Artifact project
MANAGEMENT
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Ricky W. Griffin
TWELFTH EDITION
Part Four: The Organizing Process
Chapter Twelve: Managing Organization Change and Innovation
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Nature of Organization Change
Organization change
is any substantive modification to some part of the organization.
Forces for change
External forces derive from the organization’s general and task environments.
Internal forces (i.e. strategy) can cause change.
Other internal forces may be a reflection of external forces, such as sociocultural forces.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
The frequency of organization change reinforces the importance of a planned approach.
Nature of Organization Change
12 - ‹#›
Planned change
Designed and implemented in an orderly and timely fashion in anticipation of future events.
Reactive change
A piecemeal response to circumstances as they develop.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Managing Change in Organizations
12 - ‹#›
Comprehensive approach
This approach to change takes a systems view and delineates a series of specific steps that often lead to successful change.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Figure 12.1
Steps in the Change Process
Managers must understand how and why to implement change.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Managers need to know why people resist change and how to counter resistance.
Understanding Resistance to Change
12 - ‹#›
Uncertainty
Threatened self-interests
Different perceptions
Feelings of loss
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Overcoming Resistance to Change
Participation is often an effective technique.
Provide education and communication throughout the change process.
Facilitate the change process by:
making only necessary changes,
announcing those changes well in advance, and
allowing time for people to adjust.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Areas of Organization Change
Business process change or reengineering
is a radical redesign of all aspects of a business to achieve major gains in cost, service, or time.
Goes beyond ERP.
The need for business process change
allows managers to avoid entropy, or system-wide decline.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Figure 12.3
The Reengineering Process
Business process reengineering has five steps.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Areas of Organization Change
Organization development (OD)
is a planned, organization-wide effort, managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization’s process, using behavioral science knowledge.
Based on the assumptions that:
employees desire to grow and develop,
they have a need for acceptance, and
organization design influences employee behavior.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Organizational Development Techniques
Diagnostic activities.
Team building.
Survey feedback.
Education.
Intergroup activities.
Third-party peacemaking.
Effectiveness varies.
Technostructural activities.
Process consultation.
Life and career planning.
Coaching and counseling.
Planning and goal setting.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Without innovation, organizations fall behind competitors.
Organizational Innovation
12 - ‹#›
Innovation
The managed effort of an organization to develop new products or services or new uses for existing products for services.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Figure 12.4
The Innovation Process
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Radical versus incremental innovations
Forms of Innovation
12 - ‹#›
Radical innovation
Is a new product, service, or technology that completely replaces an existing one.
Incremental innovation
Is a new product, service, or technology that modifies an existing one.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Technical versus managerial innovations
Forms of Innovation
12 - ‹#›
Technical innovation
Is a change in the appearance or performance of products or services, or of the physical processes through which a product or service passes.
Managerial innovation
Is a change in the management process by which products and services are conceived, built, and delivered to customers.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Product versus process innovations
Forms of Innovation
12 - ‹#›
Product innovation
Is a change in the physical characteristics or performance of existing products or services, or the creation of new ones.
Process innovation
Is a change in the way products or services are manufactured, created, or distributed.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Failure to Innovate
If a firm lacks resources it may lag behind in innovation.
If an organization is unskilled in recognizing and evaluating opportunities, they may fail to invest in an innovation.
Innovation means giving up old products, which means change.
Many resist change, therefore, innovation.
12 - ‹#›
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Promoting Innovation in Organizations
Provide financial and nonfinancial rewards.
Avoid punishing workers for innovation.
Organization culture should support creative and innovative activities.
Intrapreneurs develop new businesses in the context of a large organization.
Successful programs need someone to fill the roles of the inventor, a product champion, and a sponsor.
12 - ‹#›