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Managing change and innovation

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Presented by:Miss: Maham Muzamil.

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L E A R N I N G O U T L I N E

Forces for Change: Two Views of the Change Process

• What is change?• Discuss the external and internal forces for change.• Need for change.• Explain Lewin’s three-step model of the change process.• Change Agents.

Managing Organizational Change• Three categories of change.• Characteristics of Creative People.

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L E A R N I N G O U T L I N E (cont’d)Managing Change

• Explain why people resist change and how resistance might be managed.

Contemporary Issues in Managing Change• Explain why changing organizational culture is

so difficult and how managers can do it.• Describe employee stress and how managers

can help employees deal with stress.• Discuss what it takes to make change happen

successfully.

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Stimulating Innovation•Explain why innovation isn’t just creativity.•Stimulating Innovation•Systems View of Innovation• Innovation Variables •Creating the “Right” Environment for Innovation

L E A R N I N G O U T L I N E (cont’d)

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

Managing change is an integral partof every manager’s job.

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Forces for Change

External forces

– Marketplace– Governmental laws and

regulations– Technology– Labor market– Economic changes

Internal forces

– Changes in organizational strategy

– Workforce changes– New equipment– Employee attitudes

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Need for Change

● Current procedures are not up to standard

● New idea or technology could improve current performance

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Based on external or internal forces

Lewin’s change model

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Changing stage

Unfreezing stage

Refreezing stage

Unfreezing

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Lewin’s change model06.03.2016

Lewin’s Model

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Three categories of changes

Structure

Technology People

Three Categories of Change

Three Categories of Change

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Types of Change

StructuralChanging an organization’s structural components or its structural design

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

TechnologicalAdopting newequipment, tools, or operating methods that displaceold skills and require new onesAutomation: replacing certain tasks done bypeople with machinesComputerization

Characteristics of Creative People

Conceptual fluency Open-minded Originality Less authority Independence Self-confidence Persistence Commitment - Focused approach

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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

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Managerial Actions to Reduce Resistance to Change• Education and communication• Participation• Facilitation and support• Negotiation• Manipulation and co-optation• Selecting people who accept change• Coercion

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Causes of Stress

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Symptoms of Stress06.03.2016

Issues in Managing Change (cont’d) 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.

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Characteristics of Change-Capable Organizations• Link the present and

the future.• Make learning a way of

life.• Actively support and

encourage day-to-day improvements and changes.

• Ensure diverse teams.• Encourage mavericks.• Shelter breakthroughs• Integrate technology.• Build and deepen trust.

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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. Idea Champion

– Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.

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Systems View of Innovation

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Innovation Variables

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Creating the “Right” Environment for Innovation Structural Variables

– Adopt an organic structure– Make available resources– Minimize extreme time pressures on

creative activities– Provide explicit support for creativity

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Creating the “Right” Environment for Innovation (cont’d) Cultural Variables

– Accept ambiguity– Tolerate the impractical– Have low external controls– Tolerate risk taking– Tolerate conflict– Focus on ends rather than means– Develop an open-system focus– Provide positive feedback

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Creating the “Right” Environment for Innovation (cont’d)Human Resource Variables

– Actively promote training and development to keep employees’ skills current.

– Offer high job security to encourage risk taking.

– Encourage individual to be “champions” of change.

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Activity Time06.03.2016

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Which of these is the first part of the change process, according to Lewin's model?

a) Unfreezing.b) Driving forces.c) Changing.d) Refreezing.

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The change process must begin by informing employees about:

a) Competitors.b) Changing consumer trends.c) Impending government

regulations.d) All of the above.

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Which of the three stages make up Lewin's change model?

a) Unfreezing, changing, refreezing.b) Unfreezing, implementing,

refreezing.c) Defrosting, changing, refreezing.d) Unfreezing, changing, cementing.

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A person who act as a catalyst for change is called ?

a) A secret agent.b) A doctor.c) Change agent.d) A scientist.

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Basically, how many forces of change?

a) Threeb) Twoc) Oned) five

Answers1. A2. D3. A4. C5. B

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05/01/2023