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MGHB02H3 (268)
Chapter 16

Chapter 16 - Organizational Change, Development and Innovation

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University of Toronto Scarborough
Management (MGH)
Joanna Heathcote

Chapter 16Organizational Change Development and Innovation The Concept of Organizational ChangeWhy Organizations Must ChangeTwo basic sources of pressure to change external and internal sourcesEnvironmental changes must be matched by organizational changes if the organization is to remain effectiveFirms unable to anticipate or cope with new trends will cease to exitExternal environment increased competitiveness result of global economy deregulationInternal environmentlow productivity conflict strike sabotage high absenteeism and turnoverInternal forces for change occur in response to organizational changes that are designed to deal with the external environment ie mergerculture clashOrganizations can exhibit too much change as well as too littleChange always entails some investment of resources moneymanagement time always requires some modification of routine and processesOrganizations in dynamic environment must show more change to be effective than those operating in a more stable environmentWhat Organizations can changeGoals and strategiesie expansion introduction of new products pursuit of new marketsTechnology vary from minor to major online portalminor assembly line to flexible manufacturingmajorJob designredesign groups to offer more or less variety autonomy identity significance and feedbackStructurecan be modified from functional to product form formalization and centralization can be manipulated tallness spans of control networking modification in rules policies and proceduresProcesseshow work is doneCultureorganizational culture refers to the shared beliefs values and assumptions that exist in an organization culture has a strong influence on the attitudes and behaviours of members considered a fundamental aspect of changePeoplemembership of an org can be changed such as the actual content of the membership changed through revised hiring process new blood or take advantage of the opportunities that a more diverse labour pool offersOr the existing membership can be changed in terms of skills and attitudes by training and development methodsThree points to note 1 Change in one area calls for changes in others2 Changes in goals strategies technology structure process job design and culture always affects people skills and favourable attitudes should be fostered before other changes are introduced3 change requires employees to learn new skills and change their attitudesThe Learning OrganizationOrganizational learningthe process through which an organization acquires develops and transfers knowledge throughout the organization1
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