Chapter 13 - Chapter13 Forces For Change External Forces...

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Chapter 13 Managing Change and Innovation Forces For Change External Forces that create the need for change comes from various sources The Marketplace – companies constantly adapt to changing consumer desires as they develop new search capabilities - Firms like Yahoo have its competition from Google, Ask.com etc. Governmental laws and regulations - are a frequent impetus for change - Sarbanes-Oxley Act required all U.S. companies to change the way they disclose financial information and enact corporate governance Technology – creates the need for change - Assembly line technology in some industries is changing replacing human labor with robots - Improvements in diagnostic equipment have created significant economies of scale for hospitals and medical centers Labor Markets – fluctuation in labor markets forces managers to make changes. - Organizations that need certain kinds of employees must change their human resources activities to attract and retain skilled employees in the areas of greatest need Economic Changes – affects almost all organizations - Global economic pressures force organizations to become more cost efficient - But uncertainties about interest rates, federal budget deficits, and currency exchange rates that may force organizations to change Internal Forces tend to originate from the internal operations of the organization of from the impact of external changes. Organizations strategy – introduces a host of changes - Technology was outdated, execution was slow. By orchestrating a series of well planned and dramatic strategic changes, it turned into a profitable company Organizations workforce – Its composition changes in terms of age, education, ethnic background, sex, etc. - Restructure jobs in order to retain and motivate younger manager’s because promotions may be harder to come by - Compensation and benefits system might be needed to be adapted to reflect the needs of older workers New equipment – another internal force for change - Employees may have their jobs redesigned, need to undergo training on how to operate the new equipment Employee attitudes – Often leads to changes in management policies and practices - Such as job dissatisfaction may lead to increased absenteeism, more voluntary resignations, and even labor strikes. ----------------------------------------------------------------------------------------------------------------------------------------------- - 1
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Chapter 13 Managing Change and Innovation Two Views of the Change Process The Clam Waters Metaphor Unfreezing the status quo (Preparing the needed change) - Can be done by increasing driving forces , which are forces pushing for change - And by decreasing restraining forces , which are forces that resist change - Or by combining the two forces Changing to a new state (The change can be implemented) - The change can be implemented - After unfreezing, the change can be implemented but doesn’t mean the new change will hold Refreezing to make the change permanent
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Chapter 13 - Chapter13 Forces For Change External Forces...

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