Long time power holders change is a threat to those

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Long-time power holders: - change is a threat to those who have spent long time within the org & achieved senior position, though they may still implement changes to demonstrate they’re not merely caretakers - tend to implement first-order change ( change that’s linear & continuous ) *radical change is too threatening - therefore, boards of directors often look for leadership from outside to implement second-order change ( change that’s multi-dimensional, multi-level, discontinuous, radical ) CONTEMPORARY CHANGE ISSUES FOR TODAY’S MANAGERS Technology in the Workplace Continuous Improvement Processes - search for continuous improvement that recognizes good isn’t good enough & that even excellent
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P ART 5: R EORGANIZING THE W ORKPLACE performance can/should be improved on - quality management seeks to preserve customer satisfc’n by continually improving all org. processes *reduce variability in outcomes & performance (variability↓ → uniformity↑ → costs↓ & quality↑) - employees can no longer rest on previous accomplishments & successes → work climate no longer accepts complacency w/ status quo → more stress & anxiety *But tension may be +ve for org (functional conflict) Process Re-engineering - management start over, rethink & redesign processes by which the org creates value & does work, get rid of old-fashioned operations 1. Identify org’s distinctive competencies ( what an org delivers better than its competition ) - guides decisions regarding what activities are crucial to org’s success e.g. store location, more efficient distribution system, better sales personnel 2. Assess core processes (transform materials, capital, info, labour into products & services that customers value) - when org is viewed as a series of processes (strategic planning → after-sales customer support), management determines to what degree each adds value → uncovers unnecessary, invaluable activities 3. Re-organize horizontally by process - use cross-functional & self-managed teams (focus on processes, NOT functions) - cut out unnecessary levels of middle management) Result: - downsizing (esp. middle managers lost jobs) - jobs no longer same (wider range of skills, greater challenge, inc. responsibilities, higher pay) - 3- to 5-yr period for implementation usually tough for employees (uncertainty + anxiety w/ new tasks + have to discard old work practices & social networks) Stimulating Innovation innovation = new idea applied to initiating / improving a product, process, or service - all innovations involve change (BUT not all changes involve innovation) - include new production process tech, new structures / admin systems, new plans/programs for org member Sources of Innovation STRUCTURAL VARIABLES → potential source
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P ART 5: R EORGANIZING THE W ORKPLACE Organic structures +vely influence innovation fewer vertical levels, lower formalization, lower centralization → flexibility, adaptation, cross-fertilization → easier to adopt innovation Long tenure in management is associated w/ innovation
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