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Application of Organizational Change

question 101

Multiple Choice

Application of Organizational Change
Krista is unsure what to do next. Her company is about to implement a radical new technology transformation that will affect every person in the organization. They are basically updating their plant to the 21st century, and almost everything is changing. Krista is in charge of assisting the members of the company with the planned changes. Since it is a long- term change that is organization- wide, management felt that someone needed to facilitate the change because, in essence, it was changing the culture of the company. The first thing Krista did was to ask employees a specific set of questions about the perceived changes. From this data, Krista then needed to decide what to do next. An outside consultant has been hired to help Krista diagnose the interpersonal processes that needed improvement. The move from functional departmentalization to work teams was a change necessitated by the new technology. This was a major change for employees who had worked in specific departments for most of their careers. Furthermore, the teams will have to interact with each other as they use the new technology. Krista feels that her task is almost overwhelming.
-The first step that Krista took was

Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, often attributed to brand reputation, customer relationships, and intellectual property.

Book Value

The value of a company or asset according to its financial statements, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.

Financial Projections

Estimates of future income, expenses, and financial performance, often used for budgeting and investment decisions.

Perceived Risk

The potential for loss or adverse outcomes that consumers or businesses believe exists when deciding on a purchase or investment.