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COMMERCE 2BA3
ORGANIZATIONAL BEHAVIOUR
Class 12 (last class )
Change, development, and innovation
Dr. Christa Wilkin
Brain Teasers
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ENTURY
ECNALG
working
time
I right I
Last Class
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One type of organizational structure is not better
than the other
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Depends on internal and external environment
Structure may change over time
Organizations are open systems that are affected
by and affect their environments
THIS CLASS
 Change, development, and innovation
 Pre-Exam Review
Agenda
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What organizations can change
Change process
Organizational development
Innovation
Pre-exam review
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CH 16: CHANGE, DEVELOPMENT,
AND INNOVATION
Some Quotes
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He who rejects change is the architect of
decay. The only human institution which rejects
progress is the cemetery. ~Harold Wilson
Change is inevitable - except from a vending
machine. ~Robert C. Gallagher
All change is not growth, as all movement is not
forward. ~Ellen Glasgow
What Organizations Can Change
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Goals and strategies
Technology
Job design
Structure
Processes
Culture
People
What Organizations Can Change
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Three important points about the areas that
organizations can change:
 Change
in one area very often calls for changes in
other areas.
 E.g.,
change policy affects how things are done elsewhere
 Change
in most areas require serious attention be given
to people.
 E.g.,
often resist change
 Change
requires employees to learn new skills and
change their attitudes.
 E.g.,
learn new computer software
Lewin’s Three-Step Model
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1. Unfreeze
 The recognition that some current state of affairs is
unsatisfactory
 Employee attitude surveys, customer surveys, and
accounting data are often used to anticipate
problems and initiate change before crises are
reached
Lewin’s Three-Step Model
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2. Change
 The implementation of a program or plan to move
the organization or its members to a more
satisfactory state.
 Change efforts can range from minor to major.
Lewin’s Three-Step Model
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3. Refreeze
 The condition that exists when newly developed
behaviours, attitudes, or structures become an
enduring part of the organization.
 The effectiveness of the change is examined and
the desirability of extending change further can be
considered.
Issues in Change Process
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Issues in the Change Process
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There are several important issues that
organizations must confront during the change
process.
These issues represent problems that must be
overcome if the process is to be effective, and
include:
 Diagnosis
 Resistance
 Evaluation
and institutionalization
Diagnosis
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The systematic collection of information relevant to
impending organizational change.
Proper diagnosis clarifies the problem and suggests
what should be changed and the proper strategy
for implementing change without resistance.
The intended targets of the change should be
involved in the diagnostic process.
Resistance
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Change is frequently resisted by those at whom it is
targeted.
People may resist both unfreezing and change.
Resistance to change occurs when people either
overtly or covertly fail to support the change effort.
Transformational leaders.
Evaluation and Institutionalization
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When the change is institutionalized, it becomes a
permanent part of the organizational system.
A number of factors can inhibit institutionalization,
especially for complex change programs.
 Lack
of extrinsic rewards.
 Higher expectations that cannot be fulfilled.
 New hires are not carefully socialized.
Quiz Question
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The Stinky Cheese Company has realized that its
market share of cheese has recently dropped and it
may need to create a new kind of stinky cheese.
Which stage of the change process are they in?
A) refreezing
B) unfreezing
C) perceived threat
D) conflict
E) resistance
Organizational Development
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Organizational development (OD) is a planned,
ongoing effort to change organizations to be more
effective and more human.
 E.g.,
team building, TQM, survey feedback
Team Building
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An effort to increase the effectiveness of work
teams by improving interpersonal processes, goal
clarification, and role clarification.
It can facilitate communication and coordination.
Team building usually begins with a diagnostic
session that results in a list of needed changes to
improve team functioning.
Survey Feedback
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The collection of data from organizational members
and the provision of feedback about the results.
Meetings are held to explore and discuss the data
and to suggest changes.
The data usually consist of interviews or
questionnaires completed by organizational
members.
Total Quality Management (TQM)
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A systematic attempt to achieve continuous
improvement in the quality of an organization’s
products and/or services.
Continuous improvement can come from small gains
over time or from more radical innovation.
The goal is long-term improvement.
Total Quality Management (TQM)
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TQM involves specialized training in tools that
empower ee’s to diagnose and solve quality
problems on an ongoing basis.
Some tools include:
 Flowcharts
of work processes: illustrate graphically the
operations and steps in accomplishing some task
 Pareto analysis: frequency data on the causes of errors
and problems ; helps identify top 20% of causes that
needs to be addressed to resolve 80% of the problems
Total Quality Management (TQM)
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 Fishbone
diagrams: illustrate graphically the root
factors that could contribute to a particular quality
problem
 Statistical process control: gives ee’s hard data about
quality of own output that enables to correct deviations
Reengineering
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The radical redesign of organizational processes to
achieve major improvements in factors such as time,
cost, quality, or service.
It asks basic questions, such as:
 “What
business are we really in?”
 “If we were creating this organization today, what
would it look like?”
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Jobs, structure, technology, and policy are
redesigned around the answers to these questions.
Does Org Development Work?
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Most OD techniques have a positive impact on
productivity, job satisfaction, or other work
attitudes.
OD seems to work better for supervisors or
managers than for blue-collar workers.
Changes that use more than one technique seem to
have more impact.
The Innovation Process
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Innovation is the process of developing and
implementing new ideas in an organization.
Innovation requires:
 Creative
ideas and creative people.
 People who will fight for new ideas.
 Good communication.
 The proper application of resources and rewards.
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Creativity refers to the production of novel but
potentially useful ideas.
Idea Champions
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Idea champions are people who see the kernel of
an innovative idea and help guide it through to
implementation.
The role of idea champion is often an informal and
emergent role.
It involves sponsorship and support.
Communication
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Effective communication with the external
environment and within the organization are vital
for successful innovation.
Innovative firms recognize the relevance of new,
external information, importing and assimilating it,
and then applying it.
Gatekeepers are people who span the boundary
between the organization and the environment.
They import new information, translate it for local
use, and disseminate it to project members.
The Knowing-Doing Gap
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Many managers know what to do, but have
considerable trouble implementing this knowledge in
the form of action.
Why does the knowing-doing gap happen?
The Knowing-Doing Gap
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The tendency for some organizational cultures to
reward short-term talk rather than longer-term
action.
Many organizations foster internal competition that
is not conducive to the cooperation between units
that many changes require.
When managers do manage to make changes, they
sometimes fail because techniques are adopted
without understanding their underlying philosophy.
Exercise: Infomercial
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Form groups of 5 to 6 people
Each group will get a prop and it is your job to
come up with an one-minute infomercial
Be prepared to act out your infomercial to the class
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QUESTIONS?
Summary
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It is important to manage the change process: Too
much change may not be good and too little
change can be bad
Pre-Exam Review
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Ch 10: Communication
Ch 11: Decision Making
Ch 12: Power, Politics and Ethics
Ch 13: Conflict & Stress
Ch 14: Organizational Structure
Ch 15: Environment, Strategy, Technology
Ch 16: Change, Development, Innovation
For Next Class
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Make an appointment if you need more help for the
final exam