Organisation Change and Transition

1
Organisation Change and Transition

• Week 9
• Change through Enterprise, Entrepreneurship and
  Innovation

2
Resistance to Change Activity

• Factor 1 Perceived personal benefit
• Account taken of needs, attitudes, beliefs of
  individuals involved
• Personal benefit demonstrated
• Factor 2 Involvement of leader/supervisor
• Was official/unofficial leader involved
• Factor 3 Provision of change information centred
  on own organisation
• Appropriate information, relevant, meaningful
• Ownership of the information
• Factor 4 Shared perceptions of need for change
• Shared perceptions of need for change
• Involvement in information gathering and
  interpretation
• Factor 5 Participation and involvement
• A common sense of belonging
• Appropriate degree of participation
• Factor 6 Group cohesiveness
• Group cohesiveness working to reduce resistance
• Factor 7 Targeting permanent rather than
  temporary groups
• Involvement of relevant work groups
• Factor 8 Open communications, sharing of
  information

3
Lecture Structure

• What do we mean by Enterprise and
  Entrepreneurship?
• Invention, Innovation and Enterprise
• Individual issues
• External influences
• Enterprise and the Organisation
• Organisational Life-cycle
• Growth and Size Issues Large v Small
• Innovation and Change in organisations
• Developing Innovation and Creativity within
  Organisations
• Summary and Conclusions Enterprise, Innovation
  and Change

4
Enterprise

• Lord Young, when he was the UK Secretary of
  State for Employment, said, We must have an
  enterprise culture, not a dependency culture.
  When he was asked what he meant by enterprise
  he described it as. Get up and go not sitting
  back and accepting it. Think positive and things
  can happen if you are passive and think negative
  then nothing happens. Its a mental attitude.
• (DTI (1988), Quoted in Bridge et al. 2003 24)

5
Enterprise

• There are many definitions of enterprise as
  there are people defining the word! However,
  there is a great deal of common ground and most
  people would agree that the enterprising person
  is resourceful, adaptable, creative, innovative
  and dynamic. He or she may also be
  entrepreneurial. However, the qualities of
  enterprise are as useful in the employee as the
  employer, and equally important in the public,
  private and voluntary sectors (Training Agency
  (1990), Quoted in Bridge et al. 2003 24)

6
What do we mean by Enterprise?

• Economy School (Narrow business entrepreneur)
• What entrepreneurs do, i.e. create business, jobs
  and wealth
• Education School (Broad attributes and
  resources)
• Individuals need to act in an enterprising manner
• Using a series of skills which allow them to
  prosper in business and in wider contexts
• As change increases need for more enterprising
  behaviour
• Need for an educative approach which fosters
  personal development for individuals to become
  more enterprising

7
What do we mean by Enterprise? Economy School
(Narrow business entrepreneur)

• The carrying out of new combinations (of means
  of production) we call enterprise and the
  individuals whose function it is to carry them
  out we call entrepreneurs (Schumpeter, 1934)
• Linked to idea of Creative destruction
• Entrepreneur seen as owner-manager of an
  industrial enterprise
• Associated to (a synonym for) small business
  start-ups and Small to Medium Enterprises (SMEs)
• Now considered central to health of economy

8
What do we mean by Enterprise? Brief Activity

• Qualities of an enterprising and creative
  individual
• Have a Positive, Flexible and Adaptable
  disposition towards change
• Seeing Change as an opportunity rather than
  problem
• Being Self-confident
• Dealing well with insecurity and risks
• Initiate and develop creative ideas
• Taking responsibility
• Being an Effective communicator, negotiator,
  influencer, planner and organiser
• Being Active, confident, purposeful - not passive
  uncertain and dependent

9
What do we mean by Enterprise? Education School
(Broad attributes and resources)

• Enterprising behaviour now desired of all
  employees in all contexts and all sectors
• At all hierarchical levels (e.g. Management
  Charter and Managerial Skills Initiatives (see
  Watson, McCracken and Hughes, 2004 Winterton et
  al, 2000),
• Changing psychological contract (Pate et al,
  2003)
• Encouragement from government and business for
  more enterprising behaviour (See DELNI 2004)
• Promoting a culture of enterprise much broader
  than business

10
Invention, Innovation and Enterprise Individual
issues

• Invention and innovation
• there is general agreement that invention
  precedes innovation and that the latter can be
  viewed as the successful exploitation of new
  ideas, but not the origination of the ideas
  Creativity is not itself enterprising and neither
  is invention, because they do not generate
  change that does not happen until the innovator
  takes the idea and does something with it.
  (ONeill et al., 2003 56)

11
Invention, Innovation and Enterprise Individual
issues

• Are Entrepreneurs born or made?
• Why are some people more enterprising than
  others?
• Personality
• Possession of certain innate traits - some are
  more enterprising
• Risk taking propensity, internal locus of
  control, desire autonomy, determined, creative
  etc.
• Behaviour
• Competencies or abilities displayed
• Importance of attributes and resources
• Economic approaches
• Function that entrepreneurs play in economy
• Sociological approaches
• Individuals socialised to meet approval of role
  set
• Other issues
• Cognitive decision making issues entrepreneurs
  perceive things differently than others
• Entrepreneurial Self Efficacy and Intrinsic
  Motivation

12
Invention, Innovation and EnterpriseExternal
influences
National and Societal Culture
Political Conditions
Economic Conditions
Demand factors, i.e. economic, political,
technical and industry issues
Supply factors, i.e. participation rates, income
levels and population growth
Individuals with their attributes, resources,
beliefs, traits and intentions
Equilibrium rates of enterprise
Government Intervention
Source ONeill et al., 2003 107
13
Enterprise and the Organisation The Basic
Organisational Life Cycle
Streamlining, small-company thinking
Large
Development of teamwork
Continued maturity
S I Z E
Addition of internal systems
Decline
Crisis Need for revitalisation
Provision of clear direction
Crisis Need to deal with too much red tape
Creativity
Crisis Need for delegation with control
Crisis Need for leadership
1. Entrepreneurial Stage
2. Collectivity Stage
3. Formalisation Stage
4. Elaboration Stage
Small
ORGANISATION STAGES OF DEVELOPMENT
Sources Adapted from Robert E. Quinn and Kim
Cameron, Organizational Life Cycles and Shifting
Criteria of Effectiveness Some Preliminary
Evidence, Management Science 29 (1983) 33-51
and Larry E. Greiner, Evolution and Revolution
as Organizations Grow, Harvard Business Review
50 (July-August 1972) 37-46.
14
Enterprise and the OrganisationOrganisational
Growth and Size

• A key Organisation Goal?
• Acquire size and resources to compete on a larger
  scale
• Invest in new technology
• Control distribution channels
• Executive Advancement
• From owner/entrepreneur to managers
• Economic Health Indicator

15
Enterprise and the Organisation Organisation
Characteristics During Four Stages of Life Cycle
16
Enterprise and the Organisation The Large versus
Small Dilemma

• Large is best
• Economies of scale Global reach Vertical
  hierarchy Mechanistic Complex Stable market
  Career longevity and stability
• Small is beautiful
• Responsive Flexible Regional reach Flat
  structure Organic Simple Niche finding
  Entrepreneurial
• Key Question Does size matter?
• Need for more enterprising and innovative
  thinking in all organisations regardless of size
  (Wiklund, 1999 Chandler et al., 2000)
• How can we engender Corporate Intrapreneurship?

17
Enterprise and the Organisation Innovation and
Change in organisations

• Technology
• Changes in production process
• Products and Services
• Changes in outputs
• Strategy and Structure
• Administrative changes
• Culture
• Changes in values, attitudes, behaviours

18
Enterprise and the Organisation Engendering
Corporate Intrapreneurship

• Using Strategic Entrepreneurship
• Positioning Strategy Senior management role
• New corporate ventures
• Developing Innovation within the organisation
• Utilising people from all levels to enable
  innovation
• Dangers of managerial resistance as trustees of
  human and material resources
• Major pre-occupation is with existing operation
  feed today and starve tomorrow (Drucker, 1999)

19
Enterprise and the Organisation Engendering
Corporate Intrapreneurship
Environment
Internal Creativity and Inventions
Suppliers Professional Associations Consultants Re
search literature
Organisation
Roles, systems and structures that support
innovation
1. Ideas
3. Adoption
4.Implementation
2. Needs
Customers Competition Legislation Regulation Labou
r force
5. Resources
Perceived Problems or Opportunities
20
Enterprise and the Organisation Engendering
Corporate Intrapreneurship

• Developing an Entrepreneurial Culture
• Entrepreneurial values and activity at all levels
• Major shift in thinking challenge to status quo
• Need for innovative learning (Fenwick 2003)
• Personal needs for individuals Challenge and
  Variety Freedom Purpose and meaning (social)
  Recognition and pride
• Forms of innovative learning Generating multiple
  ideas Scanning and optimising continuous
  problem-solving self confidence
• Instilling creativity into processes

21
Corporate Entrepreneurship Supporting Creativity

• Learning orientation
• Encourage experimentation
• Tolerate mistakes (within limits!)
• Intrinsically motivating work
• Task significance, autonomy, feedback
• Open communication and sufficient resources
• Mentoring and Coaching

22
Corporate Entrepreneurship Instilling Creativity
into Decision Making
Creative Process Model
Preparation
23
Corporate Entrepreneurship Creative Activities
24
Corporate Entrepreneurship Creative Activities
Brainstorming

• Rules of Brainstorming
• Speak freely
• No criticism
• Provide many ideas
• Build on others ideas
• Electronic Brainstorming
• Benefits
• Less production blocking
• Less evaluation apprehension
• More creative synergy
• More satisfaction with process
• Problems
• Too structured
• Technology-bound
• Candid feedback is threatening
• Not applicable to all decisions

25

Group Activity

• In small groups try to brainstorm how HR
  professionals can enhance innovation and
  creativity in the organisation?
• Developing Creativity Skills
• Motivation, curiosity, new connections,
  evaluation
• Innovation courses
• Team dynamics, idea generation, problem solving,
  facilitation, immediate application
• Changing Recruitment Practices
• Mavericks and Entrepreneurs?
• Corporate dreamers
• What do we do with such types?

26
Summary and Conclusions

• Why is innovation and Enterprise so important at
  this time?
• Innovation and Enterprise at heart of many change
  programmes now
• Individual and Organisational level Innovation
  important
• Why are some individuals more enterprising than
  others?
• Many Techniques and initiatives focussed at group
  level
• What can HR do to create a culture of learning
  and innovation?

27
Reading and References

• Bridge, S., ONeill, K. and Cromie, S. (2003)
  Understanding Enterprise, Entrepreneurship and
  Small Firms, Basingstoke Palgrave MacMillan
• Chandler, G.N., Keller, C. and Lyon, D.W. (2000)
  Unravelling the determinants and consequences of
  an innovation supportive organisational
  culture, Entrepreneurship Theory and Practice,
  25 59-76.
• DELNI (2004) Unlocking Creativity A Creative
  Region, Belfast DEL Publications
• Drucker, P. (1999) Innovation and
  Entrepreneurship, Oxford Heinman
• Fenwick, T (2003) Innovation Examining
  Workplace Learning in new Enterprises, Journal
  of Workplace Learning, 15 (3) 123-132
• Pate, J., Martin, G., McGoldrick, J. 2003, "A
  Study of the Impact of Psychological Contract
  Violation on Employee Attitudes and Behaviour",
  Employee Relations, 25 (6) 557-573.
• Schumpeter, J.A. (1934) The Theory of Economic
  Development, Cambridge Mass Harvard University
  Press.
• Watson, S., McCracken, M. and Hughes, M. (2004)
  Scottish Visitor Attractions Managerial
  Competence Requirements, Journal of European
  Industrial Training, 28 (1) 39-66.
• Wiklund, J. (1999) The sustainability of the
  entrepreneurial orientation performance
  relationship, Entrepreneurship Theory and
  Practice, 24 37-48
• Winterton, J., Parker, M., Dodds, M., McCracken,
  M. and Henderson, I. (2000) The Future Skill
  Needs of Managers, Research Series Report, No.
  182, Sheffield Department for Employment and
  Education.