Fundamentals of Management, 8th ed

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Part 3: Organizing

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SUMMARY OF LEARNING OUTCOMES AND KEY POINTS

1.

Describe the nature of organization change,

including forces for change and planned versus

reactive change.

• Organization change is any substantive modi-

fication to some part of the organization.

• Change may be prompted by forces internal or

external to the organization.

• In general, planned change is preferable to

reactive change.

2.

Discuss the steps in organization change and how

to manage resistance to change.

• The Lewin model provides a general perspective

on the steps involved in change.

• A comprehensive model is usually more effective.

• People tend to resist change because of uncer-

tainty, threatened self-interests, different per-

ceptions, and feelings of loss.

• Participation, education and communication,

facilitation, and force-field analysis are methods

for overcoming this resistance.

3.

Identify and describe major areas of organization

change and discuss the assumptions, techniques,

and effectiveness of OD.

• The most common areas of change involve

changing organizational structure and design,

technology, and people.

• Business process change is a more massive and

comprehensive change.

• OD is concerned with changing attitudes,

perceptions, behaviors, and expectations. Its

effective use relies on an important set of

assumptions.

• There are conflicting opinions about the

effectiveness of several OD techniques.

4.

Describe the innovation process, forms of inno-

vation, the failure to innovate, and how organiza-

tions can promote innovation.

• The innovation process has six steps: develop-

ment, application, launch, growth, maturity,

and decline.

• Basic categories of innovation include radical,

incremental, technical, managerial, product,

and process innovations.

• Despite the importance of innovation, many

organizations fail to innovate because they lack

the required creative individuals or are com-

mitted to too many other creative activities, fail

to recognize opportunities, or resist the change

that innovation requires.

• Organizations can use a variety of tools to

overcome these problems, including the reward

system, organizational culture, and

intrapreneurship.

DISCUSSION QUESTIONS