Quản trị kinh doanh - Chapter 11: Managing change and innovation

Managing Change and InnovationChapter 111Turbulent Times The Changing Work PlaceToday’s organizations need to continuously adapt to new situations if they are to survive and prosperOne of the most dramatic elements is the shift to a technology- driven workplaceIdeas, information, and relationships are becoming critically importantManager’s Challenge: Cowley manufacturing plant2Managing Change and InnovationHow organizations respond to the environment through internal change and developmentBasic forces for Organizational ChangeHow managers facilitate two change requirementsFour major types of changeHow organizations can be designed to facilitate each TopicsChapter 113Organizational ChangeThe adoption of a new idea of behavior by an organizationNew trends require profound changes in the organizationE-business Supply chain integrationKnowledge management4Organizational ChangeToday’s successful organizations simultaneously embrace two types of planned changeIncremental change = efforts to gradually improve basic operational and work processes in different parts of the companyTransformational change = redesigning and renewing the entire organization5Model of Change Sequence of EventsEnvironmentalForcesInternalForcesNeed for changeInitiate changeImplement changeMonitor global competition, and other factorsConsider plans, goals, company problems, and needsEvaluate problems and opportunities, define needed changes in technology products, structure, and cultureFacilitate search, creativity, idea champions, venture teams, skunk works and idea incubatorsUse force field analysis, tactics for overcoming resistance6Forces for ChangeEnvironmental ForcesCustomersCompetitorsTechnologyEconomicInternational arenaInternal Forces – activities and decisions7Need for ChangePerformance gap = disparity between existing and desired performance levels.Current procedures are not up to standardNew idea or technology could improve current performanceBased on external or internal forces8Initiating ChangeStage where the ideas that solve perceived needs are developedSearch = process of learning about current developments inside or outside the organization that can be used to meet the perceived need for changeCreativity = generation of novel ideas that might meet perceived needs or offer opportunities for the organizationCritical phase of change managementExperiential Exercise: Is Your Company Creative?9Characteristics of Creative PeopleConceptual fluencyOpen-mindedOriginalityLess authorityIndependence Self-confidencePlayfulnessUndisciplined explorationCuriosityPersistenceCommitment - Focused approach10Idea ChampionA person who sees the need for and Champions productive change within the organizationChange does not occur by itself11Four Roles in Organizational ChangeInventorDevelops and understands technical aspects of ideasDoes not know how to win support for the idea or make a business of itSponsorHigh-level manager who removes organizational barriersApproves and protects idea within organizationCriticProvides reality testLooks for short- comingsDefines hard-nosed criteria that idea must passSources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating Organization,” Organizational Dynamics (winter 1982) 5-25.ChampionBelieves in ideaVisualizes benefitsConfronts organization realities of cost, benefitsObtains financial & political supportOvercomes obstaclesChampioning an idea successfully requires roles in organizations12New Venture TeamsNew Venture Team = Unit separate from the mainstream of the organization that is responsible for developing and initiating innovationsSkunkworks = separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business13New Venture Fund Fund providing resources from which individuals and groups can draw to develop new ideas, products, or businessesIdea Incubator = in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics14Open InnovationExtending the search for and commercialization of new ideas beyond the boundaries of the organizationThe boundaries between an organization and its environment are becoming porous so that ideas flow back and forth among different companies that engage in partnerships, joint ventures, licensing agreements, and other alliances15Resistance to ChangeSelf-Interest: fear of personal loss is perhaps the biggest obstacle to organizational changeLack of Understanding and Trust: do not understand the intended purpose of a change or distrust the intentionsUncertainty: lack of information about future eventsDifferent Assessments and Goals: people who will be affected by innovation may assess the situation differently.16Force-Field AnalysisThe process of determining which forces drive and which resist a proposed changeRestraining Forces (Barriers)Lack of resourcesResistance from middle managersInadequate employee skillsDriving ForcesThought of as problems or opportunities that provide motivation for changeKurt Lewin17Traditional to Just-In-Time Inventory Systems18Tactics for Overcoming Resistance to ChangeCommunicationeducationParticipationChange is technical; users need accurate information & analysisUsers need to feel involved; design requires information from others; have power to resistApproachWhen to Use19Tactics for Overcoming Resistance to ChangeNegotiationCoercionTop management supportGroup has power over implementation; will lose out in the changeCrisis exists; initiators clearly have power; other techniques have failedInvolves multiple departments or reallocation of resources; users doubt legitimacy of changeApproachWhen to use20Types of Organizational ChangeCulture/PeopleStrategyStructureTechnologyProductsSOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural, Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper, H.J. Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.21Organizational ChangeTechnology: General rule = change is bottom upNew product:Horizontal linkage model emphasizes shared development of innovations among several departmentsTime-based competition is based on the ability to deliver products and services faster than competitorsStructure: Successful change = through a top-down approachCulture/people:Training is the most frequently used tool for changing the organization’s mind-set22Horizontal Linkage ModelFor New Product InnovationResearch DepartmentMarketing DepartmentManufacturing DepartmentNew TechnologyCustomers Market ConditionsOrganization23Structural ChangesAny change in the way in which the organization is designed and managedHierarchy of authorityGoalsStructural characteristicsAdministrative proceduresManagement systemsEthical Dilemma: Research for Sale24Culture-People ChangesChanges in structure, technologies, and products or services do not happen on their ownChanges in any of these areas require changes in people25Organization DevelopmentDecline/revitalizationMergers/acquisitionsConflict managementProblems OD Can AddressApplication of behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities26OD ActivitiesSurvey feedbackTeam buildingLarge group intervention27OD Approaches to Culture ChangeTraditional Organizational Development ModelLarge-Group Intervention ModelChange Process:Incremental ChangeRapid transformationFocus for action:Information Source: Distribution:Time frame:Learning:Specific problem or groupOrganizationLimitedGradualIndividual, small groupEntire systemOrganization & environmentWidely sharedFastWhole organizationSOURCE: Adapted from Barbara Benedict Bunker and Billie T. Alban, “Conclusion: What Makes Large Group Interventions Effective,” The Journal of Applied Behavioral Science 28, no 4 (December 1992), 579-591.28Three Stages for Achieving Behavioral and Attitudinal ChangeUnfreezingChangingRefreezing29