Module 7 Flashcards
Organization change
- A difference in the form, quality, or condition of an organization overtime.
- Organizations are in a constantly changing environment, either you change or you risk going out of business.
organizational decline
occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal pressures that threaten their survival.
organization decline: 5 stages
- blinded stage
- inaction stage
- faulty action stage
- crisis stage
- dissolution stage
blinded stage
Blinded stage: decline begins because key managers fail to recognize the internal and external changes that will harm the organization
inaction stage
- as organizational performance problems become more visible, management may recognized the need to change but still take no action.
faulty action stage
faced with rising costs and decreasing profits and market share, management announces “belt tightening” plans designed to cut costs, increase efficiency, and restore profits.
crisis stage
bankruptcy or dissolution is likely to occur unless the company completely reorganizes the way it does business
dissolution stage
after failing to make the changed needed to sustain the organization, the company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks and creditors. New CEO is brought in to over closing of stores.
Managing change: Managing innovation during discontinuous change
• Experiential approach to innovation – assumes that innovation is occurring within an uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding…
managing innoatiing during incremental change
assumes that innovation is predictable process, that incremental innovation can be planned using a series of steps , and that compressing the time I takes to complete those steps can speed up innovation. ;
change forces
include new strategic requirements (perhaps a new kid of differentiation), which are close tied to competitors actions; changes in government regulations
Managing resistance to change: causes:
by self-interest, misunderstanding and distrust, and general intolerance for change
managing resistance to change causes: resistance forces
support the status quo, that is, the existing conditions in organizations.
Kurt Lewis’s method to managing change
- Unfreezing
- Change intervention
- Refreezing
Kurt Lewis: Unfreezing
• Unfreezing is getting the people affected by changed to believe that the change is needs.
