management and organisation lecture slides (nus)
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MNO1001XManagement and Organisation
Lecture 617 February 2014
Ng Boon Yuen
NUS Business School
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Organisational Change andInnovation
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Outline! Organisational Change! Organisational Innovation
! References:! Chapter 10 (p.306-329)
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Organisational Change
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Organisational Change! Organisations that do not adapt to
change will eventually decline
!Collins five stages of decline:! Stage 1 - Hubris Born of Success! Stage 2 - Undisciplined Pursuit of More! Stage 3 - Denial of Risk and Peril! Stage 4 - Grasping for Salvation! Stage 5 - Capitulation to Irrelevance or
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Two Types of Change! Reactive change
! Making changes in response to problems oropportunities as they arise
! Proactive change! Making carefully thought-out changes in
anticipation of possible or expectedproblems or opportunities
!Also called planned change
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Forces for Change
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TextbookFigure 10.1
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Areas in Which Change is
Needed! Changing people
! Perceptions, attitudes, performance, skills!
Changing technology! Changing structure! Changing strategy
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Resistance to Change! Emotional/behavioural response to real
or imagined threats to an establishedwork routine
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TextbookFigure 10.2
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Why Employees Resist Change! Individuals predisposition toward
change
!Surprise and fear of the unknown
! Climate of mistrust! Fear of failure! Loss of status or job security
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Why Employees Resist Change! Peer pressure! Disruption of cultural traditions or group
relationships! Personality conflicts! Lack of tact or poor timing! Non-reinforcing reward system
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Lewins Change Model
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Unfreezing RefreezingChanging
Creating the motivation
to change
Learning new ways
of doing things
Making the new ways
normal
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Kotters Eight Steps Leading
Organisational Change
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Unfreezing
Changing
Refreezing
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Organisational Development
(OD)! Set of techniques for implementing
planned change to make people andorganisations more effective
! Used to address the following:! Managing conflict! Revitalising organisations!Adapting to mergers
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The OD Process
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Textbook Figure 10.3
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Organisation Innovation
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Innovation! Creating new ideas and converting
them into useful applications
! Innovation funnel Not all ideasbecome successful new products
Raw ideas SubmittedIdeas
SmallProjects
MajorDevelopments Launches
SuccessfulNew Product
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Product vs Process Innovation! Product innovation
! Change in appearance or performance of aproduct/service or creation of a new one
! Output of an organisation! Process innovation
! Change in the way a product/service isconceived, manufactured or disseminated
! Improving the efficiency of production, orthe way an organisation conducts itsbusiness
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Incremental vs Radical
Innovation! Incremental innovation
! Creation of products/services/technologiesthat modify existing ones
! Radical innovation! Creation of products/services/technologies
that replace existing ones
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Technology Life Cycle! Technology innovations typically follow
a predictable pattern
Time/Effort
Performance
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Disruptive Technology! New technology that displaces an
established technology
! Breakthrough technology that changesthe rules of competition within an
industry
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Encouraging Innovation in
Organisations! Organisational culture
! Celebrate failure to foster innovation!
Resources! Provide appropriate resources for R&D
! Reward system! Reward R&D! Do not punish when results fail
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Steps to Foster Innovation
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TextbookFigure 10.4
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What We Have Learnt! Organisational change
! The need for organisational change! Resistance to change! How to manage change! Organisational development (OD)
! Organisational innovation! Types of innovation! Encouraging innovation in organisations
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Next Lecture! Supervising Employees Individual
Differences and Behaviour
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Questions?