Learning Objectives

6-1. Identify the forces for change, the types of change, and the forms of change.

The external environments, new technology cycles, and internal management functions are forces for change. The four types of change include strategy, structure, technology, and people. Two major forms of change are incremental and discontinuous change.

6-2. Contrast managing innovation during incremental and discontinuous change in terms of approach, goals, and strategy.

The compression approach is used in more certain environments during incremental change, whereas the experimental approach is used in more uncertain environments during discontinuous change. The goal during incremental change is to lower costs and incrementally improve performance and functions of the existing dominant design, whereas the goal during discontinuous change is to make significant improvements in performance and to establish a new dominant design, creating the next technology cycle.

The general strategy used during incremental change is to continue to improve the existing technology as rapidly as possible, moving to the next-generation technology while still allowing the use of the old technology, whereas the strategy during discontinuous change is to build something new and different, a substantially better breakthrough in technology, to begin a new technology cycle that leaves the old technology obsolete.

6-3. List the reasons employees resist change and suggest ways of overcoming such resistance.

Employees resist change because of fear of the unknown, learning anxiety, self-interest, and fear of economic loss or loss of power, status, security, or control. These forms of resistance can be overcome by establishing a positive trust climate for change, planning, clearly explaining the need for the change, pointing out how individual employees will benefit from the change, involving employees, and providing support and evaluation for employees during the change and creating urgency.

6-4. Define organizational development and identify the steps in the Lewin and comprehensive change models.

Organizational development (OD) is the ongoing planned process of change used as a means of improving performance through interventions. The Lewin model steps are (1) unfreezing, (2) moving, and (3) refreezing. The steps in the comprehensive model are (1) recognize the need for change, (2) identify possible resistance to the change and plan how to overcome it, (3) plan the change interventions, (4) implement the change interventions, and (5) control the change.

6-5. Compare an entrepreneur and an intrapreneur and discuss the entrepreneurial process.

Entrepreneurs commonly start a new small-business venture, whereas intrapreneurs commonly start a new line of business within a large organization, or they tend to run a smaller business within a large organization. The entrepreneurial process includes selecting the new venture, planning the new venture, funding the new venture, and controlling the new venture.