Principles of

Management
Course Facilitator
Asif Jalees

Session 9

Managing Change and

Innovation

Managing Change & Innovation

What is Change?

What is Innovation?

Managing Change & Innovation

What is Change?
Organizational
Change:
Any
alterations in people, structure or
technology.
Change is an organizational reality.
Managing change is an integral part
of every managers job.

Managing Change & Innovation

Forces for Change
There are two forces for change:

External
Internal

Managing Change & Innovation

External Forces: The forces that

create the need for change come
from various sources.

Governmental Laws & Regulations

II. Technology
III. Economic Changes
I.

Managing Change & Innovation

Internal Forces: The forces that come

from within the organization.

Organizations Strategy
II. Workforce
III. Employee Attitudes
I.

Managing Change & Innovation

The Manager as Change Agent

Changes within an organization need a
catalyst (an agent that speeds significant
change). People who act as catalyst and
assume the responsibility for managing
change process are called change agents.
Any manager can be a change agent. An
outside consultant can also play the same
role. For major system wide changes, an
organization will often hire outside
consultants to provide advise & assistance.

Managing Change & Innovation

I.

Two Views of the Change Process

We can use two very different metaphors
(idea) to describe the change process.
One metaphors envisions the organization
as a large ship crossing a clam sea. The
ships captain and crew know exactly
where they are going because they have
made the trip many times before. Change
comes in the form of an occasional storm,
a brief distraction in an otherwise calm
and predictable trip.

Managing Change & Innovation

Two Views of the Change Process
II) In the other metaphor, the organization
is seen as a small raft navigating a rough
river with uninterrupted white water
rapids. Aboard the raft are half a dozen
people who have never worked together
before, who are totally unfamiliar with
the river, who are unsure of their
eventual destination, and who, as if
things were not bad enough, are
traveling at night.

Managing Change

As change agents, managers should

be motivated to initiate change
because they are committed to
improving their organizations
performance. Initiating change
involves identifying what
organizational areas might need to
be changed and putting the change
process in motion.
Managers must manage employee
resistance to change.

Managing Change
Types of Change

The managers options for change

essentially fall into three categories:

Changing Structure
ii. Changing Technology
iii. Changing People
i.

Three Categories of Change

1) Changing Structure

Managers
organizing
responsibilities
include such activities as choosing the
organizations formal design, allocating
authority and determining the degree of
formalization. For instance, departmental
responsibilities could be combined,
organizational levels eliminated, or spans
of control widened to make the
organization flatter and less bureaucratic.
(Cont)

1) Changing Structure

Or more rule or procedures could be

implemented
to
increase
standardization. An increase in
decentralization can be used to make
decision
making
faster.
Even
organizational
downsizing
efforts
involve changes in structure.

2) Changing Technology

Managers can also change the

technology used to convert inputs into
outputs. Today, major technological
changes
usually
involve
the
introduction of new equipment, tools
or work methods; automation or
computerization. For instance, the US
army uses email facility among troops
on the battlefield.
(Cont)

2) Changing Technology

Automation is a technological change

that replaces certain tasks done by
people with machines. For instance,
assembly lines, where robots are
programmed to do jobs.

3) Changing People

The term organizational development

(OD), though occasionally referring to all
types of change, essentially focuses on
techniques or programs to change people
and
the
nature
and
quality
of
interpersonal work relationships. For e.g.
George Fisher, former CEO of Eastman
Kodak, applied various forms of OD to
boost employee morale. While past
Kodak CEOs tended to be autocratic and
inaccessible,
(Cont)

3) Changing People

Fisher rebuilt the company through

respect for people, trust and support,
openness, the sharing of power and
participation.

Dealing with Resistance to

Change

Change can be a threat to people in

an organization. Why do people resist
change and what can be done to
minimize their resistance?

Dealing with Resistance to

Change

Why people resist change: an

individual is likely to resist change for
three reasons:

Uncertainty
b. Concern over personal loss
c. And the belief that the change is not
in the organizations best interest.
a.

Dealing with Resistance to

Change

a) Uncertainty: When you know in

detail or have expertise which is
going to change. For instance, when
quality control methods based on
sophisticated statistical models are
introduced
into
manufacturing
plants,
many
quality
control
inspectors have to learn the new
methods. Some inspectors may fear
that they will be unable to do so.

Dealing with Resistance to

Change

b) Concern over personal loss: The second

cause of resistance is the fear of losing
something already possessed. Change
threatens the investment you have
already made in the status quo. The
more that people have invested in the
current system, the more they resist
change. Why? They fear the loss of
status, money, authority, friendships,
personal convenience or other benefits.

Dealing with Resistance to

Change

c) Belief that change is not in favor of

organization: A final cause of
resistance is a persons belief that
the change is incompatible with the
goals
and
interests
of
the
organization.

Techniques for Reducing Resistance

to Change
1.

Education and Communication:

Communicate with employees to
help them see the logic of change.
Educate employees through one-onone discussions, memos, group
meetings.
Build mutual trust and credibility
between managers and employees.

Techniques for Reducing Resistance

to Change
2. Participation:

Allows those who oppose a change

to participate in decision.

Assume that they have expertise to

make meaningful contributions.

Involvement can reduce resistance,

obtain
commitment
to
seeing
change
succeed
and
increase
quality of change decision.

Techniques for Reducing Resistance

to Change
3. Facilitation and Support:

Provide supportive efforts such as

employee counseling or therapy,
new skills training, or short paid
leave of absence.

Can be time consuming and

expensive.

Techniques for Reducing Resistance

to Change
4. Negotiation:

Exchange something of value to

reduce resistance.

May be necessary when resistance

comes from a powerful source.

Potentially high costs and likelihood

of having to negotiate with other
resisters.

Techniques for Reducing Resistance

to Change
5. Manipulation and Cooptation:

Manipulation is convert attempts to

influence such as twisting or distorting
facts,
with
holding
damaging
information, or creating false rumors.
Cooptation is a form of manipulation
and participation.
Inexpensive and easy ways to gain
support of resisters.
Can fail miserably if targets feel they
have been tricked.

Techniques for Reducing Resistance

to Change
6. Coercion:

Using direct threats or force.

Inexpensive and easy ways to get
support.
May be illegal. Even legal coercion can
be perceived as bullying.

Handling Employee Stress

For many employees, change creates

stress. A dynamic and uncertain
environment can create stress. In this
section, we will review what stress is,
its causes and how to identify it and
what managers can do it to reduce
stress.

Handling Employee Stress

What is Stress: A dynamic condition a

person faces when confronted with an
opportunity, constraint, or demand related
to what he or she desires and for which the
outcome is perceived to be both uncertain
and important.
Stress, in and of itself, is not necessarily
bad. Although stress if often discussed in a
negative context, it also has a positive
value, particularly when it offers a potential
gain. Functional stress allows an athlete or
employee to perform at his or her highest
level in crucial situations.

Handling Employee Stress

Two conditions are necessary for

potential stress to become actual
stress. There must be uncertainty over
the outcome, and the outcome must
be important.

Handling Employee Stress

Causes of Stress: The causes of stress

can be found in issues related to the
organization or in personal factors that
evolve out of the employees private
life. Clearly, change of any kind has
potential to cause stress. It can
present opportunity, constraints or
demands.
Its not surprising, then, that change is
a major stressor.

Handling Employee Stress

Stres
s

Handling Employee Stress

Signs of Stress: An employee who is

facing high stress may become:

Depressed
Argumentative
May have difficulty in making routine
decisions
May be easily distracted

Handling Employee Stress

Psychological

Job related
dissatisfaction,
tension, anxiety,
irritability &
boredom

Physiologica
l

Changes in
metabolism, increase
heart & breathing
rates, raised blood
pressure, headaches,
& potential of heart
attacks

Symptoms of
Stress
Behavioral

Changes in productivity,
absenteeism, job turn over,
changes in eating habits,
increase smoking,
consumption of alcohol, rapid
speech & sleep disorders

Reducing Stress Organizational

Level

As a manager things which you can

do are:
i. Selection of right employee for the
job.
ii. Realistic preview of job during the
selection process to the candidate to
reduce ambiguity.
iii. Clarity in terms of MBO.
iv. Job redesign.

Reducing Stress Personal Life

As a manager its difficult to control.
Secondly, ethical consideration:
i. Employee counseling Employees
want to talk to someone about their
personal problem. You can directly
discuss or use human resource
counselors.
ii. Time management program can help
employee to balance his personal &
office life.

Innovation

What companies come to your mind

when you think of successful
Innovations?

Innovation

May be Sony Corporation, with its

Walkman, PlayStation, Aibo Robot
pads, and Vaio PCs.
May be 3M Corporation with its Post
it notes, Scotch Guard protective
coatings and cellophane tape.
May be Intel Corporation with its
continual advancements in chip
designs and new product
introductions.

Creativity Versus Innovation

Creativity: The ability to combine

ideas in a unique way or to make
unusual associations between ideas.
Innovation: The process of taking a
creative idea and turning it into a
useful product, service or work
method.

Stimulating & Nurturing Innovation

Inputs include creative people &

groups within the organization. But
just having creative people isnt
enough. It takes the right
environment for the innovation
process to take hold and prosper to
take hold and prosper.
We have three sets of variables that
have been found to stimulate
innovation:

Stimulating & Nurturing Innovation

Idea Champion

Individuals
who
actively
and
enthusiastically support new ideas,
build support, overcome resistance
and ensure that innovations are
implemented.

Thank You