SU 6: Managing Change and Innovation Flashcards
What is organizational change
The adoptation of new ideas or behavior by an organization
How change can take place:
- change and Innovation can come from outside forces, for example when a key supplier goes out of business
- managers want to initiate change from inside by initiating new product
Why do people resist change
- self-interest (workload increase, loss of power)
- lack of understanding and trust (intentions/purpose)
- uncertainty (fear of the unknown)
- different goals (viewpoints differ)
What are disruptive innovations
It’s a prerequisite for companies that wants to remain competitive on a global basis. Innovations in products, services or processes that radically change an industries rules of the game for producers and consumers. For example DVD’s
Successful change requires that organizations create and implement ideas and learn to be _________
ambidextrous
What is the ambidextrous approach
It is incorporating structures and processes that are appropriate for the creative impulse and for the systematic implementation of innovations. For example a loose flexible structure and greater employee freedom are excellent for the creation and initiation of ideas - sometimes difficult to implement a change as employees are less likely to comply
What are the types of change
- Product change - a change in the organizations product or service outputs
- Technology change - a change in the organizations production process: how the organization does its work
What are the three critical innovation strategies for changing products and technologies
- Exploration: designing the organization to encourage creativity and the initiation of new ideas
- Cooperation: creating conditions and systems to facilitate internal and external coordination and knowledge sharing
- Innovation: managers put in place processes and structures to ensure new ideas are carried forward for acceptance and implementation
What are the three innovation strategies for new products and technologies
Exploration, Cooperation, Innovation
Further explain exploration
-Creativity: novel ideas that meet perceived needs or offer opportunities
-Idea incubator: a safe harbor where employees can develop ideas without interference from company bureaucracy or politics
Further explain cooperation
- Internal coordination: horizontal linkage model - successful innovation requires expertise from several departments simultaneously
- External coordination: organization look outside their boundaries to find and develop new ideas, this includes customers and partners, suppliers in service development processes
- Open innovation: extending this search for and commercialization of new ideas beyond the organization and even beyond the boundaries of the industry sharing knowledge and resources with other organizations
Further explain innovation (pg 344)
Innovation roles:
- managers should support entrepreneurship activities and foster idea championships.
- change does not occur by itself. Energy and effort is required to promote a new idea.
- championing ideas in an organization
How can organizations change people and culture
People = training and development
Culture = organization development
pg 345
Explain training and development
- Training - frequently used approach to changing peoples mindsets
- Training and development is emphasized for managers
- behavior and attitude will influence people and lead to culture change
Explain organizational development
- Planned, systematic process of change using behavioral science
- Addresses three types of problems:
-mergers and acquisitions (two companies merging)
-organizational decline and revitalization (high levels of stress, conflict, low level of trust)
-conflict management
Organization development activities
- Team building activities (enhances cohesiveness)
- Survey feedback activities (employees engaged)
- Large group interventions (brings together participants from all parts of the organization)
