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Ba 504 Management and Organization Theory Reflection

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BATANGAS STATE UNIVERSITY

College of Accountancy, Business Economics and International Hospitality Management


GRADUATE SCHOOL

BA 504 MANAGEMENT AND ORGANIZATION THEORY


Reflection
Jeremiah R. Garcia

ORGANIZATION CHANGE AND INNOVATION

INTRODUCTION
The topics covered are nature of organization change, forces that drives the
organization to change, different models for organization change, major areas of
organization change, strategies and techniques, and innovation process and its forms.

LEARNING AND INSIGHTS


Change is the only constant thing in this world. Organization change is any
substantive modification to some part of the organization. There are different forces for
change. (1) External forces which are interest rates and laws and regulations and (2)
internal force which are top management decisions and worker’s attitude. Change that is
designed and implemented in an orderly and timely fashion in anticipation of future
events is the planned change while a piecemeal response to circumstances as they
develop is the reactive change.
One of the cornerstone models for understanding organizational change was
developed by Kurt Lewin back in the 1940s and still holds true today. His model is
known as Unfreeze – Change – Refreeze, which refers to the three stage process of
change that he describes. Lewin, a physicist as well as a social scientist, explained
organizational change using the analogy of changing the shape of a block of ice.
Unfreezing, individuals who will be affected by the impending change must be led to
recognize why the change is necessary. Implementation is the second stage which is the
implementation of change itself. The last stage is refreezing which refers to reinforcing
and supporting the change so that it becomes a part of the system.
There are seven comprehensive approaches to change. (1) Recognition of the need
for change, (2) establishment of goals for the change, (3) diagnosis of relevant variables,
(4) selection of appropriate change technique, (5) planning for implementation of the

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BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

change, (6) actual implementation and (7) evaluation and follow-up. People resist change
because of uncertainty, feeling of loss, different perceptions and threatened self-interest.
Uncertainty is they may worry about their ability to meet new job demands, they may
think that their job security id threatened or they may simply dislike ambiguity. Feeling
of loss is because social relationships are important; most people resist any change that
might adversely affect those relationships. Different perceptions, others in the
organization may resist the change because they do not agree with the manager’s
assessment or perceive the situation differently. Threatened self-interest is a change
might diminish their power or influence within the company, so they fight it. Overcoming
resistance is participation, education and communication and facilitation. Participation –
employees who participate in planning and implementing a change are better able to
understand the reasons for the change. Education and communication – educating
employees about the need for the expected results of an impending change should reduce
their resistance. Facilitation is making only necessary changes, announcing those changes
well in advance, and allowing time for people to adjust to new ways of doing things can
help reduce resistance to change.
Force field analysis, a manager who is able to identify forces acting both for and
against a change can see where to focus effort to remove barriers to change Force Field
Analysis was created by Kurt Lewin in the 1940s. Lewin originally used it in his work as
a social psychologist. Today, however, it is also used in business, for making and
communicating good decisions. The idea behind Force Field Analysis is that situations
are maintained by equilibrium between forces that drive change and others that resist
change.
Enterprise Resource Planning or ERP is a large scale information system for
integrating and synchronizing the many activities in the extended enterprise. The simplest
way to define ERP is to think about all the core processes needed to run a company:
finance, HR, manufacturing, supply chain, services, procurement, and others. At its most
basic level, ERP integrates these processes into a single system. Yet modern ERP
systems are anything but basic. They use the latest technologies – such as machine
learning and artificial intelligence (AI) – to provide intelligence, visibility, and efficiency
across every aspect of a business. Reengineering is the radical redesign of all aspects of a

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BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

business to achieve major gains in cost, service, or time. Example: Corning, for example,
has undergone major reengineering. Whereas the 150- year-old business once
manufactured cookware and other durable consumer goods, it has transformed itself into
a high-tech powerhouse making products such as the ultrathin screens used in products
such as smartphones and laptops.
Organization development is a planned effort that is organization-wide, managed
from the top, and intended to increase organizational effectiveness and health through
planned interventions in the organization’s process, using behavioral science knowledge.
Some OD techniques are diagnostic activities, team building, and survey feedback.
Innovation is the managed effort of an organization to develop new products or
services or new uses for existing products or services. The innovation process includes
development, application, launch, growth, maturity and decline. There are also several
types of innovations. (1) Radical innovations are new products, services, or technologies
developed by an organization that completely replace the existing products, services, or
technologies in an industry. (2) Incremental innovations are new products, services, or
processes that modify existing ones. (3) Technical innovations are changes in the
physical appearance or performance of a product or service or of the physical processes
through which a product or service is manufactured. (4) Managerial innovations are
changes in the management process by which products and services are conceived, built,
and delivered to customers. (5) Product innovations are changes in the physical
characteristics or performance of existing products or services or the creation of brand-
new products or services. (6) Process innovations are changes in the way products or
services are manufactured, created, or distributed.

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