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Chapter 10

by: Stephanie De Angelis

Chapter 10 MGT 250

Stephanie De Angelis

GPA 3.1

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Chapter 10 Notes
Managerial and Organizational Concepts
Professor Bhandari
Class Notes
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This 6 page Class Notes was uploaded by Stephanie De Angelis on Tuesday March 29, 2016. The Class Notes belongs to MGT 250 at Pace University - New York taught by Professor Bhandari in Winter 2016. Since its upload, it has received 13 views. For similar materials see Managerial and Organizational Concepts in Business, management at Pace University - New York.

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Date Created: 03/29/16
Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager Vocabulary Adaptive Change: reintroduction of a familiar practice 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 Core Innovations: the optimizing of products or services for existing customers Creativity: the act of developing new and imaginative ideas into reality 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 Innovative Change: the introduction of a practice that is new to the organization  Intervention: the attempt to correct the diagnosed problems Invention: creating or making up something new Organizational Development: a set of techniques for implementing planned change to make  people and organizations more effective Proactive Change: (planned change) involves making carefully thought­out changes in  anticipation of possible or expected problems or opportunities Process Innovation: a change in the way a product or service is conceived, manufactured, or  disseminated Product Innovation: a change in the appearance of the performance of a product or a service or  the creation of a new one Radically Innovative Change: introducing a practice that is new to the industry Reactive Change: making changes in response to problems or opportunities as they arise Resistance to Change: an emotional/behavioral response to real or imagined threats to an  established work routine Seeds of Innovation: the starting point for organizational innovation Technology: not just computer technology; it is any machine or process that enables an  organization to gain a competitive advantage in changing materials used to produce a finished  product 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 Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager 10.1 The Nature of Change in Organizations Fundamental Change: What Will You Be Called on to Deal With? o Supertrends shaping the future of business  The marketplace is becoming more segmented & moving toward more  niche products  More competitors are offering targeted products, requiring faster speed­to­ market  Some traditional companies may not survive radical change  China, India & other offshore suppliers are changing the way we work  Knowledge, not information, is becoming the new competitive advantage Two Types of Change: Reactive versus Proactive o As a manager, you typically have to deal with two types of change  Reactive change: responding to unanticipated problems & opportunities  Proactive change: managing anticipated problems & opportunities The Forces Change: Outside & Inside the Organization  Forces Originating Outside the Organization o Demographic characteristics o Technological advancements o Shareholder, customer, & market changes o Social & political pressures  Forces Originating Inside the Organization o Human resources concerns o Managers’ behavior Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager 10.2 Types & Models of Change Three Kinds of Change: From Least Threatening to Most Threatening  Least Threatening: adaptive change—“we’ve seen stuff like this before”  Somewhat threatening: innovative change—“this is something new for this  company”  Very threatening: radically innovative change—“this is a brand­new thing in our  industry” Lewin’s Change Model: Unfreezing, Changing, & Refreezing  “Unfreezing”: Creating the Motivation to Change  “Changing”: Learning New Ways of Doing Things   “Refreezing”: Making the New Ways Normal Kotter’s Eight Steps for Leading Organizational Change  Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager 10.3 Organizational Development: What It is, What It Can Do What Can OD Be Used For? o OD can be used to address the following three matters: o Managing Conflict o Revitalizing organizations o Adapting to mergers  How OD works 1. Diagnosis: What Is the Problem? 2. Intervention: What Shall We Do about It? 3. Evaluation: How Well Has the Intervention Worked? The Effectiveness of OD Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager o Research has found that OD is most apt to be successful under the following  circumstances o Multiple interventions o Management support o Goals geared to both short­ & long­term results o OD is affected by culture 10.4 Promoting Innovation within the Organization  How Does Failure Impede Innovation? o Many people don’t believe you learn from failure but Lafley Two Myths about Innovation  Myth No. 1: Innovation Happens in a “Eureka!” Moment  Myth No. 2: Innovation Can Be Systematized The Seeds of Innovation: Starting Point for Experimentation & Inventiveness 1. Hard work in a specific direction 2. Hard work with direction change 3. Curiosity 4. Wealth and money 5. Necessity 6. Combination of seeds Types of Innovation: Product or Process, Core or Transformations o Innovations may be of the following two types o Product versus process innovations o Core versus transformation innovations Celebrating Failure: Cultural & Other Factors Encouraging Innovation o For ways to providing innovation is by o Culture: Is innovation viewed as a benefit or a boondoggle? o Human capital: are the right kind of people available? o Resources: do managers put money where their mouths are? o Rewards: is experimentation reinforced in ways that matter? How You Can Foster Innovation: Four Steps 1. Recognize Problems & Opportunities & Devise Solutions a. Recognizing a problem – find a “better way” b. Recognizing an opportunity 2. Gain allies by communication your vision a. Showing how the product or service will be made b. Showing how potential customers will be reached c. Demonstrating how you’ll beat your competitors  d. Explaining when the innovation will take place 3. Overcome employee resistance & empower & reward them to achieve progress 4. Execute well Chapter 10 : Organizational Change & Innovation Lifelong Challenges for the Exceptional Manager 10.5 The Threat of Change: Managing Employee Fear & Resistance  The Causes of Resistance to Change 1. Employee characteristics 2. Change agent characteristics 3. Change agent­employee relationship The Reasons Employees Resist Change 1. Individual’s predisposition toward change 2. Surprise & fear of the unknown 3. Climate of mistrust 4. Fear of failure 5. Loss of status or job security 6. Peer pressure 7. Disruption of cultural traditions or group relationships 8. Personality conflicts 9. Lack of tact or poor timing 10.Nonreinforcing reward systems


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