Shermerhorn Chapter 9 - Innovation and Organizational Change Flashcards
Components of Strategic leadership
- anticipate, envision, maintain flexibility
- think strategically
- Works with others to initiate change
What does competitive advantage rely on
creativity
innovation
Creativity
generation of a novel idea or unique approach to solving problems
Innovation
process of creating new ideas and putting them into practice
Three forms of innovation
- product
- process
- business model innovation
Sustainable innovation
creation of new products/processes that have lower environmental impacts than the available alternatives
Green innovation
process of turning ideas into innovations that reduce the carbon footprint of an organization or its products
Social Business innovation
uses micro-credit lending to help create small enterprises and fight poverty
Social Entrepreneurship
pursues creative and innovative ways to solve social problems
5 steps of innovation process
- imagining
- designing
- experimenting
- assessing
- scaling
commercializing innovation
process of turning new ideas into products or processes that increase profits through sales or cost reductions
4 steps of product innovation
- idea creation
- initial experimentation
- feasibility determination
- final application
disruptive innovation
displaces prior practices and competitors
Innovative organizations should:
- Emphasize entrepreneurial spirit
- Expect innovation
- accept failure
- be willing to take risks
Innovative structure should: (3)
- be organic
- have lateral communication
- use cross-functional team
innovative management should: (5)
- understand innovation process
- be tolerant of criticism
- keep goals clear
- maintain pressure to succeed
- break down barriers to innovation
Good staff for innovative companies? (5)
- idea generators,
- Information gatekeepers
- product champions
- project managers
- innovative leaders
Change Leader
takes leadership responsibility for changing the existing pattern of behaviour
Change leadership: (3)
- forward looking
- proactive
- Embraces new ideas
Top-Down Change (3)
- strategic and comprehensive change
- driven by top managers
- success depends on middle and lower workers
Bottom-Up Change
initiatives come from all parts of organization
How Is bottom-up change possible? (3)
employee
- empowerment
- involvement
- participation
Integrated change leadership
successful and enduring change combines advantages of top-down and bottom-up approaches
Advantages of top-down change approach
- breaks up traditional patterns
- implements difficult economic adjustments
Advantages of bottom-up change approach
- builds capability for sustainable change
- builds capability for organizational learning
Unplanned Change
response to unanticipated events
Planned change
aligning organization with anticipated future challenges
proactive leaders
Transformational change creates:
decreases in major redirection
Incremental change leads to
adjusting existing systems and practices
How to lead transformational change (7)
- establish urgency
- for powerful coalition
- Create a change vision
- empower other to move forward
- celebrate short-term wins
- build on success
- keep message consistent
External forces for change (7)
- globalization
- market competition
- local economic conditions
- laws and regulations
- technological developments
- market trends
- social forces and values
Internal forces for change
Arise when change in one part of the system creates the need for change in another part of the system
5 organizational targets for change
- tasks
- people
- culture
- technology
- structure
Phases of Planned change (3)
- unfreezing
- changing
- refreezing
Unfreezing phase of planned change
phase in which a situation is prepared for change and felt needs for change are developed
Changing phase of planned change
the phase in which sometime new takes place in the system, change is implemented
Refreezing phase of planned change
stabilizing the change and creating the conditions for long-term continuity
Force-coercion strategy of change (5)
- uses power bases of legitimacy, rewards and punishments
- belief that people are motivated by self-interest
- direct forcing & political maneuvering
- produces limited and temporary results
- must useful in unfreezing stage
Rational Persuasion Strategy of Change (5)
- backed by knowledge, data, and rational argument
- relied on expert power
- belief that reason guides people’s decisions/actions
- useful in unfreezing and refreezing phases
- longer-lasting and internalized change
Shared Power strategy of Change
- collaborative process of identifying values, assumptions, goals from which support for change will naturally emerge
- yield high commitment but time consuming
- examining sociocultural factors
- referent power and strong interpersonal skills
- belief that people respond to sociocultural norms and expectations of others
Reasons for resisting change (8)
- fear of unknown
- disrupted habits
- loss of confidence
- loss of control
- poor timing
- work overload
- loss of face
- lack of purpose
how to deal with resistance to change: (4)
- benefits (give advantages for workers)
- compatibility (change similar to current values)
- simplicity (make it easy to understand)
- triability (allow people to slowly try change)
Organization Development: (OD)
approach to planned organizational change that involves the application of behavioural science in a systemic and long-range effort to improve organizational effectiveness
- Takes advantage of knowledge about human behaviour in organizations
OD goals
- Outcome goals: task accomplishments
- Process goals: the way people work together
- seeks to develop organization members’ capacity for self-renewal
the OD process:
- establish working relationship
- diagnosis (unfreezing)
- intervention (changing)
- evaluation (refreezing)
- achieve a terminal relationship
Action Research
systematically collecting data on an organization, feeding it back to members for action planning and evaluating results by collecting more data and repeating the process as necessary
Steps in Action research process
- Data gathering
- data analysis / feedback
- action planning
- action implementation
- evaluation and follow-up
Individual OD interventions (5)
- sensitivity training
- management training
- role negotiation
- job redesign
- career planning
Team OD interventions (3)
- team building
- process consultation
- inter-group team building
Oganization-wide OD interventions (4)
- survey feedback
- confrontation meeting
- structural redesign
- management by objectives
