Module-7 Reaction Paper
Jackie Channn
Chapter11Slides.pptxChapter 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 organizations”?
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
