What is organizational inertia? List some sources of inertia in a company like IBM or GM. Solution Organizational inertia refers to the phenomenon where the organization continues to move along the path or trajectory, upon that the organization has been for quite some time. Here, the organization does not want to change from that path and it acts as a negative point in the face of changing business environment scenario. There are following sources that can create the organizational inertia: 1. The rigid organizational structure where people show strong resistance to change. 2. The organizational policy 3. Benefits and perks offered to the employees and it is not changed due to the conflicting views. 4. Centralized decision making process 5. High cost of recruitment and employee welfare 6. Collective bargaining between the union and organization (if any).

1. What is organizational inertia? List some sources of inertia in a company like IBM or GM.
Solution
Organizational inertia refers to the phenomenon where the organization continues to move along
the path or trajectory, upon that the organization has been for quite some time. Here, the
organization does not want to change from that path and it acts as a negative point in the face of
changing business environment scenario.
There are following sources that can create the organizational inertia:
1. The rigid organizational structure where people show strong resistance to change.
2. The organizational policy
3. Benefits and perks offered to the employees and it is not changed due to the conflicting views.
4. Centralized decision making process
5. High cost of recruitment and employee welfare
6. Collective bargaining between the union and organization (if any)