Changes in the environment changes

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: istant to change – Risk aversion: managers become unwilling to bear the uncertainty of change – The desire to maximize rewards: change often involves shrinking an organization, which challenges how most managers are rewarded ORGANIZATIONAL INERTIA ORGANIZATIONAL Overly bureaucratic culture: in large organizations, property rights can become so strong that managers spend all their time protecting their specific property rights rather than working to advance the organization. CHANGES IN THE ENVIRONMENT CHANGES Uncertain and changing environment – Makes it difficult for top management to anticipate the need for change and to manage the way organizations change and adapt to the environment A Model Of Organisational Decline Model (Weitzel and Jonsson, 1989) Blinded Stage – Unable to recognise problems Inaction Stage – Doing nothing about poor performance or masking problems Faulty Action Stage – Multiplication of problems Crisis Stage – Drastic point = drastic action required Dissolution Stage – Bankruptcy (decline is irreversible and the organization cannot recover) Weitzel and Jonsson’s Model Weitzel ORGANIZATIONAL DECLINE AND DEATH DEATH Organizational decline: the life­cycle stage that an organization enters when it fails to anticipate, recognize, avoid, neutralize, or adapt to external or internal pressures that threaten its long­term survival Weitzel and Jonsson’s Model of Organizational Decline of Five stages of decline – Stage 1: Blinded – organizations are unable to recognize the internal or external problems that threaten their long­term survival – Stage 2: Inaction – despite clear signs of declining performance such as decreased sales or profits, top management takes little actions to correct problems Weitzel and Jonsson’s Model Weitzel – Stage 3: Faulty action – managers may have made the wrong decisions because of conflict in the top­management team, or they may have changed too little too late – Stage 4: Crisis – by the time this stage has arrived, only radical changes in strategy and structure can stop decline – Stage 5: Dissolution – decline is irreversible and the organization cannot recover Figure 11-6: Weitzel and Jonsson’s Model Jonsson’s...
View Full Document

This document was uploaded on 04/02/2014.

Ask a homework question - tutors are online