Professional Documents
Culture Documents
MANAGEMENT PRINCIPLES
Topic 8
Managing Change
and Innovation
Learning Objectives
Define organizational change and explain the forces driving
innovation and change in today’s organization.
Identify and explain the three innovation strategies managers
implement for changing products and technologies.
Explain the specific tool that can smooth the process for changing
people and culture
Discuss why changes in people and culture are critical to any
change process.
Define organizational development (OD) and large group
interventions.
Explain the OD stages of unfreezing, changing, and refreezing.
Identify sources of resistance to change.
Explain force-field analysis and other implementation tactics that
can be used to overcome resistance.
Organisational Change
Creating VS
Implementing ??
??
Ambidextrous
Creating VS
Implementing ??
??? ???
Successful Change
Ambidextrous
Successful change requires that organisations
be capable of both creating and implementing
ideas, which means the organisation must learn to
be ambidextrous
An ambidextrous approach means incorporating
structures and process that are appropriate for
both the creative impulse and for the systematic
implementation of innovation
Managers encourage flexibility and freedom to
innovate and propose new ideas with creative
departments, venture teams, and other
mechanism, but they use a more rigid,
centralized, and standardized approach for
implementing innovations
Two vital areas of
change or
innovation??
???? ????
Changing Things: New Products and
Technologies
Product change
It is a change in the organization product or service outputs.
Product and service innovative is the primary way in which
organizations adapt to changes in markets, technology, and
competition.
Product changes are related to changes in the technology of the
organsiation
Technology change
It is a change in the organization’s production process (how
the organisation does its work)
Technology changes are designed to make the production of a
product or service more efficient.
The adoption of automatic mail sorting machines is an
example of a technology change
Changing People and Culture
Culture change
Major shift in the norms, values, attitudes, and
mindset of the entire organization.
Culture change pertains to the organisation as a whole
Two vital areas of
change or
innovation??
Organization
Manufacturing
Department
Research Marketing
Department Department
Sometimes a single person may play two or more of these roles, but
successful innovation in most companies involves an interplay of different
people, each adopting one role
Entrepreneurship
New Venture Team
Unit separate from the mainstream of the organization
that is responsible for developing and initiating
innovations
Skunkworks
separate small, informal, highly autonomous, and often
secretive group that focuses on breakthrough ideas for
the business
Related idea
New Venture Fund = A fund providing resources from
which individuals and groups can draw to develop new
ideas, products, or businesses
Changing People and Culture
Difficult to change ??
• Mergers/acquisitions
• Organization decline/revitalization
• Conflict management
Mergers/Acquisitions
Mergers/acquisitions
Survey-feedback activities
• Survey feedback begins with a questionnaire distributed to
employees on values, climate, participation, leadership, and
group cohesion within their organisation
• After survey is completed, and OD consultant meets with
groups of employees to provide feedback about their responses
and the problems identified
1 Stage: Unfreezing
2 Stage: Changing
3 Stage: Refreezing
Changing People and Culture
OD Steps
1 Stage: Unfreezing
Means participants are made aware of problems in order to
increase their willingness to change their behavior.
Often uses outside expertise called a change agent
Change Agent- is OD specialist who contracts with an
organization to facilitate change.
2 Stage: Changing
Intervention stage of OD in which individual experiment with
new workplace behaviors.
3 Stage: Refreezing
The reinforcement stage of OD in which individual acquire a
desired new skill or attitude and are rewarded for it by the
organization.
Implementing Change
Uncertainty
• Lack of information about future events
Participation
Involves users and potential resisters in designing the change
Help to determine potential problems and understand the differences in perception of
change among employees.
Negotiation
Formal mean of achieving cooperation
Coercion
Use formal power to force employees to change