Organizational Change Essay Example | Topics and Well Written Essays - 750 words

Organizational Change - Essay Example This discussion evaluates the reasons for change and most probable responses to the intended change; further, change management as explained in the literature will be explored before concluding with key findings. Innumerable reasons drive organizations to bring about changes in various aspects such as strategies, structures, systems, leadership, services/products, markets etc. The process of substantive change is often a complex process and requires the involvement of many people at various levels, and sometimes even external entities. Reasons for changes can be external forces or internal forces. External forces include political, geographical, legal, social, market-related, competition etc; and internal forces are usually driven by external forces and may include changes to culture, leadership, new products/services, cultural differences etc. Most importantly, organizations are either required to adhere to new laws; adjust to new political systems; enter new geographical locations; introduce new products/services to meet new customer demands; and/or to stay competitive in the market. Internally, the reasons may include entry of new leaders at the top, which also results in changes in organizational culture and strategies; introduction of new organizational systems, technologies, and structures; introduction of new products/services etc. ... n common reasons for resistance, such as lack of information, misinterpretation of change, preference and liking towards the status quo, willingness and commitment, fear of performance-related attributes, and fear. Fear is mostly due to lack of information and understanding related to the need for change and its future impact; fear may also be due to notions attached to job security, status, position or role; fear of failure in performance and rewards and fear associated with increased workloads; fear of change in work groups and disruptions to established interrelationships; and fear of change in power and authority (Nelson & Quick, 2012). Another important point is that identified by Eccles (1994), i.e., lack of trust in management also causes fear and resistance to change (Dawson, 2003). Another perspective is that of emotional aspect developed by employees with respect to their job, relationships, position, performance, location etc (Jordan, 2004). Nelson and Quick (2012) assert that managing change requires the management to build trusting relationships with employees. Openness and transparency in communicating the reasons for change, process of change and expected outcomes of change can be a great beginning to change implementation. A shared vision related to the expected outcomes through intended change will improve commitment towards change. Most importantly, involvement and belongingness of employees are required for successful change. Before adopting strategies towards this effort, employee resistance should be addressed through clarity in roles and goals, and constant communication related to the progress of intended change. This will improve employee commitment and trust in management; it will also enhance involvement, cooperation and collaboration of

How Does a Rational Investor Build the Optimal Portfolio and Should Term Paper

How Does a Rational Investor Build the Optimal Portfolio and Should International Securities Be Added to That - Term Paper Example Investors are therefore supposed to keep one of the optimal portfolios on the effective level and the rest to adjust to the market risk. The latter is reached through the leverage or de-leverage of that portfolio with positions in a risk-free investment such as government bonds. The following paper presents the utility of the MPT for contemporary decision making. The objective of the investor is discussed to find an efficient allocation of assets and liabilities which implies investor's balance and efficiency of an investment. Active portfolio managers constantly buy and sell a great number of common stocks. Their job is to try to keep their clients satisfied, and that means consistently outperforming the market so that on any given day, if a client applies the obvious measuring stick-"How is my portfolio doing compared to the market overall"-the answer is positive and the client leaves her money in the fund. To keep on top, active managers try to predict what will happen with stocks in the coming six months and continually churn the portfolio, hoping to take advantage of their predictions. On average, today's common stock mutual funds own more than one hundred stocks and generate turnover ratios of 80 per cent (Lewis, Mizen 2000). Index investing, on the other hand, is a buy-and-hold passive approach. It involves assembling, and then holding, a broadly diversified portfolio of common stocks deliberately designed to mimic the behaviour of a specific benchmark index, such as the Standard & Poor's 500 Price Index (S&P 500).Compared to active management, index investing is somewhat new and far less common.