OB CH 16 outline - Kristin Chen CH 16 OB Outline MANAGING...

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Kristin Chen   CH 16 OB Outline MANAGING ORGANIZATIONAL CHANGE: STRATEGIC PLANNING &  ORGANIZATIONAL DEVELOPMENT 1. The Prevalence of Change in Organizations  a. Organizational change  planned or unplanned transformations in an organization’s  structure, technology, and/or people b. The message is clear: change or disappear!  c. Change is a global phenomenon  2. The Nature of the Change Process a. Organizational change targets i. Structure ii. Technology  iii. People 1. STEP 1: unfreezing  – recognizing need for change   a. Doomsday management  =  the practice of introducing change by  suggesting that an impending crisis is likely 2. STEP 2 changing  –implementing planned change 3. STEP 3 refreezing —accepting newly charged state b. First-order change  =  continuous change involving no major operational shifts c. Second-order change  =  radical change; major shifts involving different levels & aspects of  business d. Unplanned change  =  shifts in organization’s  activities due to forces that are external in  nature   i. shifting employee demographics ii. performance gaps iii. government regulation  iv. global competition v. fluctuating economic conditions vi. advances in technology 3. Strategic Planning: Deliberate Change a. Strategic planning  =  process of formulating, implementing, & evaluating decisions that  enable an organization to achieve its objectives b. Basic assumptions i. Strategic planning is deliberate ii. Strategic planning occurs when current objectives can no longer be met iii. New organizational objectives require new strategic plans c. Companies make strategic plans about… i. Products & services  1. Downsizing/rightsizing  =  process of systematically reducing the # of  employees required to perform newly restructured jobs
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2. Outsourcing  = eliminating parts of organizations that focus on noncore  sectors of the business & hiring outside firms to perform these functions  instead 3. Offshoring practice of outsourcing overseas to exploit lower labor  costs d. 10 STEPS OF STRATEGIC PLANNING PROCESS           [fig. 16.10,  p.636]
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4. Resistance to Change: Maintaining the Status Quo a. Resistance to change  =  tendency for employees to be unwilling to go along with  organizational changes, either because of individual fears of the unknown or organizational  impediments (such as structural inertia) b. Individual barriers to change  i. Economic insecurity ii.
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