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Chapter 10

ADMS 1000 Chapter 10

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York University
Administrative Studies
ADMS 1000
Peter Khaiter

Chpt 10; Confronting Changing Contexts* Forces for Change  Organizations are open systems in continual interaction with their external environment o "There is nothing permanent except change.” -Heraclitus (Greek philosopher 6 century BCE)  Success and survival is therefore a matter of fit with a dynamic and evolving environment o “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.-Charles Darwin (British naturalist 19 century; author: On the Origin of Species, 1859) 1. Economic Changes  Adapt to changing economic conditions. Ex. Downsizing began when large secure organization begin laying off employees  Life time employment is a thing of the past  Instead of moving up hierarchy people tend to move around now 2. Competitive Changes  At each stage of the life cycle; emergence, shakeout, maturity and decline; the organizational skills and capabilities needed to survive and grow change in significant ways  Competition both foreign and domestic has a drive to accelerate in innovation  Globalization 3. Technological changes  Technology is changing which permits and demands organization change  Can create new industries and destroy old ones  With technology you have more flexibility 4. Labour force Changes  Need to respond to changing demographics, immigrants, women, visible minorities and people with disabilities  Organizations need to understand how relationships with the labour pool can change over time  Need to consider how labour or union demands can impact corporate policy and decision making 5. Global Changes  Tremendous growth with borderless corporations and multinational corporations to move freely across borders and set up business just about anywhere 6. Legal/political Changes  Increasing emphasis on organizational justice i.e. How employees are treated  More laws governing fairness in the workplace-Pay equity has been an issues i.e. pay gap between men and women  Increasing emphasis on merit based pay and pay for performance (links to effort opposed to years or working with company) 7. Societal Changes  Business responds to society; consumer tasted changes , aging population  Increasing education level of the work force has also generated changes to the nature of work Types of Change Developmental change  Improving current practices; skills processes , methods, performance standards i.e. improving sales or quality of goods Transitional Change  Replacing current practices  Outcome is defined  Affects employee skills not culture Steps for implementing transitional changes 1. Understanding the forces for change 2. The change vision and implementation 3. The need for cultural change 4. Leading through communication 5. Reinforcing the change  Transformational Change  Requires adopting different mindset and routines – very challenging  Future outcome is unknown at the time change is implemented,  Final state based on trial and error Structural intra theory  Organizations need the support of external stakeholder
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