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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