Management 12e by w griffin ch12

TWELFTH EDITION MANAGEMENT Ricky W Griffin Part Four: The Organizing Process Chapter Twelve: Managing Organization Change and Innovation © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Learning Outcomes Describe the nature of organization change, including forces for change and planned versus reactive change Discuss the steps in organization change and how to manage resistance to change Identify and describe major areas of organization change and discuss the assumptions, techniques, and effectiveness of organization development Describe the innovation process, forms of innovation, failure to innovate, and how organizations can promote innovation © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Nature of Organization Change  Organization change  Forces for change – is any substantive modification to some part of the organization – External forces derive from the organization’s general and task environments – Internal forces (i.e strategy) can cause change • Other internal forces may be a reflection of external forces, such as sociocultural forces © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Nature of Organization Change Planned change Reactive change • • Designed and implemented in an orderly and timely fashion in anticipation of future events A piecemeal response to circumstances as they develop The frequency of organization change reinforces the importance of a planned approach © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Managing Change in Organizations  Steps in the change process – Kurt Lewin provides a model suggesting every change requires three steps: • • • The first step is unfreezing people affected by impending change Next, comes implementation of the change itself Finally, refreezing people involved by reinforcing and supporting the change – Lewin’s model lacks specificity, a more comprehensive model is needed © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Managing Change in Organizations This approach to change takesapproach a systems view and Comprehensive delineates a series of specific steps that often lead to successful change © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Figure 12.1 Steps in the Change Process Managers must understand how and why to implement change © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Understanding Resistance to Change Uncertainty Threatened selfinterests Different perceptions Feelings of loss Managers need to know why people resist change and how to counter resistance © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Overcoming Resistance to Change    Participation is often an effective technique Provide education and communication throughout the change process Facilitate the change process by: – making only necessary changes, – announcing those changes well in advance, and – allowing time for people to adjust © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Figure 12.2 Force-Field Analysis for Plant Closing at General Motors Use this analysis to remove or at least minimize forces of resistance © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 10 Table 12.1 Areas of Organization Change © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 11 Areas of Organization Change  Business process change or reengineering – is a radical redesign of all aspects of a business to achieve major gains in cost, service, or time – Goes beyond ERP  The need for business process change – allows managers to avoid entropy, or system-wide decline © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 12 Figure 12.3 The Reengineering Process Business process reengineering has five steps © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 13 Areas of Organization Change  Organization development (OD) – is a planned, organization-wide effort, managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization’s process, using behavioral science knowledge – Based on the assumptions that: • • • employees desire to grow and develop, they have a need for acceptance, and organization design influences employee behavior © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 14 Organizational Development Techniques       Diagnostic activities  Effectiveness varies Team building Survey feedback Education Intergroup activities      Technostructural activities Process consultation Life and career planning Coaching and counseling Planning and goal setting Third-party peacemaking © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 15 Organizational Innovation The managed effort of anInnovation organization to develop new products or services or new uses for existing products for services Without innovation, organizations fall behind competitors © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 16 Figure 12.4 The Innovation Process © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 17 Forms of Innovation • Radical innovation Incremental Is a new product, service, or technology that completely replaces an existing one • Is a new product, service, or technology that modifies an existing one innovation Radical versus incremental innovations © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 18 Forms of Innovation Technical innovation • Managerial innovation • Is a change in the appearance or Is a change in the management process performance of products or services, or by which products and services are of the physical processes through which conceived, built, and delivered to a product or service passes customers Technical versus managerial innovations © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 19 Forms of Innovation Product innovation • Is a change in the physical characteristics or performance of existing products or services, or the creation of new ones Process innovation • Is a change in the way products or services are manufactured, created, or distributed Product versus process innovations © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 20 Figure 12.5 Effects of Product and Process Innovation on Economic Return © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 21 Failure to Innovate   If a firm lacks resources it may lag behind in innovation If an organization is unskilled in recognizing and evaluating opportunities, they may fail to invest in an innovation  Innovation means giving up old products, which means change – Many resist change, therefore, innovation © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 22 Promoting Innovation in Organizations  Provide financial and nonfinancial rewards   Organization culture should support creative and innovative activities – Avoid punishing workers for innovation Intrapreneurs develop new businesses in the context of a large organization – Successful programs need someone to fill the roles of the inventor, a product champion, and a sponsor © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 23 Summary  Chapter twelve examined the nature of organization change and identified the basic issues of managing change  Major areas of change were identified and described   Organization development was examined – Including business process change The chapter concluded by discussing innovation as a vital form of change © 2017 Cengage Learning All rights reserved May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - 24 ... distributed with a certain product or service or otherwise on a password-protected website for classroom use 12 - Figure 12.1 Steps in the Change Process Managers must understand how and why to implement... scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use... scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use