MGHB02H3 Chapter 16: Chapter 16 Organization Change p.552-582

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2 May 2011
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The way changes are implemented and managed is crucial to customers and members. 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 merger/acquisition. 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. 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.

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