Managing change and innovation
What do we learn?

a.     View on the change process.
Ø  2 views of the change process:
1.      The calm water methapor:
·         Fairly descriptive of the situation managers faced.
·         Lewin’s description of the change process as a break in the organization’s equilibrium state:
o   Unfreezing the status quo.
o   Changing to a new state.
o   Refreezing to make the change permanent.

2.      White-Water Rapids Metaphor
·         The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.

b.    Types of organizational change.
Ø  Organizational change is the changes of some things in their workplace.
Ø  The catalyst and the one who is responsible for managing the change process of organizational change is change agent.
Ø  3 types of change:
1.      structure: Changing an organization’s structural components or its structural design.
2.       Technology: Adopting new equipment, tools, or operating methods that displace old skills and require new ones
3.      People:
·         Changing attitudes, expectations, perceptions, and behaviors of the workforce
·         Organizational Development (OD) is chage methods that focus on people and the nature and quality of interpersonal work relationships.

c.      How to manage resistance to change.
Ø  Why do people resist to 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.
Ø  6 techniques for reducing resistance to change:
1.      Education and communication: by helping employee see the logic of the change effort.
2.      Participation: bringing individuals that directly affected into the decision making process.
3.      Facilitation and support: helping employees deal with the fear and anxiety asscociated with the change effort.
4.      Negotiation: exchanging something of value for an agreement.
5.      Manipulation and co-optation: covert attempts to influence others about the change.
6.      Coercion: used to deal with resistance to change.


d.    Contemporary issues in managing change.
Ø  Changing Organizational Culture
·         Cultures are naturally resistant to change.
·         Conditions that facilitate cultural change:
o   The occurrence of a dramatic crisis.
o   Leadership changing hands.
o   A young, flexible, and small organization.
o   A weak organizational culture.


e.      Techniques for stimulating innovation.
Ø Innovation is the key to continued key.

Ø Creavity vs innovation:
·        Creativity: the ability to combine ideas in a unique way or to make unusual associations between ideas.
·        Innovation: taking creative ideas and turning them into useful products or work methods.
Ø Stimulating and nurturing innovation:
·        Structural varibles:
o   An organic-type structure positively influences innovation.
o   The availability of plentiful resources provides a key building block for innovation.
o   Frequent communication between organizational units helps break down barriers.
·         Cultural variables:
o   Accept ambiguity: too much emphasis on objectivity and specificity constrains creativity.
o   Tolerate the impractical: what at first seems impractical might lead to innovative solutions.
o   Keep external controls minimal: rules, regulations, policies, and similar organizational controls are kept to a minimum.
·         Human resources variables:
o   Idea champion: individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.
Ø  Innovation and design thinking:
·         A strong connection exists between design thinking and innovation.
·         With a design thinking mentality, the emphasis is on getting a deeper  understanding of what customers need and want.




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