MGHB02H3 Chapter 16: Chapter 16 summary

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1 Jun 2011
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Questions and exercises prepared by alan saks: 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: 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.