1. Management 11e Griffin
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PowerPoint Presentation by Charlie Cook The University of West Alabama
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2. Management 11e Griffin
Describe the nature of organization change, including forces for change and planned versus reactive change.
Discuss the steps in organization change and how to manage resistance to change.
Identify and describe major areas of organization change and discuss the assumptions, techniques, and effectiveness of organization development.
Describe the innovation process, forms of innovation, failure to innovate, and how organizations can promote innovation.
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3. The Nature of Organization Change
Management 11e Griffin
The Nature of Organization Change
Organization Change
Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).
Forces 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.
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4. Planned Versus Reactive Change
Management 11e Griffin
Planned Versus Reactive Change
Planned Change
Is designed and implemented in an orderly and timely fashion in anticipation of future events.
Reactive Change
Is a piecemeal response to events and circumstances as they develop.
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5. Managing Change in Organizations
Management 11e Griffin
Managing Change in Organizations
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.
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6. 13.1 Steps in the Change Process
Management 11e Griffin
13.1 Steps in the Change Process
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7. Management 11e Griffin
Resistance to Change
Uncertainty about the extent and effects of change.
Threats to self-interests and power and influence.
The Change Process
Different perceptions of change effects and outcomes
Fear of loss of social networks, power, security, and familiar procedures.
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8. Resistance to Change (cont’d)
Management 11e Griffin
Resistance to Change (cont’d)
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.
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9. 13.2 Force-field Analysis for Plant Closing at General Motors
Management 11e Griffin
13.2 Force-field Analysis for Plant Closing at General Motors
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
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10. Management 11e Griffin
Management Challenge
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?
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11. Organization Structure and Design Technology and Operations
Management 11e Griffin
13.1 Areas of Organization Change
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
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12. Changing Business Processes
Management 11e Griffin
Changing Business Processes
Reengineering
The radical redesign of all aspects of a business to achieve major gains in cost, service, or time.
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.
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13. Approaches to Business Process Change
Management 11e Griffin
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
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14. 13.3 The Reengineering Process
Management 11e Griffin
13.3 The Reengineering Process
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15. Organization Development (OD)
Management 11e Griffin
Organization Development (OD)
Organization 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 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.
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16. Organization Development Techniques
Management 11e Griffin
Organization Development Techniques
Diagnostic Activities
Team Building
Survey Feedback
Education
Intergroup Activities
Third-Party Peacemaking
Technostructural Activities
Process Consultation
Life and Career Planning
Coaching and Counseling
Planning and Goal Setting
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17. Organizational Innovation
Management 11e Griffin
Organizational Innovation
Innovation
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
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18. 13.4 The Innovation Process
Management 11e Griffin
13.4 The Innovation Process
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.
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19. Forms of Organizational Innovation
Management 11e Griffin
Forms of Organizational Innovation
Radical 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 Innovation
Does not significantly affect competition in an industry.
A new product, service, or technology that modifies an existing one.
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20. Forms of Organizational Innovation (cont’d)
Management 11e Griffin
Forms of Organizational Innovation (cont’d)
Technical 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.
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21. Management Challenge Question
Management 11e Griffin
Management Challenge Question
What challenges would a management team face when implementing technical and managerial innovations in tandem?
How likely is this situation to occur?
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22. Forms of Technical Innovation
Management 11e Griffin
Forms of Technical Innovation
Product 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.
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23. 13.5 Effects of Product and Process Innovation on Economic Return
Management 11e Griffin
13.5 Effects of Product and Process Innovation on Economic Return
High Return
Development
Application
Launch
Growth
Maturity
Decline
Product Innovations
Process Innovations
Effect on Organizational Performance
Low Return
Phases of the Innovation Process
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24. Innovation Reasons for the Failure to Innovate
Management 11e Griffin
Innovation
Reasons for the Failure to Innovate
Lack of resources
Failure to recognize opportunities
Resistance to change
Promoting Innovation in Organizations
Use a reward system
Have a supportive organizational culture
Encourage intrapreneurship in larger organizations
Inventors
Production champions
Sponsors
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