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York University
Administrative Studies
ADMS 1000

Introduction to Administrative Studies ADMS1000 – Summer 2012 – Eytan Lasry Lecture 11 – Confronting Changing Contexts – July 24 Change: Inevitable and Desirable - Organizations are open systems in continual interaction with their external environment o "There is nothing permanent except change.” - Heraclitus (Greek philosopher 6 century BCE) - Success and survival is therefore a matter of fit with a dynamic and evolving environment o “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to o Charles Darwin (British naturalist 19 century; author: On the Origin of Species, 1859) Types of Change - Developmental Change o Improving current practices - Transitional Change o Replacing current practices o Outcome is defined o Affects employee skills not culture - Transformational Change o Requires adopting different mindset and routines – very challenging Structural Inertia Theory” - Organizations need the support of external stakeholders i.e. customers, suppliers, investors, employees… in order to survive - External stakeholders favor organizations that are reliable and accountable so organizations develop standardized routines and procedures to ensure consistent and predictable outcomes o i.e. bureaucracies, cognitive scripts - Transformational change disrupts the organization’s standard routines and procedures and compromise its reliability and accountability, so the organization loses the support of external stakeholders in the process - Radical transformational change is thus very disruptive, costly and rarely successful (particularly in old and large organizations) o To change or not – between a rock and a hard place… Implementing Transformational Change - Who Says Elephants Can’t Dance? (IBM) o Understanding the forces for change o The change vision and implementation o The need for cultural change o Leading through communication o Reinforcing the change The Competency Trap - Organizations specialize in the exploitation of core competencies (and outsource non-core functions) to become more efficient and gain a competitive advantage - The larger and more certain returns to the exploitation of core competencies impede the exploration of new ideas and alternatives - Successful innovation and organizational change requires carefully balancing exploitation and exploration and avoiding cognitive biases Managing Learning and Change - Promote experimentation and risk-taking o 3M’s 15% rule o Google’s one day a week rule - Reward small gains and fa
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