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MNO1001XManagement and Organisation

Lecture 617 February 2014

Ng Boon Yuen

NUS Business School

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Organisational Change andInnovation

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Outline! Organisational Change! Organisational Innovation

! References:! Chapter 10 (p.306-329)

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Organisational Change

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Organisational Change! Organisations that do not adapt to

change will eventually decline

!Collins five stages of decline:! Stage 1 - Hubris Born of Success! Stage 2 - Undisciplined Pursuit of More! Stage 3 - Denial of Risk and Peril! Stage 4 - Grasping for Salvation! Stage 5 - Capitulation to Irrelevance or

DeathMNO1001X Lecture 6 NgBY 5

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Two Types of Change! Reactive change

! Making changes in response to problems oropportunities as they arise

! Proactive change! Making carefully thought-out changes in

anticipation of possible or expectedproblems or opportunities

!Also called planned change

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Forces for Change

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TextbookFigure 10.1

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Areas in Which Change is

Needed! Changing people

! Perceptions, attitudes, performance, skills!

Changing technology! Changing structure! Changing strategy

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Resistance to Change! Emotional/behavioural response to real

or imagined threats to an establishedwork routine

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TextbookFigure 10.2

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Why Employees Resist Change! Individuals predisposition toward

change

!Surprise and fear of the unknown

! Climate of mistrust! Fear of failure! Loss of status or job security

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Why Employees Resist Change! Peer pressure! Disruption of cultural traditions or group

relationships! Personality conflicts! Lack of tact or poor timing! Non-reinforcing reward system

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Lewins Change Model

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Unfreezing RefreezingChanging

Creating the motivation

to change

Learning new ways

of doing things

Making the new ways

normal

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Kotters Eight Steps Leading

Organisational Change

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Unfreezing

Changing

Refreezing

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Organisational Development

(OD)! Set of techniques for implementing

planned change to make people andorganisations more effective

! Used to address the following:! Managing conflict! Revitalising organisations!Adapting to mergers

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The OD Process

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Textbook Figure 10.3

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Organisation Innovation

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Innovation! Creating new ideas and converting

them into useful applications

! Innovation funnel Not all ideasbecome successful new products

Raw ideas SubmittedIdeas

SmallProjects

MajorDevelopments Launches

SuccessfulNew Product

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Product vs Process Innovation! Product innovation

! Change in appearance or performance of aproduct/service or creation of a new one

! Output of an organisation! Process innovation

! Change in the way a product/service isconceived, manufactured or disseminated

! Improving the efficiency of production, orthe way an organisation conducts itsbusiness

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Incremental vs Radical

Innovation! Incremental innovation

! Creation of products/services/technologiesthat modify existing ones

! Radical innovation! Creation of products/services/technologies

that replace existing ones

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Technology Life Cycle! Technology innovations typically follow

a predictable pattern

Time/Effort

Performance

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Disruptive Technology! New technology that displaces an

established technology

! Breakthrough technology that changesthe rules of competition within an

industry

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Encouraging Innovation in

Organisations! Organisational culture

! Celebrate failure to foster innovation!

Resources! Provide appropriate resources for R&D

! Reward system! Reward R&D! Do not punish when results fail

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Steps to Foster Innovation

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TextbookFigure 10.4

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What We Have Learnt! Organisational change

! The need for organisational change! Resistance to change! How to manage change! Organisational development (OD)

! Organisational innovation! Types of innovation! Encouraging innovation in organisations

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Next Lecture! Supervising Employees Individual

Differences and Behaviour

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Questions?