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Chapter 1: The World of Innovative Management Chapter 2: The Evolution of Management Thinking Chapter 3: The Environment and Corporate Culture Chapter 4: Managing in a Global Environment Chapter 5: Managing Ethics and Social Responsibility Chapter 6: Managing Start-Ups and New Ventures Chapter 7: Planning and Goal Setting Chapter 8: Strategy Formulation and Execution Chapter 9: Managerial Decision Making Chapter 10: Designing Organization Structure Chapter 11: Managing Change and Innovation Chapter 12: Managing Human Resources Chapter 13: Managing Diversity Chapter 14: Understanding Individual Behavior Chapter 15: Leadership Chapter 16: Motivating Employees Chapter 17: Managing Communication Chapter 18: Leading Teams Chapter 19: Managing Quality and Performance Appendix: Managing the Value Chain, Web 2.0, and E-Business
Chapter 11 Managing Change and Innovation © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Introduction If organizations don’t successfully change and innovate, they die © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Innovation and the Changing Workplace The adoption of a new idea or behavior by an organization Change and innovation can come from outside forces Managers want to initiate change from the inside Disruptive innovation is a goal for global competition © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Innovation and the Changing Workplace Change is not easy Ambidextrous approach: Incorporating structures and processes that are appropriate for: Creative impulse and for the systematic implementation Managers encourage flexibility and freedom to innovate © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Changing Things: New Products and Technologies Product change – a change in the organization’s product or service outputs Technology change – a change in the organization’s production process Three innovation strategies: exploration, cooperation, and entrepreneurship © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11.1 Three Innovation Strategies © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11.2 Characteristics of Creative People and Organizations © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11.3 The World’s Most Innovative Companies 2013 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Cooperation Internal coordination Horizontal linkage model – simultaneously contribute to new products and technologies External coordination Includes customers and partners, suppliers Open innovation – commercialization of ideas beyond the organization © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 11.4 Coordination Model for Innovation © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Innovation Roles Managers should support entrepreneurship activities and foster idea champions Energy and effort is required to promote a new idea Sponsors approve and protect ideas when critics challenge the concept © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 12 Innovation Roles New-venture teams give free rein to creativity Skunkworks are informal, autonomous, secretive groups that focus on breakthrough ideas New-venture funds provide resources for new ideas © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 13 Changing People and Culture Changes in how employees think Changes in mind-set People change = Training and development Culture change = Organizational development Large culture change is not easy © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 14 Training and Development Training – Frequently used approach to changing people’s mind-sets Training and development is emphasized for managers Behavior and attitudes will influence people and lead to culture change © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 15 Organizational Development Planned, systematic process of change using behavioral science Addresses three types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 16 OD Activities Team-building activities Survey-feedback activities Large-group interventions OD Steps: • Unfreezing • Changing • Refreezing © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 17 11.5 OD Approaches to Culture Change © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 Implementing Change Need for change Disparity between existing and desired performance levels Understand the resistance to change Self-interest Lack of understanding and trust Uncertainty Different assessments and goals © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 19 Force-Field Analysis Change is a result of the competition between driving and restraining forces Driving forces – problems or opportunities that provide motivation for change Restraining forces – barriers to change © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 20 11.6 Using Force-Field Analysis to Change from Traditional to Just-in-Time Inventory System © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 21 11.7 Tactics for Implementing Change © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 22 [...].. .11. 4 Coordination Model for Innovation © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Innovation Roles Managers should support entrepreneurship activities and foster idea champions Energy... duplicated, or posted to a publicly accessible website, in whole or in part 20 11. 6 Using Force-Field Analysis to Change from Traditional to Just-in-Time Inventory System © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 21 11. 7 Tactics for Implementing Change © 2016 Cengage Learning All Rights Reserved... OD Steps: • Unfreezing • Changing • Refreezing © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 17 11. 5 OD Approaches to Culture Change © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 Implementing... Organizational Development Planned, systematic process of change using behavioral science Addresses three types of problems: Mergers and acquisitions Organizational decline and revitalization Conflict management © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 16 OD Activities Team-building activities ... 10 11. 4 Coordination Model for Innovation © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11. .. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11. 2 Characteristics of Creative People and Organizations © 2016 Cengage Learning All Rights Reserved... scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11. 3 The World’s Most Innovative Companies 2013 © 2016 Cengage Learning All Rights Reserved May