chapter 11 managing change and innovation. innovation and change in the workplace if organizations...

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

Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2

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


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


11.1 Three Innovation Strategies


11.2 Characteristics of Creative People and Organizations


11.3 The World’s Most Innovative Companies


• Creativity – novel ideas that meet perceived needs or offer opportunities

• Idea incubator – a safe harbor where employees can develop ideas and experiment

Exploration


Cooperation

• Horizontal coordination mechanisms – simultaneously contribute to innovation– Internal and external

• Open innovation – commercialization of ideas beyond the organization– Includes customers and partners


11.4 Coordination Model for Innovation


• 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


11.5 Four Roles in Organizational Change


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


Organizational Development

• Planned, systematic process of change using behavioral science

• Addresses three types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management


OD Activities

• Team-building activities

• Survey-feedback activities

• Large-group interventions

OD Steps:• Unfreezing• Changing• Refreezing


11.6 OD Approaches to Culture Change


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


11.7 Force-Field Analysis

• Driving forces – problems or opportunities that provide motivation for change

• Restraining forces – barriers to change


11.8 Tactics for Overcoming Resistance to Change


chapter 11 managing change and innovation. innovation and change in the workplace if organizations...

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