1 / 15

Lecture # 6

Lecture # 6. Chapter 8 – Fostering an Innovative Organization. Nature of Change & Innovation. Change: Any alteration of the status quo Innovation: a new idea applied to initiating or improving a process, product or service. Organizational Life Cycle.

jcherry
Télécharger la présentation

Lecture # 6

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lecture # 6 Chapter 8 – Fostering an Innovative Organization

  2. Nature of Change & Innovation • Change: Any alteration of the status quo • Innovation: a new idea applied to initiating or improving a process, product or service.

  3. Organizational Life Cycle Life cycles are development stages organizations typically follow. Organizations move through four stages: • Entrepreneurial Stage: a new organization is created, one-person show, little planning and co-ordination, prime inventor makes all the decisions. • Collectivity stage: others believing in the idea join the entrepreneur.

  4. Organization members put in long hours, show high commitment level. Structure and communications patterns are informal, group decision making and high innovation. 3. Formalization & Control stage: more formal structure, departments organized into major specialization areas, emphasis on efficiency, control is centralized and innovation is discouraged.

  5. 4. Elaboration of Structure stage: decision making is decentralized, managers work to cut costs, renewal of the organization’s innovative vigour.

  6. Charactertics of Life-cycle stages

  7. Organizational Termination Organizations terminate because they cannot innovate and change rapidly. It can occur at any life-cycle stage.

  8. Methods of Organizational Termination • Bankruptcy: when firms are unable to pay their debts, seeking protection from creditors while trying to regain financial stability. • Liquidation: sale of an entire organization due to serious business difficulties. • Merger: combining of two or more organizations into one. • Acquisition: purchase of all or part of one organization by another.

  9. Take-over: purchase of a controlling share of voting stock in a publicly traded company.

  10. Change Management & Innovation Process Managers typically face two change types: • Reactive change: is when action is taken in response to perceived problems, threats or opportunities. • Planned change: this involves actions based on a carefully thought-out process anticipating future possible difficulties, threats and opportunities.

  11. An Eight-step Model • Gain recognition of an opportunity or a problem: major change/innovation begins when a someone identifies a problem or an opportunity. • Line up powerful sponsors: change/innovation need the support of powerful individuals to gather resources and influence others. • Develop and communicate a vision: develop a picture of the future which is easy to communicate and appeal to those who must change or support process. • Empower others to act out the vision: managers need to encourage employees to act on the vision.

  12. Prepare to overcome resistance • Plan for and reward visible progress • Consolidate improvements and facilitate further change • Monitor and institutionalize changes

  13. Organizational Development Organizational development (OD) is a change effort planned, focused on the entire organization, managed from the top, aimed at enhancing organizational health and effectiveness.

  14. Organizational Development Process • Diagnosis: in this stage the people helping the process use many ways to gather data, such as interviews, questionnaires and internal documents and reports. • Intervention: after the situation has been diagnosed, intervention is next. OD interventions are designed and implemented with the change agent’s help. • Evaluation: the effectiveness of OD efforts must be monitored.

  15. Key Organizational Change Components • Structural components • Technological components • Human Resource components • Cultural components

More Related