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Change Is Never Easy One Of The Case Study

Change Is Never Easy One of the hardest things for any company to accomplish is graceful change. This is true for at least several reasons. The first is that change is psychologically difficult: Letting go of the known for the unknown, even when the unknown is likely to be a good deal better, can seem fraught with numerous perils. The other major reason that change can be so difficult for companies and other large organizations is that group enterprises require a relatively high level of stability and predictability to thrive. Even an organization that is composed of highly skilled, intelligent, and flexible people cannot change as quickly as can a single individual. This is simply too much inertia in the system and too many specific relational dynamics that have to be shifted for change to occur as quickly as can be the case with an individual.

That said, it remains the case that organizations do have to change, sometimes relatively quickly and often quite dramatically. How effectively they are able to do so depends...

This paper examines some of the dramatic changes that occurred at CMIG and how the company and its leaders acted and reacted during a merger and the consequent shifting of personnel, priorities, and resources.
CMIG, like any other business (or organization) facing change, experienced a certain amount of inertia. In organizational terms, inertia can be analyzed in the following way, according to Amburgey, Kelly, & Barnett (1993). Organizations can be assessed as belonging to either a flexible framework or an inflexible one, but a more productive analytical model should combine the two. These researchers defined the concept of "the structural inertia model" as existing in organizations conceived of "as structured systems of routines embedded in a network of interactions with the external environment."

However, this research…

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However, this research does not stop at the idea that inertia exists as a powerful force in organizations; rather, after acknowledging the power of inertia, the authors moved past this idea (which does not account for the real and successful changes that can and do occur in a number of organizations) to incorporate "theories of organizational learning and innovation not found in the original formulation of structural inertia. The result is a broader model of inertia and momentum in organizations."

In other words, any sophisticated analysis of change must be able to account for the ways in which organizations resist change in the name of stability but also how they are able to overcome this inertia and actually effect change. One of the most important aspects of this piece of research -- and a strength that was in fact exhibited by CMIG -- is that organizations tend to resist change not out of weakness but because stability (which can here be seen as the counterpart to change) is valued by so many different stakeholders:

Hannan and Freeman's (1984) structural inertia theory offers a model of the process of organizational change that includes both internal and external constraints on organizational change. The first part of their argument addressed the probability of organizational change. They argued that organizations exist because they are able to perform with reliability and, if questioned, to account rationally for their actions. Reliability and accountability are high when organizational goals are institutionalized and patterns of organizational activity are routinized, but institutionalization and routinization also generate strong pressures against organizational change. Thus, the very characteristics that give an organization stability also generate resistance to change and reduce the probability of change. The second part of their argument dealt with the effect of organizational change on survival. They argued that because both internal and external stakeholders prefer organizations that exhibit reliable performance and because change disrupts both internal routines and external linkages, organizational change is hazardous. (Amburgey, Kelly, & Barnett, 1993).
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