Change raises anxiety over fear of:

Economic loss Inconvenience Uncertainty

Break in status

Restructuring:
Reducing the size of the firm in terms of number of employees, divisions, or units, and the number of hierarchical levels in the firms organizational structure.
Also called

Downsizing Rightsizing Delayering

Many organizations realize that process,

quality output, efficiency, and employee satisfaction are attained only when people share more responsibility in the organization and for its product.

This can happen with a

radical restructuring of the basic values held among leadership, management, employees, and stakeholders.

Reengineering
It involves reconfiguring or redesigning work,

jobs, and processes to improve cost, quality, service and speed.

Also called

Process management Process innovation Process redesign

Steps of Reengineering:
The establishment of common and consistent

goals Organizational commitment from all stakeholders Team leadership Role clarity among team members Mutual accountability within teams Complementary knowledge and skills Power, both real and perceived Shared rewards

Reengineering
Reengineering

Concerned more with employee and customer well-being than shareholder well-being.

Ch 7-8

Fred R. David Prentice Hall

Linking Performance and Pay to Strategies

Most companies practicing pay-for-performance

Ch 7-9

Fred R. David Prentice Hall

Linking Performance and Pay to Strategies

Dual bonus system becoming more common Based on both annual objectives and long-term objectives Profit Sharing Incentive compensation used by 30% of companies
Gain Sharing Performance targets set for employees or departments
Fred R. David Prentice Hall

Ch 7-10

Tests for Performance-Pay Plans

Does the plan capture attention?

Do employees understand the plan?

Is the plan improving communication?

Does the plan pay out when it should?

Is the company or unit performing better?

Innovation:
An innovation is an integrated set of

processes, policies, and tools that link corporate strategy to new sources of value (products, services, processes) in order to create sustainable competitive advantage.

Innovation system components

strategy structure leadership systems processes values and culture hr/rewards enabling technology physical environment talent community knowledge creation/learning innovation studios

Key elements

The Desired Future

The Present

Design is a way of taking the journey to the desired future The Desired Future prototype

prototype

prototype

The object of design can be a thing, service, experience, organizational structure, strategy, doctrine, or set of operational guidelines prototype

The Present

Design embeds disruptive innovation as an organizational process

Benchmarking Through benchmarking, organizations compare

themselves to the best industry practices in their field.

Understanding best practices helps company

leadership identify what must be changed within an organization to achieve its vision.

Benchmarking helps In: Define customer requirements,

Establish effective goals and objectives,

Develop true measures of productivity, and

Identify education and training needs

For current and future employees.

 Effective use of benchmarking requires an

understanding of the total environment including:

What others have done? What standards and practices have been

implemented? The organization's past performance Changes that affect current and the future organizational performance