MAN 3025 - Module 7 Notes

Supertrends that are Shaping the Future of Business

1. The marketplace is becoming more segmented

   1. Making more customized and personalized messages and products for consumers

2. Competitors offering specialized solutions require us to get out products to market faster

   1. Able to produce and deliver more good in less time = key competitive advantage

3. Some companies are unable to survive disruptive innovation

4. Offshore suppliers are changing the way we work

5. Knowledge, not information, is becoming the new competitive advantage

   1. AI is being implemented into use for knowledge workers (people who use AI)

6. The employment landscape is shifting

   1. More people work from home

Reactive Change

making changes in response to problems or opportunities as they arise

Proactive Change

planned; making carefully thought-out changes in anticipation of possible or expected problems or opportunities

Forces that show that Change is Needed Inside and Outside of the Organization

OUTSIDE:

1. Demographic Characteristics

   1. Growing younger population

2. Technological Advancements

   1. AI

3. Shareholder, Customer, & Broader Stakeholder Concerns

   1. Calling more for socially beneficial practices (Consumer and employee benefits)

4. Social & Political Pressures

INSIDE:

1. Human Resource Concerns

   1. Ask the question, “Is there a gap between employee needs and desires?”

2. Managers’ Behavior

   1. “Is there excessive conflict between managers and employees

Adaptive Change

reintroduction of a familiar practice; the implementation of form of change that has already been experienced within the same organization

• Easiest to implement successfully

• Least threatening to employees

Innovative Change

the introduction of a practice that is new to the organization

• Moderately difficult to implement

• Somewhat threatening to employees - bc it’s less familiar

Radically Innovative Change

introduces practice that is new to the industry

• Very difficult to implement

• Highly threatening to employees

Lewin’s Model of Change

1. Unfreezing = managers try to encourage employees to let go of attitudes and behaviors that are resistant to innovation

2. Changing = employees are given tools for change )new perspective, information, models of behavior)

3. Refreezing = try too integrate the new change back into the normal ways of doing things; managers can encourage employees to exhibit the new change to reinforce it

System Approach

a set of interrelated parts that operate together to achieve a common purpose

(1) Inputs - why should we change? (mission & vision statement, strategic plan)

(2) Target Elements of Change - which levels van we pull to produce change (people, roles, structure, job design, social factors)

(3) Outputs - what do we want from the change (change in the organization, group, or individual)

Readiness for Change

the beliefs, attitudes, and intentions of the organization’s staff regarding the extent of changes needed and how willing and able they are to implement them

Four Elements of Change 

People - their knowledge, ability, attitudes, motivation, and behavior

Organizational Arrangements - such as policies and procedures, roles, structure, rewards, and physical setting

Methods - processes, workflow, job design, and technology

Social Factors - culture, group processes, interpersonal interactions, communication, and leadership

• Any change will affect the entire organization

Force-Field Analysis

a technique to determine which forces could facilitate a proposed change and which forces could act against it

1. Identify thrusters (positive forces) and counterthrusters (negative forces)

   1. Remove the most important negative forces and increase positive forces

Organizational Development (OD)

a set of techniques for implementing planned change to make people and organizations more effective

• focuses specifically on people in the changes process

Change Agent

a consultant with a behavioral sciences background who can visualize new solutions to old problems

Ways Organizational Development Can Be Useful

1. Improving individual, team, and organization performance

2. Transforming organizations - can help foster communications and innovation

3. Adapting to mergers - OD experts help ease the tensions by integrating the two company’s varying cultures, products, and procedures

The OD Process

1. Diagnosis = may use questionnaires, surveys, and interviews to identify problem areas

2. Intervention = attempt to correct the diagnosed problems

3. Evaluation = compare statistics and hard data

4. Feedback = evaluation to see if the diagnosis was wrong or the intervention was not effective

Production Innovation

a change in the appearance or functionality/performance of a product or a service or the creation of a new one

Process Innovation

a change in the way a product or a service is conceived, manufactured, or distributed 

Innovation System

a set of mutually reinforcing structures, processes, and practices that drive an organization’s choices around innovation and its ability to innovate successfully

7 Components of Innovation System

1. Innovation Strategy = requires a company to integrate its innovation activities into its business strategies

2. Committed Leadership

3. Innovative Culture and Climate

4. Required Structure and Processes

5. Necessary Human Capital

6. Human Resource Policies

7. Practices and Procedures

8. Appropriate Resources

Crowdsourcing

the practice of obtaining needed service

Improvement Innovations vs New-direction Innovations

Improvement Innovations = enhance or upgrade an existing product, strive or product ( more incremental)

New-Direction Innovations = completely new or different approach to a product service, process, or industry

Resistance to Change

an emotional/behavioral response to real or imagined threats to an established work routine