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