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    8-1

    Innovation and

    Change

    2006 by South-Western, a division of Thomson Learning. All rights reserved.

    Chapter 8

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    Learning Objectives (contd.)5. Explain force-field analysis and other implementation tactics

    that can overcome resistance to change.

    6. Discuss the differences among technology, product,

    structure, and culture/people changes.

    7. Explain the change processes bottom up, top down,

    horizontal associated with each type of change.

    8. Define organizational development and large-group

    interventions.

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    2006 by South-Western, a division of Thomson Learning. All rights reserved. 8-4

    Two Types of Planned Change

    Incremental Change

    based on efforts to improve basic

    work and organizational processes.

    Transformational Changeinvolves redesign and renewal of

    the total organization.

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    Need for Change

    Based on external or internal forces.

    Performance gapa disparity betweenexisting 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 aperceived need for change

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    Initiating Change -- Creativity The generation of novel ideas that may meet

    perceived needs or offer opportunities for the

    organization.

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    Idea Champion

    A person who sees the need for and champions

    productive change within the organization.

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    Promoting Corporate Innovation

    New-Venture Teams

    Skunkworks

    Idea Incubator

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    Resistance to Change

    Self-Interest: the fear of personal loss is perhapsthe biggest obstacle to organizational change.

    Lack of Understanding and Trust: do not

    understand the intended purpose of a change, ordistrust the intentions.

    Managers and employees often seem to prefer the

    status quo.

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    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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    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

    Technology Strategy

    Structure

    Products

    Culture/People

    SOURCE:Based on Harold J. Leavitt, Applied Organizat ional Change inIndustry: Structural, Technical, and Human Approaches, inNewPerspectives in Organization Research, ed. W. W. Cooper, H. J. Leavitt,and M. W. Shelly II (New York: Wiley, 1964), 55-74.

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    Technology Change

    Related to organizations production process.

    Designed to enhance efficiency.

    Generally Bottom-Up.

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    Tools for Changing People & Culture

    Organizational development.

    Training and development programs.

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    Organizational Development

    is a planned, systematic process of change that uses

    behavioral science knowledge and techniques to improve

    an organizations health and effectiveness through itsability to adapt to the environment, improve internal

    relationships, and increase learning and problem-solving

    capabilities.

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    Organizational Development (contd.)

    Can help managers address:

    mergers/acquisitions. organizational decline/revitalization.

    conflict management.

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    Achieving Behavioral and Attitudinal

    ChangeUnfreezing:

    diagnosis stage.

    participants are made aware of problems in orderto increase their willingness to change theirbehavior.

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    Achieving Behavioral and Attitudinal

    Change (contd.)

    Changing:

    intervention stage.

    individuals experiment with new workplacebehavior.

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    Achieving Behavioral and Attitudinal

    Change (contd.)

    Re-freezing:

    reinforcement stage.

    individuals acquire a desired new skill or attitudeand are rewarded for it by the organization.