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Why Organizations Change: Mcgraw-Hill/Irwin Rights Reserved
Why Organizations Change: Mcgraw-Hill/Irwin Rights Reserved
Why
Organizations
Change
McGraw-Hill/Irwin
Why Change?
Why Change?
Images of
Managing Change
External
Pressures
-Fashion
-Mandated
-Geopolitical
-Market decline
-Hypercompetition
-Reputation &
credibility
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
Images
Director
Navigator
Caretaker
Coach
Interpreter
Nurturer
Pressures for change are large and small and the managers
role is to enhance the adaptive capacity of the organization.
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
3-3
Environmental Pressures
Why Change?
Images of
Managing Change
Pressure
Examples
Description
Boeing
Co.
Neo-institutionalism: mimetic
isomorphism. Managers imitate
practices associated with successful
organizations
External
Pressures
-Fashion
-Mandated
-Geopolitical
-Market decline
-Hypercompetition
-Reputation &
credibility
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
Fashion
pressures
Mandated
pressures
Geopolitica
l pressures
Chevron
Texaco
3M
Neo-institutionalism: coercive
isomorphism. An organization
changes through formally or
informally mandated requirements.
Macroeconomic changes (or crises)
place pressure on organizations to
change the way they operate.
3-4
Environmental Pressures
Why Change?
Images of
Managing Change
External
Pressures
-Fashion
-Mandated
-Geopolitical
-Market decline
-Hypercompetition
-Reputation &
credibility
Role of the
Environment
Pressure
Market
decline
pressures
Hypercompetition
pressures
Examples
AOL Time
Warner
Gateway
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
Reputation
and credibility
pressures
Description
Walt Disney
Company
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
3-6
Internal Pressures
Why Change?
Images of
Managing Change
Pressure
External
Pressures
Growth
pressures
-Fashion
-Mandated
-Geopolitical
-Market decline
-Hypercompetition
-Reputation &
credibility
Examples
Microsoft
Integration
and
EDS
collaboration
pressures
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
Identity
pressures
Forte
Hotel
Description
Existing systems and processes in
an organization may no longer be
applicable when the size of the
organization increases.
Integration and creating
economies of scale can lead to
pressure for change in
organizations.
A common organizational identity
and the unified commitment of
staff in different areas/departments
of an organization can be difficult
to manage and may encourage
change.
3-7
Internal Pressures
Why Change?
Images of
Managing Change
Pressure
Examples
Description
External
Pressures
-Fashion
-Mandated
-Geopolitical
-Market decline
-Hypercompetition
-Reputation &
credibility
Role of the
Environment
Internal Pressures
-Growth
-Integration &
collaboration
-Identity
-New broom
-Power & political
Bank of
America
Power and
Morgan
political
Stanley
pressures
New
broom
pressures
3-8