Change and Innovation in Management

Organizational change is defined as the adoption of a new idea or behavior by an organization. Sometimes change and innovation are spurred by forces outside the organization. Other times, managers within the company see a need for product or service innovations, for creating greater efficiencies in operations, or for other alterations to keep the organization profitable.

Two concepts that address the need for change in today’s environment are disruptive innovation and the ambidextrous approach. Disruptive innovation refers to innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books. An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations.

Every organization must change and innovate to survive. Change is all about a transformation or modification. Resistance to change is one explanation for why implementing change is so difficult. People resist change for several reasons, and understanding the reasons is a good start toward knowing how to bring about needed change in organizations.

These reasons for resistance are legitimate in the eyes of employees affected by the change. Managers should not ignore resistance; instead, they should diagnose the reasons and design strategies to gain acceptance by users.

Many people prefer the status quo and tend to resist change. The biggest obstacle to organizational change is the fear of personal loss. Other reasons why people resist change are lack of understanding and trust, uncertainty, and different assessments and goals.

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