Organizational Change and Development

Chapter 10: Organizational Change & Innovation

• Organizational change is a fundamental aspect of exceptional management, impacting all aspects of the organization.
• Change can be reactive (in response to unexpected events) or proactive (anticipating and managing future events).
• Forces for change can stem from both internal (e.g., managerial behavior) and external sources (e.g., demographics).
• Change can be adaptive, innovative or radically innovative, from least threatening to most threatening.
• Lewin's change model (unfreezing, changing, refreezing) outlines a three-stage process for managing change within an organization.

Learning Objectives

• Understand organizational change and its implications for managers.
• Differentiate between reactive and proactive organizational change.
• Identify forces inside and outside the organization driving change.
• Describe three forms of change: adaptive, innovative, and radically innovative.
• Examine Lewin's change model, outlining "unfreezing," "changing," and "refreezing".
• Explore the systems approach to change.
• Explain the purpose of organizational development (OD), its process (diagnosis, intervention, evaluation, and feedback).
• Describe approaches to and components of an innovation system.
• Recognize ways managers can help employees overcome fear of change.
• Increase understanding about the career readiness competency of openness to change.

Creativity at Work

• Creativity involves generating novel ideas.
• Proactive learning, positive approach, problem solving, and self-motivation are key elements for creativity in the workplace.

Nature of Change in Organizations

• The marketplace is increasingly segmented, pushing towards niche products and speed-to-market.
• Traditional companies might not survive radical changes.
• Offshore suppliers are altering work processes.
• Knowledge (instead of information) is becoming a critical competitive advantage.

Two Types of Change

• Reactive change involves responding (often quickly) to unanticipated crises and problems.
• Proactive Change manages anticipated problems and opportunities, frequently anticipating future challenges.

Forces for Change

• External forces (demographics, technology, shareholders, social and political pressures) drive organizational changes.
• Internal forces (human resources concerns, managerial behavior, internal conflicts) also affect organizational changes.

Forms and Models of Change

• Adaptive change involves modifications to existing practices that people find somewhat familiar.

• Innovative change introduces new practices or business models for an organization in which employees are unfamiliarized.

• Radically innovative change introduces new practices or business models for an organization that are wholly new to the industry and employees.

• Lewin's model (unfreezing, changing, refreezing) outlines a three-step to manage change within an organization.

• A systems approach to change requires understanding the organization as a system with inputs, target elements, and outputs, all intertwined within a feedback loop.

Organizational Development (OD)

• OD is a process used to improve an organization's effectiveness and performance with a focus on employee well-being.
• The OD process involves four stages.

Innovation System

• Innovation is a key part of any successful organizational approach encompassing various methodologies to improve products and services.

• A robust innovation strategy, leadership support, and an appropriate organizational structure/processes are central to fostering innovation.

• Human Resource policies and practices directly affect the creation and implementation of a successful innovative system.

Employee Fear and Resistance to Change

• Resistance to change arises from several factors including: employee characteristics, change agent characteristics, and the relationship between the employee and change agent. Some of these factors include individual's tendency toward change, surprise, mistrust, fear of failure, loss of status or job security, peer pressure, disruption of cultural norms, personality conflicts, lack of timing, and non-reinforcing reward systems.

Career Readiness Competencies

• Career readiness competency models are used to define the skills and knowledge needed for career success.
• These might include knowledge, skills, attitudes, and other characteristics, such as task-based/functional knowledge, critical thinking, communication, Teamwork and collaboration, and leadership, etc.

Managing Career Readiness

• Applying self-affirmation theory, which assumes an innate need to maintain a positive self-view, is crucial in dealing with change.
• Practicing self-compassion involves self-kindness, reminding oneself that one is not alone, and mindfulness meditation can aid in overcoming change challenges.