Chapter 7 - Management
Reactive Change
A piecemeal response to circumstances as they develop
Organizational Change
Any substantive modification to some part of the organization
How to overcome resistance to change?
Encourage active participation in the change process, provide education and communication about the change process, facilitate the change process by making only necessary changes, announcing changes in advance, and allowing time to adapt to change
Promoting innovation in an organization
The reward system, organization culture, intrapreneurship in larger organizations
Why people resist change?
Uncertainty, threatened self-interests, different perceptions of change effects and outcomes, feeling of loss in disrupted social networks, power, security, and familiarity with existing procedures
Reasons of change (internal)
Cause the organization to change its structure and strategy
Planned Change
Change that is designed and implemented in an orderly and timely fashion in anticipation of future events
Product Innovation
Changes in physical characteristics/performance of existing products or services
Process Innovation
Changes in the way products or services are manufactured, created, or distributed
Reasons of change (External)
Come from the organization's general and task environment
The Lewin Model (Unfreezing)
Individuals must be shown why the change is necessary
The Lewin Model (Refreezing)
Involves reinforcing and supporting the change so that it becomes an integral part of the system
Reasons for failing to innovate
Lack of resources failure to recognize opportunities, resistance to change
Radical Innovation
New products/services that completely replace the existing ones
Incremental Innovation
New products/services that modify the existing ones
Steps in the change process
Recognition of the need for change, establishment of goals for the change, diagnosis of relevant variables, selection of appropriate change technique, planning for implementation of the change, actual implementation, evaluation and follow-up
Intrapreneurs
Similar to entrepreneurs except that they develop new businesses in the context of a larger organization
The Lewin Model (Implementation)
The change itself is implemented