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Leading Change and Innovation Copyright© 2013 Pearson Education Leadership In Organizations 4-1 After studying this chapter, you should be able to: Understand the different reasons for resisting change. Understand the psychological processes involved in making major changes. Understand how to develop an appealing vision for the organization. Copyright© 2013 Pearson Education Leadership In Organizations 4-2 Understand how to implement a major change in an organization. Understand the characteristics of a learning organization. Understand how leaders can increase learning and innovation in organizations. Copyright© 2013 Pearson Education Leadership In Organizations 4-3 Understand the different reasons for resisting change Copyright© 2013 Pearson Education Leadership In Organizations 4-4 No clear justification for change Feasibility of proposed change Unsuccessful earlier change efforts Lacking self-confidence Tangible cost/benefit Individual loss Inconsistency with individual values Lack of trust Copyright© 2013 Pearson Education Leadership In Organizations 4-5 Understand the psychological processes involved in making major changes Copyright© 2013 Pearson Education Leadership In Organizations 4-6 Unfreeze Change Refreeze Copyright© 2013 Pearson Education Leadership In Organizations 4-7 Denial Anger Mourning Adaption Copyright© 2013 Pearson Education Leadership In Organizations 4-8 General Self-Confidence “Inoculation” hypothesis Less resilience hypothesis Copyright© 2013 Pearson Education Leadership In Organizations 4-9 Understand how to develop an appealing vision for the organization Copyright© 2013 Pearson Education Leadership In Organizations 4-10 Qualities of an effective vision Simple and idealistic Appeals to values Emphasizes future objective Challenging Realistic Addresses what is important Focused but not confining Copyright© 2013 Pearson Education Leadership In Organizations 4-11 Mission Statement Value Statement Slogans Strategic Objectives Project Objectives Copyright© 2013 Pearson Education Leadership In Organizations 4-12 Key stakeholders Shared values and ideals Strategic objectives with wide appeal Relevant elements in the old ideology Link vision to core competencies Continually assess and refine the vision Copyright© 2013 Pearson Education Leadership In Organizations 4-13 Understand how to implement a major change in an organization Copyright© 2013 Pearson Education Leadership In Organizations 4-14 Determine what to change Systems Dynamics Responsibility Pace and Sequencing Copyright© 2013 Pearson Education Leadership In Organizations 4-15 Create urgency Communicate vision Identify supporters and opponents Build coalition Use change agents Make symbolic changes Copyright© 2013 Pearson Education Leadership In Organizations 4-16 Prepare people for change Deal with stress Provide early successes Monitor progress Communicate progress Demonstrate optimism Copyright© 2013 Pearson Education Leadership In Organizations 4-17 Understand the characteristics of a learning organization Copyright© 2013 Pearson Education Leadership In Organizations 4-18 Internal creation External acquisition Knowledge Diffusion Learning Organizations Copyright© 2013 Pearson Education Leadership In Organizations 4-19 Understand how leaders can increase learning and innovation in organizations Copyright© 2013 Pearson Education Leadership In Organizations 4-20 Appreciation Learning at various levels Mental models Leverage learning Knowledge sharing Innovation goals Reward entrepreneurial behavior Copyright© 2013 Pearson Education Leadership In Organizations 4-21