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A Case Theory Perspective Of Organizational Change

Decent Essays

Solutions There are several areas of interest that Vitality Health Enterprises have to address. To start, we can look at the earliest changes to the performance management system that were brought about in the transition between the founding CEO and the new CEO. When Williams came on board at Vitality Health Enterprises, the organization was in decline due to the crash of ’08 and Williams wanted to address the stagnating revenues by bringing about a lean organization with a focus on innovation among their R&D department. However, I am wary of the reasoning behind the inefficiencies of the old performance management system as an antecedent of stagnating revenues. In my opinion from a contingency theory perspective of organizational change, Williams could have begun her tenure by measuring the changing business environment (due to the recession) and identifying whether the subunits that comprise Vitality Health Enterprises were aligned and best suited for the changing and turbulent environment. By analyzing the environment, Williams would have gone into the needs assessment and analysis of the legacy performance management system with a clearer strategy in mind, and a purpose of aligning this new performance system with the new strategy. However, the purpose of the new system was based around incentivizing strong employee performance through additional compensation methods and additional employee accountability. With the analysis of the legacy system and the development of

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