Theory E and Theory O

The video discusses two theories for organizational change: Theory E, which focuses on economic value and shareholder benefits, and Theory O, which emphasizes organizational improvement and culture. Both theories are often used together to implement change effectively. The traditional approach to change involves implementing, seeking feedback, and making adjustments. Theory E is more dictatorial, while Theory O is collaborative.

What is the primary focus of Theory E in change management?

• Improving organizational culture

• Enhancing human capability

• Increasing economic value for shareholders

• Fostering organizational learning

Which aspect does Theory O emphasize in the process of change?

• Dictatorial mandates

• Shareholder value

• Organizational improvement

• Economic incentives

What is the ultimate goal of Theory O in organizational change?

• To enforce change through authority

• To reduce organizational costs

• To increase shareholder profits

• To improve organizational culture and learning

What is a key characteristic of the traditional approach to effectuating change?

• Immediate implementation without feedback

• Seeking feedback and making adjustments

• Focusing solely on economic outcomes

• Mandating change through authority

How does Theory E differ from Theory O in terms of approach?

• Theory E is more collaborative

• Theory E focuses on cultural improvement

• Theory E is more dictatorial

• Theory E emphasizes learning