the Book
3.1.2 Influence of the individual’s consciousness on his/her openness to change
Mental models3 of individuals affect the way specific information is perceived, coded, retained, accessed, and transmitted. Consequently, they shape both cognitions and feelings, which are inter-individually diverse. They are often associated with schemas, which serve as mental maps enabling individuals to orient themselves within their experiential area and guide interpretations of the past and present as well as expectations for the future (Harris, 1994). Accordingly, the mental models of an individual also influence how he or she feels and thinks about dynamism and change requirements. Therefore, established by an individual’s personality and the influencing experiences gained over the years, these cognitive and affective reactions determine inclinations as well as aversions towards alterations in behaviours.
Not surprisingly, the concept of consciousness received attention in the scope of the research field organisational development (OD), as it points to the various external and internal aspects influencing the development of the human directly as well as the development of the organisation indirectly (Scharmer, 2009; Wilber, 2000). In their considerations regarding recent OD practices, Marshak and Grant present changing mindsets and consciousness as one of the “new(er) OD practice” (2008: 89), which is advocated by some OD authors as principal method to address change dynamics (Adams, 2005; Senge et al., 1994). According to them organisational transformation is only possible with an alteration of consciousness.
In a similar vein, Karp (2005) emphasises the importance of acknowledging the key role members of organisations play in realising the envisioned future of its organisation. Based on such considerations he proposes the multi-level concept of “[d]evelopment of individual consciousness as part of transformative collective efforts” (Karp, 2005: 170). It consists of different elements of attention and action of the individual, namely, (1) matter, (2) mind, (3) heart, and (4) will, which are derived from (1) experience of the past, (2) taking an outside-in perspective, (3) sensing and reflecting on inside-out matters, and (4) developing self-awareness, respectively (see table 3.1.2). From a more organisational point of view, these
Summary of Chapters
1 INTRODUCTION: This chapter introduces the challenges of organizational change and identifies organizational inertia as a significant barrier, proposing scenario thinking as a potential remedy.
2 THEORETICAL BACKGROUND: Provides a literature review on organizational inertia, absorptive capacity, and the definition and value of scenario planning in a business context.
3 DOES SCENARIO THINKING MAKE A DIFFERENCE?: Presents the core integrative model that links individual consciousness, scenario thinking, openness to change, and absorptive capacity, alongside a proposed methodology for validation.
4 DISCUSSION: Reflects on the theoretical contributions of the model, addresses study limitations, and derives implications for management practice.
5 CONCLUSION: Finalizes the thesis by summarizing the conceptual findings and the potential of scenario thinking to foster innovative, open-to-change organizational cultures.
Keywords
Organisational Inertia, Absorptive Capacity, Scenario Thinking, Scenario Planning, Individual Consciousness, Openness to Change, Mental Models, Change Management, Organisational Development, Innovation, Knowledge Transfer, Strategic Management, Individual Attitude, Organizational Flexibility, Learning Processes.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on the micro-foundations of organizational change, specifically examining how individual consciousness and attitudes act as determinants for a firm's ability to adapt and innovate.
What are the central themes discussed in this work?
The work explores organizational inertia, the development of individual consciousness, the role of scenario thinking as a cognitive tool, and how these elements coalesce to form an organization's absorptive capacity.
What is the primary objective of this thesis?
The primary goal is to propose an integrative model that explains how scenario thinking can positively influence an individual's openness to change, thereby enhancing an organization's overall capacity to process and utilize new information.
Which scientific methodology is applied?
The thesis adopts a conceptual approach to build an integrative model and proposes a quantitative and qualitative field experiment design to test the resulting propositions in a natural corporate setting.
What topics are covered in the main section of the document?
The main section explores the definitions and drivers of organizational inertia and absorptive capacity, establishes the theoretical link between these constructs, and presents an integrative model of individual change attitudes.
How would you characterize the keywords of this work?
The keywords are centered around the intersection of cognitive psychology and strategic management, highlighting terms like "Scenario Thinking," "Absorptive Capacity," and "Organisational Inertia."
Does the model address the role of individual employees specifically?
Yes, the model adopts a distinct micro-level perspective, arguing that organizational-level change is impossible without the active participation and psychological alignment of individual employees.
How does scenario thinking differ from scenario planning in this thesis?
While scenario planning is viewed as a technical, team-based, and often quantitative methodology, the author defines "scenario thinking" as a qualitative, cognitive practice that targets the individual level of consciousness to stimulate imagination and shift mindsets.
What is the significance of the "closed-loop relation" mentioned in the model?
The closed-loop relation suggests that scenario thinking increases an individual's openness to change, which in turn boosts their absorptive capacity. This improved capacity further influences their consciousness, creating a continuous, self-reinforcing learning cycle.
- Arbeit zitieren
- Stephanie Smith (Autor:in), 2011, Does scenario thinking make a difference?, München, GRIN Verlag, https://www.hausarbeiten.de/document/177856
