Concord Bookshop Paper
Concord Bookshop Paper
Angie Torres
HCS/587
June 19, 2012
Steve Young, BS, MBA, Ph.D.
Concord Bookshop Paper
Organizational change means many things. It can mean introducing a new enterprise resource planning system to coordinate and standardize internal processes, shutting down a factory, selling off a noncore business, or laying off employees. It could also mean entering a global market, integrating acquired companies, and outsourcing nonstrategic activities (Spector, 2010).
Three faces of organizational change were identified to help leaders search for effective strategic renewal efforts. These are turnaround, which aimed at financial improvement, tools and techniques, which aimed at improving internal organizational processes, and transformation of employee behaviors, which aimed at enhancing human capabilities. Although leaders have the option to use each of the faces of change as separate and independent, effective change efforts combine the three (Spector, 2010).
Turnaround is an attempt to improve the immediate financial position of an organization by focusing on the income statement and the balance sheet. Although it may be necessary, it is not sufficient to ensure long-term effective change. The activities of the turnaround effort include reducing capacity, shutting down facilities, reducing levels of pay, health insurance, and retirement benefits. Turnaround does not by itself create sustained outstanding performance. Psychological impact of the workforce reductions on employees lead to a sense of insecurity, which shows less productivity and less commitment to the organization. Companies that engage in downsizing cannot count on those efforts finding their way to the bottom line, it does not provide a “quick fix” in a sinking consummation. Turnaround efforts that initiate strategic renewal guarantee that financial discipline will follow behavioral change (Spector, 2010).
Another non-behavioral face of change targets on
Angie Torres
HCS/587
June 19, 2012
Steve Young, BS, MBA, Ph.D.
Concord Bookshop Paper
Organizational change means many things. It can mean introducing a new enterprise resource planning system to coordinate and standardize internal processes, shutting down a factory, selling off a noncore business, or laying off employees. It could also mean entering a global market, integrating acquired companies, and outsourcing nonstrategic activities (Spector, 2010).
Three faces of organizational change were identified to help leaders search for effective strategic renewal efforts. These are turnaround, which aimed at financial improvement, tools and techniques, which aimed at improving internal organizational processes, and transformation of employee behaviors, which aimed at enhancing human capabilities. Although leaders have the option to use each of the faces of change as separate and independent, effective change efforts combine the three (Spector, 2010).
Turnaround is an attempt to improve the immediate financial position of an organization by focusing on the income statement and the balance sheet. Although it may be necessary, it is not sufficient to ensure long-term effective change. The activities of the turnaround effort include reducing capacity, shutting down facilities, reducing levels of pay, health insurance, and retirement benefits. Turnaround does not by itself create sustained outstanding performance. Psychological impact of the workforce reductions on employees lead to a sense of insecurity, which shows less productivity and less commitment to the organization. Companies that engage in downsizing cannot count on those efforts finding their way to the bottom line, it does not provide a “quick fix” in a sinking consummation. Turnaround efforts that initiate strategic renewal guarantee that financial discipline will follow behavioral change (Spector, 2010).
Another non-behavioral face of change targets on