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Chapter 11. Managing Change and Innovation. Introduction. If organizations don’t successfully change and innovate, they die. Innovation and the Changing Workplace. The adoption of a new idea or behavior by an organization Change and innovation can come from outside forces
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Chapter 11 Managing Change and Innovation
Introduction • If organizations don’t successfully change and innovate, they die
Innovation and the Changing Workplace • The adoption of a new idea or behavior by an organization • Change and innovation can come from outside forces • Managers want to initiate change from the inside • Disruptive innovation is a goal for global competition
Innovation and the Changing Workplace • Change is not easy • Ambidextrous approach: Incorporating structures and processes that are appropriate for: • Creative impulse and for the systematic implementation • 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
Exploration • Creativity – novel ideas that meet perceived needs or offer opportunities • Idea incubator – a safe harbor where employees can develop ideas without interference from company bureaucracy or politics
Cooperation • Internal coordination • Horizontal linkage model – simultaneously contribute to new products and technologies • External coordination • Includes customers and partners, suppliers • Open innovation – commercialization of ideas beyond the organization
Innovation Roles • 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
Innovation Roles • New-venture teams give free rein to creativity • Skunkworksare informal, autonomous, secretive groups that focus on breakthrough ideas • New-venture funds provide resources for new ideas
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
Training and Development • Training – Frequently used approach to changing people’s mind-sets • Training and development is emphasized for managers • Behavior and attitudes will influence people and lead to culture change
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
Implementing Change • Need for change • Disparity between existing and desired performance levels • Understand the resistance to change • Self-interest • Lack of understanding and trust • Uncertainty • Different assessments and goals
Force-Field Analysis Change is a result of the competition between driving and restraining forces • Driving forces – problems or opportunities that provide motivation for change • Restraining forces – barriers to change
11.6 Using Force-Field Analysis to Change from Traditional to Just-in-Time Inventory System