By C A Carnall
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Extra info for Managing change in organizations
Eventually we discovered that these economies of scale were often illusory. Some of the ‘costs’ of scale were increasingly alienated and demotivated employees but, in particular, inflexible and inwardly focused organizations. Observers concerned with these problems noted two linked points: 1. What appeared to be a growing alienation of many within modern society coalesced around attitudes to bureaucracy – whether public or private. Organizations which could give genuine priority to delivering value to customers would begin to break down the alienation many felt about these large bureaucracies.
In both of these depictions the focus is upon how or whether value is added either to internal or external ‘customers’. Many now conclude that we are in the midst of a paradigm or mind-set change regarding views on how to organize economic activity. New forms of organization are increasingly discussed and or applied. Networks, virtual organizations and homeworking are each variants which attract continuing attention. For our purposes there are two points to note: 1. Increasingly we see two approaches to change in use, a planned approach to change and a market-based approach.
Second, a company needs to develop critical technologies internally if it is to secure its position on the value chain. Here we see the argument that strategic networks can be very effective as a means of acquiring particular capabilities and of creating high-powered incentives towards improvement, change and enhanced value. Our concern here is not to evaluate the argument, but merely to emphasize the new style of thinking involved in even raising the question. Most importantly for our present purpose we have seen a tendency to replace planned, organizational change with market-induced change.