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Management (MGH)

Chapter 16: Organizational Change, Development, and Innovation Why Organizations Must Change Organizations face external and internal pressures to change Organizations must adapt to the market, to environmental factors, technology and to consumer preference to maintain their competitive advantage external factors of change Internal factors such as low productivity, conflict, strikes, and high absenteeism and turnover also provoke change When a threat is perceived, organizations unfreeze, scan the environment for solutions, and use threat as a motivator for change Companies in a dynamic environment must show more change to be effective than those operating in more stable environments What Organizations Can Change Goals and Strategies: change goals to adapt to environment new products, new markets Technology: can be minor (intranet) or major (moving from rigid to flexible assembly line) Job Design: redesign individual jobs to offer moreless autonomy, identity, or feedback Structure: formalizations, centralization, tallness, span of control, rules, policies, etc Processes: how work is completed do simultaneously instead of one after the other Culture: culture is known to be a major factor in providing an organization with competitive advantage and long-term effectiveness, therefore if change necessary, do so People: content of membership changed through hiring process, or change skills of existing members with training programs Change in one area often calls for change in other changes in goals, strategies, technology, process, structure, culture, and job design require serious attention to people changes Kurt Lewins Change Process 1. Unfreezing: The recognition that some current state of affairs is unsatisfactory. Factors such as employee attitude surveys, customer feedback, flawed structure or task design, and flawed technology can lead to unfreezing, when these issues are recognized. 2. Change: The implementation of a program or plan to move the organization or its members to a more satisfactory state. Can include simple skills training program to major changes like extensive job enrichment, radical restructuring, etc.
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