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Lecture Exploring management - Chapter 9: Organizational cultures, innovation, and change

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After reading this chapter, you should be able to answer the following questions: What is the nature of organizational culture? How do organizations support and achieve innovation? How do manages lead the processes of organizational change?

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Organizational Culture

* Organizational culture is the personality of the organization

* Organizational culture shapes behavior and influences performance

- The observable culture is what you see and hear as an employee or customer

- The core culture is found in the underlying values of the organization

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Strong Cultures

Organizational culture shapes behavior and influences performance

- Strong cultures are clear, well defined and

widely shared among members _

- Socialization helps new e 9 <2

members learn the ®

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ORGANIZATIONAL CULTURE

Observable Culture

* Observable culture is what you see and

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ORGANIZATIONAL CULTURE

Values

Values based management works hard to make sure the core values show

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Workplace Spirituality

‘ Workplace spirituality involves creating meaning and community for employees

- Common elements are meaningful work, respect for diversity, work life balance and ethical behavior

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9.2

Innovation

* Organizations pursue process, product and business model innovations

* Green Innovations pursue and support the

goals of sustainability

* Social innovations seek solutions to important

societal problems

* Commercializing innovation turns new Ideas Into stable products

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Innovation

Commercializing Innovation

- Reverse innovation

— takes products created for small or emerging markets and moves them into larger

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Leading Change

* Organizations pursue both

transformational and incremental changes - Three phases of planned change are

unfreezing, changing and refreezing - Managers use force-coercion, rational

persuasion, and shared power change Strategies

- Change leaders identify and deal

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Types of Change

Change leaders

— Leaders who take responsibility for change

¢ Confident of ability ¢ Threatened by change

¢ Willing to take risks ¢ Bothered by uncertainty ¢ Seize opportunity ¢ Prefer predictability * Expect surprise ¢ Support the status quo ¢ Make things happen ¢ Wait for things to

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Organizational Change

Types of Change

Transformational change

— Results In major and comprehensive redirection of the organization

Incremental change

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Change Process

“rt Lewin

This is done by: scribed

¢ Establishing a good relationship with the people involved ¢ Helping others realize that present behaviors are not effective

e Minimizing expressed resistance to change ) a l8 g e d S a

ree part

This is done by: OceSS

¢ Identifying new, more effective ways of behaving

¢ Choosing changes in tasks, people, culture, technology, structures ¢ Taking action to put these changes into place PHASE 1 Unfreezing PHASE 2 Changing

This is done by:

¢ Creating acceptance and continuity for the new behaviors ¢ Providing any necessary resource support

¢ Using performance-contingent rewards and positive reinforcement

PHASE

3

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Organizational Change Strategies for leading change ~ Vict Punishments Likely Results Faster, but low commitment and only temporary compliance Direct forcing and unilateral action Political maneuvering and indirect action Informational efforts using credible knowledge,

demonstrated facts, and logical argument

Participative efforts

to share power and involve

others in planning and

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Organizational Change

Change leaders identify and deal

positively with resistance to change

— Positive tactics

- Education and communication - Participation and involvement

- Facilitation and support

- Negotiation and agreement

— Negative resistance tactics

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9.3

Organizational Change

* Why people resist change

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