Cminnig C721.docx - Catalina Minnig Student ID C721 Change...

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Catalina Minnig Student ID: July 12, 2019 C721 - Change Management
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A. Need for Change Organizations need to understand and recognize that sometimes is necessary to make changes to adapt to external facts. Globalization, technology, communications, and other components affect the way how to create a competitive advantage. The company X is facing an internal problem, apparently, everything looks good, with a fast grown in the last decade, but internally, they are struggling with their future. While the company is growing rapidly, it caused major issues during their expansion that could affect directly to their future. Greiner’s (1998) organizational life-cycle approach explains the type of challenges organizations face as they age, and how leaders must grow the organization along their life cycle. “As organizations evolve, following a somewhat predictable path, they move through punctuated equilibrium periods of stability with embedded crises. If these predicted crises are not solved, leadership and management can be forced out of business and replaced by a team that can bring in the needed changes.” (Simmons, 2005). There are 5 phases of grown most companies experience; the First stage is the beginning, entrepreneurial, with founder/s and maybe a few employees, who are involved in a day to day company’s operation. Creativity and motivation are the secrets to success. The goal is to make and sell a new product or service. But as the company evolves, these become a problem. The lack of structure and informal management system must be formalized. Second stage growth with clear direction, with a structured leadership and management style, the company adopt a functional organization structure with specialized jobs. The company’s culture develops a more formal communication. Management assumes more authority with strategic decision making. The second crisis is the autonomy, the organization’s growth become too constraining to
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integrate and control the diversity and complexity that it evolves. A centralized hierarchy will curtail employees, who must decide between following worthless orders or acting themselves. To keep growing the leaders will need to delegate, change hierarchy, or be replaced. The inability to delegate can be the main reason why talented employees leave the company. The third stage is formalization, grown with the delegation, upper-level management learned how to delegate roles and responsibilities to lower management and staff. The crisis in this level can occur if the leadership attempt to centralize the power. Stage fourth is the organization growing with coordination with the implementation of a more formal system to achieve an allocation of resources, it is critical to keep the company’s mission and culture in the same direction, with the same purpose. The crisis occurs with red tape, lack of confidence, interpersonal problems between staff, autocratic procedures, lack of innovation, difficulty to obtain information, and getting the work done.
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