Fundamentals of Management, 8th ed

Chapter 7: Organization Change and Innovation

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Managers at IKEA are fueling growth and profitability through the astute management

of innovation. In particular, the company relies on the development and marketing of

innovative products to grow and prosper. At a broader level, IKEA also relies heavily

on change. As we will see, understanding when and how to implement change is a vital

part of management. This chapter describes how organizations manage change. We first

examine the nature of organization change and identify the basic issues of managing

change. We then identify and describe major areas of change, including business process

change, a major type of change undertaken by many firms recently. We then examine

organization development and conclude by discussing organizational innovation as a

vital form of change.

THE NATURE OF ORGANIZATION CHANGE