Organizations must change to function better and survive in a competitive environment. Leaders identify undesirable situations and seek total system change by focusing on making organizations more efficient and responsive to customers. This requires changing how organizations are structured to emphasize faster response times, lower costs, and continuous learning. It also means better engaging employees through feedback, a sense of accomplishment, and increased efficiency.

4. How Organizations and People function and
how to get them function better?
Starting Point- when leader identifies the
undesirable situations and seek to change it.
Focus- Making organizations function
better (total system change).

6. Change- new state of things different from old things.
- It can be viewed as an opportunity or as a threat.

10. Employees in the company
Large fraction of the cost of
doing business.
Workers today want feedback on
their performance;
They want a sense of
accomplishment;
They need to be more efficient.

11. The competition is so stiff, our
environments are changing, so our
organizations must also change to
survive and prosper.
Thinking has changed radically about
organizational structures to emphasize
faster customer response, lower cost
and continuous learning.

12. People from outside
the organization.
Employees of the
organization.