Because learning changes everything.

CHAPTER 10
ORGANIZATIONAL
CHANGE &
INNOVATION
Lifelong Challenges for
the Exceptional Manager

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 LEARNING OBJECTIVES

10-1 Discuss what managers should know about organizational

change.
10-2 Discuss three forms of change, Lewin’s change model, and
the systems approach to change.
10-3 Describe the purpose of organizational development.
10-4 Describe the approaches toward innovation and
components of an innovation system.
10-5 Discuss ways managers can help employees overcome fear
of change.
10-6 Review the different ways to increase the career readiness
competency of openness to change.

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 HOW CAN I BE MORE CREATIVE AT WORK?

• Creativity is the process of generating

novel ideas.
• Proactive Learning
• Positive Approach
• Problem Solving
• Self-Motivation

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 THE NATURE OF CHANGE IN ORGANIZATIONS

Fundamental Change: What Will You Be Called On

to Deal With?

Two Types of Change: Reactive and Proactive

The Forces for Change Outside and Inside the

Organization

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 FUNDAMENTAL CHANGE: WHAT WILL YOU BE
CALLED ON TO DEAL WITH?
• The marketplace is becoming more segmented and
moving toward more niche products.
• More competitors are offering targeted products, requiring
faster speed-to-market.
• Some traditional companies may not survive radical
change.
• Offshore suppliers are changing the way we work.
• Knowledge, not information, is becoming the new
competitive advantage.

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 TWO TYPES OF CHANGE: REACTIVE AND
PROACTIVE

Reactive Change:
• Responding to Unanticipated Problems and
Opportunities
Proactive Change:
• Managing Anticipated Problems and Opportunities

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 THE FORCES FOR CHANGE OUTSIDE AND
INSIDE THE ORGANIZATION
FIGURE 10.1 Forces for change outside and inside the organization

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 FORMS AND MODELS OF CHANGE

Three Forms of Change: From Least Threatening to Most

Threatening
Lewin’s Change Model: Unfreezing, Changing, and
Refreezing

A Systems Approach to Change

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 THREE FORMS of CHANGE: FROM LEAST
THREATENING to MOST THREATENING

Least Threatening: Adaptive Change

• “We’ve Seen Stuff Like This Before.”
Somewhat Threatening: Innovative Change
• “This Is Something New for This Company.”
Very Threatening: Radically Innovative Change
• “This Is a Brand-New Thing in Our Industry.”

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 LEWIN’S CHANGE MODEL: UNFREEZING,
CHANGING, and REFREEZING
• “Unfreezing”: Creating the Motivation to Change
• “Changing”: Learning New Ways of Doing Things
• “Refreezing”: Making the New Ways Normal

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 FIGURE 10.2 LEWIN’S MODEL OF CHANGE
Figure 10.2 Lewin’s model of change

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 A SYSTEMS APPROACH TO CHANGE 1

• Inputs: “Why Should We Change, and How Willing and

Able Are We to Change?”
• Target Elements of Change: “Which Levers Can We Pull
That Will Produce the Change We Want?”
• Outputs: “What Results Do We Want from the Change?”

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 A SYSTEMS APPROACH TO CHANGE 2

• Feedback: “How Is the Change Working and

What Alterations Need to Be Made?”
• Force-Field Analysis: “Which Forces Facilitate
Change and Which Resist It?”
• Applying the Systems Model of Change

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 A SYSTEMS APPROACH TO CHANGE 3

FIGURE 10.3
Systems model of
change
Sources: Based on A. Kinicki,
Organizational Behavior: A
Practical, Problem-Solving
Approach (New York:
McGraw-Hill Education,
2021), Figure 16.6, p. 648,
which was adapted from D.
R. Fuqua and D. J. Kurpius,
“Conceptual Models in
Organizational Consultation,”,
July–August 1993, pp. 602–
618; D. A. Nadler and M. L.
Tushman, “Organizational
Consultation,” Journal of
Counseling and Development
Frame Bending: Principles for
Managing Reorientation,”
Academy of Management
Executive, August 1989, pp.
194–203.

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 ORGANIZATIONAL DEVELOPMENT: WHAT IT IS,
WHAT IT CAN DO

What Can OD Be Used For?

How OD Works

The Effectiveness of OD

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 WHAT CAN OD BE USED FOR?

• Improving Individual, Team, and Organizational

Performance
• Revitalizing Organizations
• Adapting to Mergers

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 HOW OD WORKS

Diagnosis:
• What Is the Problem?
Intervention:
• What Shall We Do about It?
Evaluation:
• How Well Has the Intervention Worked?
• Feedback:
• How Can the Diagnosis and Intervention Be Further
Refined?

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 THE EFFECTIVENESS OF OD

• Multiple Interventions
• Management Support
• Goals Geared to Both Short- and Long-Term
Results
• OD Is Affected by Culture

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 THE OD PROCESS
FIGURE 10.4
The OD process
Sources: Adapted from W. L. French and C. H. Bell Jr., Organization Development: Behavioral Interventions for Organizational Improvement
(Englewood Cliffs, NJ: Prentice Hall. 1978); E. G Huse and T. G. Cummings, Organizational Development and Change, 3rd ed. (St. Paul: West,
1985).

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 ORGANIZATIONAL INNOVATION
Approaches to Innovation

An Innovation System: The Supporting Forces for

Innovation
Type of Innovation Focus of Innovation: Improvement Focus of Innovation: New
Directions

Apple iPhone: Driverless Cars:

Product • Eleven generations/versions since • Major automobile
first introduced in June 2007. manufacturers and Waymo.
3-D Printing: Home Construction:
Process • Alcoa’s use of 3-D printing in its • Panelized homes.
manufacturing process.

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 APPROACHES TO INNOVATION

• The Type of Innovation

• The Focus of the Innovation
• Can an Innovation Go Too Far?

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 AN INNOVATION SYSTEM: THE SUPPORTING
FORCES FOR INNOVATION 1
• Create an Innovation Strategy
• Commitment from Senior Leaders
• Foster an Innovative Culture and Climate
• Required Structure and Processes

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 AN INNOVATION SYSTEM: THE SUPPORTING
FORCES FOR INNOVATION 2
• Develop the Necessary Human Capital
• Human Resource Policies, Practices, and
Procedures
• Appropriate Resources

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 COMPONENTS OF AN INNOVATION SYSTEM
Figure 10.6 Components of an innovation system

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 THE THREAT OF CHANGE: MANAGING
EMPLOYEE FEAR AND RESISTANCE

The Causes of Resistance to Change

Ten Reasons Employees Resist Change

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 THE CAUSES OF RESISTANCE TO CHANGE

• Employee
Characteristics
• Change Agent
Characteristics
• Change Agent–
Employee
Relationship

Figure 10.7 A model of resistance to change.

Source: Adapted from R. Kreitner and A. Kinicki. Organizational Behavior, 9th ed. (Burr Ridge, IL: McGraw-Hill/Irwin, 2010), p. 549.

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 TEN REASONS EMPLOYEES RESIST CHANGE

1. Individuals’ 6. Peer pressure

predisposition 7. Disruption of cultural
toward change traditions or group
2. Surprise and fear of relationships
the unknown 8. Personality conflicts
3. Climate of mistrust 9. Lack of tact or poor
4. Fear of failure timing
5. Loss of status or job 10. Nonreinforcing
security reward systems

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 CAREER CORNER: MODEL OF CAREER
READINESS

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 CAREER CORNER: MANAGING YOUR CAREER
READINESS
• Applying Self-Affirmation Theory
• Practicing Self-Compassion

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 CAREER CORNER: APPLYING SELF-
AFFIRMATION THEORY
• We have an innate need to maintain a positive
overall self-view.
• When our positive self-view is threatened, we
switch to self-protective mode.
• We can maintain our self-view in two ways.

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 CAREER CORNER: PRACTICING SELF-
COMPASSION
• Practice self-kindness.
• Remind yourself that you’re not alone.
• Practice mindfulness meditation.

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 End of Main Content

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No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Career Corner: Model of Career Readiness, Text Alternate

In Chapter 10, the focus is on being openness to change, and important career readiness competency.
Following is the complete map of career readiness competencies:
The core is:
• Critical thinking/problem solving.
• Oral/written communication
• Teamwork/collaboration.
• Information technology application.
• Leadership.
• Professionalism/work ethic.
• Cross-cultural competency.
Knowledge is:
• Task-based/functional.
• Computational thinking.
• Understanding the business.
• New media literacy.
Soft skills are:
• Decision making.
• Social intelligence.
• Networking.
• Emotional intelligence.
Attitudes are:
• Ownership and or accepting responsibilities.
• Self-motivation.
• Proactive learning orientation.
• Showing commitment.
• Positive approach.
• Career management.
Other characteristics are:
• Resilience.
• Personal adaptability.
• Self-awareness.
• Service/others orientation.
• Openness to change.
• Generalized self-efficacy.
Return to parent-slide.

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