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Paraskevas presented the complexity theory. This theory argues that crisis response is a complex system with fuzzy boundaries and diverse agents coming from different parts of the organization (Paraskevas, 2006). These agents have the responsibility of detecting crisis signals, reducing levels of damages caused by the crisis and redesigning the system. Furthermore, this theory argues that an organization system does not evolve in vacuum since it influences other organizational subsystems and the external environment (Paraskevas, 2006). Although the proposed change to win the market is not a crisis, the complexity theory can enhance the change. In order to enhance this change, the managers of this company needs to involve their employees in designing effective strategies that will help increase innovation in this company and improve its brand image and power in order to boost sales and market share. This is because these employees are the agents of change and thus they are responsible for redesigning the system. If it improves its brand power, it will increase its sales and therefore influence the external environment by increasing its market share.
Carmeli and Schaubroek (2008) argued that many crises could be prevented or could not result to major damage if adverse events prompted participants to learn new behaviors. By learning new behaviors, the organization is able to respond to changing environmental conditions more effectively. This process requires an organization to have the potential of learning from its previous mistakes, unlearn activities that do not help it implement change and relearn its past behaviors (Carmeli and Schaubroek, 2008). Several changes failed in my organization. We wanted to introduce a new form of service promotion in order to improve our client base but this promotion failed because we lacked enough funds for conducting a market research. Moreover, our firm wanted to expand its operations by diversifying its products. However, the new products that our company introduced generated losses. Using Carmeli and Schaubroeki theory of learning from failures, I propose that our organization should first allocate enough funds for market research in order to successfully adopt a new method of product promotion or launch a new product.
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Weick developed sensemaking model that can be used to conceptualize potential crisis. This model argues that crises are low probability and high consequence events; they defy interpretations and impose severe demands on sense making (Weick, 1988). He argued that if an organization employs inadequate sensemaking process in managing crisis, then it is likely that the crisis will get out of control. The concept of enactment drives the sense making process. The enactment approach appreciates that errors are inevitable and thus an organization manages errors if it prevents the errors from enlarging (Weick, 1988). Sensemaking can be used to conceptualize potential crisis that may arise when we employee more financial analysts who will provide more financial advice to our clients. These analysts may be inexperienced and thus they will not know how to convince potential clients to seek investments in our company. Furthermore, it may cost our company a lot of money to train these employees on the policies of our company.
McConnell and Drennan proposed a model of active planning that would help to manage organizational change. They argued that although people are a vital resource in crisis preparation, their outlook, understanding of crisis and change can be reshaped (McConnell and Drennan, 2006). This improves crisis and change preparedness of an organization. This model can be incorporated in the change model I created in coursework D. The change model in course D used team agency in introducing new changes in the organization. Furthermore, it used Van de Ven and Poole lifecycle model as baseline for creating the process of change. McConnell and Drennan’s active planning model can help in improving the skills of workers and thus they will help the organization as it undergoes its transition.
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