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