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Explain how paradigm shifts occur and discuss their consequences. Paradigm shifts occur when established organizations must change their way of thinking and existing strategies in order to survive technological changes or new competitive product and services that threaten obsoleteness. |
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Identify the major sources of organizational inertia. Cognitive schemata, internal political constraints, organizational culture, strategic and financial commitments, and external institutional constraints are the inertia forces that make organizational change difficult in organizational structures, culture, and product and service offerings even in light of new competitive realities. |
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Outline what is required to change the strategy and organization of an established enterprise. According to research, organizational change can be successful when four steps are implemented: leadership is committed to the change, the organization is unfrozen (compelling vision revealed), new strategies and organizational configuration are made through employee involvement, and new organizational configurations are refrozen (consistency in new structures). |
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Explain why many organizational change efforts fail, and identify what managers can do to avoid failure. Research estimates that over 50 percent of companies fail because they do not properly implement change. Eight reasons for failure include: not establishing a sense of urgency, not building a strong leadership coalition, lack of compelling vision, poor communication, not removing obstacles, not planning for short-term wins, declaring victory too soon, not incorporating an organization’s culture, and not empowering employees in implementing change. |
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Discuss what managers can do to increase the ability of their organization to produce commercially successful innovations. Six important steps for managers to take in order to achieve innovation success include: applying sound scientific research, providing good processes for product selection and project management, utilizing cross-functional integration, creating product development teams, allowing for product design and manufacturing to parallel in order to shorten creative processes, and placing new technology in another organizational unit to avoid cannibalism of current products and services. |