E1101 - Topic 10 Change and Innovation PDF

CHANGE &
INNOVATION
SUMMARY OF
CONTENTS
TO UNDERSTAND:
FOCUS TOPIC FOR THIS SESSION
The Change Process
Types of Organizational Change
Managing Resistance to Change
Stimulating Innovation
PART ONE
THE CHANGE
PROCESS
If it weren’t for change, a manager’s job would be relatively easy.
• Planning would be simple because tomorrow would be no
different from today.
• The issue of effective organizational design would also be
resolved because the environment would not be uncertain and
there would be no need to redesign the structure.
• Decision making would be dramatically streamlined because the
outcome of each alternative could be predicted with almost
certain accuracy.
Change is an organizational reality.
Organizations face change because external and internal
factors create the need for change.
Two Views of the Change Process
CALM WATERS METAPHOR WHITE-WATER RAPIDS METAPHOR
Change is seen as an Change is normal and

occasional disruption in the expected and managing it is a
normal flow of events. continual process.
CALM WATERS METAPHOR
Three-Step Change Process
Successful change can be planned and requires unfreezing
the status quo, changing to a new state, and refreezing to
make the change permanent.
WHITE-WATER RAPIDS METAPHOR
• “The pace of change in our economy and our culture is

accelerating and our visibility about the future is declining.”
• “My job is like having to put together a 1,000-piece
puzzle but I don’t have the box top with the picture of what
it looks like, and some of the pieces are missing.”
• “If you look at the typical week I have, it’s a combination
of trying to lead a company in change in an industry in
change.”
PART TWO
TYPES OF
ORGANIZATIONAL
CHANGE
Organizational Change
Any alteration of people, structure, or technology in an
organization.
Organizational changes often need someone to act as a
catalyst and assume the responsibility for managing the
change process—that is, a change agent.
Types of Change
TYPES OF CHANGE
1. Structure
Changing structure includes any change in
structural variables such as reporting relationships,
coordination mechanisms, employee empowerment,
or job redesign.
TYPES OF CHANGE
1. Structure
Organization’s structure is defined by how work gets done
and who does it, managers can alter one or both of these
structural components.
Another option would be to make major changes in the
actual structural design.
TYPES OF CHANGE
2. Technology
Changing technology encompasses modifications in
the way work is performed or the methods and
equipment that are used.
TYPES OF CHANGE
2. Technology
Most early management studies involved implementing
changes that would increase production efficiency.
Today, technological changes usually involve the
introduction of new equipment, tools, or methods;
automation; or computerization.
TYPES OF CHANGE
3. People
Changing people refers to changes in attitudes,
expectations, perceptions, and behavior of
individuals or groups.
TYPES OF CHANGE
3. People
Organizational Development (OD): Change methods
that focus on people and the nature and quality of
interpersonal work relationships.
TYPES OF CHANGE
3. People
Before using the same OD techniques to implement
behavioral changes, especially across different
countries, managers need to be sure they’ve taken into
account cultural characteristics and whether the
techniques “make sense for the local culture.
PART THREE
MANAGING RESISTANCE
TO CHANGE
UNCERTAINTY
Why Do
People Resist HABIT
Change?
CONCERN OVER PERSONAL LOSS
BELIEF THAT IT IS NOT THE

ORGANIZATION’S BEST INTEREST
1
Education and Communication
Techniques for
Education and communication can help
Reducing reduce resistance to change by helping
Resistance to employees see the logic of the change
effort.
Change
This technique assumes that much of the
resistance lies in misinformation or poor
communication.
2
Participation
Techniques for
Participation involves bringing those
Reducing individuals directly affected by the
Resistance to proposed change into the decision-making
process. Their participation allows these
Change individuals to express their feelings, increase
the quality of the process, and increase
employee commitment to the final decision.
3
Facilitation and Support
Techniques for
Facilitation and support involve helping
Reducing employees deal with the fear and anxiety
Resistance to associated with the change effort. This help
may include employee counseling, therapy,
Change new skills training, or a short paid leave of
absence.
4
Negotiation
Techniques for
Negotiation involves exchanging something
Reducing of value for an agreement to lessen the
Resistance to resistance to the change effort. This
resistance technique may be quite useful
Change when the resistance comes from a powerful
source.
5
Manipulation and cooptation
Techniques for
Manipulation and cooptation refer to covert
Reducing attempts to influence others about the
Resistance to change. It may involve distorting facts to
make the change appear more attractive.
Change
6
Coercion
Techniques for
Coercion can be used to deal with resistance,
Reducing to change. Coercion involves the use of direct
Resistance to threats or force against the resisters.
Change
PART FOUR
STIMULATING
INNOVATION
Innovation is the key to
continued success.
Ajay Banga, MasterCard
We innovate today to
secure our future.
Sophie Vandebroek, Xerox
CREATIVITY INNOVATION
Creativity is the ability to Innovation is taking creative

combine ideas in a unique ideas and turning them into
way or to make unusual useful products or work
associations between ideas. methods.
Idea Champion
Individual who actively and enthusiastically supports new
ideas, builds support, overcomes resistance, and ensures
that innovations are implemented.
CHANGE &
INNOVATION

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CHANGE &

CALM WATERS METAPHOR WHITE-WATER RAPIDS METAPHOR

Change is seen as an Change is normal and

• “The pace of change in our economy and our culture is

BELIEF THAT IT IS NOT THE

Creativity is the ability to Innovation is taking creative

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