9

1. MANAGEMENT
RICHARD L. DAFT

2. Managing Change and
Innovation
CHAPTER 10

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• Define organizational change and explain the forces driving innovation
and change in today’s organization.
• Identify the three innovation strategies managers implement for
changing products and technologies.
• Explain the value of creativity, idea incubators, horizontal linkages, open
innovation, idea champions, and new-venture teams for innovation.
• Discuss why changes in people and culture are critical to any change
process.
• Define organizational development (OD) and large group interventions.
• Explain the OD stages of unfreezing, changing, and refreezing.
• Identify sources of resistance to change.
• Explain force-field analysis and other implementation tactics that can be
used to overcome resistance.
Learning Outcomes

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Innovation and the
Changing Workplace
• In today’s dynamic environment, managing change
and innovation is key
• Organizations must embrace many types of
change
• Today’s successful companies are continually
innovating
• Organizational change requires the adoption of
new ideas and/or behavior
• Many organizations struggle with changing
successfully…..

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Changing Things: New
Products and Technologies
There are three critical innovation strategies for
changing products and technologies.
Exploration is where ideas for new products and technologies are born.
Cooperation guides internal and external coordination.
Entrepreneurship is the culture of generating and pushing forward new ideas.

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Ambidextrous Change
Incorporating structures and processes
that are appropriate for both the creative
impulse and for the systematic
implementation of innovations.

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Characteristics of Creative
People an Organizations

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The World’s Most
Innovative Companies

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Coordination Model for
Innovation
Horizontal linkage model – an approach to product
change that emphasizes shared development of
innovations among several departments.

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Four Roles in
Organizational Change
New Venture Team – separate team responsible for
developing and initiating innovations
Skunkworks – separate, small, informal group that focuses
on breakthrough ideas

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Changing People and
Culture
• Training and Development
• Organization Development (OD)
• Three challenges requiring
OD Development
– Mergers/acquisitions
– Organizational decline/
revitalization
– Conflict Management
• Organizational Development activities may include
team-building, surveys, or large-group interventions

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OD Approaches to
Culture Change

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Organizational
Development Steps
1. Unfreezing. Expose the problem
and the need for change.
2. Changing. Experiment with new
behaviors and learn new skills.
3. Refreezing. Acquire new attitudes
and values with organizational
reward.

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Implementing Change
• Need for Change. Many people are not willing
to change. Managers must recognize the need
and make others aware.
• Resistance to Change. Getting others to
understand the need for change is the first step.
– Self-interest
– Lack of Understanding and Trust
– Uncertainty
– Different Assessment and Goals

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Force-Field Analysis
• Change was a result of the competition between
driving and restraining forces.
• Driving forces are the problems and
opportunities that provide motivation to change.
• Restraining forces are the various barriers to
change.
• Managers should recognize the driving force
and the restraining forces.
• As barriers are reduced, behavior will shift.

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Tactics for Overcoming
Resistance to Change
Communication, education
Participation
Negotiation
Coercion
Top Management Support