Scribd
Upload
78 views28 pages

Chapter 7 - Managing Change & Disruptive Innovation

Uploaded by

saadman.tariq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
78 views28 pages

Chapter 7 - Managing Change & Disruptive Innovation

Uploaded by

saadman.tariq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 28

Managing Change and

Disruptive Innovation

1
The Case for Change
 Organizational change: any alteration of
people, structure, or technology in an
organization
 Change agent: someone who acts as a
catalyst and assumes the responsibility for
managing the change process
 V U C A: volatility, uncertainty, complexity, and
ambiguity
 In today’s world, change is the only constant

 Managers must deal with that reality


External Forces for Change
Consumer needs and wants
New governmental laws
Technology
The economy
Internal Forces for Change
 New organizational strategy
 Composition of workforce
 New equipment
 Employee attitudes
Calm Waters Versus White-Water
Rapids Metaphors
 Calmwaters metaphor:
Unfreezing the status quo

Changing to a new state

Refreezing to make the change permanent


Exhibit 7.2 The Three-Step Change
Process

Exhibit 7.2 illustrates Kurt Lewin’s three-step change process.

Copyright © 2021 Pearson Education Ltd.


White-Water Rapids Metaphor
 White-water rapids metaphor:
the lack of environmental stability and
predictability requires that managers
and organizations continually adapt
and manage change actively to
survive.
Areas of Change
Managers focus on four main areas of
change
1.Strategy: Modifying the approach to success
2.Structure: Modifying structure or design
3.Technology: Modifying processes or equipment
4.People: Modifying attitudes, expectations, and
other individual or group beliefs or behavior
Exhibit 7.3 Four Types of Change

Exhibit 7.3 shows the four main areas of change managers face.

Copyright © 2021 Pearson Education Ltd.


Types of Change: Strategy
 Failure to change strategy when circumstances
dictate could undermine a company’s success.

 Competition can dictate a change in strategy.

 Organizations that don’t recognize a need to


change strategy may not survive in the long run.
Types of Change: Structure
 Changing structural components
 Changing structural design
Types of Change: Technology
 New equipment, tools, or methods
 Automation
 Computerization

Types of Change: People


 Organizational development:
change methods that focus on people
and the nature and quality of
interpersonal work relationships
Why Do People Resist Change?
 Uncertainty
 Habit
 Fear of loss
 Belief change is inconsistent with goals of
organization
Techniques for Reducing Resistance
to Change
 Education and communication
 Participation
 Facilitation and support
 Negotiation
 Manipulation and co-optation
 Coercion
Changing an Organization’s
Culture
 The fact that an organization’s culture is made up
of relatively stable and permanent characteristics
tends to make it very resistant to change.

 However, cultures can be changed even if the


process is difficult.
Understanding the Situational
Factors
Conditions that facilitate change:
dramatic crisis occurs

leadership changes hands

organization is young and small

culture is weak
Employee Stress
 Stress:the adverse reaction people have
to excessive pressure placed on them
from extraordinary demands, constraints,
or opportunities
 Stressors: factors that cause stress
What Causes Stress?
 Task demands
 Role demands
Role conflicts

Role overload

Role ambiguity

 Interpersonal demands
 Organization structure
 Organizational leadership
Personal Factors
 TypeA personality: people who have a
chronic sense of urgency and an
excessive competitive drive

 Type B personality: people who are


relaxed and easygoing and accept change
easily
How Can Stress Be Reduced?
 Realisticjob preview during selection process
 Performance planning program, e.g. M B O
 Job redesign
 Addressing personal stress
counseling

time management programs

wellness programs
Creativity Versus Innovation
 Creativity: the ability to combine ideas in a unique
way or to make unusual associations between ideas
 Innovation: taking creative ideas and turning them
into useful products or work methods
Stimulating & Nurturing
Innovation
 An environment that stimulates
innovation includes three variables:
the organization’s structure, culture,
and human resource practices.
Stimulating Innovation
 Innovation is the foundation of many of the
world’s most successful organizations.
 The top five innovative firms are Apple, Netflix,
Square, Tencent, and Amazon.
 So, how do managers stimulate innovation? The
following slides highlight a few approaches.
Disruptive Innovation Definition
 Disruptive innovation: innovations in products, services,
or processes that radically change an industry’s rules of
the game
 Sustaining innovation: small and incremental changes in
established products rather than dramatic breakthroughs
Why Disruptive Innovation Is
Important
 Disruptiveinnovations are a threat to
many established businesses, and
responding with sustaining innovations
isn’t enough.
Who’s Vulnerable?
 Large,established, and highly profitable organizations
are most vulnerable to disruptive innovations because
they have the most to lose and are most vested in
their current markets and technologies.
Implications
 For entrepreneurs
 For corporate managers
Skunk works: a small group within a

large organization, given a high degree of


autonomy and unhampered by corporate
bureaucracy, whose mission is to develop
a project primarily for the sake of radical
innovation
 For career planning
Thank you


28

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy