Chapter 9 Culture Innovation Change Managers Must big three things 1 Develop culture 2 Encourage innovation 3 Mange change All videos important o Zappos Culture core values are the foundation to culture run their business o Mickey Mouse Mickey as special guest at corporate meeting displays Disney Traditions o Wall Street Culture greed on wall street getting rich should just be a by product o Pixar corporate office filled with fun activities to start creativity juices large rooms to force engagement and interactions All combines to for a unique culture setting o Frosted Flakes Tony the tiger comparison to Nittany lion Both are symbols o Wegman s Fortune magazine s 3 Best place to Work where performance and culture intersect Business model built around valued employees and valued customers o Moneyball Trailer example of the change process o Who Moved My Cheese Him and Haw s cheese is moved Haw searches through the maze to find new cheese When you change what you believe you change what you can do Culture Definitions plus sub culture o System of Shared beliefs values internal o Set of signals of which is consider appropriate vs inappropriate o Cultural Fit High impact on people leaving their job Corporate Culture Mickey Mouse and Disney Traditions Shape attitudes Reinforce beliefs Direct behavior Set expectations Culture Above Below the Waterline o Corporate Culture Levels Edgar Schein 1 Visible dress symbols slogans 2 Invisible expressed values 3 Assumptions deep beliefs Organizational Culture Team Culture Hierarchical Culture Authority shared distributed Authority runs the system Teams and teamwork rule Traditions roles clear Collaboration trusted value Rules hierarchy valued Emphasis on mutual support Emphasis on predictability Entrepreneurial Culture Rational Culture Authority goes with ideas Authority serves the goals Flexibility and creativity rule Efficiency productivity rule Change and growth valued Planning process valued Emphasis on entrepreneurship Emphasis on modest change Observable Culture o Core values beliefs about the right ways to behave Stories Tales about events conveying core values Instills deeper cultural understanding Heroes People who display and establish core values Symbols Langue and other symbols conveying core values easy to recognize Rites and Rituals Celebration of heroes and events displaying core values builds moral engagement shared hands on experiences Innovation o Nick D Alosio 16 yr old innovator Sold Summly news app to Yahoo o Process innovation results in better ways of doing thing o Product innovation result in new or improved goods or services o Business model innovation result in ways for firms to make money Examples Instagram Dish TV Blockbuster o Green Sustainable innovation reduces the carbon footprint of an organization or its products o Social innovation business innovation driven by social conscience o Commercializing innovation the process of turning new ideas into salable products Example Post it Notes Example TerraCycle turning garbage into consumer products o Reverse innovation recognizes the potential for valuable innovations to be launched from lower organizational levels and diverse locations including emerging markets o Disruptive innovation creates products or services that become so widely used that they largely replace prior practices and competitors o Skunkworks special creative units set free from the normal structure for the purpose of innovation HIGHLY INNOVATIVE ORGANIZATIONS Strategy includes Culture values Structure Staffing builds Leadership drives innovation innovation support talent for innovation innovation innovation Change o to make the form nature content future course etc of different from what it is or from what it would be if left alone o Elizabeth Blubler Ross Dealing with Grief o Types of Change Incremental day to day small changes Transformational major and comprehensive redirections Improvisational continual adjustments as changes are being implemented o Change Process Kurt Lewin Model 1 Unfreeze create a need for change 2 Change Implement manage the process of change 3 Refreezing stabilize the change and scan for the future o Monster change issue is TIMING o Second is COMMUNICATION Change Strategy Power Bases Managerial Behavior Likely Results Forced Coercion Legitimacy Direct forcing and Faster but low Using position power to Rewards unilateral action commitment and create change by decree Punishments Political only temporary and formal authority maneuvering and compliance Rational Persuasion Expertise Informational efforts Creating change through rational persuasion and empirical argument change through personal values and commitments Share Power Reference Participative efforts Slower but high Developing support for to share power and commitment and involve other in longer term planning and internalization implanting change indirect action using credible knowledge demonstrated facts and logical argument Approaches o Change Drivers Confident of ability Willing to take risks Seize opportunities Expect surprises Makes things happen o Status Quo Holders Threated by change Bothered by uncertainty Prefer predictability Support the status quo Wait for things to happen Why People May Resist Change o Fear of the unknown not understanding what is happening or what s next o Disrupted habits feeling upset to see the end of the old ways of doing things o Loss of confidence feeling incapable of performing well under the new ways o Loss of control feeling that things are being done to you rather than by you o Poor timing feeling overwhelmed by the situation or that things are moving too fast o Word overload not having the physical or psychic energy to commit to the change o Loss of face feeling inadequate humiliated because it appears that the old ways weren t good ways o Lack of purpose not seeing a reason for the change or not understanding the benefits Chapter 10 Human Resources HR Basics o When you look at people in the workplace what do you see 1 A cost to reduce 2 An asset to develop o Human Capital economic value of employees skills knowledge Sheryl Sandberg left her senior position at Google for Facebook s COO Focused specifically on human capital o Strategic HRM Aligns human capital with organizational strategy o Bona Fide Occupational Qualifications employment criteria justified by capacity to o Affirmative Action An effort to five preference in employment to women and minority perform a job group
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