Organizational Change Plan
Organizational Change
When executives and students of management talk about organizational change, they mean many different things. Introducing a new enterprise resource planning system in order to coordinate and standardize internal processes is an organizational change. So is shutting down a factory, selling off a noncore business, or laying off employees. How about introducing a new business model to meet innovative competitors, adopting a new pay-for-performance system to motivate individual effort or a stock option plan to encourage a shared sense of ownership in the company? Entering global markets, integrating acquired companies, and outsourcing nonstrategic activities—these, too, are examples of organizational change.
In order to understand and analyze the dynamics of change, and particularly the requirements of effective change implementation, it is important to sort out and distinguish the various approaches an organization can take. This chapter will explore multiple paths to change, paying special attention to behavioral change. In particular, this chapter will:
Identify the role of strategic renewal in propelling change
Focus on the behavioral aspect of organizational change
Analyze the dynamics of motivating employees to alter their behaviors
Differentiate the three faces of change
Understand the source of both employee resistance to and support for change
We will start by looking at an attempt by the president of a small but prestigious local bookstore to improve financial performance in the face of competition from national chains as well as from Internet giant Amazon.
Tales of Woe at Concord Bookshop *
*David Mehegan, “Tales of Woe at Concord Bookshop,” Boston Globe, December 23, 2003, p. E1. Copyright © 2003 Bell & Howell Information and Learning Company. All rights reserved.
It’s like a family quarrel that nobody wants and nobody knows how to stop.
The Concord Bookshop, a 64-year-old independent store regarded as one of the best
When executives and students of management talk about organizational change, they mean many different things. Introducing a new enterprise resource planning system in order to coordinate and standardize internal processes is an organizational change. So is shutting down a factory, selling off a noncore business, or laying off employees. How about introducing a new business model to meet innovative competitors, adopting a new pay-for-performance system to motivate individual effort or a stock option plan to encourage a shared sense of ownership in the company? Entering global markets, integrating acquired companies, and outsourcing nonstrategic activities—these, too, are examples of organizational change.
In order to understand and analyze the dynamics of change, and particularly the requirements of effective change implementation, it is important to sort out and distinguish the various approaches an organization can take. This chapter will explore multiple paths to change, paying special attention to behavioral change. In particular, this chapter will:
Identify the role of strategic renewal in propelling change
Focus on the behavioral aspect of organizational change
Analyze the dynamics of motivating employees to alter their behaviors
Differentiate the three faces of change
Understand the source of both employee resistance to and support for change
We will start by looking at an attempt by the president of a small but prestigious local bookstore to improve financial performance in the face of competition from national chains as well as from Internet giant Amazon.
Tales of Woe at Concord Bookshop *
*David Mehegan, “Tales of Woe at Concord Bookshop,” Boston Globe, December 23, 2003, p. E1. Copyright © 2003 Bell & Howell Information and Learning Company. All rights reserved.
It’s like a family quarrel that nobody wants and nobody knows how to stop.
The Concord Bookshop, a 64-year-old independent store regarded as one of the best