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Why do organisations change?

Q: What is the organisational learning perspective regarding change?

That change is linked to management as changing . This means that the organisation must change in order to increase the adaptive capacity, so that the organisation can better anticipate and respond to pressures and demands from outside the organisation

Q: When do forces from the environment usually arise?

When the use of resources by organisations decreases, due to a reduction in demand for products and sales, a reduction in market share or bad investment decisions. In extreme circumstances, organisational change is designed to turn around negative cash flows and avoid bankruptcy

Q: Explain the two different coercive isomorphisms

Formal coercive pressures : are forces from the government such as new laws and regulations. In addition, there are certain standards, practices and performance criteria for the subsidiary in order to meet the requirements of the parent organisation s Informal coercive pressure are associated with changes to receive the support of other organisations. Although not legally required, resisting these pressures would breach strong cultural norms

Q: Kotter identifies four types of global trends that translate in organisational adaptions

- technological innovation : global connection through faster communications and transportation - Greater economic integration: think of currencies, fewer barriers to trade and international capital flows - Maturation and deceleration of domestic markets : with the result of more cheap exports, slower growth, privatization and deregulation - changing world order: (notably after the end of the cold war): geopolitical instability, civil and inter-state conflicts and sporadic terrorism. Furthermore, the fall of socialist countries and the reorientation toward capitalist economies which led to new opportunities such as larger markets and fewer entry barriers but also more competition and demand for increased speed.

Q: Boyd describes two types of perceptual errors in his work regarding the organisational environment, which two?

Type 1 error : when the organisation is stable, but managers see it as turbulent and therefore undertake unnecessary actions Type 2 error: when the environment is turbulent, but managers consider it as stable and therefore undertake no action with the result that the organisation is threatened

14 important questions on Why do organisations change?

What is the economic perspective regarding organisational change?

That change is connected to the image of management as control. In order to keep the shareholders happy and thus secure funding and job retention of senior managers. It is necessary to introduce change and thus improve performance

What is the organisational learning perspective regarding change?

That change is linked to management as changing. This means that the organisation must change in order to increase the adaptive capacity, so that the organisation can better anticipate and respond to pressures and demands from outside the organisation

When do forces from the environment usually arise?

When the use of resources by organisations decreases, due to a reduction in demand for products and sales, a reduction in market share or bad investment decisions.

In extreme circumstances, organisational change is designed to turn around negative cash flows and avoid bankruptcy

Explain the two different coercive isomorphisms

Formal coercive pressures: are forces from the government such as new laws and regulations. In addition, there are certain standards, practices and performance criteria for the subsidiary in order to meet the requirements of the parent organisation

sInformal coercive pressure are associated with changes to receive the support of other organisations. Although not legally required, resisting these pressures would breach strong cultural norms

Kotter identifies four types of global trends that translate in organisational adaptions

- technological innovation: global connection through faster communications and transportation

- Greater economic integration: think of currencies, fewer barriers to trade and international capital flows

- Maturation and deceleration of domestic markets: with the result of more cheap exports, slower growth, privatization and deregulation

- changing world order: (notably after the end of the cold war): geopolitical instability, civil and inter-state conflicts and sporadic terrorism. Furthermore, the fall of socialist countries and the reorientation toward capitalist economies which led to new opportunities such as larger markets and fewer entry barriers but also more competition and demand for increased speed.

What do companies usually do when they experience market decline forces?

Organisations fear that they would disappear within the market, thus prompting the organisation to implement changes to remain relevant to customers.

These changes usually involve the organisation switching industries

How would you define a company's reputation?

This is defined as a collective representation of past actions and results that describes the firm's ability to deliver valued outcomes to multiple shareholders, is an intangible asset that is of high value for a company and is positively correlated with organisational performance.

(therefore it is important to implement changes when the reputation or credibility of an organisation declines)

In order to explain why a certain pressure does not always lead to an organisational change, four debates are discussed. Which four?

1) Organisational learning vs Threat-Rigidity
2) Environment: objective entity vs cognitive construction
3) Forces for change vs forces for stability
4) Bridging (adaptation) vs buffering (shielding)

Explain the paradox between
Organisational learning and Threat- rigidity

Organisational learning: theorists believe that pressures such as a declining market will encourage organisations to implement innovative change

Threat-rigidity: theorists believe that these pressures will prevent change, as the management;s cognitive and decision-making processes become blocked when faced with threats.

This paradox requires the organisation to have a system that focuses on both threats and opportunities. This can be developed by structural differentiation, with separate organisational units, but the different parts work together in an integrated way

Boyd describes two types of perceptual errors in his work regarding the organisational environment, which two?

Type 1 error: when the organisation is stable, but managers see it as turbulent and therefore undertake unnecessary actions

Type 2 error: when the environment is turbulent, but managers consider it as stable and therefore undertake no action with the result that the organisation is threatened

Smircich and Stubbart advocate the 'enacted environment' perspective, namely the constructivist view. Explain this view!

The environment is a construction based on individual perceptions. Managers can then have different ways of interpreting the environment and thus undertake different (or no) actions.

How is the view of Bogner and Barr different from those of Smircich and Stubbart?

They go one step further by arguing that the cognitive structure of managers affects the way they SEE events. Furthermore, it should influence the way they see things, what they notice, how they interpret results and what actions they undertake that are based on these interpretations.
Therefore, managers are limited to these interpretations.

What are the 5 internal forces for organisational change

1. Growth forces
2. Integration and cooperation forces
3. Corporate identity
4. New broom or new chief executive
5. Power and political forces (internal relations)

'new broom'
in contrast to their predecessors, new ceo's have some advantages when it comes to making changes, which 4?

- they are likely to create new energy for change within the organisation

- they are not hindered by past practices within the organisation

- they can look with a clear view and therefore encounter problems that were previously concealed

- they have a greater chance to encounter problems related to their customers, because they were not involved in previous conflicts

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Organisational theory and dynamics

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Why do organisations change?

14 important questions on Why do organisations change?

What is the economic perspective regarding organisational change?

What is the organisational learning perspective regarding change?

When do forces from the environment usually arise?

Explain the two different coercive isomorphisms

Kotter identifies four types of global trends that translate in organisational adaptions

What do companies usually do when they experience market decline forces?

How would you define a company's reputation?

In order to explain why a certain pressure does not always lead to an organisational change, four debates are discussed. Which four?

Explain the paradox betweenOrganisational learning and Threat- rigidity

Boyd describes two types of perceptual errors in his work regarding the organisational environment, which two?

Smircich and Stubbart advocate the 'enacted environment' perspective, namely the constructivist view. Explain this view!

How is the view of Bogner and Barr different from those of Smircich and Stubbart?

What are the 5 internal forces for organisational change

'new broom'in contrast to their predecessors, new ceo's have some advantages when it comes to making changes, which 4?

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Explain the paradox between
Organisational learning and Threat- rigidity

'new broom'
in contrast to their predecessors, new ceo's have some advantages when it comes to making changes, which 4?