In this chapter, we will address the following questions: Since change is always with us, what should I understand about it? How are employees threatened by change, and how can I help them adjust? What are the uses of OD, and how effective is it? What do I need to know to encourage innovation? | Chapter Ten Organizational Change & Innovation: Lifelong Challenges for the Exceptional Manager McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Major Questions You Should Be Able to Answer Since change is always with us, what should I understand about it? How are employees threatened by change, and how can I help them adjust? What are the uses of OD, and how effective is it? What do I need to know to encourage innovation? Collins’s Five Stages of Decline Stage 1 Hubris Born of Success Stage 2 Undisciplined Pursuit of More Stage 3 Denial of Risk and Peril Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or Death Forces for Change Outside and Inside the Organization Figure Areas in Which Change Is Often Needed Changing people Perceptions, attitudes, performance, skills Changing technology Changing structure Changing strategy Changing Technology Technology any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product not just computer technology A Model of Resistance to Change Figure The Causes of Resistance to Change Resistance to change an emotional/behavioral response to real or imagined threats to an established work routine Lewin’s Change Model Unfreezing creating the motivation to change Changing learning new ways of doing things Refreezing making the new ways normal Steps to Leading Organizational Change Table Organization Development Organization development (OD) set of techniques for implementing planned change to make people and organizations more effective The OD Process Figure Types of Innovation 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 Types of Innovation Incremental innovation creation of products, services, or technologies that modify existing ones Radical innovation creation of products, services, or technologies that replace existing ones Four Steps For Fostering Innovation Figure | Chapter Ten Organizational Change & Innovation: Lifelong Challenges for the Exceptional Manager McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Major Questions You Should Be Able to Answer Since change is always with us, what should I understand about it? How are employees threatened by change, and how can I help them adjust? What are the uses of OD, and how effective is it? What do I need to know to encourage innovation? Collins’s Five Stages of Decline Stage 1 Hubris Born of Success Stage 2 Undisciplined Pursuit of More Stage 3 Denial of Risk and Peril Stage 4 Grasping for Salvation Stage 5 Capitulation to Irrelevance or Death Forces for Change Outside and Inside the Organization Figure Areas in Which Change Is Often Needed Changing people Perceptions, attitudes, performance, skills Changing technology Changing structure Changing strategy Changing Technology Technology any machine or process that enables an .