Post on 19-Dec-2015
Chapter 11Managing Change and Innovation
Innovation and Change in the Workplace
• If organizations don’t successfully change and innovate, they die
• Change and innovation can come from outside forces
• Managers want to initiate change from the inside
• Disruptive innovation is a goal for global competition
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Organizational Change
• The adoption of a new idea or behavior by an organization
• Change is not easy, organizations must take an ambidextrous approach
• Managers encourage flexibility and freedom to innovate
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Changing Things: New Products and Technologies
• Product Change – a change in the organization’s product or service outputs
• Technology Change – a change in the organization’s production process
• Three innovation strategies: exploration, cooperation, and entrepreneurship
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11.1 Three Innovation Strategies
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11.2 Characteristics of Creative People and Organizations
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11.3 The World’s Most Innovative Companies
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• Creativity – novel ideas that meet perceived needs or offer opportunities
• Idea incubator – a safe harbor where employees can develop ideas and experiment
Exploration
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Cooperation
• Horizontal coordination mechanisms – simultaneously contribute to innovation– Internal and external
• Open innovation – commercialization of ideas beyond the organization– Includes customers and partners
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11.4 Coordination Model for Innovation
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• Managers should support entrepreneurship activities and foster idea champions
– Energy and effort is required to promote a new idea
• Sponsors approve and protect ideas when critics challenge the concept
• New-venture teams give free rein to creativity
– New-venture funds provide resources for new ideas
• Skunkworks are informal, autonomous, secretive groups that focus on breakthrough ideas
Entrepreneurship
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11.5 Four Roles in Organizational Change
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Changing People and Culture
• Changes in how employees think
– Changes in mind-set
People change = Training and Development
Culture change = Organizational Development
• Large culture change is not easy
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Organizational Development
• Planned, systematic process of change using behavioral science
• Addresses three types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management
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OD Activities
• Team-building activities
• Survey-feedback activities
• Large-group interventions
OD Steps:• Unfreezing• Changing• Refreezing
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11.6 OD Approaches to Culture Change
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Implementing Change
• Outline the Need for Change– Show the performance gap
• Understand the Resistance to Change– Self-Interest– Lack of Understanding and Trust– Uncertainty– Different Assessments and Goals
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11.7 Force-Field Analysis
• Driving forces – problems or opportunities that provide motivation for change
• Restraining forces – barriers to change
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11.8 Tactics for Overcoming Resistance to Change
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