11 - OBIIFinal Chapter11:InnovationandChange

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OB II Final  Chapter 11: Innovation and Change Innovate or Perish: The Strategic Role of Change - Forces Driving the Need for Major Organizational Change o Global Changes, Competition and Markets Technological change, international economic integration, maturation of  markets in developing nations, fall of communist and socialist regimes o More Threats More competition (domestic and international) and increased speed o More Opportunities Bigger and more markets with fewer barriers o More Large-Scale Changes in Organizations Structure, strategic, culture changes Knowledge management, quality planning, mergers, horizontal structures,  new technologies, products, e-business, learning organizations, new  procedures - Incremental vs. Radical Change o Scope: extent to which changes are incremental or radical for the organization o Incremental change: continual progressions that maintain the general equilibrium  and often affect only one part of the organizational Happen through established structure and processes (improvements) o Radical change: breaks the frame of reference for the organization, often  transforming the entire organization Creation of new structure and new processes (breakthroughs) and new  products then become established Growing need for radical change due to turbulent, unpredictable  environment o Incremental Change vs. Radical Change Continuous progression vs. paradigm-breaking burst Affect organizational part vs. transform entire organization Through normal structure and management processes vs. create new  structure and management Technology improvements vs. breakthrough technology Product improvements vs. new products create new markets o Radical changes get a lot of attention and can be powerful but constant  implementation of small ideas result in sustainable competitive advantages Page  1
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OB II Final  Chapter 11: Innovation and Change - Strategic Types of Change o Four types of change are interdependent as a change in one means a change in  another 1. Technology changes Changes in production process, including knowledge and skill base that  enable competence Makes production more efficient with methods, equipment and workflow 2. Products and Services changes Product/service outputs with new products being both small adaptations  or entirely new lines New products are designed to increase market share or develop new  markets, customers or clients 3. Strategy and Structure changes Administrative domain in an organization that involves the supervision  and management Changes include structure, strategic management, policies reward  systems, labour relations, coordination devices, management information 
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This note was uploaded on 12/08/2011 for the course BUS 272 taught by Professor Echo during the Spring '11 term at Simon Fraser.

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11 - OBIIFinal Chapter11:InnovationandChange

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