Managing Organizational Change and Innovation Essay

Griffin – Management, 8th Edition

Chapter 13 – Managing Organizational Change and
Innovation
1. The Nature of Organization Change – any substantive modification to some part of the organization
a. Forces of Change
i. External Forces – derive form the organization’s general and task environments
ii. Internal Forces – a variety of forces inside the organization may cause change as well
b. Planned Versus Reactive Change
i. Planned change – change that is designed and implemented in an orderly and timely fashion in anticipation of future events
ii. Reactive change – a piecemeal response to circumstance as they develop
2. Managing Change in Organizations
a. Steps in Change Process
i. The Lewin Model – Kurt Lewin suggested that change
requires three steps
1. Unfreezing – those who will be affected by the change must be led to recognize whey change is necessary
2. Change – must be implemented
3. Refreezing – reinforcing and supporting the change so that it become part of the system
ii. A Comprehensive Approach to Change – take a system view and delineates a series of specific steps that often leads to successful change
1. Recognition of the need for change
2. Establishment of goals of the change
3. Diagnosis of relevant variables
4. Selection of appropriate change technique
5. Planning for implementation of the change
6. Actual implementation
7. Evaluation and follow-up
b. Understanding Resistance to Change
i. Uncertainty
ii. Threatened Self-Interests
iii. Different Perceptions
iv. Feelings of Loss
c. Overcoming Resistance to Change
i. Participation – often the most effective technique for overcoming resistance to change
1. Educations and Communication – educate employees about the need for change the expected results
2. Facilitation – procedures are advisable
© Michael Abelson, 2006

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Griffin – Management, 8th Edition

Chapter 13 – Managing Organizational Change and
Innovation
3. Force-Field Analysis – forces are acting for and
against change
3. Areas of Organization Change
a. Changing Organization Structure and Design
b. Changing Technology and Operations
i. Enterprise resource planning (ERP) – a large scale information system for integrating and synchronizing the many activities in the extended enterprise
c. Changing people, Attitude and Behaviors
d. Changing Business Processes
i. Business process change (reengineering) – the radical redesign of all aspects of a business to achieve major gains in cost, service or time
e. The Need for Business Process Change
f. Approaches to Business Process Change
i. The reengineering process:
1. Develop goals and a strategy for reengineering
effort
2. Emphasize top management’s commitment to the reengineering effort
3. Create a sense of urgency among members of the organization
4. Start with a clean slate; in effect, re-create the organization
5. Optimize top-down and bottom-up perspectives
g. Organization Development
i. OD Assumptions
1. Organization development (OD) – an effort that is planned, organization-wide and managed for the top, intended to increase organizational effectiveness and health through planned interventions in the organization’s process, using behavioral science knowledge
ii. OD Techniques
1. Diagnostic activities
2. Team building
3. Survey feedback
4. Education
5. Intergroup activities
6. Third-party peacemaking
7. Techno structural activities
8. Process consultation
9. Life and career planning
10. Coaching and counseling
11. Planning and goal setting
© Michael Abelson, 2006

Griffin – Management, 8th Edition

Chapter 13 – Managing Organizational Change and
Innovation
iii. The Effectiveness of OD
h. Organizational Innovation – innovation, the managed effort of an organization to develop new products or services or new rules for existing products or services
i. The Innovation Process
1. Innovation Development – involves evaluation, modification, and improvement of creative ideas
2. Innovation Application – stage in which an organization take a developed idea and uses it in design, manufacturing or delivery of new products or services
3. Application Launch – stage at which an organization introduces new products or services to the marketplace
4. Application Growth – this is a period of high economic performance because demand for the product or service is often greater than the supply
5. Innovation Maturity – stage at which most organizations have access to an innovation and are applying it in approximately the same way
6. Innovation Decline – every successful innovation bears its own seed of decline
i. Forms of Innovation
i. Radical innovations – a new product, service or technology that completely replaces an existing one
ii. Incremental innovation – a new product, service or technology that modifies an existing one
iii. Technical innovations – a change in the appearance or performance of products or service, or of the physical processes through which a product or service passes
iv. Managerial innovations – a change in the management process in an organization
v. Product innovation – a change in the physical characteristics or performance of an exiting product or service or the creation of new ones
vi. Process innovation – a change in the way a product
or service in manufactured, created or distributed
j. The Failure to Innovate
i. Lack of Resources
ii. Failure to recognize Opportunities
iii. Resistance to Change
© Michael Abelson, 2006

Griffin – Management, 8th Edition

Chapter 13 – Managing Organizational Change and Innovation
k. Promoting Innovation in Organizations
i. The Reward System – means by which a firm encourages and discourages certain behaviors by employees
ii. Organization Culture – a strong and focused culture can be used to support innovative activity
iii. Intrapreneurship in Larger Organization
1. Intrapreneurs – similar to entrepreneurs except that they develop new businesses in the context of a larger organization
2. Inventor – person who actually conceives of and develops the new idea
3. Product champion – middle manager who learns about the project and become a champion of it
4. Sponsor – top-level manager who approves
and supports the project

© Michael Abelson, 2006

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