Discussion 6

Management in Action (J C Penney) page 354.Using all of the content in chapter 10, read the case. Answer the question 1 and 2 in the book on page 355 as your initial post.1. Provide an initial response of 200 words.2. Use formal writing.3. Grading will only consider content relating to management concepts.Attached is the power point for chapter 10 and the case study “Management in Action.” Here is the textbook reference:Kinicki, A. & Williams, B. (2018). Management: A practical introduction. New York, NY:McGraw-Hill Education.


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Organizational Change & Innovation
Lifelong Challenges for the
Exceptional Manager
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Major Questions You Should Be Able to Answer
10.1 Since change is always with us, what should I
understand about it?
10.2 What are the three types of change?
10.3 What are the uses of OD, and how effective
is it?
10.4 What do I need to know to encourage
10.5 How are employees threatened by change,
and how can I help them adjust?
©McGraw-Hill Education.
The Nature of Change in Organizations
What will you be called on to deal with?
©McGraw-Hill Education.
The marketplace is becoming more segmented; more
niche products
More competitors offering targeted products, requiring
faster speed-to-market
Some traditional companies may not survive radically
innovative change: disruptive innovation
China, India, and other offshore suppliers are changing
the way we work
Knowledge, not innovation, is becoming the new
competitive advantage
Two Types of Change
• Reactive change
– Making changes in
response to problems or
opportunities as they arise
• Proactive (or planned)
– Involves making carefully
thought-out changes in
anticipation of possible or
expected problems or
©McGraw-Hill Education.
Copyright Noah Berger/AFP/Getty Images
Figure 10.1
Forces for Change
Jump to Appendix 1 for description
©McGraw-Hill Education.
Tony, the owner of Cirodi Pasta restaurant on Cape Cod is
open during the “high season” from May until October. He
has always hired college students on summer vacation. In
recent years, the number of workers who quit mid-summer
has risen significantly. When he asks, they say they are
quitting because they “have enough money” or “want the
time off”. This is probably an example of a(n) ________
A. market
B. social or political
C. economic
D. technological
©McGraw-Hill Education.
Types and Models of Change
Three types of change
• Least threatening: Adaptive change
– Reintroduction of a familiar practice
• Somewhat threatening: Innovative change
– Introduction of a practice that is new to the organization
• Very threatening: Radically innovative change
– Involves introducing a practice that is new to the industry
©McGraw-Hill Education.
At the Big Peaches Department Store, employees
generally know that during annual inventory they are
required to work overnight shifts. This is an example of
a(n) __________ change.
A. adaptive
B. reactive
C. innovative
D. proactive
©McGraw-Hill Education.
Lewin’s Change Model
Figure 10.2
©McGraw-Hill Education.
A Systems Approach to Change
Jump to Appendix 2 for description
©McGraw-Hill Education.
Organizational Development
• Organization development (OD)
– Set of techniques for implementing planned change to
make people and organizations more effective
• Change agent
– A consultant with a background in behavioral sciences who
can be a catalyst in helping organizations deal with old
problems in new ways
©McGraw-Hill Education.
What Can OD Be Used For?
1. Managing conflict: An OD expert or “executive
coach” can help advise on how to improve
relationships within the organization.
2. Revitalizing organizations: OD experts can help by
opening communication, fostering innovation, and
dealing with stress.
3. Adapting to mergers: OD experts can help integrate
two firms with varying cultures, products, and
©McGraw-Hill Education.
How OD Works
Figure 10.4: The OD Process
©McGraw-Hill Education.
Fred, an OD consultant, is designing a survey of
employee attitudes to be given to workers at the
Lemon Automobile Company. Fred is in the _________
stage of OD.
A. intervention
B. diagnosis
C. evaluation
D. process consultation
©McGraw-Hill Education.
Example: Using OD to Make Money in the
Restaurant Business
• OD Change Agent Eli Chait co-founded Copilot Labs, a
restaurant marketing analytics company
• “Restaurants are so focused on the day-to-day business,” says
Chait, “that they don’t have time to grow the business.”
• An owner wanted to know: “Which is more effective—
promoting our happy hours or promoting our daily deals?”
• Chait found that happy hour specials drove customer traffic
during critical off-peak times; from an effectiveness
perspective, it was preferred over daily deals.
©McGraw-Hill Education.
The Effectiveness of OD
1. Success tends to include
multiple interventions.
2. It is more likely to succeed
with management support.
3. It has more success when
oriented to achieve both
short and long-term results.
4. OD is affected by crosscultural considerations.
©McGraw-Hill Education.
Copyright BananaStock/PictureQuest/Getty Images RF
10.4 Promoting Innovation
• Invention
– Creating or making up something new
• Creativity
– Developing new and imaginative ideas into reality
• Innovation
– The activity of creating new ideas and converting them
into useful applications—specifically, new goods and
©McGraw-Hill Education.
How Does Failure Impede Innovation?
“You learn more from failure than you do from success.”
Table 10.1
Factors that reduce an organization’s ability to learn from failure
Play the “blame game,” blaming an individual when failures are due to
internal or external matters
Suffer “self-serving bias” – perceiving yourself as overly favorable
Don’t recognize that failures are not created equal; some may be
preventable, some uncontrollable
Be afraid to discuss failures and take risks; the company isn’t a learning
Are reluctant to experiment
©McGraw-Hill Education.
Two Myths about Innovation
• Myth No. 1: Innovation happens in a “Eureka!”
– Most innovation is the product of hard work and
• Myth No. 2: Innovation can be systematized.
– There is no standardized process to achieve success.
– Though success is unpredictable, cultural conditions can
increase the likelihood of success.
©McGraw-Hill Education.
Six Seeds of Innovation
Hard work in a specific direction
Hard work with direction change
Wealth and money
Combination of seeds
©McGraw-Hill Education.
Types of Innovation (1 of 2)
• Product innovation
– Change in the appearance or performance of a product or
the creation of a new one
• Process innovation
– Change in the way a product is conceived, manufactured,
or disseminated
©McGraw-Hill Education.
Copyright Alvey & Towers Picture Library/Alamy
Types of Innovation (2 of 2)
• Core innovations
– The optimizing of products or services for existing
• Transformational innovations
– The invention of breakthrough products or services and
that are aimed at creating brand new markets and
©McGraw-Hill Education.
Wendy’s created display screens at its drive-through
windows that show customers their orders and prices.
This is an example of a(n) _________ innovation.
A. product
B. process
C. adaptive
D. reactive
©McGraw-Hill Education.
How Companies Can Foster Innovation
1. Create an innovation strategy.
2. Get commitment from top managers.
3. Foster an innovation culture and climate.
4. Establish the required structure and
5. Obtain the necessary human capital.
6. Institute the necessary human resources
policies, practices, and procedures.
7. Obtain the appropriate resources.
©McGraw-Hill Education.
The Threat of Change:
Managing Employee Fear and Resistance
• Resistance to change
– An emotional or behavioral response to real or imagined
threats to an established work routine
Figure 10.5
©McGraw-Hill Education.
Ten Reasons Employees Resist Change
Individual’s predisposition toward
2. Surprise and fear of the unknown
3. Climate of mistrust
4. Fear of failure
5. Loss of status or job security
6. Peer pressure
7. Disruption of cultural traditions or
group relationships
8. Personality conflicts
9. Lack of tact or poor timing
10. Non-reinforcing reward system
©McGraw-Hill Education.
Copyright Lev Dolgachov/Alamy RF

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