Management 300 Week 10 notes
Management 300 Week 10 notes Finance 300
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This 5 page Class Notes was uploaded by Danielle Grek on Monday April 6, 2015. The Class Notes belongs to Finance 300 at Arizona State University taught by in Spring2015. Since its upload, it has received 107 views.
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Date Created: 04/06/15
Management 300 Week 10 Notes Recognizing the need for change Collins s 5 Stages of Decline 1 Hubris Born of Success when a company develops arrogance and their employees begin attributing the company39s success to their own superior qualities forgetting about the underlying factors of their success 2 Undisciplined Pursuit of More more of whatever is de ned as success leading the company to ignore their core business 3 Denial of Risk and Peril internal warning signs increase but managers explain them away 4 Grasping for Salvation the dif culties of the previous stage reach the point of throwing the company into sharp decline so managers begin making desperate leaps 5 Capitulation to the lrrelevance or Death the company may be sold allowed to go bankrupt or left to shrivel into insigni cance Fundamenta Change What you will be called to deal with 1 The marketplace is becoming more segmented and moving toward more niche products 2 More competitors are offering targeted products requiring faster speedto market 3 Some traditional companies may not survive radically innovative change 4 China India and other offshore suppliers are changing the way we work 5 Knowledge not information is becoming the new competitive advantage Two types of change reactive vs proactive 1 Reactive change making changes in response to problems or opportunities as they arise 2 Proactive change planned change involves making carefully thoughtout changes in anticipation of possible or expected problems or opportunities Forces for Change Outside the Organization 1 Demographic Characteristics age education skill level gender immigration etc 2 Market Changes Mergers amp acquisitions Domestic amp international competition recession 3 Technological Advancements Manufacturing automation of ce automation 4 Shareholder and Customer Demands 5 Supplier Practices 6 Social and Political Pressures Forces for Change Inside the Organization 1 Employee Problems unmet needs job dissatisfaction absenteeism amp turnover productivity participation and suggestions xed by redesigning job responsibilities 2 Managers39 behavior con ict leadership reward systems structural reorganization Areas in Which Change is Often Needed 1 Changing People perceptions attitudes performance and skills 2 Changing Technology technology is not just computer technology it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a nished product 3 Changing Structure 4 Changing Strategy Resistance to change an emotionalbehavioral response to real or imagined threats to an established work routine Causes 1 Employee Characteristics real or imagined threats are perceived and there is an emotionalbehavioral response 2 ChangeAgent Characteristics 3 Change AgentEmployee Relationship The degree to which employees fear change from least threatening to most threatening Least threatening adaptive change is reintroduction of a familiar practice Somewhat threatening innovative change is the introduction of a practice that is new to the organization Very threatening radicallv innovative change involves introducing a practice that is new to the industry Ten reasons employees resist change 1 lndividual39s predisposition towards change 2 Surprise and fear of the unknown 3 Climate of mistrust 4 Fear of failure 5 Loss of status or job security 6 Peer pressure 7 Disruption of cultural traditions or group relationships 8 Personality con icts 9 Lack of tact or poor training 10 Nonreinforcing reward systems Lewin s change model 1 quotUnfreezingquot creating the motivation to change 2 quotChangingquot learning new ways of doing things 3 quotRefreezingquot making the new ways normal Benchmarking a process by which a company compares its performance with that of high performing organizations Kotter39s 8 steps for leading organizational change Unfreezing steps 1 Establish a sense of urgency unfreeze the organization by creating a compelling reason for why change is needed 2 Create the guiding coalition create a crossfunctional crosslevel group of people with enough power to lead the change 3 Develop a vision and a strategy create vision and a strategic plan to guide the change process 4 Communicate the change vision create and implement a communication strategy that consistently communicates the new vision and strategic plan Changing steps 5 Empower broadbased action eliminate barriers to change and use target elements of change to transform the organization Encourage risk taking and creative problem solving 6 Generate shortterm wins plan for and create shortterm quotwinsquot or improvements Recognize and reward people who contribute to the wins 7 Consolidate gains and produce more change the guiding coalition uses credibility from shortterm wins to create more change Additional people are brought into the change process as change cascades throughout the organization Attempts are made to reinvigorate the change process Refreezing step 8 Anchor new approaches in the culture reinforce the changes by highlighting connections between new behaviors and processes and organizational success Develop methods to ensure leadership development and succession Organizational development OD a set of techniques for implementing planned change to make people and organizations more effective Change agent often puts OD into practice They are a consultant with a background ion behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways OD can be used for 1 Managing con ict 2 Revitalizing organizations 3 Adapting to mergers OD follows this model 1 Diagnosis 2 Intervention the attempt to correct the diagnosed problems 3 Evaluation 4Feedback Effectiveness of OD 1 Multiple Interventions 2 Management support 3 Goals geared to both shortterm and longterm results 4 OD is affected by culture Creativity the process of developing something new or unique lnnovation the process of creating new ideas and converting them into useful applications Keys to innovative change uncertainty complexity and cost Seeds of innovation the starting point for organizational innovation 1 Hard work in a speci c direction 2 Hard work with direction change 3 Curiosity 4 Wealth and money 5 Necessity 6 Combination of seeds Product innovation a change in the appearance or the performance of a product or a service or the creation of a new one Process innovation a change in the way a product or service is conceived manufactured or disseminated lncrementa innovations the creation of products services or technologies that modify existing ones Radica innovations the creation of products services or technologies that replace existing ones Ceebrating failures 1 Culture ls innovation viewed as a bene t or a boondoggle 2 Resources Do managers put money where their mouths are 3 Rewards ls experimentation reinforced in ways that matter How to foster innovation 4 steps 1 Recognize problems and opportunities and devise solutions 2 Gain allies by communicating your vision 3 Overcome employee resistance and empower and reward them to achieve progress 4 Execute Well by using questioning analysis and discussing how39s and what39s Two myths about innovation innovation happens in a quoteurekaquot moment and innovation can be systematized Super trends shaping the future of business offshore suppliers are changing the way business works the marketplace is becoming more segmented with more specialized products some traditional companies will struggle to survive technological innovation there are more competitors offering targeted products requiring faster speed to market and knowledge is the new competitive advantage
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