Reasons for Change

Topics: Nike, Inc., Mark Parker, Change Pages: 5 (851 words) Published: September 27, 2014


Reasons for Change
HRM/310
Change is inevitable. It happens every day. As hard as change may be, it could be beneficial for organizations in an ever changing world. What might be popular today could be different tomorrow so it is important for organizations to adapt to these necessary changes. In most cases, people tend to believe that a change would mean something negative, such as downsizing, layoffs or a decrease in pay. In taking that chance to change, the result could develop into something hugely successful. Definition of Organizational Change

Organizational change is defined as examining and adjusting the business structure and operations of an organization. In an attempt to maintain a competitive edge, or rise above the competition, an organization must look for ways to push forward so that they do not become stationary in their path. Attempting a bold change could allow possibility into a world of success. It can also be a detrimental turn on the path to success. Summarize the Article

Competition can be fierce. In order to stay afloat in this economy you need more than just innovation, a cool culture, and a well-known logo. Nike, Inc. is ever evolving and has found a way to effortlessly adapt to change. The article “Strong Organizational Culture: How Nike Drives Innovation” probes into the mind of the CEO for the reason behind this successful, money-making operation. Two recent products have been launched and sales have skyrocketed contributing a growth in sales of 60% since the current CEO, Mark Parker, has been in tenancy. These products are Fuel Brand and Flyknit. They have both been considered “game-changers” in the market giving credit to the recent success of Nike. There are a few things that Nike does to contribute to the success of its ever changing management in order to stay on the edge of competition. First, Nike promotes a powerful organizational culture. The employees of this organization feel like they are part of something bigger; “a sense of belonging” (Jackson, 2013). They try to give the employees a sense of protecting something and being a part of something that no one else knows. This makes the employees feel that they are special and that they have something to protect. They like to refer to their people as a tribe and consider each individual’s personality a “tribal identity”(Jackson, 2013). A commitment to being your own person is another secret to their success. Initially, Flyknit was another mediocre idea that sounded impossible. With the push of this product from within, it eventually turned into something great. This product actually allows one to custom fit a shoe to your exact foot. In doing this, people needed to continue to develop these ideas and be in alignment with its customer base. Just because Nike has conquered innovation does not mean that it cannot continue to change and grow. As the CEO, Mark Parker says “One of my fears is being this big, slow, constipated, bureaucratic company that’s happy with its success” (as cited in Jackson, 2013). Parker is constantly changing and reviving the organization on a continuous basis. He has been dubbed one “The World’s Most Creative CEO” (as cited by Safian, 2012). Parker has stated that he does not want to become stagnant because of previous success. Riding on the success of previous products or relying on the swoosh logo isn’t what this organization plans to do. Other changes within an organization

Other changes that organizations may experience is new technologies, change in demand of the product, economic conditions and governmental policies and procedures. This can lead to a major change internally in an organization, especially if there is a loss in revenue. In this case, plants or offices might be closed down in a nation- or world-wide organization. This can lead to layoffs or cut backs in benefits, bonuses or pay raises. When a change of this type occurs, it can...

References: Jackson, L. (2013, June 3). Strong Organizational Culture: How Nike Drives Innovation. www.corporateculturepros.com. Retrieved from http://www.corporateculturepros.com/2013/06/strong-organizational-culture-how-nike-drives-innovation/
Safian, Robert (2012, November 5). How CEO Mark Parker Runs Nike to Keep Pace With Rapid Change. Fast Company. Retrieved from http://www.fastcompany.com/3002642/how-ceo-mark-parker-runs-nike-keep-pace-rapid-change
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