ABC Ltd. is a profitable manufacturing company with a good track record of continuous growth over the last decade. The general business environment is rapidly changing with the introduction of new manufacturing processes and market liberalization in the region. The board has appointed a new managing director who is anxious to create a momentum for innovation and change in the organization. He is aware that introducing change is relatively easy when a company is facing a crisis but far more difficult when all is well. As a business development manager in ABC Ltd., the director has asked you for advice. Prepare a memorandum to the managing director in which you discuss: The organizational life cycle concept in relation to the difficulties of introducing innovation and change in a successful organization

The organizational life cycle concept in relation to the difficulties of introducing innovation and change in a successful organization:
Organizations, like humans and products are entities that undergo the cycle of inception, growth, maturity and decline. Strategies need to be developed at each of the phases to ensure that change, which is inevitable, is appropriately managed to keep the organization towards its objectives. The difficulties characterizing the introduction of change and innovation generally includes:
i) Different perception: certain employees may see the change as beneficial to only the initiator of the change; because of this kind of perception, they would always resist change
ii) Uncertainty: The effects of proposed changes on both the organization and employees are usually uncertain. This uncertainty would always be avoided by the employees
iii) Loss: Changes often result in job loss to some employees (laid off/declared redundant) and even lower productivity for certain departments. Individuals and groups will therefore not be willing to accept the loss.
iv) Self-interest and fear: Naturally employees would se always fear change because of the uncertainties with regard to the effects of the change. Some employees would also want changes that would cater for their own interest and not the group or organizational interest.



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