Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change

Abstract

The relationship between organizational change and performance is an important topic in strategic management. However, the way in which the process of organizational change affects organizational performance has been underestimated (Combe & Carrington, 2015). This study explores how Chief Executive Officers' beliefs lead to organizational changes and then subsequently generate superior organizational performance, using General Electric Corporation as a case. We developed a detailed simulation model of GE, including human resources, financial and cost accounting, research and development, and operations. Historical information and archival data were used to specify and formulate the model. The results show that a Chief Executive Officer's belief system can impact a firm's strategic decisions and financial performance both in the short and long term. In the short term, leaders' beliefs influence the strategies of the company and can be beneficial to financial outcomes. In the long term, leaders' beliefs may protect the company from future failures.

Evaluating Appointment of Division Managers Using Fuzzy Multiple Attribute Decision Making

“…In a large company, a division manager has a role similar to chief operating officer (COO), which carries great responsibilities, but its traits and competencies have not been studied much. A senior executive's management beliefs determine the organizational change and its direction [14], and in a company's succession, the COO is typically the management knowledge center regarding the successors for the chief executive officer or president [15]. Lessem [16] held that a successor must have competencies that include the ability to influence, the ability to learn, the ability to create, and the attitude to work.…”

A co-flow structure for goal-directed internal change

“…Often, a modeler using a traditional co‐flow process needs to employ techniques to maintain this range. Yang et al () modeled General Electric's (GE) innovative process using a traditional Type I co‐flow structure as part of a larger model. In their co‐flow, which modeled GE's continuous improvement and process innovation environment, “adopted ideas” is the fundamental material and “learning ability” the total attribute.…”

“…Often, a modeler using a traditional co-flow process needs to employ techniques to maintain this range. Yang et al (2017) modeled General Electric's (GE) innovative process using a traditional Type I co-flow structure as part of a 3 We use the term "soft variable" principally because it is connected with social sciences, not because it is intrinsically unmeasurable (see Gambardella and Lounsbury, 2017). larger model.…”

A gestão da informação contábil para o alinhamento da gestão estratégica organizacional: uma análise em um grupo empresarial

“…Para as organizações desenvolverem suas atividades econômicas faz-se necessário que a estruturação do processo de gestão estratégica viabilize a compatibilização dos ambientes externos e internos das empresas (Pavlatos, 2015). Todavia, a Gestão Estratégica é uma forma de acrescentar novos elementos de reflexão e ação sistemática e continuada, para avaliar a situação, elaborar projetos de mudanças estratégicas, acompanhar e gerenciar os passos de implementação como forma de gerir a organização, com foco em ações que visem o desenvolvimento das organizações (Yang, 2016).…”