Ch 15: Managing Organizational Change Discussion Organizational change occurs wh
ID: 413747 • Letter: C
Question
Ch 15: Managing Organizational Change Discussion
Organizational change occurs when a company makes a transition from its current state to some desired future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the organization, while also maximizing the effectiveness of the change effort.
Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Factors such as globalization of markets and rapidly evolving technology force businesses to respond in order to survive. Such changes may be relatively minor—as in the case of installing a new software program—or quite major—as in the case of refocusing an overall marketing strategy. "Organizations must change because their environments change. Outside pressures come from changes in the legal, competitive, technological, and economic environments."
Start the discussion by providing relatively recent examples of companies that changed and stayed in business while others that resisted and ceased to exist or filed for bankruptcy.
Explanation / Answer
Change is universal truth for management of the organizations in global aspect. It may be include the change of structure, governance, policy, product/ services, people, leadership, methods of business, operations, ethical perspectives etc. These changes are very much important due to the changing business environment.
For example: Apple has shifted its business outlook from i-pod to i-phones as well it has created its business to tap opportunities in laptop and palm top like products too. It was adopted due to huge competition in the market.
PepsiCo and Coca-Cola have diversified its business in the past from soft drink to FMCG industry. Even, they are switching to produce less carbonated drink like juices, lemon water, Energy drinks, more hygienic juices etc. They have greater scope in the near future due to changing business environment in upcoming days.
Google has shifted its focus from search engines to adverts, driverless car, map services into tour and travel guides etc.
Amazon has changed its mindsets from bookseller and publisher to making that into technologically driven e-publishing and then an e-commerce giant of today’s that is the Amazon.com, which is bigger than Wall-mart in some aspects. It has global presence because of its capability to grasp the business opportunities available in the marketplace.