Organizations as complex entities complexity theory

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Organizations as Complex Entities Complexity Theory (page 83) o The complexity theory argues that organizations webs of nonlinear feedbacks loops that connect individuals and organizations that can lead to self-organization and alignment between parts. o Propositions of The Complexity theory Displayed on Page 84 o An important Idea that comes from complexity theory is that small changes at key points early on can have huge downstream effects. Appendix 3.1: Other Models of Organizational Analysis The Mckinsey 7-S Model o Strategy- A plan or course of action undertaken in response to or in anticipation of changes in the external environment. It leads to the allocation of the organization’s finite resources to reach specific goals. o Structure- How people and the work are formally organized. It relates to the nature of the formal hierarchy, reporting relationships, and other design factors that go into the formal structure. 6
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o Systems- The formal and informal processes and procedures used to flow information and facilitate decision making and action. o Style- How the managers behave in the pursuit of organizational goals. o Staff- How human resources are developed and categorized over time. o Shared value- Longer-term vision and shared values that shape what organizational members do and the destiny of the firm. o Skills- The dominant attributes and distinctive competencies that exist in key personnel and the organization as a whole. The Burke-Litwin Causal Model o The most dominant factor that triggers organizational change is the external environment. It is the external environment that makes an organization to change its mission, culture, leadership and its operating strategies. o The changes in the 12 key dimensions, as identified by the Burke and Litwin model, bring about a series of changes in the structure, practices and the system of the organization. o All the affecting factors put together affects the motivation level of the individuals in an organization, which in turn impacts the overall performance. o The 12 key dimensions of the change model interact with and affect each other. And understanding the linkage between these supportive pillars is the key to effective and smoother change. o Variables located in the top half of the model (Environment, leadership, mission and strategy, and organizational culture are identified as the transformational factors. Changes to these organizational factors are seen as likely caused by interactions with the external environment. o The remaining variables are identified as the transactional factors because they are more directly involved in the day-to-day activities of the organization. Chapter 4 Building and Energizing the Need for Change 1. Understanding the need for change a. Challenges -To develop the information they need to assess the situation -To develop their views on the need for change -To understand how others see that need 7
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-To create awareness and legitimacy around the need for change when a shared
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  • Spring '11
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  • Organizational Analysis

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