MANAGING CHANGE AND INNOVATION

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WHAT IS CHANGE?

Organizational ChangeAny alterations in the people, structure, or

technology of an organization

Characteristics of Change Is constant yet varies in degree and directionProduces uncertainty yet is not completely

unpredictableCreates both threats and opportunities

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FORCES FOR CHANGE

External ForcesMarketplaceGovernmental

laws and regulations

TechnologyLabor marketEconomic changes

Internal ForcesChanges in

organizational strategy

Workforce changes

New equipmentEmployee

attitudes

MANAGER AS CHANGE AGENT Change Agents

Persons who act as catalysts and assume the responsibility for managing the change process.

Types of Change AgentsManagers: internal entrepreneursNon-managers: change specialistsOutside consultants: change

implementation experts

TWO VIEWS OF CHANGE PROCESS

Calm waters metaphor According to Lewin , Success ful change can be be Planned and requires

Unfreezing the status quoChanging to a new stateRefreezing to make permanent change

White-water rapids metaphor

The lack of environmental stability and predictability requires that managers and organizations continually adapt to survive.

The white water metaphor is consistent with our discussion of un certain and dynamic environments. It is also consistent with a world that is increasingly dominated by information ideas and knowledge.

MANAGING CHANGE

In business improvement projects …

Change Managementis about ……

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Initiating change involves:-

A change agent. Identifying areas of change. Putting change process in motion. Managing employee resistance to change.

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be motivated always look at the

opportunities that change represents

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Example citing change

TYPES OF CHANGE

structureTechnology

people

CHANGING STRUCTURE

Structural decisions are not final but change with changing conditions and strategies.

Structural components where changes can be brought are:

• Terms of work specialisation.• Span of control.• Departmentalisation.• Chain of command.• Centralisation.• Decentralisation.• Formalisation.

CHANGING TECHNOLOGY

Early management studies dealth with eff orts aimed at technological change

Today technological changes involve :

Introduction of new equipment.Automation.Computerisation.

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Examples –changing technology• Introduction of new equipment:- due to competitive factors/new innovations

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Examples –changing technology• Automation tasks done by people are replaced by machines

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Installed efficient coal handling equipment

Examples –changing technology• COMPUTERISATION It’s very uncommon for an office not to be

computerised.

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CHANGING PEOPLE

Dat is changing their attitudes,expectations,perceptions,

and behaviors----isn’t easy !!!!

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ORGANISATIONAL DEVELOPMENT(OD)

It refers to all the types of changes , but essentially focuses on techniques or programs to change people and the nature and quality of interpersonal work relationships.

Organizational development techniques

13–19

MANAGING RESISTANCE TO

CHANGE.

MANAGING RESISTANCE TO CHANGE

Why people resist change?The ambiguity and uncertainty that change

introduces

The comfort of old habits

A concern over personal loss of status, money, authority, friendships, and personal convenience

The perception that change is incompatible with the goals and interest of the organization

Techniques for Reducing Resistance

.Education &

Communication

Participation

Facilitation & Support

Negotiation Manipulation & Co-optation

Coercion

TECHNIQUES FOR REDUCING RESITANCE

Education and CommunicationCommunicate with employees to help them see the logic of change.Educate employees through one on one discussions, memos, group meetings, or reports.Appropriate if source of resistance is either poor communication or misinformation.Must be mutual trust and credibility between managers and employees.

Participation Allows those who oppose a change to participate in the decision. Assumes that they have expertise to make meaningful contributions. Involvement can reduce resistance, obtain commitment to seeing change

succeed, and increase quality of change decision.

Negotiation Exchange something of value to reduce resistance. Potentially high costs and likelihood of having to negotiate with other resisters.

Cont…Facilitation and Support Provide supportive efforts such as employee counseling or therapy, new skills

training, or short, paid leave of absence. Can be time consuming and expensive.

Manipulation and Co-operation Manipulating is covert attempts to influence such as twisting or distorting facts,

withholding damaging information, or creating false rumors. Co-operation is a form of manipulation and participation. Inexpensive and easy ways to

gain support of resisters. Can fail miserably if targets feel they’ve been tricked. Can be time consuming and expensive.

Coercion Using direct threats or force. Inexpensive and easy way to get support. May be illegal. Even legal coercion can be perceived as bullying.

WHAT IS STRESS?

Stress is a feeling that's created when we react to particular events.

It's the body's way of rising to a challenge and preparing to meet a tough situation with focus, strength, stamina, and heightened alertness.

STRESS IS NOT NECESSARILY BAD…

• – Keeps us alert and motivates us to face challenges, drives us to solve problems.

GOOD STRESS

• – Occurs when our minds and bodies overreact emotionally, intellectually or physically to changes or demands.

BAD STRESS

Choosing Your Response to a Stressor

Accept Avoid Alter Adapt to

CAUSES OF STRESS

SYMPTOMS OF STRESS

It’s all about BALANCE!

BALANCE is hard to achieve, especially when you are a freshman and are handling these responsibilities on your own for the first time

CONTD…

The key to BALANCE is to look at those things you have to do, and those things in your day that are optional.

You must carve out extra time from the optional tasks.

Learn to say NO – friends and family may not always understand, but they are not the ones living your life. One day, it will make sense to them!

CONTD…

Strategies for managing stress (yes, we’ve all heard of them, but many of us don’t practice them!) Learn to manage your time (keep your

TO DO list and follow it!) Exercise (yes, I hate it too – but it

works!) Each day, find at least 20 minutes of

alone time to relax (meditate, breathing exercises, progressive muscle relaxation, soft music, etc…)

Start, Stop, Keep

What’s one thing you’ll start doing?

What’s one thing you’ll stop doing?

What’s one thing you’ll keep doing?

Innovation is the introduction of new ideas, goods, services, and practices which are intended to be useful (though a number of unsuccessful innovations can be found throughout history).

The main driver for innovation is often the courage and energy to better the world.

An essential element for innovation is its application in a commercially successful way.

Innovation has changed human history (consider the development of electricity, steam engines, motor vehicles, laptops).◦ en.wikipedia.org/wiki/Innovation

Innovation - What is it?

NCMA PresentationSan DiegoDec 17, 2008 ©

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The Numbers Game

The Innovation process can be depicted as a series of funnels each getting progressively smaller.

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Why do we need Innovation?

Conclusion? - - If a company does not continue to introduce new products periodically, or at least significant improvements on existing products it will eventually be on a “going out of business” curve.

Continuing to come up with the “right” product for the market takes a lot of innovation (plus a lot of “perspiration!”).

Ideas, Creativity and Innovation

CreativityThe ability to make or otherwise bring into existence something new, whether a new solution to a problem, a new method or device, or a new artistic object or form.Innovation1 : The introduction of something new2 : A new idea, method, or device

Creativity = (Idea + Action) (Novelty)Innovation = (Creativity+productivity)(Novelty+value)Innovation = Idea + Action + Productivity+value

Innovative Products

© 2007 Prentice Hall, Inc. All rights reserved. 13–44

Stimulating Innovation

• CreativityThe ability to combine ideas in a unique way or to

make an unusual association.

• InnovationTurning the outcomes of the creative process into

useful products, services, or work methods.

• Idea ChampionDynamic self-confident leaders who actively and

enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.

© 2007 Prentice Hall, Inc. All rights reserved. 13–45

Exhibit 13–10 Systems View of Innovation

Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, “Toward a Theory of Organizational Creativity,” Academy of Management Review, April 1993, p. 309.

High commitment to trainingJob securitySupport impractical idea Organization should encourage

experimentationReward both success and failureStrong innovative culture ,Celebrate mistake

© 2007 Prentice Hall, Inc. All rights reserved. 13–46

Exhibit 13–11Innovation Variables

© 2007 Prentice Hall, Inc. All rights reserved. 13–47

1. The first step in the process of planned change is

a. develop the goal(s). b. recognize the need for change. c. diagnose the problem. d. select the method of intervention.

2. The bridge of __________ separates people from change. a. acceptance b. resistance c. economics d. opportunity

(3) What is stress ? Explain the causes and symptoms of stress and how can we reduce stress in organization.

(4) Short notes • Innovation variables• Types of changes