MANAGING CHANGE AND INNOVATION

WHAT IS CHANGE??
alterations in people, structure, or technology change is an organizational reality managing change is an integral part of every managers job.

FORCES FOR CHANGE

marketplace - adapt to changing consumer desires

 governmental laws and regulations frequent impetus for change

technology source of change in almost all industries

 labor markets HRM activities must change to attract and retain skilled employees in the areas of greatest need

 economic uncertainties about interest rates, budget deficits, and currency exchange rates

METAPHORS OF CHANGE
Calm waters Lewins three-step model unfreezing - preparing for the needed change by: increasing the driving forces that direct behavior away from the status quo decreasing the behavior restraining forces that push 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 process

 White water rapids consistent with uncertain and dynamic environments consistent with a world increasingly dominated by information, ideas, and knowledge managers must continually manoeuvre in uninterrupted rapids managers face constant change today, managers must be ready to efficiently and effectively manage the changes facing their organizations or their work areas

THREE CATEGORIES OF CHANGE

Structure - organizations formal design, centralization, degree of formalization, and work specialization Technology automation, computerization, etc. People change in attitudes, behavior, expectations, etc.

ORGANIZATIONAL DEVELOPMENT TECHNIQUES

Process Consultation Intergroup Development Sensitivity Training Survey Feedback Team Building

Dealing with Resistance to Change

Why people resist change change replaces the known with ambiguity and uncertainty change threatens investments in the status quo - belief that change is incompatible with the goals and interests of the organization.

Managerial Actions to Reduce Resistance to Change

Education and Communication Participation Facilitation and Support Negotiation Manipulation and Cooptation Coercion

Contemporary Issues In Managing Change

Continuous Quality Improvement Programs continuous, small, incremental changes fix and improve current work activities rely on participative decision making from the bottom levels.

Process Reengineering dramatic shift in the way an organization does its work begins with the redesign of work define customer needs design work processes to best meet those needs requires participation from managers and workers

Continuous Quality Improvement Continuous, incremental change Fixing and improving Mostly as is Works from bottom up in organization Reengineering Radical change Redesigning - starting over Mostly what can be Initiated by top management

Continuous Quality Improvement Versus Reengineering

 Handling Employee Stress

What is Stress? a dynamic condition a person faces when confronted with an opportunity, constraint, or demand related towhat s/he desires outcome is perceived to be both uncertain and important typically associated with constraints and demands stress is not necessarily bad potential stress becomes actual stress when: outcome is both uncertain and important

 Causes of Stress found in organizational and personal factors change of any kind is potentially stressful uncertainty around important matters

Causes of stress

 Reducing stress controlling certain organizational factors employees abilities should match job requirements improve organizational communications reduce ambiguity performance planning program clarify job responsibilities provide performance feedback job redesign reduce boredom or work overload

CREATIVITY VS INNOVATION
creativity - ability to combine ideas in a unique way or to make unusual associations between ideas innovation - process of transforming creative ideas into a useful product, service, or method of operation

CHANGE IS THE ONLY CONSTANT THING IN THE UNIVERSE

~ Heraclitus

THANK YOU