Textbook Notes (363,062)
Canada (158,169)
York University (12,353)
ADMS 1000 (298)
Sung Kwon (4)

ADMS 1000 10 - changing contexts.docx

7 Pages
Unlock Document

York University
Administrative Studies
ADMS 1000
Sung Kwon

CONFRONTING CHANGING CONTEXTS CHANGE AND THE ENVIRONMENT OF BUSINESS Change: inevitable and desirable • Organizations are open systems in continual interaction with their external environment • Success and survival are therefore a matter of fit with a dynamic and evolving environment Forces for Change 1. Economic changes o downsizing during economic downturns o changes in employer­employee relationship  shift from long­term employment to temporary and part­time  to improve performance and bottom line results o change in pattern of career movement  shift from vertical to lateral (horizontal movement) – flattening of hierarchies 2. Competitive changes o Competition evolves from fragmented and fast­growing to concentrated and declining o Domestic and foreign competition accelerated innovation among firms o Organizations must continually create new and better methods of serving customers 3. Technological changes o Technology is a continuously changing variable and both permits and demands organizational  change o Can create new industries and destroy old ones o Contributed to more flexibility in work arrangements 4. Labour force changes o Increasingly diverse workforce – designated groups, aging workers o Changing purpose of unions 5. Global changes o Globalization gave rise to borderless corporations o Globalization has also influenced profound changes in the relationship of business to its external  stakeholders (society or community)  Transfer of operations – loss of jobs  Free trade – downfall of protected industries 6. Legal/Political changes o Deregulation and privatization o More laws governing fairness in the workplace ­ compensation  Shift from seniority­based pay to merit­based pay and pay­for­performance 7. Societal changes o Changing consumer tastes and societal demands (aging population) o Increasing education level of workforce  Creation of jobs requiring multi­skilled workers  Prevalence of teams TYPES OF CHANGE 1. Developmental o Attempts to improve upon what the business is currently doing, rather than creating something  completely new o Improvement of existing skills, processes, methods, performance standards, or conditions 2. Transitional o Replaces what already exists with something completely new o Requires organization to depart from old methods of operating while the new state is being  established o Reorganizations, simple mergers/acquisitions, creation of new products or services that replace  old ones, IT implementations not requiring a significant shift in culture/behavior 3. Transformational o Future state or destination caused by the change is unknown  Determined through trial and error as new information is gathered  Change cannot be managed with predetermined, time­bound, or “linear” plans o Future state dramatically different from current operating state  Employees and their culture must change in order to successfully implement this type of  change (new mindsets and behaviours required) Transitional vs. Transformational Transitional Transformational Final state Can be possibly determined before implementation unknown Impact on employees skills and actions Mindset, behavior, culture Methods of Change Theory E change Theory O change Central goal maximize shareholder value develop organizational capabilities Methods used to achieve  changes to organizational  developing an organizational culture that  goal structure and systems supports learning and a high­performance  employee population Planning top­driven and programmatic Emergent and participative Mechanisms employed to  • performance bonuses • Flatter structure (to increase  facilitate change • personnel reduction employee involvement) • asset sales • Increased bonds between  • strategic restructuring of  organization and employee business units • Employee commitment to change Successful long­term change – both Theory E and Theory O ­ achieve rapid improvements in economic value while also building sustainable advantage inherent in  building organizational capability THE PROCESS OF TRANSFORMATIONAL CHALLENGE 1. Understanding The Forces For Change o Mature organizations establish a relatively fixed mindset – huge resistance to change 2. The Change Vision And Implementation 10 rules to assist in the implementation process: o analyze organization and its need for change o create a shared vision and common direction o separate from the past o create a sense of urgency o support a strong leader role o line up political sponsorship (senior management) o craft an implementation plan o develop enabling structures o communicate, involve people, and be honest o reinforce and institutionalize change  3. The Need For Cultural Change Psychological contract o Set of implicit assumptions that underlie the expectations of employees with regard to their  employment status 2 ways to change the psychological contract o accommodation (modify or alter terms) within the context of the existing contract o transformation – radical change that replaces old mindset with new ones  starting point for successful change is to change a culture from one of entitlement (compensation  based on seniority) into a culture of accountability (pay for performance)  publicly acknowledge existence of a crisis  management doesn’t change the culture…management invites the workforce itself to change the  culture 4. Leading Change Through Communication o Most effective organizations are those that communicate openly, honestly, consistently, and  continuously o CEO as communications champion – set the example for others to follow o Match words to actions o Emphasis on face to face communications o Bad/good news ratio o Employee communication strategy 5. Reinforcing The Change o Strategies should be believable and executable o Translate strategies into action programs  Measure r
More Less

Related notes for ADMS 1000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.