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Individuals must be shown why the change is necessary.
The change itself is implemented
Involves reinforcing and supporting the change so that it becomes a permanent part of the system.
Steps in the Change Process Figure 13.1 A Comprehensive Approach to Change Establishment of goals for the change Recognition of the need for change Evaluation and follow-up Diagnosis of relevant variables Planning for implementation of the change Selection of appropriate change technique Actual implementation
Force-Field Analysis for a Plant Closing at Chrysler
Figure 13.2 Outmoded production facilities Excess capacity Need to cut costs Reasons for Closing Possible future needs Concern about worker welfare Resistance from unions Plant closing Reasons Against Closing
Areas of Organization Change Organization Structure and Design Job design Departmentalization Reporting relationships Authority distribution Coordination mechanisms Line-staff structure Overall design Culture Human resource management Technology and Operations Information technologies Equipment Work processes Work sequences Control systems People Abilities and skills Performance Perceptions Expectations Attitudes & Values
Figure 13.3 Emphasize top management’s commitment to the reengineering effort Develop goals and a strategy for reengineering effort Create a sense of urgency among members of the organization Start with a clean slate; in effect, re-create the organization Optimize top-down and bottom-up perspectives
A planned, organization-wide effort, managed from the top, that is intended to increase organizational effectiveness and health through interventions in the organization’s processes using behavioral science knowledge.
Employees desire to grow and develop.
Employees have a strong need to be accepted by others within the organization.
Individuals will influence the organization and the organization will influence the attitudes, perceptions, behaviors, and expectations of individuals.
The managed effort of an organization to develop new products or services or new uses for existing products or services.
The Innovation Process
Figure 13.4 Development Organization evaluates, modifies, and improves on a creative idea. Decline Demand for an innovation decreases, and substitute innovations are developed and applied. Application Organization uses developed idea in design, manufacturing, or delivery of new products, services, or processes. Launch Organization introduces new products or services to the marketplace. Growth Demand for new products or services grows. Maturity Most competing organizations have access to the idea.
A change in the physical characteristics or performance of existing products or service or the creation of brand-new products or services.
A change in the way a product or service is manufactured, created, or distributed.
Effects of Product and Process Innovation on Economic Return Develop- ment Phases of the innovation process High return Low return Application Launch Growth Maturity Decline Product innovations Process innovations Effect on organizational performance