Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–10
● Segmented Markets and More Niche Products
o We have “demassification,” with consumer groups becoming segmented into
● Faster Speed-to-Market Requirements
o Competitors offering specialized solutions require firms get their products to
● Traditional Companies Struggle with Radical Change
o Some companies will be unable to survive disruptive innovation.
o It is difficult for an existing successful company to take full advantage of a
Interactive Classroom Material:
EXAMPLE: Radical Change: The Decline of Toys R Us
This Example details the reasons behind Toys R Us going out of business after 70 years. It did
not recognize the strengths of its competitors, did not understand the new online app gaming
● Offshore Suppliers Are Changing the Way We Work
o Globalization and outsourcing are transforming whole industries and changing the
way we work.
o China, India, Mexico, the Philippines, and other countries offer workers and even
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–11
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
o While unquestionably some American jobs are lost, others become more
productive because they can spend more time innovating and dealing with
customers.
● Competitive Advantage through Knowledge
o Knowledge, not information, is becoming the new competitive advantage.
o As information technology does more of the work formerly done by humans,
many lower-level employees previously thought of as knowledge workers are
Types of Change: Reactive versus Proactive
● Reactive change is making changes in response to problems or opportunities as they
arise.
● Proactive change, or planned change, involves making carefully thoughtout changes in
anticipation of possible or expected problems or opportunities.
Interactive Classroom Material:
EXAMPLE: Reactive Change: The BP Gulf of Mexico Blowout
This Example discusses the April 2010 explosion on the BP drilling platform in the Gulf of
SELF-ASSESSMENT 10.1 CAREER READINESS
Assessing Your Attitudes toward Change at Work
This 8-question self-assessment determines student attitudes toward change at their workplace. If
a student is not currently working, a previous job or university experience can be considered.
External Forces for Change
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–12
● External forces for change are outside the organization, and they include: demographics;
technology; shareholder, customer, and market changes; and social and political
pressures.
● Demographic characteristics in the U.S. population and workforce are changing,
becoming more diverse.
● Technology is any machine or process that enables an organization to gain a competitive
advantage in changing materials used to produce a finished product.
● Shareholders have begun to be more active in pressing for organizational change.
o Some shareholders may form a B corporation, or benefit corporation, in which
the company is legally required to adhere to socially beneficial practices, such as
● Social issues and political events can create great pressures for change, such as how the
beverage industry has to respond to consumer concerns about obesity and government-
imposed taxes on sugary drinks.
Interactive Classroom Material:
EXAMPLE: From Ride Sharing to Self-Driving Cars: Uber, Lyft, & the Upending of
Transportation
This Example examines the changes occurring in the transportation industry from transportation
network companies such as Uber and Lyft to self-driving vehicles. The autonomous vehicle
surge hit a dam when an autonomous car killed a pedestrian in Arizona in 2018. The question
remains: How will change effect the transportation industry?
Internal Forces for Change
● Internal forces for change are from within the organization and they include human
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
● Excessive conflict between managers and employees may be another indicator that
change is needed.
Connect® Exercise
CLICK AND DRAG: Forces for Change
Summary of Activity:
10.2 Types & Models of Change
POWERPOINT SLIDES:
#7 Types and Models of Change
#9 Lewin’s Change Model
#10 A Systems Approach to Change
Section 10.2 discusses the three types of change: adaptive, innovative, and radically innovative.
It describes Lewin’s three-stage change model: unfreezing, changing, and refreezing. Finally, it
describes the systems approach to change.
One way that you could begin your coverage of these topics is to have the students read the
Topics and Tips for Discussion:
1. Describe examples of adaptive, innovative, and radically innovative changes that have
been implemented in your company (or a previous one).
Continuing with the restaurant industry example, an adaptive change would be when a
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
10–14
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
the order is placed, behind-the-scenes workers prepare the food, which is then presented
in a cubbyhole with the customer’s name. Students might enjoy watching the 2-minute
CNBC video “Futuristic Restaurant Eatsa Replaces Cashiers with iPads.”
2. Thinking of your current or most recent employer, think of a change that the organization
needs to implement. Describe how you could use Lewin’s change model to effectively
implement the needed change.
When applying Lewin’s change model, the first step is to prepare the workers for the
change by unfreezing their resistance to change. Employees need to be motivated to
3. How can a manager assess the readiness for change of his or her employees? Why is
change readiness important?
Managers could conduct interviews of key stakeholders to ensure that people are ready
Section 10.2 Key Concepts:
Three General Types of Change
● Adaptive Change
o Adaptive change is the reintroduction of a familiar practice.
● Innovative Change
o Innovative change is the introduction of a practice that is new to the organization.
● Radically Innovative Change
o Radically innovative change involves introducing a practice that is new to the
industry.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–15
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
o Because it is the most complex, costly, and uncertain, it will be felt as extremely
threatening to managers’ confidence and employees’ job security.
Lewin’s Change Model
● Social psychologist Kurt Lewin developed a three-stage model shown in Figure 10.2 to
explain how to initiate, manage, and stabilize planned change.
● Unfreezing
o In the unfreezing stage, managers try to instill in employees the motivation to
change, encouraging them to let go of attitudes and behaviors that are resistant to
● Changing
o In the changing stage, employees need to be given the tools for change: new
● Refreezing
o In the refreezing stage, employees need to be helped to integrate the changed
SELF-ASSESSMENT 10.2 CAREER READINESS
What Is Your Readiness for Change?
This 8-question Self-Assessment determines students’ general attitudes toward change at work.
Questions on acceptance of change, improving performance, and changing circumstances are
presented.
Systems Model of Change
● A systems approach to change presupposes that any change, no matter how small, has a
rippling effect throughout an organization.
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–16
● As shown in Figure 10.3, the systems model of change consists of three parts: inputs,
target elements of change, and outputs.
● Inputs
o A systems approach always begins with the question of why change is needed at
all—what the problem is that needs to be solved.
▪ All organizational changes should be consistent with an organization’s
o A second question is, “How willing and able are management and employees to
make the necessary change?”
▪ Readiness for change has four components: (1) how strongly the
company needs the proposed change, (2) how much the top managers
● Target Elements of Change
o The target elements of change represent four levers that managers may use to
diagnose problems and identify solutions.
o The four target elements are people, organizational arrangements, methods, and
social factors.
o Two things are important to realize:
● Outputs
o Outputs represent the desired goals of a change.
● Feedback
o Another aspect of the systems model of change is feedback.
o Not all changes work out well, and organizations need to monitor their success.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
o This is done by comparing the status of an output such as employee or customer
satisfaction before the change to the same measurable output sometime after the
change has been implemented.
Connect® Exercise
CLICK AND DRAG: The Systems Model of Change
Summary of Activity:
In this Click and Drag exercise, students will match the different parts of the systems model of
change with their appropriate definitions/examples.
● Force-Field Analysis
o In most change situations, there are forces acting for and against the change.
10.3 Organizational Development: What It Is, What It Can Do
POWERPOINT SLIDES:
#11 Organizational Development
#12 What Can OD Be Used for?
#13 How OD Works
#15 The Effectiveness of OD
Section 10.3 discusses organizational development, which is a set of techniques for
implementing planned change to make people and organizations more effective. OD is used to
manage conflict, to revitalize organizations, and to adapt to mergers. OD has four steps:
diagnosis, intervention, evaluation, and feedback.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–18
Topics and Tips for Discussion:
1. Thinking of your current employer (or a previous one), describe a specific problem that
the firm could use OD to solve and the steps that would be involved.
Using Lowe’s as an example, one issue the firm has is how to best use its store space. It
must decide how to use promotional areas at the ends of aisles to make the most money.
2. In applying OD principles, why is it often difficult for managers to accurately diagnose
the problem?
3. Describe metrics that can be used to evaluate the effectiveness of a planned change.
Many of the same metrics that can indicate a need for change can be used to evaluate the
Section 10.3 Key Concepts:
Organizational Development
● Organizational development (OD) is a set of techniques for implementing planned
change to make people and organizations more effective.
How OD Works
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–19
● OD managers follow a medical-like model, approaching the organization as if it were a
sick patient, using diagnosis, intervention, and evaluation.
● To diagnose the problem, OD consultants can use questionnaires, surveys, interviews,
meetings, records, and direct observations.
● “Treatment” or intervention is the attempt to correct the diagnosed problems.
o Some OD activities for implementing planned change are: communicating survey
results to employees to engage them in constructive problem solving, observing
● Evaluation determines how well the intervention has worked.
o An OD program should be objectively evaluated to judge results.
● If evaluation shows that the diagnosis was wrong or the intervention was not effective,
managers need to use this feedback to return to the beginning to rethink diagnosis and
intervention stages.
Connect® Exercise
CLICK AND DRAG: The OD Process
Summary of Activity:
In this Click and Drag exercise, students will match fictitious situations with the organizational
development process stage they most accurately describe.
Interactive Classroom Material:
EXAMPLE: Organizational Development: Using OD to Make Money in the Restaurant
Business
This Example profiles Copilot Labs, a restaurant marketing analytics company. The organization
Factors Impacting the Effectiveness of OD
● The use of multiple interventions works better than single interventions.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
● OD success is more likely when top managers support the OD process and are truly
committed to the change process.
● Change programs are more successful when they create both short-term and long-term
results and are not implemented just for the sake of change.
● OD will be more successful if it takes into account cross-cultural considerations—what
works in one country may not work in a similar situation in another country.
10.4 Organizational Innovation
POWERPOINT SLIDES:
#16 Types of Innovation
#17 Focus of the Innovation
#18 Components of an Innovation System
Section 10.4 discusses the promotion of innovation within an organization. Innovation may be a
Topics and Tips for Discussion:
1. Discuss how companies can best learn from failure.
Companies can best learn from failure if they view failure as a way to learn, rather than
2. Discuss the organizational factors that encourage innovation.
There are seven components of an innovation system: (1) innovation strategy; (2)
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–21
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
being more innovative. Next, there must be real commitment from senior leaders. Third,
it cannot have a risk-averse culture. It must also have an organizational structure and
internal processes that foster collaboration, cross-functional communication, and agility.
The next important element is human capital with the employee characteristics that can
help organizations innovate. Next, the company must have human resource policies,
practices, and procedures that are consistent with and reinforce the other components of
an innovation system. Finally, companies must dedicate resources to the development of
innovation.
3. Thinking of your current or most recent employer, describe examples of improvement
and new-direction innovations the organization has implemented in the last few years.
How effectively was the change management process handled for those changes?
Improvement innovations enhance or upgrade an existing product, service, or process.
Section 10.4 Key Concepts:
Types of Innovation (Figure 10.5)
● A product innovation is a change in the appearance or performance of a product or
An Innovation System: The Supporting Forces for Innovation
● An innovation system is a coherent set of interdependent processes and structures that
dictates how the company searches for novel problems and solutions, synthesizes ideas
● Create an Innovation Strategy
o A successful innovation effort requires an innovation strategy by which a
company integrates its innovation activities into its business strategies.
● Commitment from Top Managers
o Strategic goals are unlikely to be achieved without the real commitment of top
managers.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–22
● Foster an Innovative Culture and Climate
o Innovation requires a corporate culture and climate that permits experimentation,
● Required Structure and Processes
o Organizational structure and internal processes can promote innovation if they
● Human Capital
o Human capital is the economic or productive potential of employee knowledge,
experience, and actions.
● Human Resource Policies, Practices, and Procedures
● Appropriate Resources
o If managers want innovation, they must dedicate resources to its development.
o Resources can include people, dollars, time, energy, knowledge, and focus.
SELF-ASSESSMENT 10.3
How Innovative Is the Organizational Climate?
This 12-question self-assessment gauges the innovative climate of students’ workplaces. If
Connect® Exercise
VIDEO CASE: Zenplace Changes the Real Estate Industry
Summary of Activity:
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–23
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Students will first watch a video on how Zenplace is changing the real estate industry using
machine-based realtors. Then they will respond to four multiple-choice questions to measure
comprehension.
Follow-Up Activity:
Instructor should ask students the following questions to spur discussion after students have
viewed the video case:
1. How should major real estate companies like Century21 and Long & Foster react to
Zenplace’s machine-based realtors?
Interactive Classroom Material:
EXAMPLE: IDEO’s Approach to Innovation
This Examples describes IDEO, a leading global design firm known for its creative innovations,
Connect® Exercise
CLICK AND DRAG: Approaches Toward Innovation
Summary of Activity:
In this Click and Drag exercise, students will match the different approaches toward innovation
to their appropriate examples.
Connect® Exercise
CLICK AND DRAG: Components of an Innovation System
Summary of Activity:
10.5 The Threat of Change: Managing Employee Fear &
Resistance
POWERPOINT SLIDES:
#21 The Threat of Change: Managing Employee Fear and Resistance
#22 Ten Reasons Employees Resist Change
Section 10.5 discusses the causes of resistance to change and the reasons employees fear change.
Resistance can be considered to be the interaction of three causes: (1) employee characteristics,
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–25
Becoming more accepting of change starts with being self-aware of how open you are to
change. The Self-Assessments in the chapter can provide insights into your level of
Section 10.5 Key Concepts:
Resistance to Change
● Resistance to change is an emotional/behavioral response to real or imagined threats to
an established work routine.
● Resistance can be as subtle as passive resignation and as overt as deliberate sabotage.
● As shown in Figure 10.7, resistance can be considered to be the interaction of three
causes: (1) employee characteristics, (2) change agent characteristics, and (3) the change
agent–employee relationship.
● Employee Characteristics
● Change Agent Characteristics
o Change agent characteristics are the characteristics of the individual who is a
catalyst in helping the organization change which contribute to employee
● Change Agent-Employee Relationship
o Resistance to change is reduced when change agents and employees have a
SELF-ASSESSMENT 10.4 CAREER READINESS
How Adaptable Are You?
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–26
This 11-question self-assessment determines how adaptable students are. The questions should
be answered based on a current or former job, or university experiences. Questions on stress,
learning new methods, and openness to feedback are presented.
Reasons Employees Resist Change
● Some individuals have a predisposition toward avoiding change, a predisposition which
may link back to events from childhood.
● Surprise and fear of the unknown make employees fearful of the implications of change.
● A climate of mistrust will put even well-conceived changes at risk of failure.
Connect® Exercise
CLICK AND DRAG: Ten Reasons Why People Resist Change
Summary of Activity:
In this Click and Drag exercise, students will match the reasons why people resist change with
their correct examples.
Connect® Exercise
CASE ANALYSIS: Can JCPenney Be Saved?
Summary of Activity:
In this case analysis, students will begin by reading about the issues facing JCPenney and how
the organize needs to change. Then, students will respond to four multiple-choice questions to
measure comprehension.
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–27
Follow-Up Activity:
SELF-ASSESSMENT 10.5 CAREER READINESS
Assessing Your Resistance to Change
This 11-question self-assessment determines students’ resistance to change based on current or
former employment. Questions on stress, pressure, and consistency are presented.
Group Exercise #1: Creating Personal Change through Force-Field Analysis
There is a group exercise available at the end of this manual that provides students with the
opportunity to apply force-field analysis to a behavior or situation they would like to change.
Exercise Objectives:
1. To apply force-field analysis to a behavior or situation you would like to change.
2. To receive feedback on your strategies for bringing about change.
Group Exercise #2: Overcoming Resistance to Change
Exercise Objectives:
2. To examine methods for overcoming resistance to change.
10.6 Career Corner: Managing Your Career Readiness
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
POWERPOINT SLIDES:
#23 Model of Career Readiness
#24 Managing Your Career Readiness
Section 10.6 describes different ways to increase the career readiness competency of openness to
change. Using self-affirmations and practicing self-compassion can foster openness to change.
Kinicki/Williams, Management, 9e: Chapter 10 Organizational Change and Innovation: Lifelong Challenges for the
Exceptional Manager
10–29
• Self-affirmation theory — defined as positive statements “that can help you focus on
goals, get rid of negative, self-defeating beliefs and program your subconscious mind”
• Self-compassion — gentleness with yourself
Connect® Exercise
CLICK AND DRAG: Becoming More Open to Change
Summary of Activity:
In this Click and Drag exercise, students will match ways to becoming more open to change
with their appropriate examples.
Career Corner Group Exercise: The Power of Self-Affirmation
Exercise Objective:
Students will enhance their openness to change by exploring the power of self-affirmation.
CAREER
READINESS
CAREER
READINESS