Organizational Behavior: Change and Innovation

Organizational Behavior: Change and Innovation

Drivers of Change

Change is a vital aspect of every company. These changes can either be internal or external. Usually, many factors drive transformation in an organization. Downsizing is one of them, and it is the one that has been around for a long time. This is a force employed when an organization intends to cut the cost of operation, and it involves the reduction of the number of employees. This model is also used when an organization has merged up with another firm. While this can be seen as an expansion that would instead bring more employment opportunities, the contrary is always right in that a merger means that there could be a duplication of roles. For instance, a human resource manager from one of the companies that came together has to be retrenched for one of the managers to remain.

Information technology is another factor that drives organizational change in that it has brought about efficiency in operations while, at the same time, has been responsible for the job loss of many people. Mechanization of a company’s services means that the person responsible for the work taken over by the machines will lose their jobs and will be replaced by the computerized equipment. While this may be true, this technology may also create more job opportunities. For instance, software engineers will be employed to manage institutions’ databases and machines. This is a post that would not have been there if information technology was absent. The use of the Internet has also improved the way that organizations do their businesses since it has created a market place for its products while, at the same time, has enhanced interactions between institutions.

Politics is also another driver of change in an organization. A firm may need to initiate change based on the political environment that it is working in. For instance, politics around global warming may be a factor that will inspire change in many companies. A government may put a policy in place banning vehicles that increase carbon emissions. This means that firms responsible for manufacturing such cars will need to change and produce automobiles that either uses electricity or other forms of energy that do not emit carbon to the environment to remain in business(Spacey, 2018). This will need a lot of restructuring of the company which will involve hiring professionals in the relevant field and may also require laying off those employees that were responsible for producing the previous vehicles.

Change in consumer preferences is also another major factor that leads to a change in an institution. When the inclination of the customer changes, an organization will need to restructure itself to realign with the customers’ needs. Competition can also force a company to improve in that competitive prices from the rivals can lead to a company lowering its rates to ensure that it remains in the industry.

In my previous institution, the company had faced stiff competition from Chinese firms which produced goods cheaply while selling them at a lower price to the customers. Our corporation could not match the costs that the competitor was offering, and therefore,it shifted its focus and changed its target market to high-end customers who needed quality products at premium prices. Consequently, thebusiness managed to beat its competitors because it attained more loyal customers and its brand image grew significantly.

Video Summary

Gary Hamel’s talk is mainly based on innovation. He asserts that the beginning of management was also an invention. He looks at this concerning automation through the automobile industry that came up with the necessary management tools that have been used over the years. He asserts that the ways of management have rarely changed over time, and the basics have remained the same. Further, Hamel states that this, however, has to change and the modern world needs to embrace fresh management ways because related concepts have transformed. He says that the current world is facing a different challenge than the previous one and that hyper-competition presents a new challenge to modern-day companies. Therefore, the only way to remain relevant and beat the wind of creative destruction is innovation, which goes beyond using technological know-how.He also looks at knowledge as a commodity and a firm needs to understand the experience that it has while observing the awareness that it will create.

Furthermore, he asserts that companies which will adopt new and creative ways ofinnovation will be successful in the current world. Most importantly, new forms of management should be employed to ensure effectiveness in production. He states that if one needs to be successful in the future, he/she needs to look into some unusual places like the web.

Characteristics of Innovative Companies

Several features make up an innovative company, and one of them is that the businesses acknowledge and create room for failure. If a firm allows its employees to fail without endangering their positions, they will work hard to take up dangerous and more innovative ideas, which will benefit the corporation. Trust is another element of an innovative company in that by creating an environment of confidence, and an institution will give its employees a chance to pursue their ideas; however stupid they may be without ridicule. This will motivate them to come up with more creative ideas knowing that they will have the full backing of the company. Another characteristic is that the management and staffs are leaders in their field. The main thing that innovation provides to an institution are ideas that have never been implemented before in the industry and, thus, acting as trailblazers in the sector. Their relevant but unique strategy can also characterize innovative companies. Companies like Apple have employed a unique and consistent approach in their operations and have; as a result, came up with some of the most innovative products in the technology industry(Baumgartner, n.d.). Autonomy is also another characteristic of these innovative companies where employees are given clear goals and objective while at the same time allowed the freedom to work in their ways towards these goals.

Characteristics of Innovative People

Innovative people have been known to possess several characteristics, and one of them is an opportunistic mindset. This trait allows them to identify gaps in the market. They also have formal education and training, which is essential in noticing and interpreting new opportunities in the market. Additionally, theyhave a high degree of persistence which allows them to fight for the opportunities that they have identified. Another important point is that they are too prudent and well-organized in the way that they do their work. They are disciplined and do not take calculated risks(Chamorro-Premuzic, 2013). They also have social capital. Successful innovators have a considerable pool of connections that are important in ensuring their ideas take off.




Baumgartner, J. The Seven Essential Characteristics of Innovative Companies | Innovation Management. Retrieved from

Chamorro-Premuzic, T. (2013). The Five Characteristics of Successful Innovators. Retrieved from

Spacey, J. (2018). 20 Examples of Change Drivers. Retrieved from