Chapter 3: Why Organization Change
Images of Pressures for Change
Images Pressures for Change
Director Change is a result of strategic pressures and controllable by managers’ ability to
direct the organization’s response
Navigator Strategic change is in response to internal and external pressures. Multiple
pressures facing managers will need to be taken into account.
Caretaker Managers have little control over the inevitable pressures on the organization.
Managers have little choice in the organization’s actions.
Coach Pressures for change are constant and result in the need to develop and shape the
organization’s capabilities to better enhance organizational outcomes.
Interprete Pressures for change are internal and external and managers need to understand
r and give meaning to these.
Nurturer Pressures for change are large and small and the manager’s role is to enhance the
adaptive capacity of the organization.
Pressure Examples Description
Fashion Boeing Co. Neo-institutionalism: mimetic isomorphism. Managers
pressures imitate practices associated with successful organizations
Mandated Chevron Neo-institutionalism: coercive isomorphism. An
pressures Texaco organization changes through formally or informally
Geopolitical 3M Macroeconomic changes (or crises) place pressure on
pressures organizations to change the way they operate.
Market decline AOL Time When current markets begin to decline there is pressure to
pressures Warner find newer, more viable markets
Hyper-competition Gateway The highly intensified rate of business – including
pressures shortened product life cycles and rapid responses by
competition – produces pressure for change at the
Reputation and Walt Disney In light of recent corporate governance scandals, the
credibility Company pressure to maintain a good reputation and high level of
pressures credibility has increased.
Debate: Role of the External Environment
A. Organizational learning vs. threat-rigidity
- whether external pressures facilitate or inhibit the process of change.
B. Environment as an objective entity vs. environment as a cognitive construction
- The former treats the environment as an objective entity to which managers must respond. The latter emphasizes the centrality of managers’
interpretations of environmental conditions as the key determinant of behavior.
C. Forces for change vs. forces for stability
- External forces can vary; they either promote change or promote stability.
- Whether environmental pressures will lead to innovative change will be effected by three factors:
o The extent to which an organization’s mission is institutionalized in stakeholders and the external environment: the less institutionalized it
is, the more flexibility the organization wi