MGMT Chapter 10

Kotter's Eight Steps

1. Establish a sense of urgency 2. Create the guiding coalition 3. Develop a vision and a strategy 4. Communicate the change vision 5. Empower broad-based action 6. Generate short-term wins 7. Consolidate gains and produce more change 8. Anchor new approaches in the culture

Four Steps for Fostering Innovation

1. Recognize problems and opportunities and devise solutions 2. Gain allies by communicatingyour vision 3. Overcome employee resistance, and empower and reward them to achieve progress 4. Execute well by effectively managing people, groups, and organizational processes and systems in the pursuit of innovation

Change Agent

A consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways

Disruptive Innovation

A process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors

At the Big Peaches Department Store, employees generally know that during annual inventory, they are required to work overnight shifts. This is an example of _____ change. A. Adaptive B. Reactive C. Innovative D. Proactive

A. Adaptive

Three Kinds of Change

Adaptive change, innovative change, radically innovative change

Resistance to Change

An emotional/behavioral response to real or imagined threats to an established work routine

Technology

Any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product, not just computer technology

Fred, an OD consultant, is designing a survey of employee attitudes to be given to workers at the Lemon Automobile Company. Fred is in the ____ stage of OD. A. Intervention B. Diagnosis C. Evaluation D. Process Consultation

B. Diagnosis

Wendy's created display screens at its drive-thru windows that show customers their orders and prices. This is an example of a _____ innovation. A. Product B. Process C. Adaptive D. Reactive

B. Process

Production Innovation

Change in the appearance or performance of a product or the creation of a new one

Process Innovation

Change in the way a product is conceived, manufactured, or disseminated

Unfreezing

Create the motivation to change

Forces for Change: Outside the Organization

Demographic characteristics, technological advancement, shareholder, customer and market changes, social and political pressures

The OD Process

Diagnosis, Intervention, Evaluation

Model of Resistance to Change

Employee characteristics, resistance to change, change agent characteristics/change agent-employee relationship

Seeds of Innovation

Hard work in a specific direction, hard work with direction change, curiosity, wealth and money, necessity, combination of seeds

Evaluation

How well has the intervention worked?

Forces for Change: Inside the Organization

Human resource concerns, managers' behavior

Two Myths about Innovation

Innovation happens in a "Eureka!" moment, innovation can be systematized

Proactive Change

Involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities, also called planned change

Adaptive Change

Least threatening, reintroduction of a familiar practice

Reactive Change

Making changes in response to problems or opportunities as they arise

OD's Uses

Managing conflict, revitalizing organizations, adapting to mergers

The Effectiveness of OD

Multiple interventions, management support, goals geared to both short and long term results, OD is affected by culture

Changing

New information, models and procedures

Organizational Development

Set of techniques for implementing planned change to make people and organizations more effective

Innovative Change

Somewhat threatening, introduction of a practice that is new to the organization

Refreezing

Support and reinforce the change

Transformational Innovations

The invention of breakthrough products or services that don't exist yet and that are aimed at creating brand new markets and customers

Core Innovations

The optimizing of products or services for existing customers

Lewin's Change Model

Unfreezing, changing, refreezing

Radically Innovative Change

Very threatening, involves introducing a practice that is new to the industry

Diagnosis

What is the problem?

Intervention

What shall we do about it?, an attempt to correct the diagnosed problem