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Chapter 11 Change and Innovation Innovation and Change in the Workplace • If organizations don’t successfully change and innovate, they die • Change and innovation can come from outside forces • Managers want to initiate change from the inside • Disruptive innovation is a goal for global competition Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4 11.1 Three Innovation Strategies Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 16 OD Activities • Team-building activities OD Steps: -enhance cohesiveness: cross • Unfreezing depmt teams • Changing • Refreezing • Survey-feedback activities -ask about values, climate, leadership, group cohesion; after complete consultant meet employees to discuss feedback Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17 OD Activities • Large-group interventions -large participants ;stakeholders inside & outside -discuss problems or opportunities Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 18 OD STEPS OD Steps: • Unfreezing Diagnosing problem Make people aware of problems & need for change; present performance, use change agent • Changing Individuals experiment new behavior, teach new behavior, skills, guide • Refreezing People have incorporate new values;institutionalized in culture, attitudes, orgz giver reward Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 19 Implementing Change • Outline the Need for Change – Show the performance gap • Understand the Resistance to Change – Self-Interest – Lack of Understanding and Trust – Uncertainty – Different Assessments and Goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 21 11.8 Tactics for Overcoming Resistance to Change Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 23