M A N A G E M E N T F U N D A M E N TA L S C H A N G E G R A D U AT E D I P L O M A I N M A N A G E M E N T
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Why should companies change? Change is vital for the survival
From about 1993-1997, Apple found itself struggling to find a consistently profitable source of revenue, trying and failing to market everything from digital cameras to portable CD players to TV appliances Instead of continuing to aimlessly follow marginal product ideas down the rabbit hole, Apple began to focus once more on creating beautiful consumer electronics, starting with the iMac in 1998. Apple also acquired several companies in the video editing and digital production space, which comprises much of its customer base. The iPod was an even bigger success, selling over 100 million units within six years of its 2001 launch according to the BBC. The iPhone, another smash hit, recently produced a 100% year-over-year rise in sales according to CNN Money. None of this would have been possible without a drastic change in business models.
Page 344 ORGANIZATIONAL CHANGE “Adoption of a a new w idea a or be behaviour viour by an an organisation” 7/15/2016 GDM M 401 PB: HDM
Factors driving organisational change Factors driving change Internal External
FACTORS DRIVING ORGANISATIONAL CHANGE • Internal ernal Fact ctor ors – New organisational strategy – Change in composition of workforce – New equipment – Changing employee attitudes • Ex Externa ernal l Fact ctor ors – Changing consumer needs and wants – New government laws – Changing technology – Economic changes
Page 346 Planned changes Product & Technology Changes – a change in the organisation’s product outputs and organisation’s production process People and culture related changes
Product changes can occur in terms of innovation and renovation M Benz now & then In 1885 In 2017 Customers find a lot of innovative and renovated offers in the automobile sector
Disruptive Product Innovation Innovative products with major changes Xerox have launched a lot of products which were manufactured in Xerox India
Page 347-357 Three Innovation Strategies Innovation roles Creativity Bottom-up approach P353 Internal contests Idea incubators Designing the Processes and structures organization to Creating conditions and are put in place to ensure encourage creativity systems to facilitate that new ideas are carried and the initiation of internal and external forward for acceptance new ideas within the coordination and and implementation organization knowledge sharing
From Nestle’s Website…… Nestle & R&D Behind every one of Nestlé’s products is a team of scientists, product developers, designers, nutritionists, consumer service representatives and regulatory affairs specialists. The diagram above shows some of the steps, where these experts are involved, from identifying the initial customer benefit to the product launch and on towards continuous improvement. Nestlé R&D projects are the first step in a pipeline of innovative nutrition solutions for products of the future, across all our business categories
Three Innovation Strategies Exploration Innovation Roles Creativity Bottom-up approach Internal contests Idea incubators P347-357
People and Culture Changes
Employees Resistance to Change Self-Interest Lack of Understanding and Trust Different Assessments and Goals Uncertainty
Force Field Theory - by Kurt Lewin Direction of change Driving forces Restraining forces Potential gains in revenue, Resistance from cost reductions, higher market employees/managers, lack of share, competitiveness, long- resources, lack of skills, etc. term survival ‘Kurt Lewin’ explained ‘change’ as a result of the competition between driving and restraining forces.
Force-Field Analysis Driving forces – problems or opportunities that provide motivation for change Restraining forces – barriers to change
Tactics for Overcoming Resistance to Change
People and Culture Changes Two methods could be used to implement these changes: 1. Training and development 2. Organization development (OD)
Organization Development Systematic process to change people and culture within an organization Organization is considered as a solid ice cube Unfreezing Changing Refreezing
The End
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