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Understanding Management

First Canadian Edition

Slides prepared by Janice Edwards College of the Rockies


Copyright 2009 Nelson Education Ltd.

Chapter 8

Innovation and Change

Copyright (c) 2009 Nelson Education Ltd.

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Learning Objectives
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Define organizational change and explain the forces for change. Describe the sequence of four change activities that must be performed for change to be successful. Explain the techniques managers can use to facilitate the initiation of change in organizations, including idea champions, new-venture teams, idea incubators, and open innovation. Define the sources of resistance to change.
Copyright (c) 2009 Nelson Education Ltd.

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Learning Objectives (Contd)


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Explain force-field analysis and other implementation tactics that can overcome resistance to change. Discuss the differences among technology, product, structure, and culture/people changes. Explain the change processes bottom up, top down, horizontal associated with each type of change. Define organizational development and OD activities that have emerged in recent years. Describe the OD theory that proposes three distinct stages for achieving behavioural and attitudinal change.
Copyright (c) 2009 Nelson Education Ltd.

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Two Types of Planned Change


Incremental Change: based on efforts to improve basic work and organizational processes. Transformational Change: involves redesign and renewal of the total organization.

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Ex. 8.1

Model of Change Sequence of Events

Environmental Forces
Monitor global competition, customers, competitors, and other factors.

Need for Change


Evaluate problems and opportunities, define needed changes in technology, products, structure, and culture.

Initiate Change
Facilitate search, creativity, idea champions, skunkworks, and idea incubators.

Implement Change
Use force-field analysis, tactics for overcoming resistance.

Internal Forces
Consider plans, goals, company problems, and needs.

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Need for Change

External or internal forces translate into a perceived need. Performance gapa disparity between existing and desired performance levels.

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Initiating Change
Search: The process of learning about current developments inside or outside the organization that can be used to meet a perceived need for change. Creativity: The generation of novel ideas that might meet perceived needs or offer opportunities for the organization.

Copyright (c) 2009 Nelson Education Ltd.

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Idea Champions and New-Venture Teams


Idea Champion: A person who sees the need for and champions productive change within the organization. New-Venture Team: A unit separate from the mainstream organization and is responsible for developing and initiating innovations.

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Promoting Corporate Innovation


Skunkworks New-Venture Fund Idea Incubator

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Ex. 8.3

Four Roles in Organizational Change

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Reasons for Resistance to Change


Managers and employees often seem to prefer the status quo. Self-interest: the fear of personal loss is perhaps the biggest obstacle to organizational change. Lack of understanding and trust: do not understand the intended purpose of a change, or distrust the intentions.

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Reasons for Resistance to Change (Contd)

Uncertainty: the lack of information about future events. Different assessments and goals: people who will be affected by innovation may assess the situation differently.

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Force Field Analysis


The process of determining which forces drive and which forces resist changes.

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Ex.8.4

Using Force-Field Analysis to Change from Traditional to Just-In-Time Inventory System

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Ex. 8.6

Types of Organizational Change

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Technology Changes
Related to organizations production process. Designed to enhance efficiency. Generally Bottom-up.

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Culture/People Changes
A change in employees values, norms, attitudes, beliefs, and behaviours. Tools for culture/people changes: Training and development programs. Organizational development.

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Organizational Development
The application of behavioural science techniques to improve an organizations health and effectiveness through its ability to: cope with environmental changes improve internal relationships increase learning and problem-solving capabilities.

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Organizational Development (Contd)


Can help managers address: mergers/acquisitions. organizational decline/revitalization. conflict management.

Copyright (c) 2009 Nelson Education Ltd.

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Three Stages for Achieving Behavioural and Attitudinal Change


1. Unfreezing:
diagnosis stage participants are made aware of problems in order to increase their willingness to change their behaviour

2. Changing:
intervention stage individuals experiment with new workplace behaviour

3. Refreezing:
reinforcement stage individuals acquire a desired new skill or attitude and are rewarded for it by the organization
Copyright (c) 2009 Nelson Education Ltd.

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