Principles of

Management
Course Facilitator
Asif Jalees

Session 9

Managing Change and
Innovation

Managing Change & Innovation

What is Change?

What is Innovation?

Managing Change & Innovation

What is Change?
Organizational
Change:
Any
alterations in people, structure or
technology.
Change is an organizational reality.
Managing change is an integral part
of every manager’s job.

Managing Change & Innovation Forces for Change There are two forces for change:   External Internal .

Managing Change & Innovation  External Forces: The forces that create the need for change come from various sources. Technology III. . Governmental Laws & Regulations II. Economic Changes I.

. Organization’s Strategy II. Workforce III.Managing Change & Innovation  Internal Forces: The forces that come from within the organization. Employee Attitudes I.

People who act as catalyst and assume the responsibility for managing change process are called change agents. For major system wide changes. an organization will often hire outside consultants to provide advise & assistance.Managing Change & Innovation   The Manager as Change Agent Changes within an organization need a catalyst (an agent that speeds significant change). . An outside consultant can also play the same role. Any manager can be a change agent.

Two Views of the Change Process We can use two very different metaphors (idea) to describe the change process. .Managing Change & Innovation  I. a brief distraction in an otherwise calm and predictable trip. The ship’s captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of an occasional storm. One metaphors envisions the organization as a large ship crossing a clam sea.

as if things were not bad enough. Aboard the raft are half a dozen people who have never worked together before.Managing Change & Innovation Two Views of the Change Process II) In the other metaphor. who are totally unfamiliar with the river. are traveling at night. the organization is seen as a small raft navigating a rough river with uninterrupted white – water rapids. who are unsure of their eventual destination. . and who.

. Initiating change involves identifying what organizational areas might need to be changed and putting the change process in motion. managers should be motivated to initiate change because they are committed to improving their organization’s performance.Managing Change   As change agents. Managers must manage employee resistance to change.

Managing Change Types of Change  The manager’s options for change essentially fall into three categories: Changing Structure ii. Changing People i. . Changing Technology iii.

Three Categories of Change .

1) Changing Structure  Manager’s organizing responsibilities include such activities as choosing the organization’s formal design. organizational levels eliminated. For instance. or spans of control widened to make the organization flatter and less bureaucratic. (Cont…) . allocating authority and determining the degree of formalization. departmental responsibilities could be combined.

Even organizational downsizing efforts involve changes in structure. . An increase in decentralization can be used to make decision making faster.1) Changing Structure  Or more rule or procedures could be implemented to increase standardization.

2) Changing Technology  Managers can also change the technology used to convert inputs into outputs. the US army uses email facility among troops on the battlefield. Today. For instance. tools or work methods. automation or computerization. (Cont…) . major technological changes usually involve the introduction of new equipment.

2) Changing Technology  Automation is a technological change that replaces certain tasks done by people with machines. assembly lines. For instance. where robots are programmed to do jobs. .

For e. (Cont…) . though occasionally referring to all types of change. While past Kodak CEOs tended to be autocratic and inaccessible.g. George Fisher. essentially focuses on techniques or programs to change people and the nature and quality of interpersonal work relationships.3) Changing People  The term organizational development (OD). former CEO of Eastman Kodak. applied various forms of OD to boost employee morale.

3) Changing People  Fisher rebuilt the company through respect for people. . trust and support. openness. the sharing of power and participation.

Dealing with Resistance to Change  Change can be a threat to people in an organization. Why do people resist change and what can be done to minimize their resistance? .

a.Dealing with Resistance to Change  Why people resist change: an individual is likely to resist change for three reasons: Uncertainty b. And the belief that the change is not in the organization’s best interest. Concern over personal loss c. .

For instance. Some inspectors may fear that they will be unable to do so. . when quality control methods based on sophisticated statistical models are introduced into manufacturing plants.Dealing with Resistance to Change a) Uncertainty: When you know in detail or have expertise which is going to change. many quality control inspectors have to learn the new methods.

The more that people have invested in the current system.Dealing with Resistance to Change b) Concern over personal loss: The second cause of resistance is the fear of losing something already possessed. friendships. money. Why? They fear the loss of status. the more they resist change. personal convenience or other benefits. authority. . Change threatens the investment you have already made in the status quo.

Dealing with Resistance to Change c) Belief that change is not in favor of organization: A final cause of resistance is a person’s belief that the change is incompatible with the goals and interests of the organization. .

Techniques for Reducing Resistance to Change 1. . Build mutual trust and credibility between managers and employees. group meetings. • • • Education and Communication: Communicate with employees to help them see the logic of change. memos. Educate employees through one-onone discussions.

• Assume that they have expertise to make meaningful contributions. obtain commitment to seeing change succeed and increase quality of change decision. • Involvement can reduce resistance. Participation: • Allows those who oppose a change to participate in decision.Techniques for Reducing Resistance to Change 2. .

. Facilitation and Support: • Provide supportive efforts such as employee counseling or therapy. new skills training. • Can be time consuming and expensive.Techniques for Reducing Resistance to Change 3. or short paid leave of absence.

• Potentially high costs and likelihood of having to negotiate with other resisters. Negotiation: • Exchange something of value to reduce resistance. .Techniques for Reducing Resistance to Change 4. • May be necessary when resistance comes from a powerful source.

Can fail miserably if targets feel they have been tricked. Inexpensive and easy ways to gain support of resisters. or creating false rumors. with holding damaging information. Manipulation and Cooptation: • • • • Manipulation is convert attempts to influence such as twisting or distorting facts. . Cooptation is a form of manipulation and participation.Techniques for Reducing Resistance to Change 5.

Inexpensive and easy ways to get support. . Even legal coercion can be perceived as bullying.Techniques for Reducing Resistance to Change 6. Coercion: • • • Using direct threats or force. May be illegal.

it’s causes and how to identify it and what managers can do it to reduce stress. In this section. .Handling Employee Stress  For many employees. A dynamic and uncertain environment can create stress. change creates stress. we will review what stress is.

in and of itself. particularly when it offers a potential gain. Functional stress allows an athlete or employee to perform at his or her highest level in crucial situations.Handling Employee Stress   What is Stress: A dynamic condition a person faces when confronted with an opportunity. is not necessarily bad. or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. it also has a positive value. Stress. constraint. Although stress if often discussed in a negative context. .

There must be uncertainty over the outcome. and the outcome must be important. .Handling Employee Stress  Two conditions are necessary for potential stress to become actual stress.

Clearly. change of any kind has potential to cause stress. constraints or demands. . It’s not surprising. that change is a major stressor. then.Handling Employee Stress   Causes of Stress: The causes of stress can be found in issues related to the organization or in personal factors that evolve out of the employee’s private life. It can present opportunity.

Handling Employee Stress Stres s .

Handling Employee Stress  Signs of Stress: An employee who is facing high stress may become: • Depressed Argumentative May have difficulty in making routine decisions May be easily distracted • • • .

absenteeism. & potential of heart attacks Symptoms of Stress Behavioral Changes in productivity. increase heart & breathing rates. changes in eating habits. headaches. increase smoking. anxiety.Handling Employee Stress Psychological Job related dissatisfaction. job turn over. consumption of alcohol. rapid speech & sleep disorders . tension. raised blood pressure. irritability & boredom Physiologica l Changes in metabolism.

Selection of right employee for the job. iv. Clarity in terms of MBO. Job redesign.Reducing Stress – Organizational Level As a manager things which you can do are: i.  . Realistic preview of job during the selection process to the candidate to reduce ambiguity. ii. iii.

 . Time management program – can help employee to balance his personal & office life.Reducing Stress – Personal Life As a manager it’s difficult to control. Secondly. Employee counseling – Employees want to talk to someone about their personal problem. ii. ethical consideration: i. You can directly discuss or use human resource counselors.

Innovation  What companies come to your mind when you think of successful Innovations? .

May be 3M Corporation with its Post – it notes. Aibo Robot pads. May be Intel Corporation with its continual advancements in chip designs and new product introductions. and Vaio PCs. PlayStation.Innovation    May be Sony Corporation. with its Walkman. Scotch – Guard protective coatings and cellophane tape. .

service or work method. Innovation: The process of taking a creative idea and turning it into a useful product.Creativity Versus Innovation   Creativity: The ability to combine ideas in a unique way or to make unusual associations between ideas. .

But just having creative people isn’t enough. It takes the right environment for the innovation process to take hold and prosper to take hold and prosper.Stimulating & Nurturing Innovation   Inputs include creative people & groups within the organization. We have three sets of variables that have been found to stimulate innovation: .

Stimulating & Nurturing Innovation .

build support. overcome resistance and ensure that innovations are implemented.Idea Champion  Individuals who actively and enthusiastically support new ideas. .

Thank You .