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MGHB02H3 (269)
Chapter 16

Chapter 16 summary

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Management (MGH)
Julie Mc Carthy

Page 1 of 8 Questions and Exercises prepared by Alan Saks. I. The Concept of Organizational Change Common experience indicates that organizations are far from static. They change and these changes have a strong impact on people. In and of themselves, such changes are neither good nor bad. Rather, it is the way in which the changes are implemented and managed that is crucial to both customers and organizational members. A. Why Organizations Must Change All organizations face two basic sources of pressure to change - external sources and internal sources. External sources include the global economy, deregulation, and changing technology. Internal sources include low productivity, conflict, strikes, sabotage, high absenteeism, and turnover. As environments change, organizations must keep pace and internal changes often occur in response to external pressures. Sometimes, when threat is perceived, organizations unfreeze, scan the environment for solutions, and use the threat as a motivator for change. Other times, though, organizations seem paralyzed by threat, behave rigidly, and exhibit extreme inertia. Without an investment of resources and some modification of routines and processes, inertia will occur. Organizations should differ in the amount of change they exhibit. Organizations in a dynamic environment must generally exhibit more change to be effective than those operating in a more stable environment. Also, change in and of itself is not a good thing and organizations can exhibit too much change as well as too little. B. What Organizations Can Change There are several specific domains in which modifications can occur as part of organizational change. Factors that can be changed include: z Goals and strategies. Organizations frequently change the goals and the strategies they use to reach these goals. z Technology. Technological changes can vary from minor to major. z Job design. Companies can redesign individual groups of jobs to offer more or less variety, autonomy, identity, significance, and feedback. z Structure. Organizations can be modified from a functional to a product form or vice versa. Traditional structural characteristics of organizations such as formalization and centralization can also be changed. z Processes. The basic processes by which work is accomplished can be changed. z Culture. One of the most important changes that an organization can make is to change its culture. Changing an organizations culture is considered to be a fundamental aspect of organizational change. z People. The membership of an organization can be changed either through a revised hiring process or by changing the skills and attitudes of existing members through training and development. Three important points should be noted about the various areas in which organizations can introduce change. First, a change in one area very often calls for changes in others. Failure to recognize this systematic nature of change can lead to severe problems. Second, changes in goals, strategies, www.notesolution.com
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