1. Innovation and Change Chapter 8
Chapter 8
Innovation and Change
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2. Learning Objectives
Define organizational change and explain the forces for change.
Describe the sequence of four change activities that must be performed for change to be successful.
Explain the techniques managers can use to facilitate the initiation of change in organizations, including idea champions, new-venture teams, idea incubators, and open innovation.
Define the sources of resistance to change.
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3. Learning Objectives (contd.)
Learning Objectives (contd.)
Explain force-field analysis and other implementation tactics that can overcome resistance to change.
Discuss the differences among technology, product, structure, and culture/people changes.
Explain the change processes – bottom up, top down, horizontal – associated with each type of change.
Define organizational development and large-group interventions.
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4. Two Types of Planned Change
Two Types of Planned Change
Incremental Change
based on efforts to improve basic
work and organizational processes.
Transformational Change
involves redesign and renewal of the total organization.
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5. Ex. 8.1 Model of Change Sequence of Events
Ex. 8.1 Model of Change Sequence of Events
Environmental
Forces
Monitor global competition,
customers, competitors,
and other factors.
Need for
Change
Initiate
Change
Implement
Change
Evaluate problems and
opportunities, define
needed changes in
technology, products,
structure, and culture.
Internal Forces
Facilitate search,
creativity, idea
champions, skunkworks,
and idea incubators.
Use force-field
analysis, tactics for
overcoming
resistance.
Consider plans, goals,
company problems, and
needs.
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6. Need for Change Based on external or internal forces.
Need for Change
Based on external or internal forces.
Performance gap—a disparity between existing and desired performance levels.
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7. Initiating Change -- Search
Initiating Change -- Search
The process of learning about current developments inside or outside the organization that can be used to meet a perceived need for change
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8. Initiating Change -- Creativity
Initiating Change -- Creativity
The generation of novel ideas that may meet perceived needs or offer opportunities for the organization.
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9. Idea Champion
A person who sees the need for and champions productive change within the organization.
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10. Promoting Corporate Innovation
Promoting Corporate Innovation
New-Venture Teams
Skunkworks
Idea Incubator
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11. Resistance to Change
Managers and employees often seem to prefer the status quo.
Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.
Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.
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12. Resistance to Change (contd.)
Resistance to Change (contd.)
Uncertainty: the lack of information about future events.
Different Assessments and Goals: people who will be affected by innovation may assess the situation differently.
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13. Ex.8.4 Using Force-Field Analysis to Change from Traditional to Just-In-Time Inventory System
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14. Ex. 8.6 Types of Organizational Change
Ex. 8.6 Types of Organizational Change
Technology
Strategy
Structure
Products
Culture/People
SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” in New Perspectives in Organization Research, ed. W. W. Cooper, H. J. Leavitt, and M. W. Shelly II (New York: Wiley, 1964),
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15. Technology Change Related to organization’s production process.
Technology Change
Related to organization’s production process.
Designed to enhance efficiency.
Generally “Bottom-Up.”
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16. Tools for Changing People & Culture
Tools for Changing People & Culture
Training and development programs.
Organizational development.
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17. Organizational Development
Organizational Development
… is a planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization’s health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities.
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18. Organizational Development (contd.)
Organizational Development (contd.)
Can help managers address:
mergers/acquisitions.
organizational decline/revitalization.
conflict management.
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19. Achieving Behavioral and Attitudinal Change
Unfreezing:
diagnosis stage.
participants are made aware of problems in order to increase their willingness to change their behavior.
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20. Achieving Behavioral and Attitudinal Change (contd.)
Achieving Behavioral and Attitudinal Change (contd.)
Changing:
intervention stage.
individuals experiment with new workplace behavior.
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21. Achieving Behavioral and Attitudinal Change (contd.)
Achieving Behavioral and Attitudinal Change (contd.)
Re-freezing:
reinforcement stage.
individuals acquire a desired new skill or attitude and are rewarded for it by the organization.
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