managing organization change and innovation chapter 12
TRANSCRIPT
Managing Organization Managing Organization Change Change
and Innovationand Innovation
Chapter 12Chapter 12
Organization Change
Organization change – any substantive modification to some part of the organization.
Why do organizations find change necessary?
Forces of Change
External forces
Internal forces
Planned vs. Reactive Change Planned change is designed & implemented
in an orderly manner Reactive change is a piecemeal response to
events as they occur
Models of the Change Process
The Lewin Model
1. UnfreezingWhy the change?
2. Implementthe change
3. RefreezingReinforce & support
the change
Models of the Change Process
Comprehensive Approach to change Steps in the Change process
Set goals for change
Diagnose the need for change
Recognize the need for change
Select a change technique
Plan the implementation of change
Implement the change
Evaluate the effectiveness of change
Understanding resistance to Change
UncertaintyUncertainty
Threatened Self-InterestsThreatened
Self-Interests
Different PerceptionsDifferent
Perceptions
Feelings of LossFeelings of Loss
Managing Resistance to Change
Participatio
n
Educatio
n &
Communicatio
n
Facilitatio
nForce
-Field
Analysis
Areas of Organization Change
Structure & Design
Technology & Operations People
Job designDepartmentalizationReporting relationshipsCoordination mechanismsLine-staff structureOverall designCultureH.R. management
EquipmentWork processesWork sequencesInfo systemsControl systems
AbilitiesSkillsPerformancePerceptionExpectationsAttitudesValues
Reengineering ProcessDevelop goals & strategy for reengineering effort
Emphasis top management Commitment for reengineering effort
Create a sense of urgency amongMembers of the organization
Start with a clean slate; in effectRecreate the organization
Optimize top-down & bottom-upperspective
Organization Development Techniques
Technostructuralactivities
Diagnosticactivities
Life &Career
planning
3rd partyPeace makers
Intergroupactivities
Coaching &Counseling
Education
Processconsultation
Planning &Goal setting
OrganizationalDesign
Techniques
OrganizationalDesign
Techniques
Innovation Process
InnovationMaturity
InnovationMaturity
InnovationApplicationInnovationApplication
InnovationDecline
InnovationDecline
Innovation Development
Innovation Development
ApplicationLaunch
ApplicationLaunch
ApplicationGrowth
ApplicationGrowth
Forms of Innovation
Radical Innovation
New product, service or
technology that completely
replaces and existing one.
Radical Innovation
New product, service or
technology that completely
replaces and existing one.
Incremental Innovation
New product, service or
technology that modifies
and existing one.
Incremental Innovation
New product, service or
technology that modifies
and existing one.
vs
Technical Innovation
A change in appearance of performance of
products or services or the physical processes
through which a product or service passes.
Technical Innovation
A change in appearance of performance of
products or services or the physical processes
through which a product or service passes.
Managerial Innovation
Change in management process
in an organization.
Managerial Innovation
Change in management process
in an organization.
vs
Failure to Innovate
Lack ofresourcesLack of
resources
Failure toRecognize
opportunities
Failure toRecognize
opportunities
Resistance tochange
Resistance tochange
Technology and Competitive Advantage
investments in research and development, with infrastructures to implement new technology
deliver products or services more promptly
quick response manufacturing differences in macroeconomic
conditions, as well as in government trade and technology policies, affect the use of technology and innovation
Value Chain Analysis a system designed to analyze the sources of
competitive advantage designed by Michael E. Porter
activities in the value chain are divided into five primary and four support categories
information systems, planning, motivation, product, and other technologies must be coordinated into a complete system
every activity affects every other activity
Technology and Competitive Advantage
examine external and internal activities for the value they contribute to customers
product or service may be enhanced through the use of advanced technologies
increase competitiveness and customer service
point-of-sale systems value chain must be managed as a
system, not as separate parts
Technology and Competitive Advantage
Differentiation the ability to provide superior value to the buyer
or user in ways that are different from the competitors
availability of the product or service, its special features, its quality, or the after-sale service
Competitive advantage arises from attention being paid to both cost and other aspects of the differentiation concept
this attention is facilitated by value chain analysis
Technology and Competitive Advantage
Creativity and Innovation
Creativity the ability to create new and useful
ideas almost everyone has this capacity
how to unleash creative potential? the task is heuristic, rather than
algorithmic
Creative Individuals flexible, self-motivated, and sensitive to
problems original thinkers and able to concentrate can think in terms of images have little fear of failure nonconformists who enjoy problem solving characteristics help managers pick
employees who might assist the organization creatively
Creativity and Innovation