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PowerPoint Presentation by Charlie Cook The University of West Alabama © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,

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Presentation on theme: "PowerPoint Presentation by Charlie Cook The University of West Alabama © 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,"— Presentation transcript:

1 PowerPoint Presentation by Charlie Cook The University of West Alabama © 2013 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.

2 Learning Objectives 1.Describe the nature of organization change, including forces for change and planned versus reactive change. 2.Discuss the steps in organization change and how to manage resistance to change. 3.Identify and describe major areas of organization change and discuss the assumptions, techniques, and effectiveness of organization development. 4.Describe the innovation process, forms of innovation, failure to innovate, and how organizations can promote innovation. © 2013 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. 13–2

3 The Nature of Organization Change Organization ChangeOrganization Change  Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees). Forces for ChangeForces for Change  External forces in the general and task environments can force the organization to alter the way it competes.  Internal forces inside the organization cause it to change its structure and strategy; some internal forces are responses to external pressures. © 2013 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. 13–3

4 Planned Versus Reactive Change Planned ChangePlanned Change  Is designed and implemented in an orderly and timely fashion in anticipation of future events. Reactive ChangeReactive Change  Is a piecemeal response to events and circumstances as they develop. © 2013 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. 13–4

5 Managing Change in Organizations Steps in the Change Process (The Lewin Model)Steps in the Change Process (The Lewin Model)  Unfreezing  Individuals must be shown why the change is necessary.  Implementing change  The change itself is implemented  Refreezing  Involves reinforcing and supporting the change so that it becomes a permanent part of the system. © 2013 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. 13–5

6 © 2013 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. 13– Steps in the Change Process

7 Resistance to Change Threats to self-interests and power and influence. Uncertainty about the extent and effects of change. The Change Process Fear of loss of social networks, power, security, and familiar procedures. Different perceptions of change effects and outcomes © 2013 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. 13–7

8 Resistance to Change (cont’d) Techniques for overcoming resistance:Techniques for overcoming resistance:  Encourage active participation in change process.  Provide education and communication about change process.  Facilitate change process by:  Making only necessary changes  Announcing changes in advance  Allowing time to adapt to change. © 2013 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. 13–8

9 Outmoded production facilities Excess capacity Need to cut costs Reasons for Closing Possible future needs Concern about worker welfare Resistance from unions Plant closing Reasons Against Closing © 2013 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. 13– Force-field Analysis for Plant Closing at General Motors

10 Management Challenge Local governments typically encounter strong resistance from public employees when they attempt to privatize public services.Local governments typically encounter strong resistance from public employees when they attempt to privatize public services.  What advice could you offer a local government that would help in overcoming its employees’ resistance to change? © 2013 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. 13–10

11 Organization Structure and Design Technology and Operations People Job design Departmentalization Reporting relationships Authority distribution Coordination mechanisms Line-staff structure Overall design Culture Human resource management Information technology Equipment Work processes Work sequences Control systems Enterprise resource planning (ERP) Abilities and skills Performance Perceptions Expectations Attitudes Values © 2013 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. 13– Areas of Organization Change

12 © 2013 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. 13–12 Changing Business Processes ReengineeringReengineering  The radical redesign of all aspects of a business to achieve major gains in cost, service, or time. Why Is Reengineering Necessary?Why Is Reengineering Necessary?  Entropy occurs as the maintenance of status quo puts an organization out of synch with its environment, and it starts consuming its own resources.

13 Approaches to Business Process Change Starting with a clean slate to open up the process Using a blend of top-down and bottom-up involvement Recognizing need for change and acting on it with a sense of urgency Reengineering Approaches © 2013 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. 13–13

14 © 2013 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. 13– The Reengineering Process

15 Organization Development (OD) Organization DevelopmentOrganization Development  A planned, organization-wide effort, managed from the top, that is intended to increase organizational effectiveness and health through interventions in its processes using behavioral science knowledge. OD AssumptionsOD Assumptions  Employees desire to grow and develop.  Employees have a strong need to be accepted.  Individuals will influence the organization and the organization will influence individuals. © 2013 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. 13–15

16 Organization Development Techniques Diagnostic ActivitiesDiagnostic Activities Team BuildingTeam Building Survey FeedbackSurvey Feedback EducationEducation Intergroup ActivitiesIntergroup Activities Third-Party PeacemakingThird-Party Peacemaking Technostructural ActivitiesTechnostructural Activities Process ConsultationProcess Consultation Life and Career PlanningLife and Career Planning Coaching and CounselingCoaching and Counseling Planning and Goal SettingPlanning and Goal Setting 13–16 © 2013 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.

17 Organizational Innovation InnovationInnovation  The managed effort of an organization to develop new products or services or new uses for existing products or services. 13–17 © 2013 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. Incremental Innovation Managerial Innovation Process Innovation Forms of Innovation Radical Innovation Technical Innovation Product Innovation

18 Development Evaluate, modify, and improve on a creative idea. Decline Demand for innovation decreases, and substitute innovations are developed and applied. Application Use developed idea in design, manufacturing, or delivery of new products, services, or processes. Launch Introduce new products or services to the marketplace. Growth Demand for new products or services grows. Maturity Most competing organizations have access to the idea. © 2013 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. 13– The Innovation Process

19 Forms of Organizational Innovation Radical InnovationRadical Innovation  Fundamentally changes the nature of competition in an industry.  A new product, service, or technology developed by an organization that completely replaces the existing product, service, or technology in an industry. Incremental InnovationIncremental Innovation  Does not significantly affect competition in an industry.  A new product, service, or technology that modifies an existing one. © 2013 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. 13–19

20 Forms of Organizational Innovation (cont’d) Technical Versus Managerial InnovationsTechnical Versus Managerial Innovations  Technical innovations  Change the physical appearance or performance of a product or service, or the physical processes through which a product or service is manufactured.  Managerial innovations  Change the management processes by which products and services are conceived, built, and delivered to customers. 13–20 © 2013 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.

21 Management Challenge Question What challenges would a management team face when implementing technical and managerial innovations in tandem?What challenges would a management team face when implementing technical and managerial innovations in tandem? How likely is this situation to occur?How likely is this situation to occur? © 2013 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. 13–21

22 Forms of Technical Innovation Product Versus Process InnovationsProduct Versus Process Innovations  Product innovation  A change in the physical characteristics or performance of existing products or service or the creation of brand-new products or services.  Process innovation  A change in the way a product or service is manufactured, created, or distributed. 13–22 © 2013 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.

23 DevelopmentLaunchApplication Phases of the Innovation Process Growth Effect on Organizational Performance High Return Low Return MaturityDecline Product Innovations Process Innovations © 2013 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. 13– Effects of Product and Process Innovation on Economic Return

24 Innovation Reasons for the Failure to InnovateReasons for the Failure to Innovate  Lack of resources  Failure to recognize opportunities  Resistance to change Promoting Innovation in OrganizationsPromoting Innovation in Organizations  Use a reward system  Have a supportive organizational culture  Encourage intrapreneurship in larger organizations  Inventors  Production champions  Sponsors © 2013 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. 13–24


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