Management, 6e Schermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc

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Schermerhorn - Chapter 183 Chapter 18 Change Management and Innovation 4 Planning Ahead –What is the nature of innovation? –What are the challenges of organizational change? –How can planned organizational change be managed? –What is organization development?

Schermerhorn - Chapter 184 Innovation 4 Creativity –display or use of imagination to create a unique solution to a problem –essential to learning organization

Schermerhorn - Chapter 185 Innovation 4 Process of creating new ideas and putting them into practice –process: better ways of doing things –product: creation of new or improved goods and services

Schermerhorn - Chapter 186 Innovation 4 Management of process and product innovation –support invention –support application

Schermerhorn - Chapter 187 The Innovation Process 4 Four steps of product innovation –idea creation –initial experimentation –feasibility determination –final application

Schermerhorn - Chapter 188 Characteristics of Innovative Organizations 4 Idea generators 4 Information gatekeepers 4 Product champions 4 Project managers 4 Innovation leaders

Schermerhorn - Chapter 189 The Challenges of Organizational Change 4 Change Agent –person who takes leadership responsibility for changing the existing pattern of behavior of another person

Schermerhorn - Chapter 1810 The Challenges of Organizational Change 4 Top-Down Change –strategic and comprehensive changes are initiated with the goal of comprehensive impact on the organization and its performance capabilities

Schermerhorn - Chapter 1811 The Challenges of Organizational Change 4 Bottom-up Change –initiative for change comes from persons throughout an organization and are supported by efforts of middle and lower level managers acting as change agents

Schermerhorn - Chapter 1812 The Challenges of Organizational Change 4 Unplanned Change –occurs spontaneously and without benefit of change agent’s attention –acting immediately is appropriate goal of management

Schermerhorn - Chapter 1813 The Challenges of Organizational Change 4 Planned Change –occurs as result of specific efforts of a change agent –direct response to perception of performance gap

Schermerhorn - Chapter 1814 The Challenges of Organizational Change 4 Forces for Change –global economy and market competition –local economic conditions –government laws and regulations –technological developments –market trends –social forces

Schermerhorn - Chapter 1815 The Challenges of Organizational Change 4 Targets for Change –tasks –people –culture –technology –structure

Schermerhorn - Chapter 1816 Managing Planned Change 4 Phases of Planned Change –Unfreezing: preparing for change –Changing: making actual changes –Refreezing: stabilizing after change

Schermerhorn - Chapter 1817 Choosing a Change Strategy 4 Force-coercion –using power bases of legitimacy, rewards, and punishment to induce change direct forcing political maneuvering –produces limited and temporary results

Schermerhorn - Chapter 1818 Choosing a Change Strategy 4 Rational Persuasion Strategies –change through persuasion backed by special knowledge, empirical data, and rational argument –informational strategy which assumes that people are guided by facts and self interest

Schermerhorn - Chapter 1819 Choosing a Change Strategy 4 Shared Power Strategies –identifies or establishes values and assumptions from which support for change will naturally emerge –based on empowerment –managers need reference power and strong interpersonal skills –slow process

Schermerhorn - Chapter 1820 Dealing with Resistance to Change 4 Education and Communication 4 Participation and Involvement 4 Facilitation and Support 4 Facilitation and Agreement 4 Manipulation and Co-optation 4 Explicit and Implicit Coercion

Schermerhorn - Chapter 1821 Technological Change 4 Good fit must be achieved with locals needs, practices, and people

Schermerhorn - Chapter 1822 Organization Development 4 Comprehensive approach to planned organizational change that involves the application of behavioral science in a systematic and long range effort to improve organizational effectiveness

Schermerhorn - Chapter 1823 Organization Development 4 Goals –outcome goals: focus on task accomplishments –process goals: focus on the way people work together 4 Process and goals are pursued simultaneously

Schermerhorn - Chapter 1824 General Model of Organization Development 4 Establish working relationship 4 Diagnosis 4 Intervention 4 Evaluation 4 Achieve terminal relationship

Schermerhorn - Chapter 1825 General Model of Organization Development 4 Action Research –systematically collecting data –report results for action planning –evaluate results by collecting more data

Schermerhorn - Chapter 1826 Organization Development Interventions 4 Individual Interventions –sensitivity training (T-groups) –management training –role negotiation –job redesign –career planning

Schermerhorn - Chapter 1827 Organization Development Interventions 4 Group Interventions –team building –process consultation –intergroup team building

Schermerhorn - Chapter 1828 Organization Development Interventions 4 Organization-wide Interventions –survey feedback –confrontation meeting –structural redesign –management by objectives (MBO)

Schermerhorn - Chapter 1829 Change and Career Readiness 4 behave like an entrepreneur 4 seek feedback on your performance continually 4 set up your own mentoring systems 4 get comfortable with teamwork 4 take risks to gain experience and learn new skills 4 be a problem solver 4 keep your life in balance