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Principles of Management . Week 7 – Managing Change and Innovation. What Is Change?. Organizational Change Any alterations in the people, structure, or technology of an organization Characteristics of Change Is constant yet varies in degree and direction

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what is change
What Is Change?
  • Organizational Change
    • Any alterations in the people, structure, or technology of an organization
  • Characteristics of Change
    • Is constant yet varies in degree and direction
    • Produces uncertainty yet is not completely unpredictable
    • Creates both threats and opportunities
forces for change
External Forces


Governmental laws and regulations


Labor market

Economic changes

Internal Forces

Changes in organizational strategy

Workforce changes

New equipment

Employee attitudes

Forces for Change
change process viewpoints
Change Process Viewpoints
  • The Calm Waters Metaphor
    • Lewin’s description of the change process
      • Unfreezing the status quo
      • Changing to a new state
      • Refreezing to make the change permanent
  • White-Water Rapids Metaphor
    • The lack of environmental stability and predictability requires that

managers and organizations

continually adapt to survive.

change agents
Change Agents
  • Change Agents
    • Persons who act as catalysts and assume the responsibility for managing the change process.
  • Types of Change Agents
    • Managers: internal entrepreneurs
    • Non-managers: change specialists
    • Outside consultants: change implementation experts
types of change

Changing structural components or its structural design


Adopting new equipment, tools, or operating methods




Changing attitudes, expectations, perceptions, and behaviors of the workforce

Organizational development (OD)

Types of Change
organizational development
Organizational Development
  • Organizational Development (OD)
    • Techniques or programs to change people and the nature and quality of interpersonal work relationships.
    • OD techniques that work

in U.S. maybe

inappropriate in other


managing resistance to change
Managing Resistance to Change
  • Why People Resist Change?
    • The ambiguity and uncertainty that change introduces
    • The comfort of old habits
    • A concern over personal loss of status, money, authority, friendships, and personal convenience
    • The perception that change is incompatible with the goals and interest of the organization
managerial actions to reduce resistance t o change
Managerial Actions to Reduce Resistance to Change
  • Education and communication
  • Participation
  • Facilitation and support
  • Negotiation
  • Selecting people who accept change
  • Coercion
issues in managing change
Issues in Managing Change
  • Changing Organizational Cultures
    • Cultures are naturally resistant to change.
    • Conditions that facilitate cultural change:
      • The occurrence of a dramatic crisis
      • Leadership changing hands
      • A young, flexible, and small organization
      • A weak organizational culture
strategies for managing cultural change
Strategies for Managing Cultural Change
  • Set the tone through management behavior; top managersneed to be positive role models.
  • Create new stories, symbols, and rituals.
  • Select, promote, and support employees who adopt the new values.
  • Redesign socialization processes to align with the new values.
  • Change the reward system.
  • Get consensus through employee participation and creating a climate with a high level of trust.
issues in managing change1
Issues in Managing Change
  • Making Change Happen Successfully
    • Embrace change—become a change-capable organization.
    • Create a simple, compelling message explaining why change is necessary.
    • Communicate constantly and honestly.
    • Foster as much employee participation as possible—get all employees committed.
    • Encourage employees to be flexible.
    • Remove those who resist and cannot be changed.
stimulating innovation
Stimulating Innovation
  • Creativity
    • The ability to combine ideas in a unique way or to make an unusual association.
  • Innovation
    • Turning the outcomes of the

creative process into useful

products, services, or

work methods.

systems view of innovation
Systems View of Innovation

Source:Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, “Toward a Theory of Organizational Creativity,” Academy of Management Review, April 1993, p. 309.