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Chapter 11

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

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  1. Chapter 11 Managing Change and Innovation

  2. Introduction • If organizations don’t successfully change and innovate, they die

  3. 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

  4. 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

  5. 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

  6. 11.1 Three Innovation Strategies

  7. 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

  8. 11.2 Characteristics of Creative People and Organizations

  9. 11.3 The World’s Most Innovative Companies 2013

  10. 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

  11. 11.4 Coordination Model for Innovation

  12. 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

  13. 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

  14. 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

  15. 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

  16. Organizational Development • Planned, systematic process of change using behavioral science • Addresses three types of problems: • Mergers and acquisitions • Organizational decline and revitalization • Conflict management

  17. OD Activities • Team-building activities • Survey-feedback activities • Large-group interventions OD Steps: • Unfreezing • Changing • Refreezing

  18. 11.5 OD Approaches to Culture Change

  19. 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

  20. 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

  21. 11.6 Using Force-Field Analysis to Change from Traditional to Just-in-Time Inventory System

  22. 11.7 Tactics for Implementing Change

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