Summary of Sharing Knowledge

In response to globalization and other major business challenges in "post-industrial society," analysts have developed two highly different theories of organizational change. The first, "E theory," focuses on short-term financial gain, which usually translates into higher stock prices. Prevalent in North America, E theory encourages downsizing, including mass layoffs. Clearly, in E theory, the human element is of negligible importance. In contrast, "O theory" emphasizes retaining employees by upgrading their skills. Popular in Europe and Asia, O theory assumes an "implied contract of loyalty-protection" between management and employees. François Dupuy describes this theory, and how companies and other bureaucracies can apply it. His dense writing style and the book's forbidding layout, with few subheadings or visual aids such as charts, often make his reasoning difficult to follow. However, getAbstract believes this book is very useful for executives who want a new perspective on organizational change. Its prescient formula for corporate transformation is not only moral and humane, but also intelligent and sustainable. It recognizes that an organization is nothing without its people.