MAN 3025 Chapter 7

OD techniques

- diagnostic activities - team building - survey feedback - education - intergroup activities - third-party peacemaking - technostructural activities - process consultation - life and career planning - coaching & conseling - planning & goal setting

three reasons organizations fail to innovate

- lack of resources - failure to recognize opportunities - resistance to change

techniques for overcoming resistance to change

- participation - education & communication - facilitation - force-field analysis

technostructural activities (OD technique)

concerned with the design of the organization, technology of the organization, & the interrelationship of design & technology with people on the job

diagnostic activities (OD technique)

managers use questionnaires, surveys, interviews, archival data, & meetings to assess various characteristics of the organization

radical innovations

new products, services, or technologies that completely replaces an existing one

incremental innovations

new products, services, or technologies that modify an existing one

application growth

period of high economic performance for an organization because demand for the product or service is often greater than supply

coaching & counseling (OD technique)

provide non evaluative feedback to individuals; help people develop a better sense of how others see them & learn behaviors that will assist others in achieving their work-related goals; focus on how person can perform better in the future

business process change (reengineering)

radical redesign of all aspects of a business to achieve major gains in cost, service, or time

intrapreneurs

similar to entrepreneurs except that they develop new businesses in the context of a large organization

types of change

planned & reactive

third-party peacemaking (OD technique)

used when substantial conflict exists within the organization; uses a variety of mediation or negotiation techniques to resolve any problems or conflicts among individuals or groups

OD assumptions

- employees have a desire to grow & develop - employees have a strong need to be accepted by others within the organization - the total organization & the way it is designed will influence the way individuals & groups within the organization behave

forms of innovation

- radical vs incremental - technical vs managerial - product vs process

three ways to promote innovation

- reward system - organizational culture - intrapreneurship

three general areas that most change fit in

- structure & design - technology & operations - people

reasons for resistance to change

- uncertainty - threatened self-interests - different perceptions - feelings of loss

approaches to business process change (reengineering)

1. develop goals & a strategy 2. emphasize top management's commitment to the reengineering effort 3. create a sense of urgency among members of the organization 4. start with a clean slate; in effect, re-create the organization 5. optimize top-down & bottom-up perspectives

innovation process

1. developing 2. applying 3. launching 4. growing 5. maturity 6. decline

steps in a comprehensive approach to change

1. recognizing the need for change 2. establishment of goals for the change 3. diagnosis of relevant variables 4. selection of appropriate change technique 5. planning for implementation of the change 6. actual implementation 7. evaluation & follow-up

innovation development

involves the evaluation, modification, & improvement of creative ideas; can transform a product or service with only modest potential into a product or service with significant potential

the Lewin Model

Kurt Lewin; suggested that every change requires three steps 1. unfreezing: individuals who will be affected by the impending change must be led to recognize why the change is necessary 2. the change itself is implemented 3. refreezing: involved reinforcing & supporting the change so that it becomes a part of the system

process consultation (OD technique)

OD consultant observes groups in the organization to develop an understanding of their communication patterns, decision-making & leadership processes, & methods of cooperation & conflict resolution; feedback is provided to involved parties about what was observed; goal of this is to improve the observed processes

enterprise resource planning (ERP)

a larger-scale information system for integrating & synchronizing the many activities in the extended enterprise

reactive change

a piecemeal response to circumstances as they develop - potential for poorly conceived & executed change is increased because reactive change may be hurried

organizational development (OD)

a planned effort that is organization-wide, & managed from the top, intended to increase organizational effectiveness & health through planned interventions in the organization's process, using behavioral science knowledge

changing technology & operations

adoption & institution of information technology innovations, change in equipment (may cause a change in work processes or activities), change in work sequence, installing & using complex & integrated software systems

need for business process change

all systems and organizations are subject to entropy (a normal process leading to system decline)

organization change

any substantive modification to some part of the organization

survey feedback (OD technique)

change behavior of supervisors by showing them how their subordinates view them. after feedback is provided, meetings & workshops may happen to evaluate results & suggest constructive changes

planned change

change that is designed & implemented in an orderly & timely fashion in anticipation of future events - almost always preferable to reactive change

changing people, attitudes, & behaviors

change the skill level of its workforce & perceptions & expectations

changing organization structure & design

change the way it designs its jobs, its bases of departmentalization, coordination mechanisms, line-and-staff configurations, & overall design

managerial innovations

changes in the management process by which products & services are conceived, built, & delivered to customers

technical innovations

changes in the physical appearance or performance of a product or service, or of the physical processes through which a product or service is manufactured

product innovations

changes in the physical characteristics or performance of existing products or services or the creation of brand-new products or services

process innovations

changes in the way products or services are manufactured, created, or distributed

innovation

critical form of organization change; managed effort of an organization to develop new products or services or new products uses for existing products or services

external forces for change

derive from the organization's general & task environments

forces of change

external and internal

intergroup activities (OD technique)

focus on improving the relationships between two or more groups; designed to promote cooperation or resolve conflicts that arose as a result of interdependence

life & career planning (OD technique)

helps employees formulas their personal goals & evaluate strategies for integration their goals with the goals of the organization; activities may include specification of training needs & plotting a career map

team building (OD technique)

intended to enhance the effectiveness & satisfaction of individuals who work in groups/teams & to promote overall group effectiveness

why do organizations find change necessary?

something relevant to the organization either has changed or is likely to change in the foreseeable future

application launch

stage at which an organization introduces new products/services to the marketplace

innovation maturity

stage at which most organizations in an industry have access to an innovation & are applying it in approximately the same way

innovation decline

stage during which demand for an innovation decreases & substitute innovations are developed & applied

innovation application

stage in which an organization takes a developed idea & uses it in the design, manufacturing, or delivery of new products, services, or processes; point at which innovation emerges from the lab & is transformed into tangible goods/services

comprehensive approach to change

takes a systems view & delineates a series of specific steps that often lead to successful change

education (OD technique)

teach people to be more considerate & understanding of the people they work with