Principles of Management
AresLeila 
BUS102ECh08.pdf
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ If organizations don’t successfully change
and innovate, they die
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❖ 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
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❖ 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
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❖ 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
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ 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
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ 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
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ 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
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❖ New-venture teams give free rein to creativity
❖ Skunkworks are informal, autonomous,
secretive groups that focus on
breakthrough ideas
❖ New-venture funds provide resources for new
ideas
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ Changes in how employees think
❖Changes in mind-set
People change = Training and development
Culture change = Organizational
development
❖ Large culture change is not easy
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❖ 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
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❖ Planned, systematic process of change
using behavioral science
❖ Addresses three types of problems:
❖ Mergers and acquisitions
❖ Organizational decline and revitalization
❖ Conflict management
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❖ Team-building activities
❖ Survey-feedback activities
❖ Large-group interventions
OD Steps:
• Unfreezing
• Changing
• Refreezing
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© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
❖ 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
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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
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