Management of Innovation and Change

Controlling and Managing Innovation and Change

• Controlling is a management function that involves monitoring, comparing, and correcting work performance.
• Control is crucial for managers to ensure organizational goals are met.
• The control function aids in planning, empowering employees, and workplace protection.
• The control process is a three-step process:
  • Measuring actual performance
  • Comparing actual performance against a standard
  • Taking managerial action to correct deviations or inadequate standards.
• Effective control systems rely on objectives aligned with the organization's goals.
• Systems should be suitable to the specific requirements of the business organization.
• Active participation of all members is essential for implementing a successful control system.
• Total quality management (TQM) emphasizes staff commitment to high standards.
• Control is a managerial function to check errors, take corrective actions, minimize deviations from standards, and ensure stated organizational goals are met.
• Crucial activities in management include ensuring activities are performed as expected, utilizing resources effectively and efficiently, and judging accuracy of standards.
• Effective control improves employee performance and discipline, and minimizes errors through continuous monitoring and remedial action.

Measuring, Monitoring, and Modifying Information

• Financial ratios are used to evaluate an organization's ability to meet its current debt obligations, use debt to finance assets, and efficiently use assets.
• Liquidity ratios assess the ability to meet short-term obligations, leverage ratios measure the use of debt for financing assets, and activity ratios evaluate asset utilization efficiency.
• Profitability ratios gauge asset effectiveness in profit generation.
• Budgets are numerical plans for allocating resources to specific activities and future costs.
• Deviation is the difference between the set standard and the actual performance.
• Benchmarking identifies best practices among competitors or non-competitors.

Managing Operations

• Information technology encompasses computers, storage, networking, and processes for creating, processing, storing, securing, and exchanging electronic data.
• E-commerce involves buying and selling online, while e-business encompasses various business processes using the internet.
• Network analysis plans, schedules, and controls inter-related projects.
• Value chain management aims to add value at each step from raw materials to finished products, meeting customer needs.
• Enterprise Resource Planning integrates essential business components.
• Customer Relationship Management (CRM) focuses on managing interactions with current, past, and future customers.
• Knowledge management (KM) creates, shares, uses, and manages organizational knowledge and information.
• Business Intelligence (BI) analyzes data, generating actionable insights for informed business decisions.

Control and Evaluation of Performance

• Feedforward controls, or pre-action controls, identify and address potential problems before they arise.
• Concurrent controls, or steering controls, monitor ongoing activities to ensure quality and consistency.
• Feedback controls monitor processes after completion to assess performance against standards.

Managing Innovation and Change

• Change management encompasses preparing, supporting, and helping organizations, teams, and individuals during organizational shifts.

• Change drivers include technological advancements, internal process reviews, crisis management, changing customer demands, competitive pressures, mergers, and restructuring.

• Types of organizational change include transformation, incremental, organization-wide, and subsystem change.

• Change management techniques focus on identifying and addressing resistance, providing training, and ensuring clear communication.

• Entrepreneurship involves developing, organizing, and managing a business and handling uncertainties to achieve profitability.

• Entrepreneurial techniques for innovation include brainstorming, focus groups, reverse brainstorming, and free association.

• Management by walking around involves managers interacting directly with employees in work areas.

• Balanced scorecard, a performance management tool, assesses financial, customer, internal process, and people/innovation/growth aspects.

• Planning and controlling processes are inter-linked; planning establishes goals, and controlling ensures accomplishment.