Managing

Change and Innovation

Ruby Jane Magdadaro
 Change

➢ An alteration of an organization’s environment structure, technology, or

people

What ❖ a constant force

❖ organizational reality
❖ an opportunity or a threat

is
Change Agent

Change? ➢ A person who initiated and assumes the responsibility for managing a
change in an organization

❏ Types of Change Agents

❖ Managers
❖ Non-managers
❖ Outside consultants
Forces For Change
01 02

External Forces Internal Forces

➢ Marketplace Competition ➢ Strategy modifications

➢ Government laws and regulations ➢ New equipment
➢ New technologies ➢ Workforce composition
➢ Labor market ➢ Employee attitudes
➢ Cycles in the economy
Change Process
Viewpoints
“Calm waters” Metaphor

➢ Change viewed as a break in the organization’s

equilibrium state

❖ Unfreezing the status quo

❖ Changing to a new state
❖ Refreezing to make the change
permanent

“White-Water Rapids” Metaphor

➢ No stability and predictability

➢ Organizations must constantly change to
survive
The Change Process
 Fear of the unknown

Why People
Resist Change Individual Resistance

Belief that change is not

Fear of losing something
good for the
of value
organization
Techniques for Reducing
Resistance to Change
➢ Education and Communication
➢ Facilitation and support
➢ Participation
➢ Negotiation
➢ Manipulation
➢ Coercion
 Three Categories of Change
Structure Technology People
Alterations in authority Modifications in the way work is Changes in employee attitudes,
relationships, coordination processed or the methods and expectations, perceptions, or
mechanism, degree of equipment used. behaviors.
centralization, job design, or similar
organization structure variables.
Implementing Planned Changes
Organizational Development (OD)
➢ An activity (intervention) designed to facilitate planned, long-term
organization-wide change.
❖ Focuses on the attitudes and values of organizational
members;
❖ Is essentially an effort to change an organization’s culture.

Global OD
➢ OD techniques that work for U.S. organizations may be
inappropriate in other countries and culture.
 Organizational Development Techniques
A technique for assessing
attitudes and perceptions,
identifying discrepancies in A method of changing
these, and resolving the behavior through
differences by using survey unstructured group
information in feedback interaction.
groups.
Survey Feedback Sensitivity Training

An outside consultant
helps the manager
understand how MORE EFFECTIVE
interpersonal processes
are affecting the way work
INTERPERSONAL Activities that help team
members learn how each
is being done. WORK member thinks and works.

Process RELATIONSHIPS
Consultation
Team Buildings

Changing the attitudes, Intergroup

stereotypes, and Development
perceptions that work
groups have about each
other.
 Issues in
Managing
Change
Changing Organizational Cultures

➢ Cultures are naturally resistant to change.

➢ Conditions that facilitate cultural change:
❖ The occurrence of dramatic crisis
❖ Leadership changing hands
❖ A young, flexible, and small
organization
❖ A weak organizational culture
Issues in Managing
Change (cont’d)
Handling Employees Stress

❏ Stress
➢ The adverse reaction people have to
excessive pressure placed on them from
extraordinary demands, constraints, or
opportunities.
❖ Positive stress: when the
situation offers an opportunity
for one to gain something.
❖ Negative stress: when
constraints or demands are
placed on individuals.
Issues in
Managing
Change (cont’d)
Stressors
➢ A factor that causes stress
Sources of Stress
Constraints
➢ Barriers that keep us from doing what we
desire.
➢ Inhibit individuals in ways that take the control
of a situation out of their hands.

Demands
➢ Cause persons to give up something they
desire.
➢ Demands preoccupy your time and force you
to shift priorities.
 Major Stressors

Organizational
Personal ➢ Role Ambiguity

Stress
➢ Role Conflict
➢ Personal type
➢ Role overload
➢ Family matters
➢ Technological advancements
➢ Financial problems
➢ Work process engineering,
downsizing
➢ Restructuring
 Type B Personality
➢ People who are relaxed and
easygoing and accept change
easily

Personality
Types
Type A Personality
➢ People who have a chronic sense
of urgency and an excessive
competitive drive
 Symptoms of Stress

Physical Behavior Psychological

➢ Changes in metabolism, ➢ Changes in productivity, ➢ Job-related

increased heart and absenteeism, job dissatisfaction, tension,
breathing rates, raised turnover, changing in anxiety, irritability,
blood pressure, eating habits, increased boredom, and
headaches, and potential smoking or consumption procrastination.
of heart attacks. of alcohol, rapid speech,
fidgeting, sleep orders.
 Reducing Stress
Person-job Fit Concerns
➢ Match employees to their jobs, clarify
expectations, redesign jobs, and increase
employee involvement and participation.

Employee Assistance Programs (EAPs)

➢ Programs that help employees overcome
personal and health-related problems.

Wellness Programs
➢ Programs that help employees prevent health
problems
 Creativity

➢ Combining new ideas in unique ways or associating ideas in unusual ways

Stimulating
Innovation Innovation

➢ Turning creative ideas into useful products, services, or methods or

operation.
 Innovation Variables
➢ Organic Structures
➢ Abundant Resources
Structural ➢ High Interunit Communication
Variables ➢ Minimal Time Pressure
➢ Work and Nonwork Support

Cultural Stimulates
Variables
Innovation

➢ Acceptance of Ambiguity
➢ Tolerance of the Impractical Human Resource
➢ Low External Controls Variables
➢ Tolerance of Risks
➢ Tolerance of Conflict ➢ High Commitment to
➢ Focus on Ends Training and
➢ Open-System Focus Development
➢ Positive Feedback ➢ High Job Security
➢ Creative People