Chapter 11managing Organizational Change And Crisesintroductionin Th ✓ Solved

Chapter 11: Managing Organizational Change and Crises Introduction In this ever-changing global economy, organizational change is inevitable Productively managing change by drawing on the strengths of an organization keeps them healthy and able to adapt to the environment Organizational Change Case Study: Merger Mayhem New Zest Manufacturing CEO Jeremy called a special meeting of management Rumors of a potential merger and branch closings made the atmosphere tense Jeremy was known for “doing more with less†so downsizing was a top concern for the managers Why people are afraid of changes? What problems may arise by downsizing? • Is there any good suggestions to ease the conflict by downsizing?

Downsizing A common yet often-overlooked change in organizations, with unintended costs Employees who survive the layoffs often: Voluntarily leave the company for better options View the organization as unstable Experience enhanced workloads, leading to burnout Organizations often struggle to hire new talent and lose employees with organizational knowledge Several key steps should be followed before making the decision to downsize Critical Thinking Questions - Downsizing How does the term “survivor†help us to understand the experiences of individuals after a downsizing has occurred? Identifying the Change Process Tim Brown (2009) suggests the thought process should go something like this: Begin at the beginning Take a human-centered approach Fail early; fail often Get professional help Share the inspiration Blend big and small projects Budget to the pace of innovation Laying the Foundation for Change When organizations face change, how that change is framed can have a tremendous impact on whether employees buy into the change Laying the proper foundation is vital for creating a sense of commitment to the change Employees will be more likely to be committed to the change if they are able to move beyond simple adaptation and acceptance to understanding and a sense of control Implementing Change Organizations implementing change that have the attitude that everyone is on the team and has the potential to contribute ideas will often find that employees “in the trenches†will have knowledge and insight based on observation and experience that just might improve the process Relying on the employees doing the job to offer suggestions is likely to improve the process as well as create a greater sense of commitment on the part of the employee Evaluating Change Outcomes Organizations can reevaluate and change again if it isn’t working Just because an organization has changed something, perhaps even based on extensive research, doesn’t mean that the organization has to accept the results of that change Evaluation is vital Organizational Learning A successful organization is a learning organization For the organization to learn, though, there must be an attitude that recognizes the value of all team members – from the custodial staff to the CEO Just as important, there needs to be an effective system of communication The type of communication may take different forms, depending on the culture of the organization, but there must be a system in place In addition, the attitude of the organization should be one that fosters creative thinking at all levels Critical Thinking Questions – Change How might an organization’s culture influence change processes?

Can you think of examples of types of organizations that seem to be “learning organizationsâ€? Crisis and Change Case Study: Takata Airbags Multiple deaths occurred as a result of problematic Takata airbags in Toyota vehicles Multiple rounds of recalls culminated in 31 million recalls in eight years, including those from other manufacturers How an organization communicates in a crisis can be a life-and-death matter What should Takata have done? What ethical concerns do you have about this crisis? Organizational Crisis “A low-probability, high-impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly†(Pearson & Clair, 1998, p.

60) Organizations typically either try to keep crisis from occurring in the first place, or try to soften the impact when crisis does occur Five stages of crisis include signal detection, preparation/prevention, containment/damage litigation, recovery, and learning Crisis Communication Plan Plans should be proactive, specifically: Identify a crisis team Develop key messages for internal and external publics Designate a spokesperson and backup Have a system to monitor communication about the organization Have a postcrisis review plan In addition to correcting the issue, crisis communication should also reduce tension, be ethical, control information flow, and manage the recovery Crisis Communication and Image Image can be impacted positively or negatively as a result of a crisis The way a mistake is resolved, and what the organization learns in the process, is important Examples: BP Deepwater Horizon oil spill JetBlue Crisis Communication Should Be Dynamic Leaders must adapt communication to the changing environment and stakeholder concerns Leaders must continually assess the situation, environment, and changing variables is necessary Leaders must remain consistent in organizational values Context Matters For-Profit Organizations Longer processing times can create both negative and positive crisis situations for larger corporations Family Entrepreneurship Less time required to deal with change and crisis, but potential for big differences for the organization Nonprofit Organizations Very specific missions create potential change challenges Government Sector Resistance to change may take a more political form 1.

The customers state that they have already paid their balance. They wrote a check on 12/28 for the 10 pallets of shoes. This account is probably valid, since the check was likely received after year-end, which is 12/31. The customer also stated that the account balance was incorrect, according to their records. The customer’s records indicated they had a balance of