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Nature of Organizational Change
Nature of Organizational Change
Nature of Organizational Change
CHANGE
Importance
We cannot become what we need to be by remaining what we are. Max DePree It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin
Importance
Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy The road to excellence is always under construction. Anthony Robbins
Importance
When the rate of change outside exceeds the rate of change inside, the end is in sight. Jack Welch
dynamic field of complexity challenged by ever present demands of change (Pettigrew, 2001). - an inevitable feature of organizational life, determining its success and survival.
Change
75
percent of all American corporations have gone through some type of systematic change program (Attaran, 2000).
percent of new programs from reengineering, installing new technology to changing culture fail (Beer and Nohria, 2000).
Startlingly
Survey
Concept
Change The only constant Moving to a new (better) state of being Organizational change A process by which organizations move from their present state to some desired future state to increase their effectiveness.
Implementation
of new ways of doing or being in order to realign with the new demands of the environment or to
Concept
Goals
To
find improved ways of using resources and capabilities in order to increase an organizations ability to create value and improve returns to its stakeholders.
Needed for both the failing organizations (e.g. IBM or GM) or thriving organizations (e.g. Wal-Mart) to use resources in a way that improve their fit with the environment.
Over half of all Fortune 500 companies have undergone major organizational changes to allow them to increase their ability to create value.
Of the 1970 Fortune 500 companies, one third ceased to exist by 1983 because of
2.
A constant attempt to improve, adapt, and adjust strategies and structure incrementally to accommodate to changes in the environment. E.g. TQM, flexible work groups, employee training.
Past
Industrial Economy
and
Present
Information Economy Global Competition Services--size varies Diverse groups with blurred boundaries Mixed modes--conflict and cooperation Men & Women at Work-varied families
Domestic Competition Big Industrial Firm Two groups: managers and workers Adversarial Relations Male Breadwinner with Spouse at Home
The Problem
Nature of work and the workforce have changed dramatically, but our institutions, policies, and practices for governing and managing work still reflect their origins in the industrial economy of the past
Our challenges
Update practices, institutions, and policies to catch up with the changes in the workforce and in work--to meet the needs of the modern economy, and the modern workforce and modern families!