Student Group Summary – Unit 7- Managing Change and Innovation Group Name: The Cliché
Submission Date: 28th July, 2014
“Critically discuss types of organisational change and why changes in people and culture are critical to any change process, illustrate researched and referenced examples.” “Using current researched and referenced examples, critically discuss contemporary issues in managing change”
Types of Organizational Change
1. Daft (2008) defines organizational change as the adaptation of a new idea or behaviour by an organization. Due to competition, companies are driven by innovation imperatives.
2. One of these is product change which is change in an organization’s product or service outputs according to Daft (2008). This is a coping mechanism to changes in markets, technology and competition. Example of such product change is with Coca-Cola and Pepsi. Bloomberg Business Week (2014a) reported that Coca-Cola planned to remove brominated vegetable oil (BVO) from all its U.S. drinks by the end of 2014, due to health concerns about the use of bromide, the element found in brominated flame retardants. At PepsiCo, BVO has been used in Mountain Dew and Amp Energy drinks, in addition to Gatorade. In response Bloomberg Business Week (2014a) showed where Jeff Dahncke, a spokesman for the Purchase, New York-based company, said in a statement. “We removed BVO from Gatorade in 2013 in response to our consumers and since that time we have been actively working to remove it from the rest of our product portfolio.” Mail Online (2012) reported that in a response to an outcry in the 1980’s over the ingredient '4-methylimidazole' which gives the drink its caramel brown colour and caused cancer in mice and rats Coca-Cola tried to make the drink slightly sweeter in 1985 and re-launched it as 'New Coke' in the US.
3. Technology change is change in the organization’s production process and is designed to make the production or service more efficient. Bloomberg Business Week (2011b) reported that Coca-Cola Co., made a deal with three biotechnology companies which will speed its development of plastic for its bottles that will be made entirely from plants. Daft (2008), outlined three innovation strategies for changing products and technologies. The first is; exploration, which involves designing the organization to encourage creativity and the initiation of new ideas, the second is cooperation, which refers to creating conditions and systems to facilitate internal and external coordination and knowledge sharing and the last being entrepreneurship; which is that managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation. Please note that for successful innovation Johnson et al. (2008) thought it crucial to take good technology and wrapped it in a great business model.
4. Daft (2008) clarified that changes in people and culture pertain to how employees think-changes in mind-set. He emphasized that people change pertains to just a few employees whilst, culture change pertains to the organization as a whole.
5. One tool for changing people and culture are training and development programs which consist of training for particularly managers with hope that their behaviour and attitudes will influence people throughout the organization. To support this, Mowles et al., (2008) indicates that the whole can be disaggregated into parts, or in organisational terms, levels, where higher levels, in the shape of senior managers can act upon the lower levels to bring about change to the whole system.
6. Another tool is organizational development (OD); a planned, systematic process of change that uses behavioural science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and...
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