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OSU BA 352 - The Challenge of Managing Organizational Change

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The Challenge of Managing Organizational Change:Essential Requirements for Organization ChangeMethods for Managing ChangeRe-engineeringTotal Quality Management (TQM)Total Quality ManagementLearning Organization (LO)Learning OrganizationTQM and Learning OrganizationConclusionThe Challenge of The Challenge of ManagingManaging Organizational Organizational Change:Change:Exploring the Relationship of Re-engineering, Exploring the Relationship of Re-engineering, Developing Learning Organizations and Total Quality Developing Learning Organizations and Total Quality ManagementManagementMichaela JohnsonKelsey GillaspieEssential Requirements for Essential Requirements for Organization ChangeOrganization ChangeIn Favor of Change:In Favor of Change:Sufficient dissatisfaction with the Sufficient dissatisfaction with the status quo as described by status quo as described by performance levels and trends.performance levels and trends.A strong attraction towards A strong attraction towards moving to a more desirable moving to a more desirable condition.condition.The appeal of a well thought out The appeal of a well thought out strategy for realizing the vision.strategy for realizing the vision.Against Change:Against Change:Passive Resistance: caused by Passive Resistance: caused by cynicism due to previous cynicism due to previous unsuccessful attempts at change.unsuccessful attempts at change.Active Resistance: caused by Active Resistance: caused by internal fear due to the internal fear due to the redistribution of power resulting redistribution of power resulting from the change.from the change.Methods for Managing ChangeMethods for Managing ChangeRe-engineeringRe-engineeringTotal Quality ManagementTotal Quality ManagementDevelopment of Learning OrganizationsDevelopment of Learning Organizations“The new organization must be responsive, flexible, adaptable and value adding for all stakeholders.”“…for any system to preserve it’s integrity and survive, its rate of learning must at least march the rate of change in its environment.”Re-engineeringRe-engineeringReasons for Failure:Reasons for Failure:Lack of shared vision and sufficient participation from leaders who are Lack of shared vision and sufficient participation from leaders who are affected by this change. affected by this change. –Why would employees be willing to contribute to improvements that would put them out of a job?Why would employees be willing to contribute to improvements that would put them out of a job? The desire for a quick-fix results in superficial changes, leaving deeper The desire for a quick-fix results in superficial changes, leaving deeper problems untouched.problems untouched.In countries that value social harmony and respect for human resources, In countries that value social harmony and respect for human resources, there is a preference for smoother transition patterns.there is a preference for smoother transition patterns.–These countries strive for successful long-term change instead of ‘quick-fixes’.These countries strive for successful long-term change instead of ‘quick-fixes’.“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service and speed”Total Quality Management (TQM)Total Quality Management (TQM)Basic Principles for Success:Basic Principles for Success:1.1.Commitment from management at all levels.Commitment from management at all levels.2.2.Focus on needs of customers and employees.Focus on needs of customers and employees.3.3.Insistence on everyone’s participation.Insistence on everyone’s participation.4.4.Decisions made based on facts.Decisions made based on facts.5.5.Aim for Continuous ImprovementsAim for Continuous Improvements“[TQM draws] ideas, principles and tools from psychology, sociology, statistics, management and marketing…which create value through greater satisfaction for all stakeholders.”Total Quality ManagementTotal Quality ManagementBasic Functions:Basic Functions:Quality PlanningQuality Planning–Determine the needs and expectations of customers and employees and Determine the needs and expectations of customers and employees and design products and processes that generate the highest degree of design products and processes that generate the highest degree of satisfaction.satisfaction.Quality ControlQuality Control–Find and remove controllable sources of variability in products or Find and remove controllable sources of variability in products or processes.processes.Quality ImprovementQuality Improvement–Experimenting or benchmarking to improve customer and employee Experimenting or benchmarking to improve customer and employee relations and sense of value. relations and sense of value.Learning Organization (LO)Learning Organization (LO)An organization in which people…An organization in which people…Continually expand their capacity to create the results they Continually expand their capacity to create the results they truly desire.truly desire.Continually learn how to learn together.Continually learn how to learn together.Share common goals that are larger than individual goals.Share common goals that are larger than individual goals.Function together in extraordinary ways, complementing each Function together in extraordinary ways, complementing each other’s strengths and compensating each other’s limitations.other’s strengths and compensating each other’s limitations.“…practically all conventional management approaches…have prevented the natural development and growth of adult individuals, work teams and organizations by creating environments that impede learning.”Learning OrganizationLearning OrganizationSystems ThinkingSystems Thinking–Understanding a system as Understanding a system as an interconnected group an interconnected group instead of as individual instead of as individual parts.parts.Personal MasteryPersonal Mastery–The discipline of The discipline of continually clarifying and continually clarifying and deepening our personal deepening our personal vision, focusing our vision, focusing our energies, of developing energies, of developing patience and seeing reality patience and seeing reality objectively.objectively.Mental ModelsMental Models–Sharing our internal assumptions, Sharing our internal assumptions,


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OSU BA 352 - The Challenge of Managing Organizational Change

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