Principles of Management

VI. 1.  As advancements in technology affect the way organizations operate, discuss ways technology (automation, information technology, the Internet, innovation) alter the way organizations plan and operate.  

2.  How has technological advancement affected your life and the way you do your work in your organization?

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3.  Please use class material to support your answer.



Advancements in technology affect the way of many things in organizations’ operations are done in many different ways.  Automation is already in play with factories when boxing and shipping was once done by a human it is now done by a computer controlling it.  Information technology is used widely in most if not all businesses now days.  In my line of work we have all of our records and scheduling through a computer based program.  The internet effects it by buying and selling on line.  It is easier to purchase something with a click on Amazon vs having to drive, park then go inside a store to purchase something.  Technological advancements has effected my life by making it easier for me to function in a daily task.  I hat e saying that but it is true.  Take this school, all on line which saves me the time and money having to go to a classroom to take a class.  Within my job we only use computers to do our daily work.  Whether making appointments or emailing with our doctors it has become so much easier having everything in one place versus the old way with charts and having to hunt someone down to ask a question.  

BBA 3602, Principles of Management 1

Course Learning Outcomes for Unit VI

Upon completion of this unit, students should be able to:

1. Analyze the impact of change and innovation in organizational processes.

Reading Assignment

In order to access the following resource(s), click the link(s) below:

Freedman, D., Villano, M., & Horwitz, C. (2015). What’s your type. Entrepreneur, 43(11), 56–68. Retrieved


Hibbert, L. (2015). Innovation and skilled management made these two British engineering companies world

leaders. Professional Engineering, 28(8), 3. Retrieved from

Hlupic, V. (2015). Management shift. Training Journal, 57–59. Retrieved from

Smith, A., & Robinson, M. (2015). At the heart of innovation. Training Journal, 38–41. Retrieved from

Stanleigh, M. (2008). Guide to innovation. Industrial Engineer, 40(6), 38–41. Retrieved from

Unit Lesson

Click here to view the video for Unit VI (1m 37s).

Click here to access a PDF of the video transcript.


Corporate Culture, Innovation, and Change

BBA 3602, Principles of Management 2



People like a winner. For those in business, they want to “win” and be successful. How did Under Armour’s
Kevin Plank do so well with athletic apparel, an area where so many items have already been marketed for
more than a century?

Plank offered a formula in his interview that can be found in the Suggested Reading section below. His
formula includes the following ideas:

 Do one thing well.

 Stay true to your brand.

 Be open to wild ideas.

 Never stop inventing (Foster, 2015).

Plank appeared to embrace innovation and change as normal business
phenomena. What do you think would happen in a business where
innovation is not encouraged and change is not wanted?

From studying evidence and early writings of civilizations, historians and
archaeologists conclude that humans began forming the first farms and
farming communities more than 10,000 years ago. They started to
supplant hunting and gathering with agriculture of certain grains, fruits,
vegetables, and animal herds in specific locations (like the Middle East).
That period of the Neolithic Era through today has been marked by leaps
of innovation and washes of change over people and their environments.
With such a history of innovation and change in our past, we, as
managers using sense and reason, should expect more of the same in
our future.

This review of history is helpful because the general rules of innovation
have not changed. If we accept technology as the means to accomplish
something—and creating fire by striking flint pieces over kindling is an
example of a certain level of technology—then we also see that
innovation is a thinking-dominant process of working out a new way to
accomplish something. In growing up, most people experience the
satisfaction of innovating something in their lives, even if it is a
rediscovery of a technique, like in cooking, that has been discovered
before but not known to the experimenting cook. Innovation emerges

from creativity and free thinking—as illustrated by the phrase thinking outside of the box. The box is the
collection of known and familiar processes, perhaps in an organization. Free thinking that brings about
innovation explores unknown territory that is not in the box.

Kevin Plank, CEO of Under Armour
(Dcavalli, 2009)

BBA 3602, Principles of Management 3


How does a manager interact with innovation? People do the innovating, even if assisted by information
technology and computers, so there is a strong social element to innovation. Organizational members who are

innovating, whether it is their primary job or not,
have to be encouraged and supported—but
especially not discouraged. Innovation takes effort
and is not realized on demand. Inspirational ideas
may occur to an innovator at random—even when
the innovator is falling asleep at night. Effective
managers have to give innovators some space:
meaning location and time to allow them to make
the most of their creative talents. Managerial
scrutiny of innovators is necessary to some
extent. No salaried organizational member is truly
free in all respects, but too much, like too much
evaluation of an idea, can lead to discouragement,
including the perception that nothing new is
allowed to leave this building. A manager may see
that transformational leadership features of good
communication channels, optimism, toleration of
experimental failures and some mistakes, and a
vision of the long-term sustainment of the
organization are key to leading innovation efforts
that help solve problems and support the
organization (Stanleigh, 2008).

An organization does not plan for and execute all
the changes that affect it. Not only does change

occur that was not planned, but most likely the vast majority of changes experienced over any length of time
were not planned. Change has many origins. Anything occurring differently or assuming a different
characteristic among organizational members, stakeholders outside the organization, the society and culture
they come from, economics and the markets, politics, and the environment will appear as change. These
elements usually work in random combinations. Change is inevitable. This has been observed long enough in
our history to be certain.

Is change good or bad? This question is similar to asking if rain is good or bad. Either can be a factor in
creating an advantage or disadvantage for a person or organization. A single changed factor is often judged
as being good or bad for an organization—an example would be a change in the law that affects the
organization—and well-prepared strategic analysis includes an assessment of factors that may include
significant change. As mentioned, change is often random and unexpected, so neither a staunch conservative
who wishes for a seemingly simpler and better age nor an activist who wants something of an overhaul of the
environment of the organization will be completely satisfied. Change has never occurred entirely as planned.

Often, an organization needs more than just minor changes to its composition and processes to continue its
existence. Randomness of change over time may render it nearly obsolete in society and business or
government. A complete philosophical and cultural shift to another existence may be necessary to fit the
present day and environment, which is known as an organizational shift. Organizational shifts are more than
changes. An organization’s mission, values, services, composition, and senior leaders may change in an
organizational shift. Such radical change takes courage, as a successful outcome by shifting from the known
to the unknown is never certain nor guaranteed. A corporation reorganizing from bureaus to functional teams
with new processes would be an example of an organizational shift; dot-com companies have had the agility
to make this shift—often with great success (Hlupic, 2015).

Corporate culture can be understood by reflecting on the phenomenon of culture in society and history, which,
in short, is a group of people’s commonly shared solutions for solving life’s challenges. This encompassing
idea accounts for global or regional varieties in cooking recipes, music, clothing, language, and designing and
using shelter for housing. Culture gives us much delight as we see how pleasant our differences can be. As
culture is held by groups both large and small, organizations can have an organizational or corporate culture
as well, with each being noticeably different from another. Think about competitor automobile companies Ford
and South Korea-based Hyundai—each with vastly different histories and regional origins. Hyundai emerged
as a mostly compact car and truck company to meet the needs of drivers in a country with narrow city streets

Google’s Lexus RX 450h self-driving Car.
(Jurvetson, 2012)

BBA 3602, Principles of Management 4


and small parking spaces. Ford has an American tradition going back to the beginnings of major automotive
innovation 110 years ago. If an executive was hired away from one company to accept a promotion in the
other, could he or she expect a different corporate culture? Quite possibly. Many managers move to progress
in their careers, but if you are not sure what corporate/organizational culture is at a certain place, you can
research it! Research remains one of management’s strongest tools and can help a manager work with
innovation, change, and corporate culture. (Freedman, Villano, & Horwitz, 2015).


Dcavalli. (2009). Kevin Plank – UA photo [Image]. Retrieved from

Foster, T. (2015, August). Kevin Plank’s formula for Under Armour’s innovative design. Retrieved from

Freedman, D., Villano, M., & Horwitz, C. (2015). What’s your type? Entrepreneur, 43(11), 56–68.

Hlupic, V. (2015). Management shift. Training Journal, 57–59.

Jurvetson, S. (2012). Google’s Lexus RX 450h self-driving Car [Image]. Retrieved from

Stanleigh, M. (2008). Guide to innovation. Industrial Engineer, 40(6), 38–41.

Suggested Reading

Read Kevin Plank’s formula for success, which can be implemented into any business plan.

Foster, T. (2014, August). Kevin Plank’s formula for Under Armour’s innovative design. Retrieved from



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