Managing Change & Innovation

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MANAGING

CHANGEAND

INNOVATION

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Learning Objectives

You should learn to: Contrast the calm waters and white-water rapids

metaphors of change

Describe what managers can change inorganizations

Explain why people are likely to resist change

List techniques for reducing resistance to change

Describe the situational factors that facilitate culturalchange

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Learning Objectives (cont.)

You should learn to: Explain how process reengineering is

related to change

Describe techniques for reducingemployee stress

Differentiate between creativity and

innovation Explain how organizations can stimulate

and nurture innovation

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What Is Change?

Change

alterations in people, structure, ortechnology

change is an organizational reality

managing change is an integral part of

every managers job complicates the jobs of managers

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Forces For Change

External Forces

marketplace- adapt to changing consumer desires

governmental laws and regulations- frequentimpetus for change

technology- source of change in almost allindustries

labor markets- HRM activities must change toattract and retain skilled employees in the areas of

greatest need economic- uncertainties about interest rates,

budget deficits, and currency exchange rates

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Forces For Change (cont.)

Internal Forces originate from the operations of the organization

forces may include strategy, workforce, newequipment, or employee attitudes

Manager as Change Agent change agents- act as catalysts and assume

responsibility for change

manager may serve as change agent

may be more thoughtful, overcautious

outside consultant - used for systemwide changes

produce more drastic changes than insiders

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Two Views Of The ChangeProcess

The Calm Waters Metaphor Lewins three-step model

unfreezing- preparing for the needed change by: increasing the driving forcesthat direct behavior away from the

status quo decreasing the restraining forcesthat push behavior towards

the status quo

status quo- conceived to be an equilibrium

changing- move to another equilibrium level

refreezing- make change permanent objective is to stabilize the new situation

change is a break in the organizations equilibriumstate

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The Change Process

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Two Views Of The Change Process (cont.)

White-Water Rapids Metaphor consistent with uncertain and dynamic

environments

consistent with a world increasingly dominated by

information, ideas, and knowledge managers must continually maneuver in

uninterrupted rapids

managers face constant change

today, managers must be ready to efficiently andeffectively manage the changes facing theirorganizations or their work areas

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Three Categories Of Change

Work specialization,

departmentalization,chain of command, span of

control, centralization,

formalization, job redesign,

or actual design

Structure

Attitudes, expectations,

perceptions, and

behavior

People

Work processes, methods,

and equipmentTechnology

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Managing Change

Initiating Change:

identifying what organizational areas might need tobe changed

putting the change process in motion managing employee resistance to change

Types of Change

changing structure- organizations formal design,centralization, degree of formalization, and workspecialization

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Types of Change (cont.)

changing technology- modifications in the way

work is performed alterations in the methods and equipment used

consequence of competitive factors or innovations within anindustry

automation- replaces tasks done by people with machines

computerization- recent visible changes in information systems

Managing Change (cont.)

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Type of Change (cont.)

changing people- changes inemployee attitudes, expectations,perceptions, and behavior

organizational development(OD) -techniques or programs to change people

and the nature and quality of interpersonalwork relationships

intended to help individuals and groups worktogether more effectively


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Dealing with Resistance to Change

Why people resist change

change replaces the known with ambiguityand uncertainty

change threatens investments in the statusquo

belief that change is incompatible with the

goals and interests of the organization Techniques for reducing resistance

a variety of actions available to managers

to deal with dysfunctional resistance 13-14


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Managerial Actions to Reduce Resistance to Change

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Contemporary Issues In Managing Change

Changing Organizational Culture

culture resistant to change because it is madeup of relatively stable and permanentcharacteristics

strong cultures are particularly resistant tochange

Understanding the Situational Factors-makes cultural change more likely

dramatic crisis occurs leadership changes hands

organization is young and small

culture is weak 13-16


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ContemporaryIssues (cont.)

Changing Organizational Culture (cont.) How Can Cultural Change Be

Accomplished?

requires a comprehensive and coordinatedstrategy

unfreeze the current culture

implement new ways of doing things

reinforce those new values

change, if it comes, is likely to be slow

protect against any return to old, familiar

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Contemporary Issues (cont.)

Continuous Quality Improvement Programs

continuous, small, incremental changes

fix and improve current work activities

rely on participative decision making from the bottomlevels

Process Reengineering

dramatic shift in the way an organization does itswork

begins with the redesign of work

define customer needs

design work processes to best meet those needs

requires participation from managers and workers

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Documents

Managing Change & Innovation