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Management 12e richard draft chapter 11

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Chapter 1: The World of Innovative Management Chapter 2: The Evolution of Management Thinking Chapter 3: The Environment and Corporate Culture Chapter 4: Managing in a Global Environment Chapter 5: Managing Ethics and Social Responsibility Chapter 6: Managing Start-Ups and New Ventures Chapter 7: Planning and Goal Setting Chapter 8: Strategy Formulation and Execution Chapter 9: Managerial Decision Making Chapter 10: Designing Organization Structure Chapter 11: Managing Change and Innovation Chapter 12: Managing Human Resources Chapter 13: Managing Diversity Chapter 14: Understanding Individual Behavior Chapter 15: Leadership Chapter 16: Motivating Employees Chapter 17: Managing Communication Chapter 18: Leading Teams Chapter 19: Managing Quality and Performance Appendix: Managing the Value Chain, Web 2.0, and E-Business

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© 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 11Managing Change and Innovation

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 If organizations don’t successfully change and

innovate, they die

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© 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Innovation and the Changing

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Innovation and the Changing

Workplace

 Change is not easy

Ambidextrous approach: Incorporating

structures and processes that are appropriate

for:

 Creative impulse and for the systematic

implementation

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Changing Things: New

Products and Technologies

Product change – a change in the

organization’s product or service outputs

Technology change – a change in the

organization’s production process

Three innovation strategies: exploration,

cooperation, and entrepreneurship

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11.1 Three Innovation

Strategies

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Exploration

Creativity – novel ideas that meet perceived

needs or offer opportunities

Idea incubator – a safe harbor where

employees can develop ideas without

interference from company bureaucracy or

politics

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11.2 Characteristics of Creative

People and Organizations

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11.3 The World’s Most

Innovative Companies 2013

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 Internal coordination

Horizontal linkage model – simultaneously

contribute to new products and technologies

 External coordination

 Includes customers and partners, suppliers

Open innovation – commercialization of ideas

beyond the organization

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11.4 Coordination Model for

Innovation

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Innovation Roles

 Managers should support entrepreneurship

activities and foster idea champions

 Energy and effort is required to promote a new

idea

Sponsors approve and protect ideas when

critics challenge the concept

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Innovation Roles

New-venture teams give free rein to creativity

Skunkworks are informal, autonomous,

secretive groups that focus on breakthrough

ideas

New-venture funds provide resources for new

ideas

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Changing People and Culture

 Changes in how employees think

 Changes in mind-set

People change = Training and development

Culture change = Organizational development

Large culture change is not easy

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Training and Development

 Training – Frequently used approach to

changing people’s mind-sets

 Training and development is emphasized for

managers

 Behavior and attitudes will influence people and

lead to culture change

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Organizational Development

 Planned, systematic process of change using

behavioral science

 Addresses three types of problems:

 Mergers and acquisitions

 Organizational decline and revitalization

 Conflict management

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11.5 OD Approaches to Culture Change

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Implementing Change

Need for change

 Disparity between existing and desired

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Force-Field Analysis

Change is a result of the competition between

driving and restraining forces

Driving forces – problems or opportunities that

provide motivation for change

Restraining forces – barriers to change

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11.6 Using Force-Field Analysis to Change

from Traditional to Just-in-Time Inventory

System

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11.7 Tactics for Implementing

Change

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