Page 684 - Business Principles and Management

Chapter 25 • Developing an Effective Organization

Competition requires that all
businesses constantly look for
ways to change and improve.
How have changes in manufac-
turing procedures affected the
jobs of factory workers?

PHOTO: © GETTY IMAGES/PHOTODISC.

4. Build commitment within the organization for the changes. Successful orga-
nizational change requires the understanding and support of managers and
employees. That understanding and support will be given only if all employ-
ees are fully informed of (a) the change, (b) the reasons change is necessary,
(c) the likely results if the change is not made, (d) how employees will be
affected by the change, and (e) how the organization and its employees will
benefit if the change is successful. Successful organizational development Success tip
usually results when company personnel are involved early in the process
and when they have a role in designing the plan.
5. Follow through on the organizational development plan. Employees are Managers who tap into
more likely to support the plan if they see that the organization is com- employees’ need to grow
mitted to it and that change is occurring. Managers should keep employ- in their jobs are more likely
ees informed of results of the changes even if they are not always positive to retain talented people. A
at the beginning. Unless something occurs that makes it clear that the manager should set a direc-
plan will not work, the organizational development plan should continue tion for each employee that
until it achieves the stated goals. aligns with the company’s
6. Make the new process part of the organization’s culture. If people believe vision and mission, listen to
the change is not important or is only temporary, they will not commit to employee ideas on ways to
its success. When the new process is implemented and supported, the orga- improve the business, guide
nization has changed, and the old procedures are no longer appropriate, the employee in meeting the
the organizational development program is complete.
business’s goals, and mea-
Alliance Industries, discussed in the opening scenario, needed to implement sure progress and give feed-
an organizational development program for the major changes it was planning. back through employee
Can you find evidence that Alliance used any of the six steps you just studied? performance evaluations.

CHECKPOINT
What is the evidence that an organizational development
program is complete?

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