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Session 11.doc

4 Pages

Administrative Studies
Course Code
ADMS 1000
Peter Tsasis

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Session 11: Chapter 10; Chapter 4 PG 71-80. CASE 246-247 - Success of an organization depends on the capability to maintain stable and reproducible organizational processes and outcomes 1. Economic Changes - Organizations need to adapt to economic conditions like downsize or expand 2. Competitive Changes - Organizations must evaluate the industry lifecycle and increasingly innovate 3. Technological Changes 4. Labour Force Changes - 70% of labour force Is immigrants and visible minorities/women/disable make 60% of workers 5. Global Changes 6. Legal/Political Changes - Deregulation and privatization, employee treatment, safety, pay equity (commission, hourly) 7. Societal Changes - Consumer preference, societal demands Three Types of Change 1. Developmental: improve what a business is doing 2. Transitional: replace what already exists with something new (MNA) 2 ways to differentiate transitional from transformational, 1) it is possible to determine the final destination, 2) transitional impacts only the employees level of skills but not their mindset and behavior 3. Transformational: future change is unknown, it is determined through trial and it cannot be managed, the future is also dramatically different from the current state and employees culture must change to implement this Changes: -Structural Change (MNA)- modify 7 S framework, add teams, managerial hiearchy -Cost Cutting (lower cost) -Process Change (R&D, Engineering) -Cultural Change (how business is conducted) Theories of Change -Theory E - the creation of economic value/shareholder value, focus on formal structure -based on maximizing shareholder value -requires changes to structure and systems -starts from highest level of firm aka top driven -Theory O - develop organizational skills - learning and high performance employees -increasing bonds between firm and employee The Process of Transformational Challenge 1. Understanding the forces for change - Recognize the change 2. The Change vision and implementation - Analyze the firm and its need for change, create a shared vision, separate from the past, create a sense of urgency, be a strong leader, line up political sponsorship, make an implementation plan, develop structures, communicate with people, reinforce change 3. The Need for Cultural Change 4. Leading Change through Communication - Chief executive as the communication champion, words to actions, emphasis on face to face, the bad good news ratio, employee communication strategy 5. Reinforcing the Change - Paradigm is how we understand the world operates - Creating a Learning Organization - Three aspects: adapting to their environment, learning from their people, contributing to the learning of the wider community - Organizations must develop and grow in capacity to function - Organizational development is a process of planned system change that helps firms attain short and long term goals through teaching members to manage processes structures and culture more effectively - Single loop learning is correcting errors find in their system and just fine tuning the system (ex. Downsizing or outsourcing) just within the status quo - Double loop learning requires individuals to assess an error
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