ORGS 4350 Lecture Notes - Lecture 3: Fallacy, Learning Organization, 5 Whys

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Ceo of national bank held retreat with top executives to review purpose and culture; hired new vp of hr; established companywide programs to push change. Problem: increased competition and changing markets; companies finding it harder to maintain dominance, regain market share and ensure survival. Transition from hierarchical and bureaucratic model to task driven organization. Common misconceptions: employee behaviour is changed by altering company structure and systems: spreading companywide programs will transform the organization, formal organization structure and systems cannot lead renewal process. Successful transformations: start at the periphery of the company in few plans and divisions: managers need to create ad hoc organizational arrangements, align employee roles to address important competitive tasks. Non-directive change process: general managers specify direction in which the company should move without insisting on specific solutions. Managers need to learn from employees closer to the action. Believed that the place to begin is with knowledge and attitudes of induvial.

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