MGM102H5 Chapter Notes - Chapter 3: Making Money, Organizational Culture, Inflection Point
Document Summary
Organizational inertia (ocioce: organizational inertia: internal and external forces that make it difficult to change the strategy/organization architecture of an enterprise, inlcuding cognitive schemata, internal political constraints, organizational culture, strategic commitments and capabilities, and external institutional constraints. Internal political constraints: distribution of power and influence, any change tends to alter the established distribution of power and influence within an organizational. Organizational culture: those who feel that their power is threatened by change, will oppose the change, value systems reflect deeply held beliefs, and are hard to change. If the formal and informal socialization mechanisms within an organization have emphasized a consistent set of values for a a long time, and hiring/promotion/incentive systems all reinforce these values, then to suddenly change them will create resistance among employees. Four steps in a successful organizational change process: leadership committed to change, unfreezing the organization, moving the organization toward a new strategic and organizational configuration, and refreezing the organization in its new configuration.
