The leaders should know as to generate an organizational culture of change, innovation, and new technologies, which are not probably the new aspects in the development of the organization. In an organization, creativity is the creation of thoughts and ideas and innovation as the execution of these imaginative ideas. They imply that people with distinct individualities are mainly responsible for incorporating these thoughts and ideas, which can lead to innovation and change. The primary goal of organizations growth is that their innovativeness will tend to profitable venture that is more rewarding. There are several theories that may demonstrate the aspect that innovativeness is a function of behaviour, genuine motivation, appropriate expertise, capabilities, and generalized knowledge. Overall, the success and growth of an institution depend upon the capability of personnel to communicate knowledge and understanding (Norman and Verganti, 2014). In the following, an effort has been made to discuss the theories and models to lead innovation and change. It is stated that throughout this report the theories behind innovation and change has been discussed involving the development of the organization.
The author Mulgan and Albury (Mulgan, 2006) characterize as “the generation and execution of innovative methods, and services”. It would result in substantial advancements in order to achieve quality, efficiency, and effectiveness. They further linking the thought of generation as a source of importance for the people, customer, and companies.
It is to be critically evaluated from Innovation in the public sector of Geoff Mulgan and David Albury, which describes a framework describing criticisms from U.K. and other countries. It suggests that managing risk and generating convictions is significant for organizational development.
As per the author, Van de Ven (Van De Ven, 2017) embraces a wider aspect by the execution and development of innovative concepts and conviction by people who involve with others in a well-defined context.
It is to be critically evaluated from Alternative Approaches for studying the Organizational change of Andrew H. Van de Ven, which describes several dynamics in organizational changes.
As per the Joseph Schumpeter (Schumpeter, 2017), it is a diverse form of the invention as it associated with technological advancement while innovation relies upon marketing and acceptance. Additionally, it stresses the importance of innovation for economic success and development. Through the different definitions, innovation can be précised as a generation, whose understanding would create corporate opportunities in order to meet existing and new needs and preferences.
Through Schumpeter (Schumpeter, 2017), it is discovered the five main types of innovation: –
Tidd and Bessant (Bessant, 2018) define the 4Ps of innovation, which is different from Schumpeter, theory elaborates that:
The basic model of innovation states that it defines the methods and process that can be established and maintained within the company. It is a process, which is required with a culture that will assist in maximizing creativity. This innovation ability triggers health of the individual as well as an organization (Adams, Jeanrenaud, Bessant, Denyer and Overy, 2016).
It is to be critically evaluated from the foundation of managing innovation, which describes that innovation generates social value and maintaining international opportunities.
Tidd and Bessant state that the implementation parts of innovation, which carry an extended degree of risk as an organization need to invest in significant assets, which, can considerably affect the major part of the implementation. It is identified that a lot of reviews and research has been directed to try to recognize major elements, which influence the extent and rate of implementation and embracing innovation by the whole markets. In a changed situation, growth comes from prospecting for the better prospect and having the capability to innovate products or services. It may be described as the extent of intensity and propensity of products and services. It is stated that when it carries out an enhancement to the process, which is termed as incremental innovation. It does not turn the dynamics of the products or services, which permits the organization to encourage without upsetting its value chains (Akgun, Keskin, Ayar and Etlioglu, 2017).
It is stated that when an innovation is complemented by a main technological development that manages the products and services, which is termed into disruptive innovation. Another factor may be described by its extent of novelty. It was described as the creation and advancement of thoughts, which technologically innovates the understanding and perception of the product. There is one notable model that describes the innovation process and the generic model by Tidd and Bessant. It splits the method of innovation into four phases-
It is suggested that pervasive and perpetual innovation is the strategic aspect to attain long-term ecological growth and development in the constant search for prospective customers. They believe that to survive in the competition, companies must quickly and define through their best resources and personnel. They should build their roadmap by applying the seven aspects which are-
Tidd identifies that triggers change and innovation happen when a threshold is being achieved. It similarly recognized the resistance of change when the conflict indicates itself in the societies exposed by the innovation (Tidd and Bessant, 2018).
The leadership change model of Porter, which resist the change fundamentally within the personnel of the company and the situation. Some changes arise due to the opportunities, while others are intended in mergers. It is planned for the efficient development of the organization, which permits to reorient the company to accomplish its objectives and maintaining the performance in a changing environment (Carayannis, Sindakis and Walter, 2015).
The change tends to be effective only if there is a whole commitment to the organization. It is stated that change occurs through people, as they are part of the process of change, which induces their convictions, beliefs, emotions, and behaviour of every individual. Therefore, understanding learning theories of individual are significant for the organization (Saebi and Foss, 2015).
The planned change takes attentive effort and is conscious of every part of the organization. They have introduced the aspect of the change in employees and organization, which is capable of the art of expecting the necessity for productive change. It is proved that changes will not occur except the necessity for change in the organization is substantial. As personnel normally adapt change which is necessary for the organization. Normally, before embarking on a managerial change initiative, a clear-cut policy is being planned in order to expect social problems (Schaltegger, Lüdeke-Freund and Hansen, 2016).
The organization is now focussing on Lewin’s model of change, which includes unfreezing, transforming, and freezing. Unfreezing denotes to train employees’ willingness for innovation and maintaining rights. It demonstrates enhanced awareness by investors among the organization and its nature of work. It nurtures a need for renovation, which is spread in the institution. This is a point where it prospers on the different pattern and motivating forces of perception. This phase is considered by a degree of uncertainty, instability, and loss of landmark, which results in the sense of the necessity to change (Al-Haddad and Kotnour, 2015).
Through the transformation process, drive develops when stakeholders design its execution and transform with the responsibility of people to embrace the innovation. In the last phase of refreezing, people should identify and re-establish the equilibrium as individuals within the company. In this last step, the method of innovation and change is the commencement of advanced practices. It is, therefore, the alliance and acceptance of changed behaviour. Additionally, throughout this phase, the institutions should help the emergence of new beliefs and root of new standards. It thus holds people to return to the previous step, and it will result in progress (Bucciarelli, 2015).
The Lewin’s model of force field analysis reflects that a concern is to be made to the connection between two conflicting sets of forces i.e. positive and negative. It is considered that positive forces are to be termed as driving change and negative forces are to be termed as restraining change. They consider an extent of driving forces that assist with a set of restraining forces that compete and balance it. In addition, it permits Lewin to continuity and discontinuity within group behaviour. In this regard, behavioural change is not perceived of as developing needing the involvement of a ‘change agent’. This descriptive model has some restrictions, which fails to define the emotional state of an individual during the change management of the organization. It depends upon the change agent to act as an interconnection among states of permanency while assisting to maintain resistance to change. It is being stated that not every people or stakeholder will settle on the vision and mission and afterward implement it (Rodríguez and Nieto, 2016).
It is to be critically evaluated that Organizational change theory of Ben Smith, which discusses these forces, may incorporate the organizational structure, personnel, and management. It indicates that effectiveness and sustainability can be maximized by organizational change.
Another risky constraint is to be stated to move a step back in initial phases where modernizing may be essential. Another model of innovation and change model is Kotter’s model of change. It develops a sense of determination and forms a strong coalition by generating and sharing the vision to other people. They should encourage others to act upon the mission through planning, generating short-term wins, and joining developments, and maintaining change. Those changes with wide-reaching influences need significant learning by people, which will create more resistance to change (Termeer, Dewulf and Biesbroek, 2017).
It is defined that momentum and support must be grouped for efficient change. It always considers people to avoid failure. Through the change management, it is important to bring on-board diverse profile to accomplish efficient change. The authors Senior and Fleming argued that for efficient change, they must involve creativity in the institution. There is a lot of significance of stakeholder, in managing both the forces throughout the process (Van der Voet, 2014).
The two diverse models are Beer and Noria’s theory E and O’s, which concentrates on generating significance to the shareholder and utilizes structure and framework to attain change. This method frequently consults institutions and political incentives as a method to entice the organizational change. It is seen that management, employees, culture, and behaviour of employees are deliberated through the contribution of all the employees. Under this theory, personnel is requested to become engaged in recognizing and resolving work issues, whereas they consider that generating value is the major aspect of this model (Kempster, Higgs and Wuerz, 2014).
It is to be noted that there is no approach of Beer and Noris’s model that they cannot be executed. Change executives and agents of the organization provide a framework for productive change. Whether planned or unplanned, it should have a clear understanding of the particular situation. They should have a clear understanding of the selection of a suitable policy and plan. The change initiatives required to be planned effectively with all investors in perspective and only positive change is to be sustained in the organization. Leaders must support the change that makes it less threatening and compelling to the stakeholders. They must think in the longer term and implement change on a small scale. They must stress their emotional and creative intelligence and motivate to achieve change (Dinh et al., 2014).
It states that good change management has the competence to operate change under a cultural theory. The unpredictability is rooted in its environment and resistance to change, which gives it a relative improvement over other institutions. People and organizations have to hold change in order to manage and maintain a positive organizational culture. The leader faces the issues of advancing abilities that motivate and initiate direction (Van der Voet, Kuipers and Groeneveld, 2016).
Conclusion
In conclusion, it has been stated that international economic, social, and political affairs are united with the institution. The change might force on an organization or an organization might change in reaction to the situation. It must be suitably planned and employees should be properly prepared to accept these changes strongly. In this report, it covers various theories of innovation and change. All these theories agree on the need for innovation within the organization. It is deliberated that as innovation leads to change, they should be clear their approach before developing an innovation. To materialize the change and innovation, they should maintain leadership policy and approaches. The organizations must implement innovation and change to achieve long-term goals. The successful change gives a remarkable and progressive improvement in the organization.
References
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Akgun, A.E., Keskin, H., Ayar, H. and Etlioglu, T. (2017) WHY COMPANIES GO POSITIVE MARKETING INNOVATIONS: A NEW THEORETICAL PROTOTYPE FOR 4PS OF INNOVATION. Journal of Business Economics and Finance, 6(2), pp.70-77.
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Carayannis, E.G., Sindakis, S. and Walter, C. (2015) Business model innovation as lever of organizational sustainability. The Journal of Technology Transfer, 40(1), pp.85-104.
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