INNOVATION AND CHANGE
Innovate or Perish: The Strategic Role of Change
Environmental forces drive the need for major organizational change. Technological change,
international economic integration, maturation of markets in developed countries, and the fall of
Communist and Socialist regimes bring global changes, which in turn results in more threats and
more opportunities, and more large-scale change in organizations.
Change rather than stability is the
Incremental versus Radical Change
represents a series of continuous progressions that maintain the
organization's general equilibrium, often affecting only one organization part.
through the established structure and management process, and may include new
technologies and product improvements.
breaks the frame of reference for
the organization and often transforming the entire organization.
Typically it involves the
creation of a new structure and management processes.
Strategic Types of Change
pertains to the organization's production process.
Product and service changes
pertain to new product or service outputs of the
Strategy and structure changes
pertain to the administrative domain, including
structure, goals, policies, reward systems, labor relation systems, information
systems, planning, accounting, and linkage devices.
refer to changes in attitudes, skills, expectations, and behavior of
Elements for Successful Change
is the adoption of a new idea or behavior by an organization, whereas
is the adoption of an idea or behavior that is new to the organization's
industry, market, or general environment.
The required elements of successful change include:
, which is a new way to do things;
, when decision makers choose to go ahead with an idea;
, when employees learn to actually use a new idea, technique, or
which must be allocated to make change happen, including the human
time and energy required to bring about change.
which is typically associated with change, suggests that technical innovation
can be increased by having organic internal processes of flexibility, decentralization, and few rules
, which may be the best structures for efficiency with routine
products, are believed to inhibit technical innovation.