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Managing Change It is no surprise that organizations today are almost always in a state of change. Change can bring positive results to an organization but can also create tension and strain throughout, yet organizational change is an integral part of the planning process. An effective plan requires that organizational planners possess an understanding of organizational change. Organizational strategy provides the framework for senior managers to lead the change to effectively compete as required by their strategy.

There are various levels of organizational change in response to industrial, societal, and firm-level developments. At the industrial level, change follows a typical S-curve pattern where new products are slow to catch on but then experience rapid sales and the sales then decline as the product matures. At the societal level, environmental and economic issues drive change. Blockbuster video closed hundreds of brick-and-mortar stores and has been relegated to an online retailer of on-demand movies. At the firm level, change is driven by the demands of stakeholders who create pressure for change, such as improved financial performance or changes in strategic direction or even changes in leadership.

Blockbuster experienced trouble because the marketplace changed to online video streaming and Blockbuster, at first, refused to see or couldn’t see this change as a serious threat to their business model. Blockbuster’s leaders did not see online competition as a problem. Once a problem has been identified and a strategy crafted in response to the problem, leaders must lead the necessary change throughout their organizations. Organizations develop their strategies by first correctly identifying a problem. Leaders spend a lot of time and energy formulating strategy and they spend a lot of time developing the change that is needed to execute their strategies. Change is not always predictable. Since change is unpredictable it must include various methods and perspectives.

Additional Materials

From your course textbook, Managing Employee Performance and Reward (2nd ed.), read the following chapters:

Individual reognition plans

Collective incentives

Employee share ownership

From the South University Online Library, read the following article:

Organizational Culture and Leadership 

South University

file:///C|/Users/CWATKIM/Desktop/Managing%20Change.html[3/11/2020 9:41:57 PM]

From the Internet, read the following articles:

Beer, M., and N. Nohria. 2000. Breaking the Code of Change. Boston: Harvard Business School Press. Retrieved from https://www.jstor.org/stable/3094840?seq=1#page_scan_tab_contents

Hayes, J. 2010. The Theory and Practice of Change Management. (3rd ed.). New York: Palgrave MacMillan. Retrieved from https://he.palgrave.com/page/detail/The-Theory-and-Practice-of-Change- Management/?K=9781137275349