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MGHB02H3 (268)
Chapter 16

Chapter 16 Organization Change p.552-582

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University of Toronto Scarborough
Management (MGH)
Julie Mc Carthy

MGTB29 Chapter 16 Organization Change p.552-582 Concept of Organization Change p.552-558 - the way changes are implemented and managed is crucial to customers and members Why Organizations Must Change - environmental changes must accompany organizational changes in order for organization to remain effective - increased competition is example of external environment stimulating organizational change - global economy, deregulation, advanced technology cause leaner and meaner businesses - internally, low productivity, conflict, strikes, sabotage, high absenteeism and turnover signal change - internal forces for change occur in response to change designed to deal with external environment like cultural conflict after mergeracquisition - change needs investment of resources and modification of routines and process - extent of change depends on stability of environment - organization in constant flux fails to establish regular patters of behaviour necessary for effectiveness and employees become cynical of competence of management What Organizations Can Change Factors that can be changed: Goals and strategies expansion, intro of new products, pursuit of new markets Technology rigid assembly line to flex manufacting major chg, online portal access minor chg Job design offer more or less variety, autonomy, identity, significance, feedback Structure functional to product form, formalization and centralization, modifications in policies Processes stages of project done concurrently instead of sequentially Culture major factor providing competitive adv and long-term effectiveness, fundamental aspect of change People content of membership thru revised hiring process, skills and attitudes by training and development methods www.notesolution.comThree important pts about various areas: 1. Change in one area calls for changes in others 2. Changes in goals, strats, tech, job design, structure, process, and culture require ppl change. Necessary skills and attitudes should be fostered before chgs introduced. 3. Employees learn new skills and attitudes, but so must organizations. It must learn something new to change and improve itself. The Learning Organization Organizational Learning: process thru which an organization acquires, develops, and transfers knowledge throughout an organization Two methods of learning: 1. Knowledge acquisition acquisition, distribution, and interpretation of info already existing but external to organization 2. Knowledge development new knowledge internally thru dialogue and experience Learning Organization: organization that has systems and processes for creating, acquiring, and transferring knowledge to modify and chg its behaviour to reflect new knowledge and insights Four key dimensions of learning organization: 1. Visionsupport leaders must communicate clear vision of organizations strategy and goals 2. Culture knowledge and info sharing, risk taking, experimentation supported, continuous learning regular part of organizational life 3. Learning systemsdynamics employees challenged and act according to systems approach by considering patterns of interdependencies and by learning by doing 4. Knowledge managementinfrastructure systems to acquire, code, store, and distribute info to those who need it when they need it The Change Process Three Basic Stages: 1. Unfreezing recognition that current state is unsatisfactory, realizing present structure, task design, or tech is ineffective, or skills and attitudes inappropriate. www.notesolution.com
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