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MHR 405 (330)
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Chapter 13

Chapter 13

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Human Resources
MHR 405
Louis Pike

Chapter 13: Org Change and Development Challenges leading to change: increased globalization, hyper-competition, demanding customers, increasing diversity of workforce, continuing technological innovation and demands for higher levels of moral and ethical behaviour 1. Massive org change is inevitable given the volatile nature of our competitive environment 2. Adaptive flexible org will have competitive advantage over those who are not. 4 targets of change o Structure (downsizing, mergers, acquisitions) o Technology o Taskwork processes o People and culture First and Second-order planned change (p380) Planned org change: process by which org move from their present state to some desired future state to increase their effectiveness o Org survival and effectiveness require change before crisis hits E.g. heart attack start to exercise John Chambers Change during good times while maintaining a steady course when times get rough o Expecting the unforeseen means that leaders view their org as open systems and continually scan and monitor their internal and external environments for potential challenges and opportunities. o Planned org change Variables time, scope, depth o 2 distinctions in magnitude of p.o.c 1. First-order incremental (developmental) change: change involving adjustments in systems, processes, or structures with the purpose of maintaining or developing the org. Reflect a fine-tuning of the org, making small improvements, or transition to something new 2. Second order discontinuous (transformational) change: change in which org moves to a radically different and sometimes unknown, future state Difficult bc orgs mission, culture, goals, structure and leadership can change dramatically. Judith Chapman gamma change transition from one stat to another 1 www.notesolution.com Requires leap of faith for org. E.g. Corning (cookware manufacture) transformed into fibre optics powerhouse Targets of Change (p381) 1. Orgs structure 2. Technology 3. Taskwork processes 4. Its people and culture Changing Org Structure Org structure (OS): how an orgs work is designed and how departments, divisions, and overall org are designed Manner of change in org structure (aka restructuring) o Downsizing (reduce the size of the workforce) o Mergers and acquisitions (Form strategic alliances, Joint ventures, outsource part of their operations) Downsizing: Process by which managers streamline the org hierarchy and lay off managers and workers to reduce bureaucratic costs Popular method of cutting costs, but criticized having impacts on service quality, and emotional and behavioural commitmentresponse of survivors Consequences huge increase in workload, search for such meaning, social and org isolation, decreased family functioning. 6 best downsizing processes (by white-collar in U.S. automobile firms) o 1. Implementation was not only by command from top down, but initiated from bottom up. o 2. Focus was short-term and across-the-board, but also long-term and selective in emphasis o 3. Special attention was paid both to those employees who lost their jobs and to the survivors o 4. Targets were inside the firm, but also included the firms external network o 5. Downsizing resulted in both small, semiautonomous orgs and large, integrated orgs. o 6. Downsizing is emphasized as a means to an end rather than an end in itself. o Org structure is defined by how tasks are formally divided (differentiation) and coordinated (integration) o Restructuring includes (de-layering) e.g. CNR reduced 10-5 mgmt levels 2 www.notesolution.com
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