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Abstract

This research is a case study on the effects of key leadership loss on productivity and quality at ABC Institute. The literature suggests that key leadership loss will have negative effects on productivity and quality. The study analyzes the steps this organization took to transition themselves from an old organizational structure to a new one.

The major loss of leadership at ABC Institute was the turnover of the education director. This crucial loss to the organization had many negative impacts of the daily functioning of the organization as well as the long-term strategy of the Institute. There was a breakdown of communication which caused problems with the clients. This included problems with the teaching material, recruitment, new student enrollment, and studentsturnover.

In order to limit these impacts, ABC Institute decentralized its education department moving from a vertical organization to a more horizontal one.

They used Lewins model by implementing adaptive change. The organization decided on implementing change in only a sub-system of the organization in this chase the education department- and also incremental change to limit the impacts of such an effort.

Thus far, the change effort has had many positive impacts. There has been an improvement in job performance, increased communication between all members of the organization, and increased work efficiency, more opportunities for internal advancement of employees, and also decreased impact to the overall organization in the event of turnover in the education department.

In effect, this reorganization effort has allowed ABC Institute to be better prepared to meet the demands of its stakeholders and be a viable competitor in the future.

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