Organization theory and design: Lecture 30

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Innovation

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Innovation & Change
• Organizational change is considered the
adoption of a new idea or behavior by an
organization
• Organizational innovation, in contrast, is the
adoption of an idea or behavior that is new to the
organization’s industry, market, or general
environment
• For the purpose of managing change, the two
terms will be considered interchangeably
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Elements of Successful Change
1. Idea
–

the field of creativity within organizations is not well
studied

1. Need perceived – need for change
–

gap between actual and desired performance

1. Adoption – decision makers chose to go ahead
with the proposed idea
–

managerial consensus

1. Implementation – actual use of new idea,
technique or behavior
2. Resources – HR and others
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Technology Change
• Ambidextrous approach
– combination of organic and mechanistic behaviors

• Switching structures
– an organization creates an organic structure when such a
structure is required for initiation of new ideas
– through transient teams, cross functional teams

• Creative departments
– R&D, design, engineering, system analysis

• Venture teams
– innovation department

• Corporate entrepreneurship/ Intrapreneurship
– idea champions are facilitated

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