I. ORGANIZATION STRUCTURE A. Organizational Structure: defines how job tasks are divided, grouped, and coordinated. 1.

Work Specialization: describes how activities in the organization are subdivided into separate jobs. PROS: a. Employee skill successfully increases through repetition. b. Increases productivity and efficiency. c. It is easier and less costly CONS: a. Eventually, productivity falls and satisfaction decreases. 2. Departmentalization: How jobs in an organization are grouped. a. Functional Departmentalization: Grouping specialists based on the functions they perform. economies of scale. b. Product Departmentalization: Grouping jobs based on different products made the organization. increased accountability for product performance. c. Geographic Departmentalization: Grouping jobs based on geographical region or territory. d. Process Departmentalization: This involves grouping jobs into departments that specialize in one specific phase in the production process. e. Customer Departmentalization: The focus is on the needs of the customers. 3. Chain of Command: A clear connection of authority and responsibility in an organization that defines who reports to whom. a. Authority: Refers to the rights inherent in a managerial position. b. Unity of Command: A concept which states that a person should have only one and superior. 4. Span of Control: This determines the number of levels and managers an organization has. Usually, the wider or larger the span, the more efficient the organization is. a. The number of subordinates a manager can efficiently and effectively direct is increased by technology, standardized tasks, decentralization, and proper training. 5. Centralization/Decentralization: The degree to which decision making is concentrated at a single point in the organization. a. Centralized Organization- Top management makes their decisions with little input from lower-level personnel. less flexible and responsive. b. Decentralized Organizations- Lower-level personnel provide input and/or are given the discretion to make decisions. action can be taken more quickly to solve problems, and employees are less likely to feel alienated from upper management. 6. Formalization: the degree to which the jobs within an organization are standardized, and to what degree rules and policies are applied. a. High Formalization: The employee has a minimum amount of discretion over what is to be done, when it is to be done, and how they should do it. Inputs are -1-

handled exactly the same way, resulting in consistent and uniform output. There are lots of rules and clearly defined policies. b. Low Formalization: Employees are granted a great deal of freedom to exercise discretion in their work. Standardization and the amount of rules are minimal. B. Types of Organizational Design: 1. The Simple Structure a. Work specialization: none b. Departmentalization: Low degree of functional departmentalization c. Chain of Command: The chain of command is clear. d. Span of Control: Wide span of control with only two or three levels e. Centralized/Decentralized: Authority is centralized in a single person f. Formalization: There is little or no formalization. g. Pros: i. The strength of this structure lies in its simplicity ii. It is fast, flexible and inexpensive to maintain, and accountability is clear. h. Cons: i. It is inefficient and depends on the owner. If the owner dies or quits, the business is over. ii. As the business grows, efficiency decreases. 2. The Bureaucracy a. Work specialization: High tasks are standardized and this is the key element for this type of Organizational Design. b. Departmentalization: Tasks are grouped into functional departments c. Chain of command: Decisions making follows the chain of command d. Span of Control: Narrow spans of control e. Centralized/Decentralized: High centralization, as decisions are made at the top. Made possible by standardized operations and high formalizations. f. Formalization: Very formalized rules and regulations. Rules set in place to deal -2-

with conflicts that arise with growth. Policies are drawn up to deal with politics and to define the job or task. g. Pros: i. Efficiency and low labor costs ii. Employees are matched to a task and are paid accordingly h. Cons.: i. The organization is bounded by rules, policies and procedures. ii. Specialization can create subunit conflicts iii. Functional unit goals can override the overall goals of the organization iv. When cases arise that do not precisely fit the rules, there is no room for modification. 3. The Matrix a. Work specialization: Low specialization and standardization b. Departmentalization: Combines functional and Product Departmentalization c. Chain of command: Breaks the unity of command concept, as an individual may report to more than one superior. It has a dual Chain of Command. d. Span of Control: Wide span of control e. Centralized/Decentralized: Decentralized f. Formalization: Low formalization as a result of direct and frequent contract between different specialties. g. Pros: i. Able to facilitate coordination when the organization has a multiplicity of complex and interdependent activities. ii. Able to facilitate the efficient allocation of specialists/professionals. iii. It is able to achieve economies of scale by providing the organization with both the best resources and an effective way of ensuring their efficient development.

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h. Cons: i. Confusion and power struggles surface because the individual has 2 bosses ii. Requires leadership skills and the ability to handle the stress that may arise. 4. The Virtual Organization a. Work specialization: Little or none b. Departmentalization: Little or no departmentalization c. Chain of command: Little or none d. Span of Control: Control is lost as work is outsourced. The only key competencies of the organization, those that maintain its positions, are kept. e. Centralized/Decentralized: Highly centralized f. Formalization: Little or none g. Pros: i. These organizations have created networks of relationships that allows them to contract out business functions which others can do better and/or cheaper ii. They are able to quickly access new markets iii. They can be flexible and adaptive iv. They can avoid taking on too much responsibility. h. Cons: i. Reduces management control over key parts of the business ii. They are difficult to form and manage. iii. It requires that there be trust between the companies that you outsource to. 5. The Horizontal/Boundaryless Organization a. Work specialization: None. Individuals work in cross-hierarchical teams and make their own decisions.

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b. Departmentalization: Multidisciplinary teams are empowered and they replace functions and departments. c. Chain of command: By eliminating the vertical and horizontal boundaries, a Boundaryless organization is able to eliminate the chain of command. d. Span of Control: Limitless spans of control e. Centralized/Decentralized: Highly Decentralized as the removal of vertical boundaries flattens the hierarch. Communicate through networks and technology f. Formalization: Little or none. g. Pros: i. Communication, organizational processes, and feedback are improved ii. It is much more responsive iii. Highly flexible and business focused. iv. As layers are removed, conflicts and coordination costs are removed. h. Cons: i. They are difficult to implement in larger organizations. ii. People must possess certain skills in order to communicate effectively, while knowledge and proper training is a must C. There exists two extreme models of Organizational Design: 1. Mechanistic Model: Synonymous with the Bureaucracy Structure a. High Specialization b. Rigid Departmentalization c. Clear Chain of Command d. Narrow Spans of Control e. Centralization

f. High Formalization -5-

1. Organic Model: Simple Structure, Matrix Structure, Virtual Organizations, and The Boundaryless/Horizontal Organizations fall under this category. a. Cross- functional Teams and Cross Hierarchical Teams b. Free Flow of Information c. Wide Spans of Control d. Decentralization e. Low Formalization D. What are the determinants of structure? 1. Strategy: an organization structure is a means to help management achieve its objective. As a result, an organization must first have a strategy before they can choose the structure that will complement best. Types of strategies are: a. Innovation Strategy: The Organic Model works best with this type of strategy. This strategy emphasizes the introduction of major new products and services. b. Minimizing Cost: The Mechanistic Model works best with this type of strategy. This strategy emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. c. Imitation Strategy: The Organic model works best with this type of strategy. This strategy seeks to move into new products or new markets only after their viability has already been proven. 2. Size: the organizations size can have a considerable effect on its structure. a. As and organization grows, it becomes more Mechanistic. 3. Technology: Deals with how an organization transfers its inputs into outputs. The degree of task routines provides insight into the organizations structure a. If tasks in the organization are routine, then that organization is Mechanic b. Routine tasks are standardized and are associated with departmentalized structures. c. Routine tasks are strongly associated to formalization -6-

4. Environment: Refers to institutions or forces outside of the organization that potentially affect the organizations performance. The degree of uncertainty provides insight into the organization structure. a. A low lever of uncertainty in the organization environment symbolizes a Mechanistic structure. b. Capacity: The degree to which the organizations environment can support growth c. Volatility: The degree to which an organization environment can deal with instability. d. Complexity: The degree environmental elements. to heterogeneity and concentration among

E. Strategy, Size, Technology, and Environment are all determinant of the Structural Design. Once Individual Differences and Cultural Norms are taken into account, Performance and Satisfaction will follow. III. CONFLICT AND NEGOTIATION A. Conflict: A process that begins when one party believes that another party has negatively affected, or is about to negatively effect, something that the first party cares about. 1. In order for conflict to exist, it must be perceived by those involved 2. Conflict is a process 2. It involves at least 2 people 3. One of the parties is negatively affected. B. Conflict thought has gone through various changes over time: 1. Traditional View: This view was dominant in the 1930s and 1940s and it basically said that conflict is bad and should be avoided 2. Human Relations View: This view was dominant in the 1970s and it stated that conflict was a natural occurrence and was inevitable. It advocated that conflict should be accepted.

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3. Interactionist Views: this view of conflict incorporates the dynamic society that we live in today. It suggests that conflict can be positive and is absolutely necessary for an organization to compete and survive. Whether or not conflict is positive depends on the type of conflict and how that conflict is dealt with. C. The Conflict Process 1. Stage 1 Potential Opposition or Incompatibility: The conditions that create opportunities for conflict to arise must be present. One of these conditions must be present for conflict to surface. a. Communication: It represents the opposing forces that arise from the selection of channel, too little or too much communication, misunderstands, or noise in the communication channel. b. Structure: Includes variables such as size ( large), degree of specialization in the tasks assigned (high), jurisdictional clarity, Leadership styles (participative), goal compatibility, and reward systems (zero sum). c. Personal Variables: The individual value systems that each person has and the personality characteristics that account for differences. Value differences and Dogmatic Personalities (authoritarian) will increase the potential for conflict. 2. Stage 2 Cognition and Personalization: A conflict must be perceived (cognition) and it must be felt (personalization). At the felt level, the individual becomes emotionally involved. The potential for opposition or incompatibility becomes actualized in the second stage. 3. Stage 3 Intentions: Intentions intervene between peoples perceptions and emotions and their overt behavior. These intentions are decisions to act in a given way. Conflicts are usually escalated by attributing the wrong intention to a situation. a. There are two different types of intentions. i. Assertiveness: putting your own interests first. ii. Cooperativeness: Considering others interests on the same level as your own. b. Based on these two dimensions, people can handle conflict in five different ways. i. Competitions: High Assertiveness; Low Cooperation ii. Collaboration: High Assertiveness; High Cooperation -8-

iii. Accommodation: Low Assertiveness; High Cooperation iv. Avoidance: Low Assertiveness; Low Cooperation. v. Compromise: In between Assertiveness and Cooperation 4. Stage 4 Behavior: This is the stage where conflict actually takes place. This stage is a dynamic process of interaction. Conflict Intensity varies on a spectrum: a. Annihilatory Conflict: Overt efforts to destroy the other party: aggressive physical attacks, threats, & ultimatum b. No Conflict: Minor disagreements or no conflict at all: assertive verbal attacks, overt questioning, and challenging others 5. Stage 5 Outcomes: Based on the way that conflict is handled, there are 2 possible outcomes: a. Functional Conflict: This type of conflict works to improve group Performance. b. Dysfunctional Conflict: This type of conflict decreases the groups performance. D. There are three different types of conflict 1. Relationship Conflict: This focuses on impersonal relationships and is always dysfunctional. 2. Task Conflict: This relates to the contents and goals of the work. Low to moderate levels of this type of conflict can be functional. 3. Process Conflict: This relates to how the work gets done. Low to moderate levels of this type of conflict can be functional. E. Negotiation: This is a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. F. There are two different types of Bargaining Strategies used in Negotiations. 1. Distributive Bargaining: If I win, then you lose. This is the motivation. a. There are fixed amount of resources to be divided. -9-

b. Interests of the parties are opposed. c. The relationship of the parties is short term. 2. Integrative Bargaining: If I win, you win. This is the motivation a. There are a variable amount of resources to be divided. b. The relationship between the parties is long term. G. It is essential that you understand these elements before negotiations begins: 1. Position: What you and the other party wants. 2. Interest: What is the motivation behind your, or the other parties position. This is central behind negotiations. H. The Negotiation Process 1. Preparation and Planning: Before you start negotiations, you need to do your homework 2. Definition of Ground Rules: Parties exchange initial proposals and demands 3. Clarification and Justification: Provides for the opportunity to educate each party. 4. Bargaining and Problem Solving: At this point, concessions will have to be made by both parties. 5. Closure and Implementation: Formalizing the agreement and developing procedures that are necessary for implementation and monitoring. I. Issue that arise during Negotiations 1. Personality Differences: Do not matter in negotiations. This is because the situational factors play a stronger rule than these personality factors. 2. Gender Differences: Does not affect the negotiation process but may have a small affect on the outcome. What is affected is the attitude towards negotiations. 3. Cultural differences: Does have an impact on negotiation style, process and outcome. IV ORGANIZATIONAL CULTURE A. Organizational Culture: Is a system of shared meaning held by members that -10-

distinguishes organizations from others. F. Characteristics that are valued in the Organizations Cultures. 1. Innovation and Risk Taking: the degree to which employees are encouraged to be innovative and take risks. 2. Attention to Detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Outcome Orientation: The degree to which management focuses on results or outcomes rather than on techniques used to achieve those outcomes. 4. People Orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team Orientation: The degree to which work activities are organized around teams rather than individuals. 6. Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing 7. Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth. G. What is the role of culture in maintain organizational effectiveness: 1. Culture helps to encourage efficient communication and control coordination. 2. Can be a substitute for formalization, as strong culture as everyone in the organization knowing what is right and what they should do. 3. A strong culture provides a commitment to the organization 4. An organization will be successful when their culture fits their overall strategy and competitive environment. H. Culture as a Liability: Culture is a liability when the shared values are not in agreement with those that will further the organizations effectiveness 1. Barrier to change: When the organizations environment is dynamic and it is undergoing rapid change, its culture may no longer be appropriate. Consistency in behavior is an asset when the environment is stable, but if the environment changes, it may become difficult to respond. 2. Barriers to diversity: Hiring new employees that are not like the majority of the -11-

organization makes it difficult for some to accept the core cultural values. 3. Barriers to Acquisitions and Mergers: Whether or not a Merger or Acquisition is successful may depend on how well the two organizations cultures match up. I. How is the Organizational Culture formed: 1. Values of the Founder: They have a major impact on the organizations early culture. They have a vision of what the organization should be. Strongly influence the hiring criteria. 2. Selection Process: The goal is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully. Must insure a proper match with the organization. 3. Top Management: Through what they say and how they behave, top management establishes norms that filter down through the organization. 4. Socialization: This is the process that adapts employees to the organizations culture. The most critical stage of socialization is at the time of entry. J. Employees learn about the Organizations Culture through: 1. Stories: they provide explanations and legitimacy for current organizational practices 2. Rituals: These are repetitive sequences of activities that express and reinforce the key values of the organization. 3. Material symbols: These symbols, such as attire and office size/layout, convey to employee who is important, the degree of egalitarian desired by top management, and the kinds of behavior that are appropriate. 4. Language: Language is used as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in doing so, help to preserve it. V. HUMAN RESOURCE POLICIES AND PRACTICES A. From Corporate Strategy to Human Resource Management 1. Corporate Strategy: Deals with how a firm will choose to use its resources to gain a competitive advantage. 2. Human Resource Strategy: How a firm will use Human Resources to implement its Corporate Strategy.

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3. Human Resource Management: These are the policies and practices that a firm will use to implement their Human Resource Strategy. B. The Human Resources Management Process 1. Selection: The process begins with selecting the right people and builds from there. Most of the Human Resource contact occurs when applying and/or interviewing for the job. Identifies competent candidates and accurately matches them to the job and organization. 2. Training and Development: Improves the skills nece3ssary to complete the job. An increase in ability improves the potential to work at a higher lever. Also works to increase the employees self efficacy. 3. Assessing Performance: Performance evaluations are done using an individuals contribution as a basis for making reward allocation decisions. 4. Reward: Based on the performance evaluation, an individual is rewarded. C. How has the Selection Process change? Has become increasingly flexible and provides more information. 1. Key Decision Makers of Selection a. From: Managers b. To: Combination of Applicants, co-workers, and management. 2. Basis for Selection a. From: Validated Tests b. To: Open exchange of information. Work sampling and internships are used to figure out if an individual fits in with the organizations culture. 3. Selection for a. From: Specific Jobs b. To: Teams and Corporate Culture (requires interpersonal skills) 4. Feature Selected for a. From: Ability to do the job b. To: Ability to learn; need for involvement and challenge; team skills. D. How has the Training and Development process changed? Learning and training is constantly ongoing. 1. Why is it done? a. From: Enable people to perform the task. Focus was on learning by doing. b. To: to facilitate change; for human development; for effective task performance. -13-

2. Who was it done to? a. From: Individuals b. To: Individuals and Teams 3. What was done? a. From: Specific job requirement only b. To: Broad skills; social skills; system-wide learning 4. When was it done? a. From: Only as needed b. To: Ongoing and intense process 5. How was it done? a. From: on the job and in the classroom b. To: Many methods; cross-training; team development E. How has the Performance Appraisal process changed? Focus is on how to make it work well and how to make it less uncomfortable. Shifting towards a wider range of input from everyone an individual interacts with. This allows for more involvement and also allows the individual to be recognized. 1. The Performance Appraiser a. From: Manager b. To: The appraisee. Co-workers, management and others. 2. The Role of the Appraisee a. From: Recipient of feedback b. To: Active participant through all phases 3. Content of Appraisal a. From: Job defined b. To: Participant defined 4. Appraisal Process a. From: Validated measures b. To: Negotiations of reality 5. Appraisal Timing a. From: Periodic b. To: Variable depending on purposes F. How has the Rewards process changed? 1. Communication of Rewards -14-

a. From: Secret. Talking about rewards can lower moral in the company. This leads to decreased performance and motivation (Expectancy and Equity Theory). b. To: Open 2. Decision Making a. From: Top Down b. To: Wide involvement 3. Pay for Performance a. From: Based on individual merit b. To: Business success. Focus is on output. 4. Reward mix a. From: Standardized b. To: Individual choice; Cafeteria style, where employees are allowed to pick and choose their rewards. 5. Base Pay a. From: Job based b. To: Skill based. By learning new tasks, an individual can have a higher pay. This allows for flexibility and encourages employees to learn new skills.

G. How have the Union-Management Relations changed? 1. Motivation to Join a. From: Job security and wages b. To: Extra emphasis on quality of work life. This is an added motivation for individuals to join. 2. Nature of Relationship with the Organization a. From: Adversarial b. To: Collaborative 3. Nature of Agreement with the Organization a. From: Collective bargaining. Built into a democratic system. Decisions and bargaining is done in groups or by representatives. b. To: Collective bargaining and cooperative alliances. 4. Balance of Power a. From: Asymmetric. All of the power held in one area, management b. To: Symmetric -15-

5. Dispute Settlement a. From: Strikes, slowdowns and grievances b. To: Mediation, arbitration, and compromise H. Open Book Management: Refers to the sharing of information between different departments, such as the accounting information and lower level personnel.

VI. ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT A. Changing environments is requiring many organizations to adapt. Change deals with instability and the influences that drive change are: 1. Workforce: Diversity existing in the workforce such as culture, background, and training. 2. Technology: Technology is always advancing, and as a result, changing jobs and organizations. 3. Competition: These days, competition is global and the organization must change to stay current with competitors. 4. Social Trends: Trends dont remain static as baby boomers and other generations are changing these trends. 5. Political Trends: Organizations must learn to adapt to changing market and consumptions patterns. B. Types of Organizational Change 1. Incremental Change and Revolutionary change a. Incremental change: small changes b. Revolutionary change: the company must make large changes and the entire company has to be able to adapt.

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2. Reactive Change and Anticipatory change a. Reactive change: Change occurs as a reaction to events that are forced on the organization. b. Anticipatory Change: change occurs in anticipation of events that may occur. C. Adaptation: Most companies change in this manner. This type of change is Incremental and Reactive. D. Fine Tuning: This type of change is Incremental and Anticipatory E. Re-Creation: This type of change is Revolutionary and Reactive F. Transformation: This type of change was attempted by Jack Welch at GE. This change is Revolutionary and anticipatory. G. Harley Davidson and HOG (Harley Owner Group) 1. Victory laps with Hogs were done after motorcycle races. 2. In order to rebound in the motorcycle market, Harley took the following steps: a. Got employees involved b. Had government protection c. Improved quality and technique H. Sources of Individual Resistance to Change 1. Habit: Individuals develop consistent behaviors that they are not able to easily change. 2. Security: Deals with the stability in the organization 3. Economic Factors: Economy on the Macro and Micro levels can be an issue as many people worry about lower incomes 4. Fear of the Unknown: Not knowing what will happen in the future may lead to resistance. 5. Selective Information Processing: Individuals may interpret different situations differently and they react accordingly. -17-

I Sources of Organizational Resistance to Change 1. Structural Inertia: This is typical in bureaucracies. The organization is slow to make changes when they are unaware of what is going on. 2. Limited Focus of Change: how much change will the organization choose to take on? Will they take small steps? 3. Group Inertia: Groups and teams that are slow to adapt to change 4. Threats: when organizations go through large scale changes, the dynamics of the organization have to go through changes as well. Issues of expertise, power relationships, and resource allocation arise as a result. J. Overcoming Resistance to Change (a sequence with positive outcomes) 1. Education and Communication: Helping people understand new roles and responsibilities. Bring them along. 2. Participation: Can help to facilitate changes by involving people in the decision making., Increases commitment and involvement. Takes time to perform. 3. Facilitation and Support: A range of supportive efforts to reduce resistance. K. Overcoming Resistance to Change (continued with negative side effects) 1. Negotiation: Involves compromising with individuals and exchanging something of value. Trade-offs exist. 2. Manipulation and Cooptation: Manipulation refers to covert influence attempts such as twisting or distorting facts to make them more attractive. Cooptation is a form of manipulation and participation, seeking to buy off the leaders of a resistance by giving them a key role in the change decision. 3. Coercion: Involves the application of direct threats or force on those that resist change. L. Lewins Three-Step Change Model 1. Unfreezing: To Loosen Up in order for change to occur. The proper combination of Restraining Forces and Driving Forces must first be considered. a. Restraining Forces: Forces that are resisting and/or preventing change -18-

b. Driving Forces: These are the forces that are driving change c. Your must first decide on the appropriate combinations and their possible consequences such as: i. Increasing Restraining; Decreasing Driving ii. Decreasing Restraining; Increasing Driving iii. A combination of both 2. Movement to a New State: this is where the organization makes the change 3. Refreezing: Once the change has been implemented, it must be refrozen so that it can be sustained over time. a. The objective: is to stabilize the new situation by once again balancing the Driving and Restraining Forces. 4. This model deals with Adaptation, change that is Incremental and Reactive.

M. Organizational Development (OD): A term used to encompass a collection of planned-change interventions that seek to improve organizational effectiveness and employee well being. 1. Goals: Improve organizational effectiveness. They want the organization to possess the capacity to solve problems that arise in the future. 2. Values: Focus is one acknowledgement, respect, and co-operation. a. Respect for people b.. Trust and Support c. The sharing of power and participation d. Openness of information. 3. Methods/Approaches used to deal with change a. Human Process Intervention: Deals with team building and conflict resolution. Increasing trust and openness among team members (team building) b. Techno structural Interventions: Deals with job enrichment and selfmanaging; employee empowerment; organizational design c. Human Resource Management Interventions: Gain sharing and skill based pay; career development. -19-

d. Strategic Interventions: these occur at the executive level. Include organizational transformation and strategic alliances. 4. Issues with OD Applications a. Differences in Organizational Culture: What values, norms, and beliefs are inherent in the organization culture? b. Differences in National Culture: Is there individualism or collectivism? Is there a high power distance or a low power distance? These factors must be considered. c. Politics of Change: What type of resistance is expected? d. Ethics of Control: Coincides with values, such as respect for people, power sharing and trust and support. VII. REVOLUTIONARY AND ANTICIPATORY CHANGE IN DEPTH A. Transformation: This type of Strategic Change is Revolutionary and Anticipatory B. Center for Effective Organizations (CEO) 1. Action Research: Helping the organization learn to improve itself. Also generates new knowledge that can be applied to other organizations. 2. Projects: Projects undertaken by CEO have been centered around assisting organizations to increase their performance and efficiency C. Traditional Change Methods 1. Change was Reactive and Incremental (adaptive) 2. In the past, change was initiated and controlled by management. 3. Once experts came up with a solution, they would have doers implement them. 4. Change was seen as a discrete event. D. Problems with Traditional Change Methods. 1. Conflicts between experts and doers would arise. 2. Lack of employeeing -20-

3. Methods were too rigid and not adaptive. E. Managing Strategic Change 1. Felt Need: This initiating situation opens the possibility for change. Done by leaders but opens up to include other. 2. Vision: Once the need is felt, it will lead to an idea on how to solve it. 3. Action Learning Process: Follow vision. This entire process is on going F. The Self- Design Strategy 1. Involves Multiple stakeholders: Not easy since there is more than one individual involved. 2. Innovation on Site: People within the organization are involved in the change 3. Learning by doing 4. Continuous Change, Improvement, and Learning: Change is ongoing and does not stop. This is different from Lewins Three-Step Model, where change ceases after it is refrozen. 5. Part of Normal Operations: Always striving to be more productive, and efficient. 6. Companies do not implement this form of change exactly the same way. 7. So organizations dont consider the possibility of failure when they attempt to implement change. 8. Requires change in behavior as well G. The Action Learning Cycle 1. Taking Action to Implement Change: Collection Information. This is the Action Research Stage. 2. Collecting Pertinent Information: In regards to rewards, systems, productivity and motivation 3. Diagnosing Progress 4. Planning to Modify Change and How it is Implemented 5. This cycle is ongoing and party of normal operations. Employee involvement -21-

will increase the changes of the change being successful. H. The Action Learning Cycle Over 1. Change will become the norm rather than stability 2. This ongoing change towards organizational objectives must be built into the behaviors of the company, including managers and employees 3. This participative process (includes employees) will strive to continually improve performance over time. The top-down approach to change will be detrimental as there is minimal involvement.

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