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MGHB02H3 (268)
Chapter 16

chapter 16

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University of Toronto Scarborough
Management (MGH)
Julie Mc Carthy

Chapter 16 Organizational change, development and innovation 1. The concept of organizational change It is the way in which the changes are implemented and managed that is crucial to both customers and members. Why organizations must change: Two basic sources of pressure to change: external sources and internal sources. ----Organizations work hard to stabilize their inputs and outputs. Environmental changes must be matched by organizational change, if the organization is to remain effective. ----Changes can be provoked by forces in the internal environment of the organization: low productivity, conflict, high absenteeism and turnover. ----Internal forces for change occur in response to organizational changes that are designed to deal with the external environment. (Mergers and acquisitions occur to bolster the competitiveness of an organization) ----When threat is perceived, organizations unfreeze, scan the environment for solutions (invest resources), and use the threat as a motivator for change. EXHIBIT 16.1 Organizations in a dynamic environment must generally show more change to be effective than those operating in a more stable environment What organizations can change: The choice of what to change depends on a well-informed analysis of the internal and external forces signaling that change is necessary. Factors include: Goals and strategies Technology: changes can vary from minor to major. Job design: redesign to offer more or less variety, autonomy, identity, significance and feedback. Structure: functional to product, formalization centralization. Processes Culture: culture is known to be a major factor in providing an organization with a competitive advantage and long-term effectiveness. (fundamental aspect of organizational change0 People: The membership of an organization can be changes in two senses. First, the actual content of the membership can be changed through a revised hiring process. Second, the existing membership can be changed in terms of skills and attitudes by various training and development methods. ----A change in one area very often calls for changes in others. ----Changes in goals, strategies, technology, structure, process, job design and culture almost always require that organizations give serious attention to people changes. ----Change requires employees to learn new skills and change their attitudes. However, for people to learn, organizations must also learn. The learning organization: Organizational learning: The process through which an organization acquires, develops, and transfers knowledge throughout the organization. ----Organizations learn through knowledge acquisition: This involves the acquisition, distribution, and interpretation of knowledge that already exists but which is external to the organization. ----Organizations also learn through knowledge development. This involves the development of new knowledge that occurs in an organization primarily through dialogue and experience. www.notesolution.com
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