Session 9 - Managing Change & Innovation

8/10/2019 Session 9 - Managing Change & Innovation

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Principles ofPrinciples ofManagementManagement

Course FacilitatorCourse Facilitator

Asif Jalees Asif Jalees


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Session 9Session 9

Managing Change andManaging Change and

InnovationInnovation


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Managing Change & InnovationManaging Change & Innovation

What is Change?What is Change?

What is Innovation?What is Innovation?


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What is Change?What is Change?

rgani!ational Change" An#rgani!ational Change" An#

alterations in people$ structure oralterations in people$ structure or

technolog#%technolog#%

Change is an organi!ational realit#%Change is an organi!ational realit#%

Managing change is an integral partManaging change is an integral part

of ever# managers 'o(%of ever# managers 'o(%


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Forces for ChangeForces for Change

)here are t*o forces for change")here are t*o forces for change"

+,ternal+,ternal

InternalInternal


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+,ternal Forces" )he forces that+,ternal Forces" )he forces that

create the need for change comecreate the need for change come

from various sources%from various sources%

I%I% -overnmental .a*s & /egulations-overnmental .a*s & /egulations

II%II%)echnolog#)echnolog#

III%III%+conomic Changes+conomic Changes


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Internal Forces" )he forces that comeInternal Forces" )he forces that come

from *ithin the organi!ation%from *ithin the organi!ation%

I%I%

rgani!ations Strateg#rgani!ations Strateg#

II%II% Wor0forceWor0force

III%III%+mplo#ee Attitudes+mplo#ee Attitudes


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Managing Change & InnovationManaging Change & Innovation)he Manager as Change Agent)he Manager as Change Agent

Changes *ithin an organi!ation need aChanges *ithin an organi!ation need acatal#st 1an agent that speeds signi2cantcatal#st 1an agent that speeds signi2cant

change3% People *ho act as catal#st andchange3% People *ho act as catal#st and

assume the responsi(ilit# for managingassume the responsi(ilit# for managing

change process are calledchange process are called change agentschange agents%% An# manager can (e a change agent% AnAn# manager can (e a change agent% An

outside consultant can also pla# the sameoutside consultant can also pla# the same

role% For ma'or s#stem *ide changes$ anrole% For ma'or s#stem *ide changes$ an

organi!ation *ill often hire outsideorgani!ation *ill often hire outside

consultants to provide advise & assistance%consultants to provide advise & assistance%


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Managing Change & InnovationManaging Change & Innovation)*o 4ie*s of the Change Process)*o 4ie*s of the Change Process

We can use t*o ver# di5erent metaphorsWe can use t*o ver# di5erent metaphors1idea3 to descri(e the change process%1idea3 to descri(e the change process%

I%I% ne metaphors envisions the organi!ationne metaphors envisions the organi!ation

as a large ship crossing a clam sea% )heas a large ship crossing a clam sea% )he

ships captain and cre* 0no* e,actl#ships captain and cre* 0no* e,actl#*here the# are going (ecause the# have*here the# are going (ecause the# have

made the trip man# times (efore% Changemade the trip man# times (efore% Change

comes in the form of an occasional storm$comes in the form of an occasional storm$

a (rief distraction in an other*ise calma (rief distraction in an other*ise calm

and predicta(le trip%and predicta(le trip%


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)*o 4ie*s of the Change Process)*o 4ie*s of the Change Process

II3 In the other metaphor$ the organi!ationII3 In the other metaphor$ the organi!ationis seen as a small raft navigating a roughis seen as a small raft navigating a rough

river *ith uninterrupted *hite 6 *aterriver *ith uninterrupted *hite 6 *ater

rapids% A(oard the raft are half a do!enrapids% A(oard the raft are half a do!en

people *ho have never *or0ed togetherpeople *ho have never *or0ed together(efore$ *ho are totall# unfamiliar *ith(efore$ *ho are totall# unfamiliar *ith

the river$ *ho are unsure of theirthe river$ *ho are unsure of their

eventual destination$ and *ho$ as ifeventual destination$ and *ho$ as ifthings *ere not (ad enough$ arethings *ere not (ad enough$ are

traveling at night%traveling at night%


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Managing ChangeManaging Change As change agents$ managers shouldAs change agents$ managers should

(e motivated to initiate change(e motivated to initiate change(ecause the# are committed to(ecause the# are committed to

improving their organi!ationsimproving their organi!ations

performance% Initiating changeperformance% Initiating change

involves identif#ing *hatinvolves identif#ing *hat

organi!ational areas might need toorgani!ational areas might need to

(e changed and putting the change(e changed and putting the change

process in motion%process in motion% Managers must manage emplo#eeManagers must manage emplo#ee

resistance to change%resistance to change%


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Managing ChangeManaging Change

)#pes of Change)#pes of Change

)he managers options for change)he managers options for change

essentiall# fall into three categories"essentiall# fall into three categories"

i%i% Changing StructureChanging Structure

ii%ii%

Changing )echnolog#Changing )echnolog#

iii%iii% Changing PeopleChanging People


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)hree Categories of Change)hree Categories of Change


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73 Changing Structure73 Changing Structure

Managers organi!ing responsi(ilitiesManagers organi!ing responsi(ilitiesinclude such activities as choosing theinclude such activities as choosing the

organi!ations formal design$ allocatingorgani!ations formal design$ allocating

authorit# and determining the degree ofauthorit# and determining the degree of

formali!ation% For instance$ departmentalformali!ation% For instance$ departmentalresponsi(ilities could (e com(ined$responsi(ilities could (e com(ined$

organi!ational levels eliminated$ or spansorgani!ational levels eliminated$ or spans

of control *idened to ma0e theof control *idened to ma0e the

organi!ation 8atter and less (ureaucratic%organi!ation 8atter and less (ureaucratic%

1Cont31Cont3


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73 Changing Structure73 Changing Structure

r more rule or procedures could (er more rule or procedures could (eimplemented to increaseimplemented to increase

standardi!ation% An increase instandardi!ation% An increase in

decentrali!ation can (e used to ma0edecentrali!ation can (e used to ma0e

decision ma0ing faster% +vendecision ma0ing faster% +ven

organi!ational do*nsi!ing e5ortsorgani!ational do*nsi!ing e5orts

involve changes in structure%involve changes in structure%


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:3 Changing )echnolog#:3 Changing )echnolog#

Managers can also change theManagers can also change thetechnolog# used to convert inputs intotechnolog# used to convert inputs into

outputs% )oda#$ ma'or technologicaloutputs% )oda#$ ma'or technological

changes usuall# involve thechanges usuall# involve the

introduction of ne* e;uipment$ toolsintroduction of ne* e;uipment$ toolsor *or0 methods< automation oror *or0 methods< automation or

computeri!ation% For instance$ the =Scomputeri!ation% For instance$ the =S

arm# uses email facilit# among troopsarm# uses email facilit# among troopson the (attle2eld%on the (attle2eld%

1Cont31Cont3


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:3 Changing )echnolog#:3 Changing )echnolog#

Automation is a technological changeAutomation is a technological changethat replaces certain tas0s done (#that replaces certain tas0s done (#

people *ith machines% For instance$people *ith machines% For instance$

assem(l# lines$ *here ro(ots areassem(l# lines$ *here ro(ots are

programmed to do 'o(s%programmed to do 'o(s%


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>3 Changing People>3 Changing People

)he term organi!ational development)he term organi!ational development

13$ though occasionall# referring to all13$ though occasionall# referring to all

t#pes of change$ essentiall# focuses ont#pes of change$ essentiall# focuses on

techni;ues or programs to change peopletechni;ues or programs to change people

and the nature and ;ualit# ofand the nature and ;ualit# ofinterpersonal *or0 relationships% For e%g%interpersonal *or0 relationships% For e%g%

-eorge Fisher$ former C+ of +astman-eorge Fisher$ former C+ of +astman

@oda0$ applied various forms of to@oda0$ applied various forms of to

(oost emplo#ee morale% While past(oost emplo#ee morale% While past@oda0 C+s tended to (e autocratic and@oda0 C+s tended to (e autocratic and

inaccessi(le$inaccessi(le$ 1Cont31Cont3


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>3 Changing People>3 Changing People

Fisher re(uilt the compan# throughFisher re(uilt the compan# throughrespect for people$ trust and support$respect for people$ trust and support$

openness$ the sharing of po*er andopenness$ the sharing of po*er and

participation%participation%

li ith / i t t li ith / i t t


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ealing *ith /esistance toealing *ith /esistance to

ChangeChange

Change can (e a threat to people inChange can (e a threat to people inan organi!ation% Wh# do people resistan organi!ation% Wh# do people resist

change and *hat can (e done tochange and *hat can (e done to

minimi!e their resistance?minimi!e their resistance?



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ChangeChange

Wh# people resist change" anWh# people resist change" anindividual is li0el# to resist change forindividual is li0el# to resist change for

three reasons"three reasons"

a%a% =ncertaint#=ncertaint#

(%(% Concern over personal lossConcern over personal loss

c%c% And the (elief that the change is notAnd the (elief that the change is notin the organi!ations (est interest%in the organi!ations (est interest%



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ChangeChange

a3a3 =ncertaint#" When #ou 0no* in=ncertaint#" When #ou 0no* indetail or have e,pertise *hich isdetail or have e,pertise *hich is

going to change% For instance$ *hengoing to change% For instance$ *hen

;ualit# control methods (ased on;ualit# control methods (ased on

sophisticated statistical models aresophisticated statistical models areintroduced into manufacturingintroduced into manufacturing

plants$ man# ;ualit# controlplants$ man# ;ualit# control

inspectors have to learn the ne*inspectors have to learn the ne*methods% Some inspectors ma# fearmethods% Some inspectors ma# fear

that the# *ill (e una(le to do so%that the# *ill (e una(le to do so%



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ChangeChange

(3 Concern over personal loss" )he second(3 Concern over personal loss" )he second

cause of resistance is the fear of losingcause of resistance is the fear of losing

something alread# possessed% Changesomething alread# possessed% Change

threatens the investment #ou havethreatens the investment #ou have

alread# made in the status ;uo% )healread# made in the status ;uo% )hemore that people have invested in themore that people have invested in the

current s#stem$ the more the# resistcurrent s#stem$ the more the# resist

change% Wh#? )he# fear the loss ofchange% Wh#? )he# fear the loss of

status$ mone#$ authorit#$ friendships$status$ mone#$ authorit#$ friendships$

personal convenience or other (ene2ts%personal convenience or other (ene2ts%



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ChangeChange

c3 elief that change is not in favor ofc3 elief that change is not in favor oforgani!ation" A 2nal cause oforgani!ation" A 2nal cause of

resistance is a persons (elief thatresistance is a persons (elief that

the change is incompati(le *ith thethe change is incompati(le *ith the

goals and interests of thegoals and interests of the

organi!ation%organi!ation%

) h i f / d i / i t) h i f / d i / i t


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)echni;ues for /educing /esistance)echni;ues for /educing /esistance

to Changeto Change

7%7% +ducation and Communication"+ducation and Communication" Communicate *ith emplo#ees toCommunicate *ith emplo#ees to

help them see the logic of change%help them see the logic of change%

+ducate emplo#ees through oneBonB+ducate emplo#ees through oneBonBone discussions$ memos$ groupone discussions$ memos$ group

meetings%meetings%

uild mutual trust and credi(ilit#uild mutual trust and credi(ilit#(et*een managers and emplo#ees%(et*een managers and emplo#ees%

) h i f / d i / i t) h i f / d i / i t


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to Changeto Change

:% Participation":% Participation" Allo*s those *ho oppose a changeAllo*s those *ho oppose a change

to participate in decision%to participate in decision%

Assume that the# have e,pertise toAssume that the# have e,pertise toma0e meaningful contri(utions%ma0e meaningful contri(utions%

Involvement can reduce resistance$Involvement can reduce resistance$

o(tain commitment to seeingo(tain commitment to seeingchange succeed and increasechange succeed and increase

;ualit# of change decision%;ualit# of change decision%


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to Changeto Change

>% Facilitation and Support">% Facilitation and Support" Provide supportive e5orts such asProvide supportive e5orts such as

emplo#ee counseling or therap#$emplo#ee counseling or therap#$

ne* s0ills training$ or short paidne* s0ills training$ or short paidleave of a(sence%leave of a(sence%

Can (e time consuming andCan (e time consuming and

e,pensive%e,pensive%


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to Changeto Change

% Degotiation"% Degotiation" +,change something of value to+,change something of value to

reduce resistance%reduce resistance%

Ma# (e necessar# *hen resistanceMa# (e necessar# *hen resistancecomes from a po*erful source%comes from a po*erful source%

Potentiall# high costs and li0elihoodPotentiall# high costs and li0elihood

of having to negotiate *ith otherof having to negotiate *ith otherresisters%resisters%


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to Changeto Change

E%E% Manipulation and Cooptation"Manipulation and Cooptation" Manipulation is convert attempts toManipulation is convert attempts to

in8uence such as t*isting or distortingin8uence such as t*isting or distorting

facts$ *ith holding damagingfacts$ *ith holding damaginginformation$ or creating false rumors%information$ or creating false rumors%

Cooptation is a form of manipulationCooptation is a form of manipulation

and participation%and participation%

Ine,pensive and eas# *a#s to gainIne,pensive and eas# *a#s to gain

support of resisters%support of resisters%

Can fail misera(l# if targets feel the#Can fail misera(l# if targets feel the#

have (een tric0ed%have (een tric0ed%


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to Changeto Change

% Coercion"% Coercion"

=sing direct threats or force%=sing direct threats or force%

Ine,pensive and eas# *a#s to getIne,pensive and eas# *a#s to getsupport%support%

Ma# (e illegal% +ven legal coercion canMa# (e illegal% +ven legal coercion can

(e perceived as (ull#ing%(e perceived as (ull#ing%


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Gandling +mplo#ee StressGandling +mplo#ee Stress

For man# emplo#ees$ change createsFor man# emplo#ees$ change creates

stress% A d#namic and uncertainstress% A d#namic and uncertainenvironment can create stress% In thisenvironment can create stress% In this

section$ *e *ill revie* *hat stress is$section$ *e *ill revie* *hat stress is$

its causes and ho* to identif# it andits causes and ho* to identif# it and*hat managers can do it to reduce*hat managers can do it to reduce

stress%stress%


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Gandling +mplo#ee StressGandling +mplo#ee Stress What is Stress" A d#namic condition aWhat is Stress" A d#namic condition a

person faces *hen confronted *ith anperson faces *hen confronted *ith an

opportunit#$ constraint$ or demand relatedopportunit#$ constraint$ or demand related

to *hat he or she desires and for *hich theto *hat he or she desires and for *hich the

outcome is perceived to (e (oth uncertainoutcome is perceived to (e (oth uncertain

and important%and important% Stress$ in and of itself$ is not necessaril#Stress$ in and of itself$ is not necessaril#

(ad% Although stress if often discussed in a(ad% Although stress if often discussed in a

negative conte,t$ it also has a positivenegative conte,t$ it also has a positive

value$ particularl# *hen it o5ers a potentialvalue$ particularl# *hen it o5ers a potentialgain% Functional stress allo*s an athlete orgain% Functional stress allo*s an athlete or

emplo#ee to perform at his or her highestemplo#ee to perform at his or her highest

level in crucial situations%level in crucial situations%

dli l


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)*o conditions are necessar# for)*o conditions are necessar# for

potential stress to (ecome actualpotential stress to (ecome actualstress% )here must (e uncertaint# overstress% )here must (e uncertaint# over

the outcome$ and the outcome mustthe outcome$ and the outcome must

(e important%(e important%


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dli lG dli + l S


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Stress


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G dli + l SG dli + l St


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S#mptoms ofStress

Changes inmeta(olism$ increase

heart & (reathingrates$ raised (lood

pressure$ headaches$& potential of heart

attac0s

Ph#siologica

lPs#chological

Jo( related

dissatisfaction$tension$ an,iet#$

irrita(ilit# &(oredom

ehavioral

Changes in productivit#$a(senteeism$ 'o( turn over$changes in eating ha(its$

increase smo0ing$consumption of alcohol$ rapid

speech & sleep disorders

/educing Stress rgani!ational/educing Stress rgani!ational


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/educing Stress 6 rgani!ational/educing Stress 6 rgani!ational

.evel.evel As a manager things *hich #ou canAs a manager things *hich #ou can

do are"do are"

i%i% Selection of right emplo#ee for theSelection of right emplo#ee for the

'o(%'o(%

ii%ii% /ealistic previe* of 'o( during the/ealistic previe* of 'o( during the

selection process to the candidate toselection process to the candidate to

reduce am(iguit#%reduce am(iguit#%

iii%iii% Clarit# in terms of M%Clarit# in terms of M%

iv%iv%Jo( redesign%Jo( redesign%


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What companies come to #our mindWhat companies come to #our mind

*hen #ou thin0 of successful*hen #ou thin0 of successful

Innovations?Innovations?


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Ma# (e Son# Corporation$ *ith itsMa# (e Son# Corporation$ *ith its

Wal0man$ Pla#Station$ Ai(o /o(otWal0man$ Pla#Station$ Ai(o /o(ot

pads$ and 4aio PCs%pads$ and 4aio PCs%

Ma# (e >M Corporation *ith its Post 6Ma# (e >M Corporation *ith its Post 6

it notes$ Scotch 6 -uard protectiveit notes$ Scotch 6 -uard protectivecoatings and cellophane tape%coatings and cellophane tape%

Ma# (e Intel Corporation *ith itsMa# (e Intel Corporation *ith its

continual advancements in chipcontinual advancements in chipdesigns and ne* productdesigns and ne* product

introductions%introductions%


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Creativit# 4ersus InnovationCreativit# 4ersus Innovation

Creativit#" )he a(ilit# to com(ineCreativit#" )he a(ilit# to com(ine

ideas in a uni;ue *a# or to ma0eideas in a uni;ue *a# or to ma0e

unusual associations (et*een ideas%unusual associations (et*een ideas%

Innovation" )he process of ta0ing aInnovation" )he process of ta0ing a

creative idea and turning it into acreative idea and turning it into a

useful product$ service or *or0useful product$ service or *or0

method%method%


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Stimulating & Durturing InnovationStimulating & Durturing Innovation

Inputs include creative people &Inputs include creative people &

groups *ithin the organi!ation% utgroups *ithin the organi!ation% ut

'ust having creative people isnt'ust having creative people isnt

enough% It ta0es the rightenough% It ta0es the right

environment for the innovationenvironment for the innovationprocess to ta0e hold and prosper toprocess to ta0e hold and prosper to

ta0e hold and prosper%ta0e hold and prosper%

We have three sets of varia(les thatWe have three sets of varia(les thathave (een found to stimulatehave (een found to stimulate

innovation"innovation"



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Idea ChampionIdea Champion

Individuals *ho activel# andIndividuals *ho activel# and

enthusiasticall# support ne* ideas$enthusiasticall# support ne* ideas$

(uild support$ overcome resistance(uild support$ overcome resistanceand ensure that innovations areand ensure that innovations are

implemented%implemented%


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)han0 ou)han0 ou

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Session 9 - Managing Change & Innovation