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Lecture 2
Organization Renewal:
The Challenge of Change

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 1

Learning Objectives
• Identify ways organizations use
renewing processes.
• Understand and apply sociotechnicalsystems approach.
• Determine the individual and group
methods of coping with change.

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 2

Stage 1 of OD’s 5 Stages

Figure 2.1
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 3

Pressure for Change
• Market.
• Product.
• Competition.

• Downsizing.
• Flattening
structures.
• Empowerment.

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 4

Organization Renewal Adapting to Change
• Organizational renewal important to
survival.
• Defined as:
– An ongoing process.
– Builds innovation and adaptation.

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 5

Model of Adaptive Orientation
4 Ways for Organization to Adapt to Change

Figure 2.2
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 6

Environmental stability
Stable environment

Hyperturbulent
environment

Products

Unchanging basic
products and services

Rapidly changing
product lines

Competition

Static level

Increasing and
changing set of
competitors

Technological
innovation

Low level

Rapid and continual

Market growth
rate

Steady

Rapid

Sluggish-Thermostat
Management
• Stable environment, low adaptation.
• Management style based on low risk.
• Organizations using this style:
– Have very stable goals.
– Highly centralized structure
– Keep on doing things as they have always been
done
– Value seniority more than performance
– Averse to accepting new ideas
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 8

Satisficing Management
• Stable environment, high adaptation.
• Adequate and average.
• Planning and decision-making
concentrated at top.
• Clarity of procedures and roles
• Accept “good enough” strategies
• Low pressure for change from
environment
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 9

Reactive Management
• Hyperturbulent environment, low
adaptation.
• Reacting after conditions change.
• Short-term, crisis type of adaptation.
• Usually involves:
– Replacing key people.
– Hasty reorganization.
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 10

Renewing/Transformation
Management
• Hyperturbulent environment, high
adaptation.
• Deal with future conditions before they
occur.
• Faster at developing new ideas.
• More participative.
An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 11

Systems Approach
• View organization as a unified system
composed of interrelated, interdependent
parts.
• Each part contributes to total organizational
functioning and achievement of overall
organizational goal.
• One part interact with one another for
interacting tasks
• Change in one part will affect other parts
An Experiential Approach to...
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