Managing Change, Creativity and Innovation
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1 Managing Change, Creativity and Innovation Constantine Andriopoulos and Patrick Dawson USAGE Los Angeles London New Delhi Singapore Washington DC
2 Contents List of Figures and Tables Acknowledgements xv xvii PART 1 SETTING THE SCENE: THE CHANGING LANDSCAPE OF BUSINESS ORGANIZATIONS Rationale of the book 4 The changing world of business 4 Case 1.1: Amazon Reports Record Christmas Sales 5 Managing change, creativity and innovation 6 8 Case 1.2: Sony Chief Outlines New Strategy t 10 ' The Process of Change, Creativity and Innovation Organizational change 14 Defining organizational change: the key dimensions 14 Factors that promote change 16 Case 2.7: Google Takes on itunes 17 Creativity 18 Myths surrounding creativity: towards a definition 19 Creative thinking 23 Case 2.1: Yahoo Raises Profile with Hollywood Push 25 Innovation 28 Theories of innovation 28 How does innovation differ from creativity? 29 Levels of innovation 31 Types of innovation 31 Case 2.3: Mobile Gaming: Serving a Volley of New Experiences 34
3 viii CONTENTS An Historical Overview of Business Practice and Theory Development The British Industrial Revolution Industrial organization and the co-ordination and control of work Change and the human aspects of work Sleepers wake: the spectre of technology and innovation Fit for purpose: the rise of contingency theory In search of excellence: recipes for success Academic critique and guru influence: making sense of a changing world Theory and practice: a reappraisal Case 3.1: The British Rail Case Study: learning from, the past? Growth in the Creative Economy and the Future of Organizations Why is now more than ever before the age of creativity? National prosperity is created Advertising Architecture Art and antique Crap Design Fashion Case 4.1 Restyling the Old Patterns Film Music Performing arts Publishing
4 i j CONTENTS ix I Research and development (R&D) 93 S Software 93 Toys and games (excluding video games) 94 I TV and radio 95 i Video games 96 i Case 4.2 Competition in Creative Industries 97 I Creative industries: potential for growth Case 4.3: A Dire Global Imbalance in Creativity PART 2 CREATIVITY AND CHANGE IN ORGANIZATIONS 107 The Individual: Promoting Critical Thinking Cognitive factors Implications for human resource management Personality traits Implications for human resource management Case 5.1 New Media are Just the Ticket for Bus, Tube and Taxi Knowledge Formal or explicit knowledge Informal or tacit knowledge Knowledge for creativity? Is knowledge always conducive to processes of change, creativity and innovation? Implications for human resource management Motivation Types of motivation Implications for human resource management Case 5.2 Miniature could be Hollywood's New Monster Hit
5 CONTENTS The Group: Nurturing Team Work What is a group and how is it different from a team? Why do people join teams? The team development process Why do teams fail? Psychological phenomena that can cause teams to fail Blind conformity Groupthink Social loafing Creative teams: what do we know? Team inputs Team size Team longevity Task Knowledge, skills and abilities (KSAs) Resourcing the team Team composition Team processes Action processes Brainstorming Rules for successful brainstorming Advantages of the brainstorming session Disadvantages of the brainstorming session { Useful guidelines for effective brainstorming In-class brainstorming exercise Creativity enhancement techniques Electronic brainstorming Brainwriting Nominal Group Technique (NGT) In-class exercise Interpersonal processes Trust Conflict Team cohesiveness Moderators of team performance Task type Team leadership Team outcomes Case 6.1 The Other Half (Bill Bungay oftbwa advertising) Case 6.2 Don't Think Just Learn - MBA Diary ~
6 CONTENTS xi 7 The Leader: Promoting New Ideas at Work Defining leadership How are managers different from leaders? Ingredients of leadership Historical overview of key leadership theories Trait approaches to leadership Behavioural theories The University of Iowa studies The Ohio State studies The University of Michigan studies The managerial grid Contingency theories The Fiedler model Hersey-Blanchard's situational theory Leader participation model Path-goal theory Contemporary approaches to leadership Transformational and transactional leadership Charismatic and visionary leadership Leading change, creativity and innovation Leadership and change Ingredients of leadership for creativity and innovation Case 7.1 Web Telphony's Quiet Duo Challenges Case 7.2 Fall of Movie Mogul 8 The Internal Environment: Orchestrating Structure, Systems and Resources The balanced scorecard: value creation and performance management What is organizational structure? Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization Situational factors
7 xil CONTENTS Corporate strategy Organizational size Environmental uncertainty Structural forms Traditional structures Contemporary organizational structures Organizing for change, creativity and innovation Systems Goal setting and rewards systems Evaluation Resources Sufficient resourcing Systems of communication Project selection Case 8.1 Floodgates Open Up to a Sea of Ideas Culture: Enabling and Constraining Creative" Processes at Work The evolution of the concept So what is organizational culture? Different perspectives on organizational culture Can we manage organizational culture? Why is culture an important determinant of organizational creativity and innovation? Norms that promote creativity and innovation Norms that promote implementation Principles of creativity and innovation Can strong, cohesive cultures hinder innovation? Case 9.1 Cultures at Work
8 CONTENTS xiii 10 The Organization: Managing Processes of Change Change and organizations 280 Change drivers: threat, necessity or opportunity? 284 People and change: the 'problem' of resistance? 286 Why do people resist change? 287 Managing the communication process 288 Assessing the speed and context of change 291 The organizational development approach to change management 292 Lewin's model of change 293 The sub-discipline of organizational development 294 A matrix model ofod interventions 295 Criticisms of the planned approach 297 A situational approach to change management 298 An appraisal of the Dunphy/Stace model 299 A political process approach to change management 301 The importance of political behaviour 302 Power, politics and organizational change 303 A processual perspective for understanding change 306 The approach ofpettigrew: the awakening giant 306 Dawson's processual perspective 307 Factors shaping the process of change 310 Studying change over time: from present to future state 311 Criticisms of Dawson's processual approach Case Study 10.1 Mybank: a case study of organizational change PART 3 CRITICAL REFLECTIONS ON THEORY AND PRACTICE Theoretical Debates and Practical Issues: Some Reflections Fixity and flux: organization or organizing? 332 Outside the straitjacket of contingent thinking: the world of dualities 334 A reappraisal of John Child's concept of strategic choice 336 Andrew Pettigrew and colleagues: innovative forms of organizing 337 The practical challenge: managing creative employees 339
9 xiv CONTENTS 12 Steering change, creativity and innovation: beyond the recipe approach Case Study 11.1 Managing Change: The experience of the Taylor Group Changing contextual conditions: from urban factories to networked communities Fostering change and creativity in the drive for innovation and change Concluding remarks Index 367
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