Chap. 8 MGMT

Organizational innovation

The creation and implementation of a new idea,

solution, or behavior by an organization.

Disruptive innovation

Innovations in products, services, or processes

that radically change competition in an industry,

such as the advent of streaming video or e-books

reverse innovation

Creating innovative, low-cost products for

emerging markets and then quickly and

inexpensively repackaging them for sale in

developed countries.

ambidextrous approach

Incorporating structures and processes that are

appropriate for both the creative impulse and the

systematic implementation of innovations.

product innovation

A change in the organization’s product or

service outputs.

Exploration

Encouraging creativity, risk-taking,

experimentation, and developing new ideas

Exploitation

Implementing new ideas with established

capabilities and routines.

process innovation

A change in the organization’s production

process—how the organization does its work.

Creativity

The generation of novel ideas that may meet

perceived needs or respond to opportunities for

the organization.

horizontal linkage mode

Means that several departments, such as

marketing, research, and manufacturing, work

closely together to develop new products.

Open innovation

A process where people search for and

commercialize innovative ideas beyond the

boundaries of the organization.

bottom-up approach

Involves encouraging the flow of ideas from

lower levels and making sure that they get heard

and acted upon by top executives

innovation by acquisition

A strategy to obtain innovation by buying other

companies, recognizing that the cutting edge of

innovation often happens with young, small,

entrepreneurial companies rather than inside the

walls of established firms

idea champion

A person who sees the need for change and is

passionately committed to making it happen

Crowdsourcing

An approach in which many people (sometimes

hundreds of thousands of people) contribute to

the innovation process via the Internet

Corporate intrapreneurship

Attempts to develop an internal entrepreneurial

spirit, philosophy, and structure that encourages

employees to act like entrepreneurs with respect

to innovations.

idea incubator

An organizational program that provides a safe

harbor where employees can generate and

develop ideas without interference from

company bureaucracy or politics.

in-house venture

A start-up that a company launches within the

company rather than as a separate entity.

People change

A change in the attitudes and behaviors of a few

employees.

new-venture team

A unit separate from the mainstream

organization that is responsible for initiating and

developing innovations

skunkworks

A separate informal, highly autonomous, and

often secretive group that focuses on

breakthrough ideas.

Culture change

A major shift in the norms, values, and mindset

of an entire organization.

large-group intervention

An organization development (OD) approach

that brings together people from different parts

of the organization (and often including outside

stakeholders) to discuss problems or

opportunities and plan for change.

Team building

An organization development (OD) intervention

that enhances cohesiveness by helping groups

of people learn to work together as a team.

Organization development (OD)

A planned, systematic process of change that

uses behavioral science techniques to improve

an organization’s health and effectiveness

through its ability to cope with environmental

changes, improve internal relationships, and

increase learning and problem-solving

capabilities.

Survey feedback

Where organization development (OD) change

agents survey employees to gather their

opinions regarding corporate values, leadership,

participation, cohesiveness, and other aspects

of the organization, then meet with small groups

to share the results and brainstorm solutions to

problems identified by the results.

Change

The adoption of a new idea by an organization

changing

The “intervention” stage of organization

development (OD), when change agents teach

people new behaviors and skills and guide them

in using them in the workplace.

unfreezing

The stage of organization development (OD) in

which people are made aware of problems and

the need for change.

refreezing

The stage of organization development (OD)

where people have incorporated new values,

attitudes, and behaviors into their everyday work

and the changes become institutionalized in the

culture.

need for change

A disparity between actual and desired

performance