[Solution] Nature of Organization Change
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Author: Emily Carter
The Causes and Types of Organization Change
Organization change can involve nearly any aspect of an organization, from organization structure to technology to the people in the organization. Nearly every manager must navigate organization change at some point, because some part of the organization's internal or external environment has changed. When managers do not anticipate the need for change, the consequences for the organization can be very serious.
The Forces That Drive Change
Organization change is any substantive modification to some part of the organization. Organization change can be prompted by external or internal forces.
- External forces include changes in the general environment, such as to the economy, to laws and regulations, and in societal values. External forces also include changes in the task environment, such as activity of competitors, suppliers, regulators, and unions.
- Internal forces include changes in strategy and in employee values and preferences.
The table gives examples of different forces that can drive organization change. Identify whether each force is external or internal.
The US Congress passes and the president signs a law restricting the organization's ability to do business.
Older employees retire, and the younger employees who replace them value different benefits.
View Explanation
A new federal law is a change in the organization's external environment, so it is an external force for change.
A change in workforce values is a change in the organization's internal environment, so it is an internal force for change.
The table gives examples of different types of organization change. Identify whether each change is planned or reactive.
A key material is suddenly in short supply, but the company's managers have already figured out how to switch over to a different material.
Most consumers decide they would rather order a product online than go to a store, so store managers cut costs by buying less inventory.
View Explanation
Because the managers already know how to use a different material, they are carrying out planned organization change.
These managers have been taken by surprise and thus react ineffectively to the change in consumer behavior.
