1. PowerPoint Presentation by Charlie Cook The University of West Alabama Student Version © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Management : Principles and Practices Griffin 18

2. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–2 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  Internal forces Types of ChangeTypes of Change  Planned Change  Reactive Change

3. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–3 Managing Change in Organizations Steps in the Change Process (Lewin Model)Steps in the Change Process (Lewin Model)  Unfreezing  Implementing change  Refreezing

4. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–4 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

5. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–5 Reengineering in Organizations 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 Approaches to Reengineering

6. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–6 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 it’s 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.

7. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–7 Organizational Innovation InnovationInnovation  The managed effort of an organization to develop new products or services or new uses for existing products or services. Incremental Innovation Managerial Innovation Process Innovation Forms of Innovation Radical Innovation Technical Innovation Product Innovation

8. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–8 Innovation Reasons for Failing to InnovateReasons for Failing 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

9. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.18–9 Key Terms organization changeorganization change planned changeplanned change reactive changereactive change enterprise resource planningenterprise resource planning business process change (reengineering)business process change (reengineering) organization development (OD)organization development (OD) innovationinnovation incremental innovationincremental innovation technical innovationtechnical innovation managerial innovationmanagerial innovation product innovationproduct innovation process innovationprocess innovation intrapreneurshipintrapreneurship intrapreneursintrapreneurs