1. Innovation and Adaptability
Chapter 6
Innovation and Adaptability
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Learning Outcomes:
Understand the importance of building an innovative and adaptable organization.
Describe the forces that create the need for change, innovation, and adaptability.
Compare and contrast views of the change process.
Classify types of organizational change.
Describe techniques for stimulating innovation and adaptability.
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3. Why Build an Adaptable Organization?
Successful Organizations:
are not only efficient and effective. They are adaptable rather than simply flexible.
recognize new problems, identify the potential impact of these problems, and offer solutions
are proactive rather than reactive
Learning Outcome 1: Understand the importance of building an innovative and adaptable organization.
Successful organizations are not only efficient and effective. They are adaptable rather than simply flexible.
They create a culture within their organizations that enables them to continuously recognize new problems, identify the potential impact of these problems, and offer solutions in advance of the impacts on their organizations or to their customers. They create a culture of adaptability through the development of a set of skills and processes that allows their organization to be proactive rather than just reactive.
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Adaptability
Wicked Problem
A problem that is impossible to solve because each attempt to create a solution changes the understanding of the problem.
Learning Outcome 1: Understand the importance of building an innovative and adaptable organization.
wicked problem A problem that is impossible to solve because each attempt to create a solution changes the understanding of the problem.
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Forces for Change
External Forces
The Marketplace
Governmental laws and regulations
Technology
Labour markets
Economic changes
Learning Outcome 2: Describe the forces that create the need for change, innovation, and adaptability.
External forces that create the need for change come from various sources.
1. The marketplace
2. Government laws and regulations
3. Technology
4. Labour markets
Economic changes
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Forces for Change
Internal Forces
Changes in organizational strategy
workforce changes
cultural changes
employee commitment
Learning Outcome 2: Describe the forces that create the need for change, innovation, and adaptability.
Internal forces tend to originate primarily from the internal operations of the organization or from the impact of external changes.
Changes in strategy - workforce changes - cultural changes - employee commitment
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7. Two Views of the Change Process
The Calm Waters Metaphor
Lewin: a break in the organization’s equilibrium state
Unfreezing the status quo
Changing to a new state
Refreezing to make the change permanent
Learning Outcome 3: Compare and contrast views of the change process.
Two very different metaphors can be used to describe the change process.
The calm waters metaphor characterizes the process of change as being like a ship crossing a calm sea. It’s best illustrated by Lewin’s three-step process for change (see Exhibit 6-1).
a. Unfreezing the equilibrium is the first step. This can be accomplished in one of three ways.
1) Increasing driving forces, which direct behaviour away from the status quo.
2) Decreasing restraining forces, which hinder movement from the existing equilibrium.
3) Combining the two approaches.
b. The next step is to implement the change itself.
The final step is to refreeze the situation.
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8. Exhibit 6-1 The Change Process
Learning Outcome 3: Compare and contrast views of the change process.
Up until the late 1980s, the calm waters metaphor was pretty descriptive of the situation that managers faced. It’s best illustrated by Kurt Lewin’s three-step description of the change process (see Exhibit 6-1).
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9. Two Views of the Change Process
White-Water Rapids Metaphor
The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.
Learning Outcome 3: Compare and contrast views of the change process.
The white-water rapids metaphor describes change that takes place in uncertain and dynamic environments.
If we put the two views in perspective, we must note that not every manager faces a world of constant and chaotic change. However, the number of managers who don’t face this type of environment is dwindling fast!
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10. What Is Organizational Change
Any alterations of people, structure, or technology of an organization.
Change Agent:
Learning Outcome 4: Classify types of organizational change.
Someone who acts as a catalyst and assumes the responsibility for managing the change process.
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11. Managing Organizational Change
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities
Learning Outcome 4: Classify types of organizational change.
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12. Exhibit 6-2 Three Categories of Change
Learning Outcome 4: Classify types of organizational change.
The manager’s options for change essentially fall into three categories: structure, technology, and people (see Exhibit 6-2).
1. Changing Structure
a. Managers can alter one or more of the structural components such as work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.
b. Changing Structure—the design of the organizational structure can be changed to meet new demands.
2. Changing Technology.
a. Competitive factors or new innovations often require introduction of new equipment, tools, or operating methods.
b. Automation is a technological change that replaces certain tasks done by people with machines.
c. Computerization has probably been the most visible technological change in recent years.
3. Changing People. Attitudes, expectations, perceptions, and behaviours.
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13. Exhibit 6-3 Organizational Development Techniques
Learning Outcome 4: Classify types of organizational change.
Organizational Development (OD): focuses on techniques or programs to change people and the nature and quality of interpersonal work relationships.
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14. Managing Resistance to Change
Global Organizational Development
managers need to recognize that although there may be some similarities in the types of OD techniques used, some techniques that work for North American organizations may not be appropriate for organizations or organizational divisions based in other countries.
Learning Outcome 4: Classify types of organizational change.
Resistance to change is well documented.
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15. Managing Resistance to Change
Organizations can build up inertia that motivates people to resist changing their status quo, even though change might be beneficial.
Learning Outcome 4: Classify types of organizational change.
Resistance to change is well documented.
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16. Managing Resistance to Change
Why People Resist Change
ambiguity and uncertainty
comfort of old habits
concern over fear of personal loss regarding: status, money, authority, friendships, and personal convenience
perception that change is incompatible with the goals and interests of the organization
Learning Outcome 4: Classify types of organizational change.
Resistance to change is well documented.
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17. Exhibit 6-4 Helping Employees Accept Change
Learning Outcome 4: Classify types of organizational change.
Resistance will be lower if managers involve people in the change, offer training where needed, and are open to revisions once the changes have been implemented.
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18. Stimulating Innovation & Adaptability
Creativity: Innovation:
The ability to combine ideas in a unique way or to make an unusual association.
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Innovation is important to organizational success in the marketplace.
A. There is a difference between creativity and innovation.
1. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas.
2. Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation.
3. Entrepreneurship is the act of turning an innovation into a viable venture.
Turning the outcomes of the creative process into useful products, services, or work methods.
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19. Stimulating Innovation & Adaptability
Identifying change and disruptive innovation and making appropriate changes in advance of the impact of these changes; referred to as “being proactive.”
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Innovation is important to organizational success in the marketplace.
A. There is a difference between creativity and innovation.
1. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas.
2. Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation.
3. Entrepreneurship is the act of turning an innovation into a viable venture.
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20. Exhibit 6-5 Systems View of Innovation and Adaptability
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
We see from Exhibit 6-5 that getting the desired outputs (innovative products) involves both the inputs and the transformation of those inputs. Inputs include creative individuals and groups within the organization.
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21. Exhibit 6-6 Innovation Variables
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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22. Stimulating Innovation & Adaptability
Structural Variables:
Adopt an organic structure
Make available plentiful resources
Engage in frequent inter-unit communication
Minimize extreme time pressures on creative activities
Provide explicit support for creativity
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
How can managers foster innovation? By using the systems model, we can see how to foster innovation (see Exhibit 6-5). Three sets of variables have been found to stimulate innovation: structural variables, cultural variables, and human resources variables (see Exhibit 6-6).
1. Structural Variables. Structural variables can be summarized as follows:
a. Organic structures positively influence innovation.
b. The easy availability of organizational resources provides a critical building block for innovation.
c. Frequent interunit communication helps break down barriers to innovation.
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23. Stimulating Innovation & Adaptability
Cultural Variables:
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an open-system focus
Provide positive feedback
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Cultural variables show that an innovative culture is likely to be characterized by the following:
a. Acceptance of ambiguity
b. Tolerance of the impractical
c. Low external controls
d. Tolerance of risk
e. Tolerance of conflict
f. Focus on ends rather than means
g. Open-system focus
h. Positive feedback
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24. Stimulating Innovation & Adaptability
Human Resource Variables:
Actively promote training and development to keep employees’ skills current.
Offer high job security to encourage risk taking.
Encourage individuals to be “champions” of change.
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Human resources variables are indicative of the important role that people play in innovative organizations.
a. Innovative organizations actively promote the training and development of their employees so their knowledge remains current.
b. Innovative organizations offer employees high job security.
c. Innovative organizations encourage individuals to become idea champions—individuals who actively and enthusiastically support a new idea, build support, overcome resistance, and ensure that the innovation is implemented.
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25. Stimulating Innovation & Adaptability
Idea Champions:
Individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Innovation is important to organizational success in the marketplace.
A. There is a difference between creativity and innovation.
1. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas.
2. Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation.
3. Entrepreneurship is the act of turning an innovation into a viable venture.
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26. Stimulating Innovation & Adaptability
Adaptive Organizations
Employees continually acquire and share new knowledge and apply that knowledge in making decisions or doing their work.
Employees throughout the entire organization—across different functional specialties and even at different organizational levels—must share information and collaborate on work activities
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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27. Stimulating Innovation & Adaptability
Changing Organizational Culture Today’s change issues—changing organizational culture, handling employee stress, and making change happen successfully—are critical concerns for managers.
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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28. Stimulating Innovation & Adaptability
Understanding the Situational Factors:
Cultures are naturally resistant to change
Conditions that help cultural change:
Dramatic crisis
Change of leadership
Young, flexible, and small organization
Weak organizational culture
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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29. How Can Cultural Change Be Accomplished
Stimulating Innovation & Adaptability
How Can Cultural Change Be Accomplished
Unfreeze the current culture
Implement new “ways of doing things”
Reinforce the new values
Not a “quick fix”
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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30. Exhibit 6-7 Mistakes Managers Make When Leading Change
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
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31. Characteristics of Adaptive Organizations
Making Change Happen Successfully:
focus on making the organization ready for change
managers need to understand their own role in the process
managers need to encourage employees to be change agents
Learning Outcome 5: Describe techniques for stimulating innovation and adaptability.
Copyright © 2016 Pearson Canada Inc.