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Lecture 10

ADM1300 Lecture : Lecture 10-ADM1300

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David Delcorde

Innovation and Organizational Change Lecture 10 - ADM1300 Innovation and Organizations - Sustainable competitive advantage relies on creativity and innovation - Creativity is the generation of a novel idea or unique approach to solving problems or crafting opportunities - Innovation is the process of creating new ideas and putting them into practice Three Forms of Innovation - Product - Results in the creation of new or improved goods and services - Process - Results in better ways of doing things - Business model innovation - Results in new ways of making money Organizational Change - Organizational change in the OB refers to change that results in major overhaul of the organization or its component systems— often referred to as “transformational change” Unplanned Organizational Change - Occur spontaneously or randomly (Ex. A wildcat strike that results in a plant closure) Planned Organizational Change - The result of specific efforts by a change agent in response to someone’s perception of a performance gap— a discrepancy between the actual situation and the situation that is wanted Internal Pressures for Organizational Change - Aspiration-performance discrepancies - Gaps in what an individual, unit, or organization wants to achieve and what it is actually achieving - Like-Cycle Forces - Natural and predictable pressures that build as an organization grows and that must be addressed if her organization is to continue to grow - Changes in Top Management - The replacement of top management team members who retire or otherwise depart the organization External Pressure for Organizational Change - Technological advances - Changes in government regulations - Changes in societal values- reflected in (or by): - Consumer purchases - Employee attitudes, behaviours, expectations - Potential investors - Government regulation - Changes in demographics - Growing international interdependence Approaches to Managing Change Lewin - Unfreeze the status quo, move to a new state, refreeze the change Kotter - Create a compelling reason for change and establish a sense of urgency; form a sufficiently powerful coalition to lead change; create a new vision and strategies to achieve it; communicate the vision; empower others to act; create short-term “wins”; consolidate improvements; reinforce the changes by associating with organizational success Action Research - Change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate Appreciative Inquiry - Identify unique qualities and strengths of an organization that can then be built on to improve performance Organizational Ch
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