Management Chapter 8 Homework Irs Example Service Innovation Technology Change

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CHAPTER 8

MANAGING CHANGE AND INNOVATION

CHAPTER OUTLINE

Are You Ready to Be a Manager?

I. Innovation and the Changing Workplace

II. Changing Things: New Products and Technologies

A. Exploration

B. Cooperation

C. Entrepreneurship

III. Changing People and Culture

IV. Implementing Change

A. Need for Change

B. Resistance to Change

C. Force-Field Analysis

D. Implementation Tactics

ANNOTATED LEARNING OBJECTIVES

After studying this chapter, students should be able to:

1. Define organizational change and explain the forces driving innovation and change in

today’s organizations.

Organizational change is defined as the adoption of a new idea or behavior by an organization.

2. Identify the three innovation strategies managers implement for changing products and

technologies.

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3. Explain the value of creativity, idea incubators, horizontal linkages, open innovation, idea

champions, and new-venture teams for innovation.

Creativity is the development of novel solutions to perceived problems. Creative individuals

develop ideas that can be adopted by the organization. If creative conditions are successful, new

ideas will be generated that must be carried forward for acceptance and implementation.

4. Discuss why changes in people and culture are critical to any change process.

Changes in people and culture pertain to how employees think. These changes involve the

5. Define organization development (OD) and large-group interventions.

Organization development (OD) is a planned, systematic process of change that uses behavioral

science knowledge and techniques to improve an organization’s health and effectiveness through

6. Explain the OD stages of unfreezing, changing, and refreezing.

Unfreezing means that people throughout the organization are made aware of problems and the

need for change. This stage creates the motivation for people to change their attitudes and

7. Identify sources of resistance to change.

Employees appear to resist change for several reasons, and understanding them helps managers

implement change more effectively. Due to self-interest, employees typically resist a change

8. Explain force-field analysis and other implementation tactics that can be used to overcome

resistance.

Force-field analysis suggests that change is a result of the competition between driving and

restraining forces. Driving forces can be thought of as problems or opportunities that provide

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LECTURE OUTLINE

INTRODUCTION

Even though it revolutionized the music industry, Apple has competition on the horizon.

Spotify, the European streaming music service, recently landed at Number 15 on Fast

Company’s list of “World’s Most Innovative Companies 2010”. Spotify’s entry into the United

States has been slowed due to complex negotiations with music industry executives, but

Are You Ready to Be a Manager?

This questionnaire helps students understand their propensity for change and innovation.

I. INNOVATION AND THE CHANGING WORKPLACE

INSTRUCTOR’S NOTES_________________________________________________________

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______________________________________________________________________________

____________________________________

Organizational change is defined as the adoption of a new idea or behavior by an organization.

Sometimes change and innovation are spurred by forces outside the organization; other times,

managers within the company want to initiate major changes. Disruptive innovation refers to

II. CHANGING THINGS: NEW PRODUCTS AND TECHNOLOGIES

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

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Introducing new products and technologies is a vital area for innovation. A product change is a

change in the organization’s product or service outputs. Product and service innovation is the

primary way in which organizations adapt to changes in markets, technology, and competition.

Exhibit 8.1: Three Innovative Strategies for New Products and Technologies

A. Exploration

1. Exploration involves designing the organization to encourage creativity and the

initiation of new ideas.

2. Creativity is the generation of novel ideas that might meet perceived needs or

respond to opportunities for the organization.

a. Creative people are known for originality, curiosity, open-mindedness, a focused

approach to problem solving, persistence, a relaxed and playful attitude, and

3. An idea incubator provides a safe harbor where ideas from employees throughout

the company can be developed without interference from company bureaucracy or

politics.

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New Manager Self-Test: Are You Innovative?

Personal innovativeness reflects the awareness of the need to innovate and a readiness to try new

Exhibit 8.2: Characteristics of Creative People and Organizations

Spotlight on Skills: West Paw Design

One of West Paw Design’s hot new dog toys might have been dreamed up in the accounting

department. That’s because once a year everyone in the company spends an afternoon designing

Exhibit 8.3: The World’s Most Innovative Companies 2010

B. Cooperation

1. Internal Coordination

a. Companies that successfully innovate usually have the following characteristics:

(1) People in marketing have a good understanding of customer needs;

b. In the horizontal linkage model, people from several departments meet

frequently in teams and task forces to share ideas and solve problems.

c. This model is increasingly important in today’s high-pressure business

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Exhibit 8.4: Coordination Model for Innovation

Benchmarking: Twitter’s Jack Dorsey

Jack Dorsey got his first computer at eight years of age and immediately started designing his

own maps graphic program. As a teenager, he developed his own outlook on the precise city

grid and how it worked. When he got a job as a programmer at Odeo, a San Francisco-based

2. External Coordination

a. Organizations also look outside their boundaries to find and develop new ideas.

b. Some organizations build formal strategic partnerships such as alliances and joint

ventures to improve innovation success.

C. Entrepreneurship

1. Creating mechanisms to make sure new ideas are carried forward, accepted, and

Exhibit 8.5: Four Roles in Organizational Change

2. Successful innovation involves interplay of different people:

a. The inventor comes up with the new idea and understands its technical value.

b. The champion believes in the idea, confronts the organizational realities of costs

3. Entrepreneurship is often facilitated through a new-venture team, which is a unit

4. A skunkworks is a variation of a new-venture team in which a separate small,

5. A new-venture fund provides resources from which individuals and groups can draw

to develop new ideas, products, or businesses.

New Manager Self-Test: Taking Charge of Change

An important part of a new manager’s job is to facilitate improvements through innovation and

III. CHANGING PEOPLE AND CULTURE

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INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

__________________________________________________

Changes in people and culture pertain to how employees think. People change pertains to just a

few employees, such as sending a handful of managers to a training course to improve their

management skills. Culture change pertains to the organization as a whole, such as shifting the

basic mind-set from an organizational focus on rules and policies to an organizational focus on

doing whatever is necessary to satisfy customers.

A. Training and Development

1. To change the organization’s mind-set, a company may offer training programs on

2. Leading companies want to provide training and development opportunities for

B. Organization Development

1. Organization development (OD) is a planned, systematic process of change that

2. OD helps manager’s address three types of current problems.

a. Mergers and acquisitions. The disappointing financial results of many mergers

b. Organizational decline and revitalization. Organizations undergoing a period of

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decline and revitalization experience a variety of problems such as low level of

Discussion Question #9: Do the underlying values of organizational development differ from

assumptions associated with other types of change? Discuss.

3. OD Activities

a. Team-building activities enhance the cohesiveness and success of organizational

groups and teams.

b. Survey-feedback activities begin with an employee questionnaire asking about

Exhibit 8.6: OD Approaches to Culture Change

4. OD Steps

a. Unfreezing. Participants must be made aware of problems and be willing to

change. An outside expert called a change agent, an OD specialist, performs a

systematic diagnosis of the organization to identify work-related problems.

Discussion Question #10: How do large-group interventions differ from OD techniques such as

team-building and survey feedback?