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Chapter 9

Chapter 9 Notes

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York University
Administrative Studies
ADMS 1000
Eytan Lasry

Readings- Chapter 9 Forces for Change 1. Economic Change Is the economy healthy or weak? Downsizing is more likely in lean times than rich Changes also effect employer-employee relationships; lifetime employment doesn’t occur now Part-time & temporary work is more common Pattern of career movement within an organization more flatter hierarchies 2. Competitive Change Competition will always be there; understanding what to do next is critical Organizations must adapt to change as markets get faster-growing & there’s more demand Organizations must constantly be creating new & better methods for serving customers 3. Technological Change Technology is always changing It brings threats & benefits (flexibiliy telework) 4. Legal/Political Change Deregulation & privatization are governmental changes on business strategy Increased emphasis on organizational just icehow employees are treated There are more laws based on fairness Compensation pay equity among different people Merit-based pay & pay-for-performance 5. Societal Change Businesses must adapt to societies & changes they undergo Ie, aging population is in demand for health care www.notesolution.com Increasing education level at work has created cha ngensowledge work 6. Global Change Globalization affects people around the world “borderless” corporations Why do Organizations Resist Change? Most organizations find it difficult to adapt to change; some “die out” because of it Organizations are based on stability in its operations & functions Changes to structural features disrupts an organizations routines & can affect its reliability & accountability Change can be disruptive, costly & rarely successful We are lead by a machine bureaucra cytasks that are simple & repetitive, the machine bureaucracy is suitable because of rules, the standardization of tasks, & efficiency Types of Change 1. Developmental Change Attempts to improve upon what the business is currently doing, rather than creating something completely new This may include the improvement of existing skills, processes, methods, performance standards or conditions Ie, increasing sales or quality of goods, interpersonal communication training, simple work process improvements, team development & problem solving efforts may be considered forms of developmental change 2. Transitional Change This replaces what already exists with something new & requires the organization to depart from old methods of operating while the new state is being established Ie, reorganizations, simple mergers or acquisitions, creation of new products/services, & information technology implementations that don’t require a huge shift in culture or behaviour 2 factors that distinguish transitional from transformatio naal ) its possible to determine the final destination or state in detail before the transitional change is implemented; this permits the change to be managed. B) transitional change impacts www.notesolution.com employees only at the levels of skills & actions, but ore at the more personal levels of mindset, behaviour & cultures 3. Transformational Change Harder to manage compared to other 2 The future state or destination cased but the change is unknown when the transformation begins; the final state is determined through trail & error It can’t be managed with predetermined, time-bound or “linear” plans The actual change process only emerged as the change is implemented Managers/employees must operate in the “unknown” The future state is so different that employees & their culture must change to successfully implement this type of change; new mindsets & behaviours are required Methods of Change: Theory E & Theory O Change Change often includes structural change, cost cutting, process change & cultural change Theory E- has as its purpose the creation of economic value, often expressed as shareholder value. Its focus is on formal structure & systems Change is based on the notion of maximizing shareholder value Methods include change to organizational structure & systems Planning tends to emanate from the highest levels of organization, making it a “top driven”, programmatic approach Performance bonuses, personnel reduction, asset sales, strategic restructuring of business units ie, Scott Paper main objective was to increa
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