org change & inno-5

8/8/2019 Org Change & Inno-5

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Organization Change andInnovation


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The Nature of Organization ChangeThe Nature of Organization Change

(contd)(contd)

Planned Change

Change that is designed and

implemented in an orderly andtimely fashion in anticipation of

future events.

Reactive Change

Change that is a piecemealresponse to events and

circumstances as they develop.


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What Is Change?What Is Change?

Change

alterations in people, structure, or

technology

change is an organizational realitymanaging change is an integral part of

every managers job

complicates the jobs of managers


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Forces For ChangeForces For ChangeExternal Forces

marketplace - adapt to changing consumerdesires

governmental laws and regulations -frequent impetus for change

technology- source of change in almost allindustries

labor markets - HRM activities must change

to attract and retain skilled employees in theareas of greatest need

economic- uncertainties about interest rates,budget deficits, and currency exchange rates


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Forces For Change (cont.)Forces For Change (cont.)Internal Forces

originate from the operations of the organizationforces may include strategy, workforce, new equipment, or

employee attitudes

Manager as Change Agentchange agents - act as catalysts and assume responsibility

for change

manager may serve as change agent

may be more thoughtful, overcautious

outside consultant - used for systemwide changes produce more drastic changes than insiders


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Managing Change in OrganizationsManaging Change in Organizations

Steps in the Change Process(Kurt Lewins Model)

Unfreezing

Individuals must be shown why the change is necessary.

Implementing change The change itself is implemented

Refreezing

Involves reinforcing and

supporting the change sothat it becomes a integral

part of the system.


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Figure 7.1Figure 7.1

Steps in theSteps in theChange ProcessChange Process


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Understanding Resistance to ChangeUnderstanding Resistance to Change

People resist change because of:

Uncertainty about the extent and effects of change.

Threats to self-interests, power, and influence.

Different perceptions of change effects and outcomes.

Feelings of loss in disrupted social networks, power,

security, and familiarity with existing procedures.


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Understanding Resistance to ChangeUnderstanding Resistance to Change

(contd)(contd) Overcoming Resistance to Change

Encourage active participation in the change process.

Provide education and communication about the

change process.

Facilitate the change process by making only

necessary changes, announcing changes in advance,

and allowing time to adapt to change.


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Understanding Resistance to ChangeUnderstanding Resistance to Change(contd)(contd)

Force-Field Analysis for Plant Closing

at General Motors


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Managerial Actions to Reduce Resistance to ChangeManagerial Actions to Reduce Resistance to Change


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Contemporary Issues In Managing ChangeContemporary Issues In Managing Change

Changing Organizational Culture

culture resistant to change because it is made up of

relatively stable and permanent characteristics

strong cultures are particularly resistant to change

Understanding the Situational Factors - makescultural change more likely

dramatic crisis occurs

leadership changes hands

organization is young and small

culture is weak

Prentice Hall, 2002 13-12


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ContemporaryContemporary Issues (cont.)Issues (cont.)

Changing Organizational Culture (cont.)

How Can Cultural Change Be

Accomplished?

requires a comprehensive and coordinatedstrategy

unfreeze the current culture

implement new ways of doing things

reinforce those new values

change, if it comes, is likely to be slow

protect against any return to old, familiar

practices and traditions


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The Road to Cultural ChangeThe Road to Cultural Change


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Contemporary Issues (cont.)Contemporary Issues (cont.)

Continuous Quality Improvement Programscontinuous, small, incremental changes

fix and improve current work activities

rely on participative decision making from the bottom

levelsProcess Reengineering

dramatic shift in the way an organization does its work

begins with the redesign of work

define customer needs

design work processes to best meet those needs

requires participation from managers and workers


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Copyright 2005 by Houghton Mifflin Company. All rights reserved. 716

Reengineering in OrganizationsReengineering in Organizations

Business Process Change (Reengineering)The radical redesign of all aspects of a business to

achieve major improvements in cost, service, or time.

Need for Business Process Change

Entropy is a normal process leading to system

decline.

Cause of entropy is that maintenance of the status

quo puts the organization out of synch with its

environment and the organization starts consuming itsown resources.


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Reengineering in Organizations (contd)Reengineering in Organizations (contd)

Approaches to Business Process ChangeRecognizing the need for change and acting on it with

a sense of urgency.

Starting with a clean slate helps open up the process.

Using a blend of top-down and bottom-upinvolvement.


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T

he Reengineering ProcessT

he Reengineering Process


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Continuous Quality Improvement Versus ReengineeringContinuous Quality Improvement Versus Reengineering

Continuous Quality Improvement

Continuous, incremental change

Fixing and improving

Mostly as is

Works from bottom up in

organization

Reengineering

Radical change

Redesigning - starting over

Mostly what can be

Initiated by top management


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Organization Development (OD)Organization Development (OD)

Organization DevelopmentA planned, organization-wide effort managed from the

top, intended to increase organizational effectiveness

and health through interventions in the organizations

processes using behavioralscience knowledge.


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Organization Development (OD) (contd)Organization Development (OD) (contd)

OD AssumptionsEmployees desire to grow and develop.

Employees have a strong need

to be accepted by others

within the organization.Individuals will influence

the organization and the

organization will influence

the attitudes, perceptions,behaviors, and expectations

of individuals.


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Organizational Development TechniquesOrganizational Development Techniques

More

EffectiveInterpersonal

Work

Environment

ProcessConsultation

IntergroupDevelopment

SensitivityTraining

Survey

Feedback

Team

Building

Prentice Hall, 2002 13-22


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Creating a Culture for Change: LearningCreating a Culture for Change: Learning

Learning OrganizationAn organization that has developed the continuous

capacity to adapt and change

Learning Types

Single-Loop: errors are corrected using past routines Double-Loop: errors are corrected by modifying routines

Characteristics

Holds a shared vision

Discards old ways of thinking Views organization as system of relationships

Communicates openly

Works together to achieve shared vision

2009 Prentice-Hall Inc. All rights reserved. 19-23

E X H I B I T 19-6


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Creating a Learning OrganizationCreating a Learning Organization

Overcomes traditional organization problems:Fragmentation

Competition

Reactiveness

Manage Learning by:

Establishing a strategy

Redesigning the organizations structure Flatten structure and increase cross-functional activities

Reshaping the organizations culture

Reward risk-taking and intelligent mistakes



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Work StressWork Stress

StressA dynamic condition in which an individual is

confronted with an opportunity, constraint, ordemand related to what he or she desires and forwhich the outcome is perceived to be both uncertainand important

Types of StressChallenge Stressors

Stress associated with workload, pressure to completetasks, and time urgency

Hindrance Stressors Stress that keeps you from reaching your goals, such asred tape

Cause greater harm than challenge stressors


E X H I B I T 19-7


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DemandsDemands--Resources Model of StressResources Model of Stress

DemandsResponsibilities, pressures, obligations, and

uncertainties in the workplace

Resources

Things within an individuals control that can be used

to resolve demands

Adequate resources help reduce the stressful

nature of demands



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A Model of StressA Model of Stress


E X H I B I T 19-8


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Potential Sources of StressPotential Sources of Stress

Environmental FactorsEconomic uncertainties of the business cycle

Political uncertainties of political systems

Technological uncertainties of technical innovations

Organizational Factors

Task demands related to the job

Role demands of functioning in an organization

Interpersonal demands created by other employees Personal Factors

Family and personal relationships

Economic problems from exceeding earning capacity

Personality problems arising from basic disposition2009 Prentice-Hall Inc. All rights reserved. 19-28


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Consequences of StressConsequences of Stress

Stressors are additive: high levels of stress canlead to the following symptoms

Physiological

Blood pressure, headaches, stroke

Psychological Dissatisfaction, tension, anxiety, irritability, boredom, and

procrastination

Greatest when roles are unclear in the presence of conflicting

demands

Behavioral

Changes in job behaviors, increased smoking or drinking,

different eating habits, rapid speech, fidgeting, sleep disorders



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Not All Stress Is BadNot All Stress Is Bad

Some level of stress can increase productivity Too little or too much stress will reduce

performance

This model is not empirically supported


E X H I B I T 19-9


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Managing StressManaging Stress

Individual Approaches Implementing time management

Increasing physical exercise

Relaxation training

Expanding social support network

Organizational Approaches Improved personnel selection and job placement

Training

Use of realistic goal setting

Redesigning of jobs

Increased employee involvement Improved organizational communication

Offering employee sabbaticals

Establishment of corporate wellness programs



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Global ImplicationsGlobal Implications

Organizational ChangeCulture varies peoples belief in the possibility of

change

Time orientation will affect implementation of change

Reliance on tradition can increase resistance tochange

Power distance can modify implementation methods

Idea champions act differently in different cultures

Stress

Job conditions that cause stress vary across cultures

Stress itself is bad for everyone

Havin friends and famil can reduce stress 19-322009 Prentice-Hall Inc. All rights reserved.


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Summary and Managerial ImplicationsSummary and Managerial Implications

Organizations and the individuals within themmust undergo dynamic change

Managers are change agents and modifiers of

organizational culture

Stress can be good or bad for employees

Despite possible improvements in job

performance caused by stress, such

improvements come at the cost of increased job

dissatisfaction

19-332009 Prentice-Hall Inc. All rights reserved.


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Organizational InnovationOrganizational Innovation


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Forms of InnovationForms of Innovation

Radical InnovationA new product, service, or technology developed by

an organization that completely replaces the existing

one.

Radical innovation fundamentally changes the natureof competition in an industry.

Incremental Innovation

A new product, service, or technology that modifies an

existing one.Incremental innovation does not significantly affect

competition in an industry.


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Forms of Organizational Innovation (contd)Forms of Organizational Innovation (contd)

Technical Versus Managerial InnovationsTechnical innovation

A change in the physical appearance or performance of a

product or service, or the physical processes through which a

product or service is manufactured.

Managerial innovation

A change in the management

process by which products

and services are conceived,

built, and delivered to

customers.


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Forms of Organizational Innovation (contd)Forms of Organizational Innovation (contd)

Product Versus Process InnovationsProduct innovation

A change in the physical characteristics or performance of

existing products or service or the creation of brand-new

products or services.

Process innovation

A change in the way a product

or service is manufactured,

created, or distributed.


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Copyright 2005 by Houghton Mifflin Company All rights reserved 738

InnovationInnovation

Reasons forFailing to InnovateLack of resources

Failure to recognize opportunities

Resistance to change

Promoting Innovations in Organizations

Using the reward system

Having a supportive organizational culture

Intrapreneurship in larger organizations

Inventors

Production champions

Sponsors

org change & inno-5

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