Chapter Thirteen - University of Mississippi
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Transcript Chapter Thirteen - University of Mississippi
Mgmt 371
Chapter Thirteen
Managing Organization Change and
Innovation
Much of the slide content was created by Dr, Charlie Cook, Houghton Mifflin, Co.©
1
The Nature of
Organization Change
Organization Change
Any substantive modification to some part of the
organization (e.g., work schedules, machinery,
employees).
Forces for Change
External forces in the general and task environments
that force the organization to alter the way it competes.
Internal forces inside the organization cause it to
change its structure and strategy.
Some internal forces are responses to external
pressures.
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Classifications of
Organization Change
Planned Change
Is designed and
implemented in an orderly
and timely fashion in
anticipation of future
events.
Reactive Change
Is a piecemeal response
to events and
circumstances as they
develop.
3
Managing Change in
Organizations
Three Step Change Process
Model (Kurt Lewin)
Unfreezing
Individuals must be shown why
the change is necessary.
Implementing change
The change itself is
implemented
Refreezing
Involves reinforcing and
supporting the change so that it
becomes a permanent part of
the system.
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Steps in the Formal Change Process
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Understanding Resistance to
Change
People resist change because of:
Uncertainty about the extent and effects of
change.
Threats to self-interests and power and
influence.
Different perceptions of change effects and
outcomes.
Feelings of loss in disrupted social
networks, power, security, and familiarity
with existing procedures.
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Overcoming Resistance to Change
Techniques for overcoming resistance to
change:
Encouraging active participation in the
change process.
Providing education and communication
about the change process.
Facilitating the change process by making
only necessary changes, announcing
changes in advance, and allowing time to
adapt to change.
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Overcoming Resistance: Force-field
Analysis for Plant Closing at GMC
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Areas of Organization Change
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Reengineering in Organizations
Reengineering
The radical redesign of all aspects of a business
to achieve major gains in cost, service, or time.
Focus is on identifying & eliminating
marginal activities.
Downsizing (a.k.a., Right-sizing) - Intentional
reduction of the workforce.
May result from closing facilities.
Avoid organizational anemia.
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Reengineering in Organizations
Need for Reengineering
Entropy occurs as the maintenance of status quo
puts an organization out of synch with its
environment, and it starts consuming its own
resources.
Approaches to Reengineering
Recognizing the need for change and acting on it
with a sense of urgency.
Starting with a clean slate to open up the process.
Using a blend of top-down and bottom-up
involvement.
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The Reengineering Process
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Organization Development (OD)
Organization Development
A planned, organization-wide effort,
managed from the top, that is intended to
increase organizational effectiveness and
health through interventions in the
organization’s processes using behavioral
science knowledge.
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Organization Development (OD)
OD Assumptions
Employees desire to grow and develop.
Employees have a strong need to be
accepted.
Individuals will influence the organization
and the organization will influence
individuals
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Organization Development
Techniques
Diagnostic Activities Technostructural
Team Building
Activities
Survey Feedback
Process Consultation
Education
Life and Career
Intergroup Activities
Third-Party
Peacemaking
Planning
Coaching and
Counseling
Planning and Goal
Setting
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The Innovation Process
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Forms of Organizational
Innovation
Radical Innovation
Fundamentally changes the nature of competition
in an industry.
A new product, service, or technology
developed by an organization that completely
replaces the existing product, service, or
technology in an industry.
Incremental Innovation
Does not significantly affect competition in an
industry.
A new product, service, or technology that
modifies an existing one.
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Forms of Organizational Innovation
(Technical v. Managerial Innovations)
Technical innovation
A change in the physical appearance or
performance of a product or service, or the
physical processes through which a product or
service is manufactured.
Managerial innovation
A change in the management process by which
products and services are conceived, built, and
delivered to customers.
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Forms of Organizational Innovation
(Product v. Process Innovations)
Product innovation
A change in the physical characteristics or
performance of existing products or service
or the creation of brand-new products or
services.
Process innovation
A change in the way a product or service is
manufactured,
created, or distributed.
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Effects of Product and Process
Innovation on Economic Return
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Innovation
Reasons for Failing to Innovate
Lack of resources
Failure to recognize opportunities
Resistance to change
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Innovation
Promoting Innovations in
Organizations
Using the reward system
Having a supportive organizational culture
Encouraging intrapreneurship in larger
organizations
Inventors
Production champions
Sponsors
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