With the countless number of organizations worldwide, companies continue to invest on research and development for their organizations to change their perspective and obtain their goals. It is true that the only eminent thing in this world is change. People adapt, submit or contradict with change.
There are many implications that we encounter when change occurs; management must view matters seriously and make critical decisions for the organization’s sustainability. The objectives of this paper is to thoroughly look into Theory E and Theory O in terms of managing change, to provide a bird’s eye view of the differences and other key notable details that help organizations transition smoothly (Johnson, pp. 39-44, 2002). It will also discuss how Theory E and Theory O can aid top management at making critical decisions and providing a detailed analysis of these two approaches to change. The scope of this paper will be focus on the experience of organizations that fostered these two approaches, how have companies and organizations come to employ either or both theories but not only limited to these.
The flow of the paper will start with a brief description of each theory including its characteristics and the key differences of both theories in the field of management. Based on a new research, Theory E and O were relatively new findings as researchers (Cummings, pp. 23-25, 2008) have observed various companies practicing either Theory E or O or both of them. There are many approaches used in managing change; however, ‘Michael Beer’ and ‘Nitin Nohria’ are two researchers who have successfully identified two types of change theories that may have geared management in change initiative (Hoelbeche, pp. 151-154, 2006).
As recent studies showed, researchers have identified two types of approaches commonly used by management in initiating change. The first approach is Theory E, referred to as