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GMGT2060 - self made notes for all chapters, includes
content from slides and book.
Management And Organizational Theory (University of Manitoba)
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Four Keys to Manage Ecological Well-Being
1) Approaches towards Ecological Well-being:
Ecological well-being is evident when the Earth’s natural systems are functioning in a way that
sustains and enhances the flourishing of human life.
Natural environment: composed of all living and non-living things that have not being created
by human technology or human activity.
Ecological footprint: amount of the earth’s natural resources that are required to sustain a
particular lifestyle or activity.
FBL APPROACH TO ECOLOGICAL WELL-BEING
Management considers economic activity to be different and independent from the natural and
social environment.
3 methods to manage ecological: well-being:
o Unawareness: FBL focuses on information from the financial markets to make decisions
regarding natural environment. Managers are not aware of how important it is to
consider the idea of ecological well-being. FBL build factories that are least expensive in
financial cost associated with pollution.
o Obstruction: Managers are aware of the negative externalities they are causing to the
environment, but do not take any measures to avoid such situations also make sure that
such information is not reached out to other stakeholders or the society at large.
o Legal Conformity: is a defensive approach used by managers, who are aware of the
negative ecological externalities created by their organization, but managers do only
what is legally required to avoid penalties. They exhibit little environmental sensitivity.
TBL APPROACH TO ECOLOGICAL WELL-BEING
TBL management suggests that economic activity is interdependent with the natural and social
environments.
o Customer Demand: TBL seeks to respond to the growing demand for ecologically
friendly products. Businesses are tempted to participate in greenwashing (using
misleading information to present a false image of ecological responsibility.)
o Efficiency: how reducing negative externalities can lower the financial costs of an
organization. (LCA) Life -cycle assessment identifies area where there can be ecological
benefits and financial savings in the overall process of production and then selling to the
customers. LCA embraces cradle-to- cradle design which is the use of material at the end
of their useful life can be re-used to make new products. New products are made from
expired products.
o Stricter Legislation: imposing green taxes on things that degrade the environment this
way customers would think twice before buying that product.
SET APPROACHES TO ECOLOGICAL WELL-BEING
Management believes that economic activity is dependent on social and ecological well-being.
o Proactiveness: without prompted my other stakeholders, managers take initiate to
enhance the natural environment.
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o Stakeholder- centrism: taking customers in account but also ensuring that it is not
creating a negative externality to other stakeholders like neighbors, business partners,
NGOs. Making ecological choices that are reasonable in the eyes of larger society.
o Place-based Organizing (PBO): when organization’s ownership, productive activities and
resources are grounded to a particular geographic location. PBO enhances ecological
well-being and has locally beneficial social economic outcomes. It creates positive social
externalities by enhancing community and supporting locals.
2) Energy and the Carbon Economy:
FBL approach to energy and the carbon economy:
Managers continue to use fossil fuels as they are inexpensive. As their prime motive is to
generate greater profits.
TBL approach to energy and the carbon economy:
Develop new products that are address consumer demand but at the same time protecting the
environment. Walmart is the leading retail company for sustainability. TBL firms support stricker
legislation that support the use of non-carbon energy leading to green innovations to avoid
greater costs.
SET approach to energy and the carbon economy:
Promotes proactive approach. SET management believes in giving natural environment a
symbolic seat at decision making table. Also promotes a more place- based and less
consumeristic lifestyle.
3) Management and Food System: Food system is not only important for our physical wellbeing, but it also has an impact on the planets ecological well-being.
FBL MANAGEMENT AND FOOD SYSTEMS
Not concerned about the negative ecological externalities associated with producing,
transporting food supplies as FBL considers it to be the government’s responsibility.
TBL MANAGEMNET AND FOOD SYSTEMS
Being sensitive to increased consumer demand for food but at the same time ensuring that the
food perceived from an ecologically responsible. TBL approach encourages efficiency in the
industry to reduce food wastage.
SET MANAGEMENT AND FOOD SYSTEMS
With Emphasis on PBO, set approach towards Locavores, which means people whose diet
consist of mainly locally grown or produced food. Saves transportation time and cost.
4) Management and Physical Health: obesity is turning to a bigger issue than hunger.
Extensive use of fossil fuels not only have a negative impact on the climate but also on
the health.
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FBL MANAGEMNT AND PHYSICAL HEALTH
It is government responsibility to ensure healthy human health and ecological well-being. FBL
would initiate into health issues only if does not have a negative impact on the financial wellbeing.
TBL MANAGEMENT AND PHYSICAL HEALTH
Respond to consumer interest to enhance physical well-being where it is profitable. McDonald
initiate to introduce sustainable beef.
SET MANAGEMENT AND PHYSICAL HEALTH
o Being more active: Use your energy (walking, biking) to then to use a carbon energy to
each your destination.
o Improve your diet: Eating less processed food, eating more fruits and vegetables. Life
cycle assessment shows that eating more plant-based food and less meat is healthier
for both our health and for the planet.
o Avoid illness-causing activities and stimuli: Precautionary principle states that before
any action is undertaken it is important to ensure it does not have a harmful effect. A
person should demonstrate that the action is not harmful.
Three fundamental components that contribute to social well-being:
1) Meaningful work: enhancement of the meaning of life of those doing work
to understand meaningful work, it is important to understand meaning of life. The two
dimension that helps to understand the meaning of life are
 the source of the meaning (transcendent vs. tangible)
 focal point of meaning (individualistic vs holistic).
to be a successful person, it means that the person that achieved the financial well-being
(money).
Work is more meaning for people who:
 experience a fit between their job and their sense of purpose.
 Believe that their work gives them the strength and the opportunity to make a positive
impact on the world.
 Feel valued and a sense of belongingness in their workplace.
Work that is not meaningful leads to Depression and Anxiety Disorder, lower psychological wellbeing, lower self-esteem which further leads to absence, sickness, and long-term work
incapacity.
FBL APPROACH TO MEANINGFUL WORK
FBL management has a materialistic (more money)/ individualistic approach (getting ahead)
towards the meaning of work, which is facilitated by job design and consumeristic messaging.
As the prime motive of this management is to achieve financial success. Work is meaningful if it
increases productivity, sales, and financial well-being.
DISADVANTAGE: in long run this leads to increased depression, stress, and poor health.
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TBL APPROACH TO MEANINGFUL WORK
TBL management has either transcendent (more virtue)/ individualistic or materialistic/ holistic
(sharing and compassion) understanding of work, which is facilitated by job crafting (where
employees design their own jobs to be meaningful based on their experience) and pro-social
messaging.
SET APPROACH TO MEANINGFUL WORK
Set management has a transcendent/ holistic understanding of meaningful work, which is
facilitated by encouraging generosity and voluntary simplicity.
2) Meaningful Relationships: there are two types of relationship instrumental (give and
take, relationships) and non-instrumental relationship (developed with deep
interpersonal connections, not expecting back).
Non-instrumental relational are important for the social well-being and a meaningful life, it
leads to life satisfaction and positive emotive emotions at work. On the other hand,
instrumental relationships lead to competition among employees, and decreases mutual
problem solving. Instrumental relationships are more like financial investments.
FBL APPROACH TO RELATIONSHIPS
Instrumental relationships are promoted by FBL to optimize productivity, and financial wellbeing. FBL considers non-instrumental relationships with a negative connotation of wasting
company time.
TBL APPROACH TO REALTIONSHIPS
Non-instrumental relationship can have a positive impact if they enhance workplace motivation
and productivity and is financially beneficial. TBL management promotes work-life balance, as it
creates motivated, loyal, and productive workforce which adds to the financial well-being of the
organization.
SET APPROACH TO RELATIONSHIPS
Believes in how important it is to show compassion (supporting people who are suffering) and
gratitude (being thankful) at workplace.
3) Peace and Social Justice: avoiding issues related to bullying in workplace, unsafe
working conditions, and conflicts within and between organizations.
War may be beneficial for certain industries but is has a negative overall impact. Wars are
usually because of energy in the history. Be it like at the time of hunters and gatherers or use of
fossil fuels for machinery.
Two ways to understand peace:
 Presence of freedom and harmony
 Absence of war and conflict
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FBL APPROACH TO PEACE AND SOCIAL JUSTICE
Emphasis on international trade for the establishment of international stable economic
relations. International trade promotes peace among nations. FBL follows the ethnocentric
orientation, which means that when managers enter the foreign country with the belief, that
practices from their home country are best way to manage the home country.
FBL does business in foreign country whose infrastructure is well-suited to support the financial
goals of the firm.
DISADVANTAGE: When managers from high income countries use their economic power to
implement practices at low-income practices that do not respect their socio-cultural issues.
TBL APPROACH TO PEACE AND SOCIAL JUSTICE
TBL pays emphasis on the initiates by UN Global Compact and practices associated with Base of
Pyramid idea. It follows the Polycentric orientation, where the managers of the host country
know the best way to manage an organization in their country.
SET APPROACH TO PEACE AND SOCIAL JUSTICE
SET management promotes the egalicentrism orientation, which is characterized by a two-way,
give and take communication based on mutual understanding and community. It promotes fair
trade and follows the Caux round Table Principle that laws, and market forces are necessary but
not sufficient for responsible business conduct. SET management countries are interested in
countries promoting social responsibility, nurturing local networks, training appropriate human
resources, supplier. And financial institutions and educating local consumers about the merits of
the responsibly produced output.
THE ENTREPRENEURSHIP PROCESS: CHAPTER 6
Entrepreneur is someone who conceives of new or improved goods or services and exhibits the
initiative to develop the idea by making plans and mobilizing the necessary resources to convert
the idea into reality.
Job growth is experienced when the rate of jobs created by classic entrepreneurship is more
than the existing firms eliminating the jobs.
Why entrepreneurial start- ups are important? They lead to innovations towards the society
whereas, the existing firms are less likely to develop innovative solutions.
SMEs (small and medium- sized enterprises) are different from large organizations on various
factors like:
1) SME has more fixed costs. (Business expenses that do not vary with the quantity of
organizational output)
2) Smaller budgets for SMEs
3) SMEs do not have large resources for marketing budget, employee compensation.
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4) SMEs do not benefit from Economies of Scale (EOS) because of smaller operations. (EOS:
are cost of savings that arise from producing a large volume of output).
SME are common in-service industries than manufacturing. And SME suffer from liability of
newness (new organizations greater chance of failing compared to older organizations in the
same industry or situation).
Why is the rate of job satisfaction high in SMEs?
SME create jobs with enhanced social well-being, better working conditions, more control at
work, and less desire to quit. SMEs help employee to clearly relate the company’s vision and
mission with their work responsibilities and purpose.
ENTREPRENEURSHIP AND FAMILY BUSINESS
Family Business: is an organization controlled by two or more members of a single family, in
cooperation or in succession.
Family: is a group of people- typically connected by marriage or kinship ties- who have shared
history, who feel a sense of collective belonging, and who are committed to helping each other
build a shared future.
Advantages of Family Business:
1. Members are motivated to see the organization grow and gain profits
2. Benefits of family owned and operated business.
3. Strong interpersonal relationship associated with being family members.
4. Higher level of trust and cooperation in family, reduces financial cost of control
(management)
5. Lower agency cost (expenses that owners pay to ensure that managers act in the
interests of the firm, rather than in their own self- interest) in comparison to non-family
firms.
Disadvantage:
1. Interpersonal conflicts in the family business can influence the business.
2. Nepotism: preferential treatment of relatives and friends by giving them jobs they are
not most qualified.
Moral Hazard is the term used by agency theory to describe the risk that managers might use
the firms’ resources to benefit other interests to the detriment of the owners’ financial gain.
Moral Hazard arises if two situations are met:
1. Managers and owners have misaligned incentive. Managers are rewarded for
organizational outcomes which the owner might have not approved.
2. Owner has a trouble evaluating their manager’s performance and choices as
their managers know more about the organizational operations.
BENEFITS OF ENTREPRENEURSHIP:
FBL

NEW START- UP: Economic activity (jobs and innovation)
AS SMALL ENTERPRISE- Opportunity for growth/ financial return
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 AS FAMILY BUSINESS- Low agency costs.
TBL- aim financial gain by avoiding negative externality
 NEW START UP-Create satisfying jobs (economic activity and innovation)
 AS SMALL ENTERPRISE- Opportunity for growth via targeting specific / narrow triple
bottom- line opportunities.
 AS FAMILY BUSINESS- Low agency costs and care for family.
SET NEW START UP- Socio- ecological innovation (meaningful jobs and economic activity)
 AS SMALL ENTERPRISE- Opportunity to create socio- ecological value for local
community.
 AS FAMILY BUSINESS- Care for humanity.
FOUR STEPS OF THE ENTREPRENEURIAL PROCESS
STEP: 1 IDENTIFY AN OPPORTUNITY, BASED ON:
FBL Seek financial value capture.
TBL Seek financial value capture via reducing negative externalities.
SET Seek value creation through positive socio- ecological externalities.
STEP 2: Gather information to information and refine the opportunity.
Elevator pitch: succinct description of the entrepreneur’s plan and the value it offers. A good
pitch focuses on the potential opportunity.
STEP 3: MAKE A PLAN (BUSINESS PLAN, AND ENTREPRENEURIAL START- UP PLAN).
Business plan: is a written document that describes the key features, actions, structure, and
systems for a proposed new organization that is designed to take advantage of an
entrepreneurial opportunity.
ELEMENTS OF THE BUSINESS PLAN
1. Summary: chance to make a positive first impression. It is a written version of your
elevator pitch. It is better when short.
2. Description of the new venture:
 Opportunity- describes the problem or opportunity the new venture is addressing.
 Target market- potential size of the new venture. Market is the group of people or
organization that are, or could be, interested in using your product or service.
 Mission and vision:
 Business strategy: low financial cost, distinct features, minimal negative externalities,
enhanced socio- ecological well- being.
 Legal Form: Sole proprietorship; partnership; corporation (costlier to start); co-operative.
3. Description of product and competitors:
Competitors- other organizations that offer similar products or services or offer products
or services that meet the same customer need.
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4. Management:
5. Staffing:
6. Marketing:
Total Available Market (TAM) includes everyone who could potentially benefit from the
product or service.
Served Available Market (SAM) includes everyone in the TAM who is likely to use the
product or service.
Target Market: includes everyone in the SAM that the organization will intentionally try
to make into a customer or client soon.
7. Operations: new venture’s proposed location, facilities, equipment, methods of
transforming inputs into output, inventory management, suppliers.
8. Finances:
Debt Financing: occurs when entrepreneurs borrow money from a bank, family, and
friends, or financial institution that is paid back at future date.
Equity Financing: occurs when investors in a new venture receive shares and become
part owners of the organization.
Venture Capitalist: which are companies or individual that invest money in an
organization in exchange for a share of the ownership and profits.
9. Timeline and Contingency plans:
FBL
TBL
SET
To convince stakeholders of profit potential, strong business case for investing.
To justify the profitability of reducing targeted externality.
To engage stakeholders in developing the key aspects of the organization. Less emphasis
on detail and specific plans.
STEP 4: TAKE ACTION INCLUDES QUALITIES OF ENTREPRENEURS: KEY RESOURCES
Write excellent plan and implement it and launch a new organization.
QUALITIES OF AN ENTREPRENEURS:
Conscientious, open to new experiences, extraverted, emotionally stable, managerial social
skills, leadership.
Self- efficacy: which is one’s confidence and belief that they can accomplish a task successfully.
Women are less self- efficacy then men.
FBL Access traditional sources of financing (e.g., banks, venture capitalist) and use it to
mobilize the other resources called for in the plan. Focus on higher returns for invested
capital.
TBL Access new and / or traditional sources of financing and use it to mobilize the other
resources called for in the plan.
SET-
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

Consider newer sources of financing (crowdfunding: entrepreneurs receiving small amts
of money from many people often in exchange for a rewarded and no repayment) to get
started, and then work with stakeholders to mobilize the resources to run the
organization. Do not prioritize financial gains maximization.
To avoid conflicts between SET and corporate law, there is something called as benefit
corporation: which is a for- profits corporate entity that has legally defined and
recognized social or environmental goals.
FORMULATING STRATEGY: CHAPTER 8
Strategy: refers to the combination of goals, plans, and actions that are designed to accomplish
an organization’s mission.
Strategic management: Refers to the analysis and decisions that are necessary to formulate and
implement strategy.
FOUR STEPS OF FORMULATING STRATEGY:
STEP 1: Develop mission / visionMission statement: identifies the fundamental purpose of an organization, and often describes
what an organization does, whom it serves, and how it differs from similar organization.
Vision statement: describes what an organization is striving to become, and thus provides
guidance to organizational member.
FBL: spend least time on developing mission and vision statement. Top management
takes part
 Financial well- being
 Acquisitive economics.
 Competiveness strategy
 Top-down process.
 Top management team
TBL: wants financial well- being but at the same time avoiding negative externalities in
mind. Kept key stakeholder in developing this statement.
 Triple bottom line
 Mostly acquisitive economics.
 Mostly competitive strategy.
 Mostly top-down
 Key stakeholders
SET: spend most time on developing mission and vision statement. Includes most time
developing the statement.
 socio- ecological well-being.
 Sustenance economics.
 Collaborative strategy.
 Multi-stakeholder input.
STEP 2: Analyze internal resources. (Strengths and weakness)
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Strengths: refers to valuable or unique resources that an organization has or any activities that it
does particularly well. (Positive internal characteristics that help achieve their strategic
objective).
Weakness: refers to a lack of a specific resources or abilities that an organization needs on
order for it to do well.
Three different types of internal resources:
1. Resources: assets, capabilities, processes, attributes, and information that is
controlled by an organization and that enable it to formulate and implement a
strategy.
2. Human Resources:
3. Intangible Resources:
Characteristics of strategic Resources:
 Valuable
 Rare
 Inimitable
 Non-substitutable
Organization requires core competencies (refers to a resource or ability that is essential for the
achievement of organizational goals) to survive and distinctive competencies (is a competency
that an organization has that is superior compared to its competitors) to thrive.
FBL: Prefer resources that allow firm to enhance:
 Financial well- being,
 Revenue,
 Monopoly,
 Competiveness.
TBL: wants financial well- being but at the same time avoiding negative externalities in
mind.
SET: Prefer resources that enable organization to enhance:
 Socio- ecological well-being
 Opportunity to help others
 Opportunity to teach others
 Collaboration
STEP 3: Analyze External resources:
SWOT, Five Forces Model are the model used to examine threats and opportunities.
Industry: refers to all organizations that are active in the same sector of social, political, and/ or
economic activity.
Opportunities: are conditions in the external environment that have the potential to help
managers meet or exceed organizational goals
Threat: conditions in the external environment that have the potential to prevent managers
from meeting organizational goals.


Five Forces Model
Supplier Power: how much influence suppliers have over an organization.
Customer Power: how much influence customers have on an organization.
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Substitutes: products or services that are similar or that meet the same needs of a
customer but come from a different industry.
 Threat of entrants: extent to which conditions make it easy for other organizations to
enter or compete in a particular industry.
 Intensity of rivalry: extent or strength of competition among the organization in an
industry.
FBL: Prefer industries where the firms have:
 Power over supplier
 Power over customers
 No substitutes
 High entry barriers
 No competitors (low rivalry)
TBL: wants financial well- being but at the same time avoiding negative externalities in
mind. Low rivalry but would be okay to cooperate to enhance profits and reduce negative socioecological externalities.

SET: Prefer industries where firms have the opportunities to:
 Empower suppliers
 Empower customers
 Promote holistic substitutes
 Low entry barriers for SET
 Collaborate with others
Strategic alliance: pooling their organizational resources and know-how to share the risks and
rewards for developing their market.
STEP 4: Choose and develop strategy:
Business- level strategy: combination of goals, plans, and actions that an organization in a
specific industry uses to accomplish its mission.
1. Generic strategies (organizational strategy)
2. Generic strategies
Generic strategies
FBL:
 Cost leader vs Differentiator
Cost leadership strategy: when an organization has lower financial cost
than rivals for similar products, so that it can capture more profits and
or/ a higher market share via low prices.
More focus on production and distribution efficiencies.
 Differentiation strategy: is evident when an organization offers
product or services with unique features that cost less for it to
provide than the extra price which customers are willing to pay.
Focus strategy: describes the portion of an overall market that an organization is
targeting to serve. This can be combined either by differentiation/ cost leadership strategy.
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Dual strategy: when an organization combines both a cost leadership and differentiation
strategy.
Four -part portfolio strategic types
 Star: enjoys a high market share in a rapidly growing industry.
 Cash cow: enjoys a high market share in a low growth or mature industry.
 Question mark: has a low market share, but operates in a rapidly growing
industry
 Pet: has a low market share in a low growth industry.
TBL: wants financial well- being but at the same time avoiding negative externalities in
mind.
TBL cost leadership strategy: when an organization has lower
financial cost thanks to socio ecological benefit, so that it can
capture more profits and or/ a higher market share via low
prices
 TBL differentiation strategy is evident when an organization
offers product or services with socio- ecological benefits that
cost less for it to provide than the extra price which
customers are willing to pay
Generic strategies
 Minimizer vs Transformer
 Minimizer strategy: when an organization minimizes negative
socio- ecological externalities while ensuring that it remains
financially viable.
 Transformer strategy: when an organization creates positive
externalities, often by adding value to resources that were
previously under- appreciated or wasted.
 Compounder strategy: follows both minimizer and transformer
strategy.

SET:
A diversified organization competes in more than one industry or sector, or serves customers in
several different product, service, or geographic sectors.
Strategic business unit (SBU): which has its own mission statement, industry, products and
services, business-level strategy, and financial statements.
Corporate level strategy determines the combination of industries in which a diversified
organization will have an SBU.
Diversification can be further divided into two types:
 Horizontal integration
 vertical integration.
Horizontal integration: is evident when an organization’s services or product lines are expanded
or offered in new markets.
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Vertical integration: occurs when an organization produces its own inputs (upward integration)
or sells its own outputs (downward integration).
Unrelated diversification: occurs when an organization grows by investing in or establishing
SBUs in an industry unrelated to its current activities.
Divestment: refers to the process of decreasing the number of industries in which a diversified
firm operates an SBU.
Conglomerates — diversified organizations that have SBUs in unrelated industries.
Synergy: occurs when the performance gain that results from two or more units working
together—such as two or more organizations, departments, or people—is greater than the
simple
sum of their individual contributions.
Four -part portfolio strategic types
 Sustainability hero: reduces or minimizes negative externalities (high sustainable
development) and enhances positive externalities (high restorativeness).
 Fragile Player: creates both positive and negative externalities.
 Innocent bystander: which has high sustainable development but low
restorativeness.
 Lavish Actor: are low on both sustainability and restorativeness.
CHAPTER 9: IMPLEMENTING STRATEGY
Steps of formulating a strategy:
Mission and vision (step 1), complete a SWOT analysis of strengths and weaknesses (step 2) and
opportunities and threats (step 3), and then select and develop an appropriate strategy (step 4).
4 STEPS TO IMPLEMENT STARTEGY:
STEP 1: Develop operational goalsOperational goals refer to outcomes to be achieved by an organizational
department, workgroup, or individual member. These goals are typically 1 yearlong or less.
Performance Standards, which are metrics used to determine how well a particular
employee, department, or organization is doing its work.
FBL: SMART GOALS
 Specific: precise in terms of what is to accomplish.
 Measurable: The goal to be accomplished can be assessed
objectively. Measuring goals provides feedback so that people can
evaluate whether their behavior is helping to meet the goal or
whether their actions should change.
 Achievable: challenging but attainable.
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
Results- based: goal has clear, demonstrable outcomes.
Time specific: goal has a clear time by which it is to be accomplished
TBL: consistent with FBL approach unless there is a business case that supports
SET approach considering financial well-being.
SET: SMART 2.0 GOALS
 Significant: goal is challenging and engaging
 Meaningful: goal has meaning beyond simply maximizing
productivity.
 Agreed upon: Members participate in developing their own
goals
 Relevant: The goal is linked to important issues for a variety of
stakeholders.
 Timely: The goal is appropriate for the times and situation
Goal displacement: which happens when people get so focused on
specific goals that they lose sight of more important overarching goals. Usually happens when
managers focus on financial well- being and do not worry about the externalities it causes.
STEP 2: DEVELOP OPERATIONAL PLANS
Operational plans: specify what activities will be used to meet a goal, when
they should be accomplished (in light of existing commitments and constraints), and how the
required resources will be acquired.
Standing plans are operational plans for activities that are performed repeatedly.
 Standard operating procedures outline specific steps that must be
taken when performing recurring tasks.
 Policies provide guidelines for making decisions and taking action in
various situations.
 Rules and regulations are prescribed patterns of behavior that guide
work tasks.
Contingency plans: sometimes called scenarios, describe in advance how managers will respond
to possible future events that could disrupt existing plans.
Crises are events that have a major effect on the ability of an organization’s members
to carry on their daily tasks.
Three ways mangers can avoid crises:
1. Preventive work to avoid or minimize the effect of a
crisis.
2. Managers can prepare for a crisis by assembling
information and defining responsibilities and
procedures that will be helpful in a time of crisis.
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3. Managers can contain the crisis by making timely
responses. This can help to minimize the damage, get
the truth out, and meet safety and emotional needs.
FBL: Developed by managers and ignores externalities.
TBL: consistent with FBL approach unless there is a business case that supports
SET approach considering financial well-being.
SET: Developed by all stakeholders and considers externalities.
STEP 3: IMPLEMENT AND MONITOR GOALS/ PLANS
FBL: Managers ensure that plans are followed, goals are met, and scripts are
functional.
TBL: consistent with FBL approach unless there is a business case that supports
SET approach considering financial well-being.
SET: Managers work with stakeholders to ensure that plans are followed, goals are
met, and scripts are functional.
STEP 4: LERAN FROM THE STRATEGY IN ACTION
Strategic learning refers to using insights from an organization’s actual strategy to improve its
intended strategy.
Content school emphasizes the rational-analytic, top-down, and linear aspects of strategy
formulation.
Process school which emphasizes that strategy formulation and implementation are ongoing
and iterative, where one aspect influences the other.
The key to strategic management is learning from other stakeholders and identifying the
emerging patterns in the “stream of actions” that make up organizational life.



An organization’s intended strategy (what managers planned to do) and its actual
strategy (The strategy that is actually implemented and followed).
The deliberate strategy refers to parts of the intended strategy that are implemented,
whereas the un-implemented strategy refers to aspects of this intended strategy that
never get put into practice.
emergent strategy, which refers to actions taken by organizational members that were
not anticipated at the outset by managers.
Strategic learning demands three things: from managers
1) why some of their original intended strategy was not implemented.
2) Identify elements of the emergent strategy (unintended) that have positive outcomes for the
organization.
3) Implication of this analysis for the organization’s subsequent intended strategy.
FBL: Tendency to emphasize on top-down learning.
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TBL: consistent with FBL approach unless there is a business case that
supports SET approach considering financial well-being.
SET: Tendency to emphasize bottom-up learning.
Structuration theory explains how organizations are created, maintained, and changed by the
interplay between their structures and the actions of their members.
Entrepreneurship Implications:
A stakeholder map is a description of the organizational resources a new start-up has (and
needs) in order to manage the key forces (and key relationships it needs to establish and
maintain) in its industry.
 Two directional, connecting the key stakeholder: suppliers, rivals,
customers, and others
 FBL management presents this bidirectionality in competitive terms
(e.g., as a power contest among stakeholders).
 SET management sees it in collaborative terms (e.g., as an opportunity
to establish mutually beneficial relationships among stakeholders).
Stakeholder mapping can help entrepreneurs to better understand and navigate the changing
relationships with their stakeholders over time.
CHAPTER 10: FUNDAMENTALS OF ORGANIZING
o Businesses can thrive when you treat people with dignity, foster trust and participation,
value experimentation and learning, and are sensitive to the larger needs and
opportunities around you.
o We design our organizational structures, and thereafter those structures shape us.
FOUR FUNDAMENTALS OF ORGANIZING:
1) ENSURE WORK ACTIVITIES ARE COMPLETED IN BEST WAY
Ensure that work activities are designed to be completed in the best way for the organization.
Standardization, which refers to developing uniform practices for organizational members to
follow in doing their jobs.
Formalization refers to the amount of written documentation in an organization.
Experimentation, which refers to members’ ongoing voluntary implementation of new-and
possibly better ways of performing tasks on a trial basis.
FBL: Standardization, determining the extent of uniform practices for organizational
members to follow in doing their job.
TBL: Enlightened Standardization, which refers to standardization coupled with
experimentation when it is profitable.
SET: Experimentation, implementing new- and- possibly better ways of performing
tasks on an ongoing trial basis.
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2) ENSURE WORK ACTIVITIES ARE COMPLETED IN BEST WAY
Ensure that the tasks assigned to members are the ones required to fulfill the work of the
organization.
Specialization, which involves selecting sub-sets of standardized organizational tasks and
allocating them to separate jobs.
Sensitization, which refers to members actively being aware of how their work fits with coworkers and others with an eye toward improving practices via experiments that take advantage
of opportunities or address needs.
FBL: Specialization, selecting sub-sets of standardized organizational tasks and
allocating them into separate jobs.
TBL: Enlightened Specialization, which refers to specialization, coupled with
sensitization when it is profitable.
SET: Sensitization, attending to, and improving how tasks fits with those of coworkers and others.
ENSURE ORDERLY DEFERENCE AMONG MEMBERS
Ensure that there is orderly deference among members.
Centralization refers to the extent to which decision-making authority resides atop the
organization’s hierarchy.
Authority refers to the formal power given to specific members (usually managers) to arrange
resources and/or to assign tasks and direct the activities of other members in ways that help to
achieve organizational goals.
Span of control, which refers to the number of members that report directly to a given manage.
Line authority refers to having formal power to direct and control immediate subordinates.
Staff Authority refers to having formal power to advise and provide technical support for others,
but not to tell them what to do.
3)
STAFF MANAGERS PROVIDE ADVICE, AND LINE MANAGERS MAKE DECISIONS.
Delegation refers to the process of giving authority to a person or group to make decisions in a
specified sphere of activity.
Responsibility refers to the obligation or duty of members to perform assigned tasks.
Accountability refers to the expectation that a member is able to provide compelling reasons for
the decisions that they make.
Dignification, which refers to treating everyone with dignity and respect in community.
FBL: Centralization, determining the extent to which decision- making
authority is atop the hierarchy. (Top-down focus)
TBL: Enlightened Centralization which refers to centralization, coupled with
dignification when it is profitable.
SET: Dignification, treating everyone with dignity and respect in community.
4) ENSURE MEMBERS WORK TOGETHER HARMONIOUSLY
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Ensure that members work together harmoniously.
Departmentalization refers to how members and resources are grouped together to achieve the
work of the larger organization.
The first is departmental focus, which looks at the relative emphasis an organization place on
internal efficiency versus on external adaptiveness. The second is departmental membership,
which looks at whether departmental membership is permanent versus short-term.
A divisional structure is evident when members are placed together based on them working as
a subunit that provides a specific kind of product or service, serves similar customers, or
operates in the same geographic region.
A functional structure places members in the same department based on their having similar
technical skills and using similar resources to perform their tasks.
A hybrid structure seeks to get the advantages of the functional structure (by achieving internal
efficiencies and developing internal expertise in some areas) and the advantages of the
divisional structure (by being able to adapt to changes in a dynamic external environment)
Matrix departmentalization occurs when an organization has both divisional and functional
departments, and members are simultaneously assigned to both.
A team is a collection of three or more people who share task-oriented goals, work toward
those goals
interdependently, and are accountable to one another to achieve those goals.
task forces, which are teams that disband when their work has been completed, with members
“floating” from one task force to the next as the need arises.
Outsourcing refers to using contracts to transfer some of an organization’s recurring internal
activities and
decision-making rights to outsiders.
network structure is evident when an organization enters fairly stable and complex relationships
with a variety of other organizations that provide essential services, including manufacturing
and distribution.
virtual organization, work is done by people who come and go on an as needed basis and who
are networked together with an information technology architecture that enables them to
synchronize their activities.
participation, which refers to mutual discernment and giving stakeholders a voice in how the
organization is managed and how jobs are performed.
FBL: Departmentalization, determining how members and resources are
grouped together to achieve the work of the larger organization.
TBL: Enlighted Departmentalization, which refers to departmentalization,
coupled with participation when it is profitable.
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SET: Participation, emphasizing mutual discernment/ giving stakeholders a
voice in the organization and how jobs are performed.
ORGANIZATION DESIGN
CHAPTER- 11
Organization design is the process of ensuring that there is a “fit” between how an organization
manages its four fundamentals of organizing and its culture, environment, technology, and
strategy.
An organization design type is a specific, coherent alignment among the four fundamental
components of an organization’s structure, culture, and strategy to fit the prevailing
environment and technology.
Organizational design has five key elements: structure (based on the four fundamentals of
organizing), culture, environment, technology, and strategy.
FOUR TYPES OF ORGANIZING AND CULTURE
Organizational culture refers to the set of shared values and norms that influence how members
perceive and interact with each other and with other stakeholders.
Organizational norms are shared beliefs about social and task behavior in a group.
Organizational values are the principles that organization members use to judge behavior and
outcomes.
A mechanistic structure is characterized by having prescribed standardization, narrow
specialization, concentrated centralization, and functional departmentalization.
An organic structure is characterized by non-prescribed standardization, broad specialization,
diffuse centralization, and divisional departmentalization.
Adaptability cultures refer to organizations that tend to place greater value on flexibility and
change.
Predictability cultures refer to organizations that tend to place greater value on stability and
control.
Adaptability cultures tend to have an organic structure, and predictability cultures
tend to have a mechanistic structure.
The internal-external focus continuum:
internal focus culture refers to organizations that tend to place relatively more value on treating
the organization as a means to meet the needs of its members.
external focus culture refers to organizations that tend to place greater value on members as a
means to meet the needs of the organization.
internal focus structure, the four SET fundamentals of organizing emphasize stakeholders within
the organization’s boundaries.
external focus structure the four SET fundamentals of organizing emphasize stakeholders
beyond the
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organization’s boundaries.
Managers must ensure there are consistencies between how each of the four fundamentals of
organizing are put into practice.
Four generic types of organizing and culture: CLAN, HIERARCHY, ADHOCRACY AND MARKET.
A familial structure is organic and has an internal focus and is often found in smaller
organizations.
clan culture values flexibility and an internal focus, and emphasizes cohesiveness, morale, and
the development of its members. This culture is attractive for members who value affiliation,
mutual dependence, long timelines, and interpersonal relationships and processes. Compared
to the other types of cultures, the clan culture tends to place particular emphasis on internal
social well-being.
A programmed structure is mechanistic and has an internal focus.
Hierarchy culture values predictability and an internal focus and emphasizes bureaucratic
information management and communication. It is characterized by its emphasis on minimizing
costs, smooth operations, and dependability.
A pioneer structure is organic and has an external focus.
The adhocracy culture values flexibility and an external focus, and emphasizes dynamism,
innovation, and growth. It is characterized by its emphasis on being willing to take risks and
being on the cutting edge.
An outreach structure is mechanistic, has an external focus.
The market culture values predictability and an external focus, and emphasizes
competitiveness, results, and constantly improving operations.
FOUR TYPES OF ENVIRONMENTS:
The organizational environment consists of all the actors, forces, and conditions outside the
organization.
The natural environment is an important part of the organizational environment, it is only one
part; the organizational environment also includes a variety of social, political, and technological
factors.
Two dimensions of the external environment are of particular interest for organizational design:
stability and munificence.
Environmental stability refers to the likelihood that there will be little change among the key
stakeholders and resources in an organization’s external environment. Stability is evident when
there is a secure source of supply, when demand is steady, when the technology does not
rapidly change, and when government policies are predictable and consistent.
If an environment is changing, an organic organization structure is preferred because it is more
flexible and allows members to re-align the organization’s products and services with changes in
the environment on an ongoing basis.
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environmental munificence, refers to the availability of resources in the environment that
enable organizations to grow and change.
A harsh environment is characterized by rapid change and low munificence. Organizations in a
harsh environment need to: 1) constantly change to adapt their environment, and/or 2) create
special mechanisms to stabilize/firmly secure their key resources and thereby decrease the
impact of the changes.
A barren environment is characterized by stability and low munificence.
A prolific environment is characterized by rapid change and high munificence.
The oasis environment is characterized by stability and high munificence. Organizations in this
quadrant typically focus on growth, taking advantage of both existing and new opportunities
while also reducing the number of competitors.
FOUR TYPES OF TECHNOLOGY
Technology refers to the combination of equipment (e.g., computers, machinery, tools) and
skills (e.g., techniques, knowledge, processes) that are used to acquire, design, produce, and
distribute goods and services.
There are two key dimensions to technology: task analyzability and task variety.
Task analyzability refers to the ability to reduce work to mechanical steps and to create
objective computational procedures for problem solving.
High task analyzability tends to be associated with a mechanistic structure work that cannot be
reduced to mechanical steps, associated with a more organic structure.
Task variety refers to the frequency of unexpected, novel, or exceptional events that occur
during work.
Tasks have low levels of variety; internal focus structures may be more appropriate than
external focus structures.
Task variety is high, and especially if the causes of variety are external, an external focus
structure may be more appropriate.
Craft technology is characterized by work that has low analyzability and low variety. Work in
such an organization is often based on a lot of tacit knowledge that is applied in predictable
settings. Craft technology tends to fit with an internal focus structure and a more organic
organization structure.
Routine technology is characterized by work that has high analyzability and low
variety. Work in such organizations can be broken down into separate steps.
Non-routine technology is characterized by work that has low analyzability and high
variety. Work in such organizations cannot easily be broken down into separate steps and
there are many one-of-a-kind activities.
Engineering technology is characterized by work that has high analyzability and high
variety.
Four generic types of organization design:
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1) SIMPLE TYPE:
STRCUTURE- familial
CULTURE- clan
ENVIRONMENT- harsh
TECHNOLOGY- craft
STARTEGY- focus
FBL SIMPLE: differentiator strategy: Amway
TBL SIMPLE: focused differentiator strategy: Botanical Paperwork
SET SIMPLE: focused transformer strategy: Greyston Bakery
2) Prospector type
Structure: pioneer
Culture: adhocracy
Environment: prolific
Technology: non-routine
Strategy: differentiation/transformer
FBL PROSPECTOR: differentiation strategy: APPLE
TBL PROSPECTOR: differentiation strategy: TESLA
SET PROSPECTOR: GRAMEEN BANK
3) Defender type: The most powerful departments in a Defender organization tend to be
Production and Finance.
Structure: programmed
Culture: hierarchy
Environment: barren
Technology: routine
Strategy: cost leadership/minimizer
FBL DEFENDER: cost leader strategy: Garment factories in Bangladesh
TBL DEFENDER: cost leader/ minimizer: Everlane
SET DEFENDER: 31 bits
4) Analyzer type
Structure: outreach
Culture: market
Environment: oasis
Technology: engineering
Strategy: dual/compounder
FBL ANALYZER: uses cost leadership strategy and predictable technologies in stable sectors of
the environment. Goldman Sachs
TBL ANALYZER: dual focused strategy: 3M
SET ANALYZER: uses compounder strategy Habitat for Humanity
CONTROL
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CHAPTER 18
Controlling means ensuring that actions of organizational members are consistent with the
organization’s underpinning values and standards.
FOUR STEPS OF CONTROL:
STEP 1: Establish performance standards.
Inputs (hiring employees, acquiring financial resources, access to supplies, etc.) are resources
that must be effectively combined (in a conversion process) in order to produce goods and
services (outputs) for specific markets that the organization has targeted.
value chain—the sequence of activities needed to convert an organization’s inputs into outputs. Basic
parts of the value chain: feedforward, concurrent, and feedback controls. Feedforward controls
are designed to reduce organizational problems before they occur by anticipating them and
preventing them. Concurrent controls point to the most important information about an
organization’s conversion processes and help managers to identify and correct problems as they
occur. Feedback controls are designed to identify and correct problems after they occur so as to
avoid future problems.
FBL:
FBL management emphasizes controls that can be quantified and written down. Value chains help
to identify key control points and standards.
Factor productivity: How well is the organization performing, all things considered? How well does the
organization perform with regard to specific inputs (such as labor)?
Total factor productivity = value of outputs ÷ (value of the inputs of labor+capital+materials+energy)
Labor productivity = value of outputs ÷ value of direct labor
Liquidity ratios: Is the organization able to quickly convert assets to cash if it needs to meet short-term
obligations? If for some reason the organization doesn’t sell its inventory, will it still be able to meet its
short-term obligations?
Current ratio = current assets ÷ current liabilities
Quick ratio = (current assets – inventory) ÷ current liabilities
Leverage ratios: Is the organization’s financing mainly from borrowed money or from owners’
investments? Is the organization technically insolvent (that is, are its debts greater than its assets)?
Debt-to-assets ratio = total debt ÷ total assets
Times-interest-earned ratio = profits before interest and taxes ÷ total charges for interest
Profitability ratios: How well is the organization using its resources to generate profits? How much
profit does it make on each dollar of sales?
Net profit = net income ÷ sales
Return on investments (ROI = net after tax profit ÷total assets)
TBL:
A TBL approach is consistent with FBL practices, unless there is a business case that supports the
adoption of SET practices. TBL organizations (and SET organizations) emphasize value loops
instead of value chains. A value loop describes how an organization’s inputs are converted into outputs,
which in turn are linked to the organization’s future inputs.
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Value chain has two key drawbacks: First, it ignores socio-ecological externalities. Second, value
chains move in only one direction: inputs-conversion- outputs, whereas value loops explicitly
recognize that the flow of resources travels in both directions between the links.
Performance standard Measures
Participation/Inclusion: How involved are stakeholders in making decisions? How much time is
allocated to discussing issues in meetings?
Project Group Inclusion = Number of external stakeholders in the group ÷ Total number of group
members.
Socio-Ecological Time allocation = Amount of time spent discussing socio-ecological issues ÷ total time
of meeting.
Ecological/Financial: How efficient is the organization at transforming ecological resources into
economic value?
FinEco ratio = Financial value of outputs ÷ ecological footprint
Ecological well-being: Is the organization creating more waste than it is reducing?
Net ecological externalities = positive ecological externalities minus negative ecological externalities
Social well-being and social justice: What effect does the organization have on marginalized social
communities?
Net social externalities = positive social externalities minus negative social externalities
Workforce composition = Number of employees hired from specified chronically underemployed groups
÷ Total number of employees hired.
SET:
Value loops help to identify key performance standards.
STEP2: Monitor performance
Information system consists of its mechanisms that identify, collect, organize, and disseminate
information. Information systems are important for each of the four functions of management:
planning, organizing, leading, and controlling. Information is especially important for
decision-making.
Data are facts and figures, some of which managers deem to be useful but the majority are not.
Information refers to data that have been given meaning and value.
FBL:
Use top-down information systems that measure activities to maximize
productivity, efficiency, and financial outcomes.
Transaction processing systems are used to record customer orders, track purchases from suppliers, and so
on.
Operations information systems, where software helps managers to monitor and coordinate the flow of
work between various organizational subunits and their suppliers .
Decision support systems that allow managers to gather and manipulate data from a variety of sources to
help evaluate performance.
Just-in-time inventory management, which brings all the needed materials for production together literally
just-in-time for them to be combined into the finished product.
TBL:
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A TBL approach is consistent with FBL practices, unless there is a business case that supports the
adoption of SET practices.
SET:
Bottom-up information systems help to enhance measures associated with socioecological well-being
processes and outcomes. Management information systems to empower workers
STEP3: Evaluate performance.
FBL:
Use top-down approach- rational. FBL managers tend to evaluate the performance of individuals
mare than of groups. The focus is on setting rational and quantifiable SMART goals—
Specific, Measurable, Achievable, Results-based, and Time-specific—for
each individual in the organization.
TBL:
A TBL approach is consistent with FBL practices, unless there is a business case that supports the
adoption of SET practices. Total Quality Management (TQM) which emphasizes how managers can
continuously improve organizational work systems so that products and services better meet the quality
desired by customers. The TBL approach evaluates the effect that the organization has on the
larger socio-cultural, ecological, political-legal, and economic-technological environments.
SET:
Multiple stakeholders- relational. the SET approach relaxes the emphasis on maximizing financial
well-being, involves even more stakeholders, and is more likely to consider qualitative
evaluations.
SET management emphasis SMART 2.0 goals: Significant, Meaningful, Agreed-up, Relevant
and Timely. One reason that FBL management is so popular is because it emphasizes rational and
objectively measurable goals like productivity and profits, which seem to be comparatively easy
to measure in monetary terms.
STEP4: Respond accordingly.
Expected performance improvement may take three or more years to materialize, and it is
therefore important that changes are not implemented on an ad-hoc or piece-meal basis.
FBL:
Managers take action. “Rank and yank” systems, where employees are ranked from highest to
lowest performing, and “responding accordingly” means firing the lowest-performing
employees.
TBL:
A TBL approach is consistent with FBL practices, unless there is a business case that supports the
adoption of SET practices. TBL managers place greater focus on sustainable development, and on a
relational, multilateral, bottom-up approach to responding.
They are more likely to seek help from others to understand why it occurred and to develop a
way to resolve the problem.
SET:
Managers expect help from others. Members get involved in responding accordingly when
performance standards are not met.
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ORGANIZATIONAL CHANGE
CHAPTER 13
Types of change varies based on scope (transformational vs. incremental), preparedness (proactive vs
reactive), and source (innovative vs imitative).
Organizational change is the substantive modification of some aspect of an organization.
Managing change is an integral part of every manager’s job.
SCOPE OF CHANGE: TRANSFORMATIONAL VS. INCREMENTAL
Transformational change occurs when an organization shifts from one type of organizational design to
another.
Incremental change occurs when an existing organization design is fine-tuned.
Transformational changes are more difficult to manage than incremental changes.
Organizational life cycle theory explains how, as they grow in age and size, organizations move in a
predictable progression from one generic organization design to another.
Simple—defender—prospector--analyzer.
As organizations grow in age and size, they follow a predictable progression from
one generic organization design type to another. As the simple organization grows in
size, its operations become more established via a series of incremental changes that help to
manage recurring environmental uncertainties.
PREPAREDNESS: PROACTIVE VS REACTIVE
Proactive change is designed and implemented in an orderly and timely fashion. Proactive
change often occurs when managers see an opportunity to improve an organization’s
performance.
Reactive change involves making ad hoc or piece-meal responses to
unanticipated events or crises as they occur. Reactive change is often prompted by an
unexpected threat facing the organization. Reactive incremental changes rarely threaten an
organization’s survival unless a firm finds itself unable to get itself out of a misfit stage.
THE SOURCE OF CHANGE: INNOVATION VS. IMITATION
Innovations involve the development and implementation of new ideas and practices.
Imitation involves the application of existing ideas, which may come from other units within the
organization or from outside of the organization. Because imitative changes have a proven track
record, they may be easier to manage and implement than innovative changes.
THE FOUR-PHASE ORGANIZATIONAL CHANGE PROCESS
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In order to avoid becoming misfits, managers must occasionally make transformational changes
where they “unfreeze” an existing configuration, implement changes, and then “refreeze” the
organization until it is time to change again.
The TBL approach places more emphasis on having all members participate in the freeze/
change/refreeze process, and on understanding the dynamic way that the organization design
elements fit together.
Phase #1: Recognize the need/opportunity for change.
Change may be triggered by a wide variety of factors, such as managers’ recognition of depletion
of raw materials that the company relies upon as inputs (e.g., coal and oil for energy companies),
opportunities to reduce negative socio-ecological externalities (e.g., reduce income inequality),
or a lack of employees with specific skills (e.g., lack of nurses in a hospital). Or an organization
may need to respond to new government regulations (e.g., affirmative action programs, pollution
regulations) or new directives from shareholders (e.g., greater transparency about the
compensation packages of senior managers).
Threat rigidity response: where people who face a crisis, whether as individuals or in groups, tend to
revert to familiar patterns of behavior that they perceive to have been successful in the past.
Reasons for identifying change:
escalation of commitment (people are overcommitted to the current way of doing things because
they do not want to admit that their prior decisions were ill-advised).
information distortion (the tendency to downplay information that suggests you are doing
something wrong).
administrative inertia (when existing ways of organizing persist simply because they are already in
place).
FBL:
Recognize the need to unfreeze: Managers recognize a need/ opportunity and develop a vision to address
it.
TBL:
Recognize a good time to unfreeze: Members recognize and discuss a TBL-based need/ opportunity for
change.
SET:
Recognize the need to freeze (e.g., press the “pause button”); Invite members to critically reflect on
ongoing activities.
Phase #2: Prepare for change.
An important reason changes attempts is because of inadequate preparation prior to actually
implementing the change.
Which tactics are used depends on which management approach is being used, and also on
whether managers seek to push members to change (e.g., by drawing attention to a crisis) or pull
them (e.g., by drawing attention to an opportunity).
pressure tactics (e.g., pointing to the possible negative consequences associated with a crisis).
rational persuasion (e.g., using a graph to show a decline in sales, and another graph that links
declining sales to job loss).
members still might resist the change if they feel the change is a violation of their psychological
contract.
A psychological contract can take various forms, but essentially it is an unwritten expectation related
to the exchanges between an employee and the organization.
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FBL:
Begin unfreezing: Managers convince members to embrace the change by overcoming their resistance to
change.
TBL:
Begin unfreezing: Involve members in developing a vision for change; enhances commitment.
SET:
Praxis: Invite experimental activities to address a problem/ opportunity.
Phase #3: Make the change
A change agent is someone who acts as a catalyst and takes leadership and responsibility for
managing part of the change process.
An idea champion is a person who actively and enthusiastically supports new ideas.
FBL:
Transition: Managers use their authority to design and implement organizational changes.
TBL:
Transition: Managers lead members in designing and implementing organizational changes.
SET:
Transition: Members reflect on praxis experiments which prompts them to change their worldview.
Phase #4: Safeguard the change.
FBL:
Refreeze: Managers promote social norms and develop structures and systems that reinforce and reward
members who support change.
TBL:
Re-slush: Managers support structures and systems that facilitate continuous learning and celebrate
improvement.
SET:
Resume: Implement desired changes (i.e., press the “play” button) and resume adaptive improvisation and
learning.
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