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Summary Chapter 4 Waddell 2e Rev

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Summary Chapter 4 Waddell 2e Rev
Chapter 4
Managing change and diversity

Overview
This chapter indicates that both the internal and the external environments can signal to managers that the way an organisation operates needs to change. Because organisations need to be competitive, it is important for managers to develop the skills necessary to manage change effectively. The most demanding challenge is to change organisations so that managing diversity is the norm, not a problem. It means changing the organisation to fully utilise the advantages that such a diverse culture can offer. The second part of this chapter focuses on the effective management of diversity in an environment that is increasingly changing in all respects.

Managing organisational change
Deciding how to change an organisation is a complex matter because change disrupts the status quo and poses a threat to many, prompting some employees to resist attempts to alter work relationships and procedures. Organisational learning, the process through which managers try to increase the ability of organisational members to understand and appropriately respond to changing conditions, can be an important impetus for change. Organisational change can affect practically all aspects of organisational functioning, including organisation structure, culture, strategies, control systems, and groups and teams, and human resource management systems, as well as critical organisational processes such as communication, motivation, and leadership.

Assessing the need for change
Assessing the need for change includes two important activities: recognising that there is a problem and identifying its source. To discover the source of the problem, managers need to look both inside and outside the organisation. Outside the organisation, they must examine how changes in environmental forces may be creating opportunities and threats that are affecting internal work relationships. The change process generally begins with a form of assessment of the

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