Understanding
Management
First Canadian Edition
Slides prepared by
Janice Edwards
College of the Rockies
Copyright © 2009 Nelson Education Ltd.
Chapter 8
Innovation and
Change
Copyright (c) 2009 Nelson Education Ltd.
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Learning Objectives
1.
2.
3.
4.
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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Learning Objectives (Cont’d)
5.
6.
7.
8.
9.
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 OD activities that
have emerged in recent years.
Describe the OD theory that proposes three distinct
stages for achieving behavioural and attitudinal change.
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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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Ex. 8.1
Model of Change Sequence of Events
Environmental
Forces
Monitor global competition,
customers, competitors,
and other factors.
Internal Forces
Consider plans, goals,
company problems, and
needs.
Need for
Change
Evaluate problems and
opportunities, define
needed changes in
technology, products,
structure, and culture.
Copyright (c) 2009 Nelson Education Ltd.
Initiate
Change
Facilitate search,
creativity, idea
champions, skunkworks,
and idea incubators.
Implement
Change
Use force-field
analysis, tactics for
overcoming
resistance.
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Need for Change
•
•
External or internal forces translate
into a perceived need.
Performance gap—a disparity
between existing and desired
performance levels.
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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.
Creativity:
The generation of novel ideas that might meet perceived
needs or offer opportunities for the organization.
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Idea Champions and New-Venture Teams
Idea Champion:
A person who sees the need for and champions
productive change within the organization.
New-Venture Team:
A unit separate from the mainstream organization
and is responsible for developing and initiating
innovations.
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Promoting Corporate Innovation
•
•
•
Skunkworks
New-Venture Fund
Idea Incubator
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Ex. 8.3
Four Roles in Organizational Change
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Reasons for 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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Reasons for Resistance to Change (Cont’d)
•
•
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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Force Field Analysis
The process of determining which forces
drive and which forces resist changes.
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Ex.8.4
Using Force-Field Analysis to Change from
Traditional to Just-In-Time Inventory System
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Ex. 8.6
Types of Organizational Change
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Technology Changes
•
•
•
Related to organization’s production process.
Designed to enhance efficiency.
Generally “Bottom-up.”
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Culture/People Changes
A change in employees’ values, norms,
attitudes, beliefs, and behaviours.
Tools for culture/people changes:
•Training and development programs.
•Organizational development.
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Organizational Development
The application of behavioural science techniques to
improve an organization’s health and effectiveness
through its ability to:
• cope with environmental changes
• improve internal relationships
• increase learning and problem-solving capabilities.
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Organizational Development (Cont’d)
Can help managers address:
•
mergers/acquisitions.
•
organizational decline/revitalization.
•
conflict management.
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Three Stages for Achieving Behavioural
and Attitudinal Change
1. Unfreezing:
diagnosis stage
participants are made aware of problems in order to increase their
willingness to change their behaviour
2. Changing:
intervention stage
individuals experiment with new workplace behaviour
3. Refreezing:
reinforcement stage
individuals acquire a desired new skill or attitude and are rewarded for
it by the organization
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