Lecture Two: Managing Change and Innovation PDF

BENHA UNIVERSITY FACULTY OF COMMERCE Advanced studies in management Lecture Two Dr. Thraa El-Desawy Business Administration Department 1 Lecture Two MANAGING CHANGE AND INNOVATION 2 ...

BENHA UNIVERSITY FACULTY OF COMMERCE Advanced studies in management Lecture Two Dr. Thraa El-Desawy Business Administration Department 1 Lecture Two MANAGING CHANGE AND INNOVATION 2  The Change Process  If it weren’t for change, a manager’s job would be relatively easy.  Planning would be simple because tomorrow would be no different from today.  The issue of effective organizational design would also be resolved because the environment would not be uncertain and there would be no need to redesign the structure.  But that’s not the way it is. Change is an organizational reality.  Organizations face change because external and internal factors create the need for change. 3  External and Internal Forces for Change External Changing consumer needs and wants New governmental laws Changing technology Economic changes Internal New organizational strategy Change in composition of workforce New equipment Changing employee attitudes 4  Two Views of the Change Process  Two Views of the Change Process 1-THE CALM WATERS METAPHOR At one time, the calm waters metaphor was fairly descriptive of the situation that managers faced. It’s best discussed using Kurt Lewin’s three-step change process. According to Lewin, successful change can be planned and requires unfreezing the status quo , changing to a new state, and refreezing to make the change permanent. 5 Kurt Lewin’s three-step change process 1. Unfreezing To move away from this equilibrium, unfreezing is necessary. Unfreezing can be thought of as preparing for the needed change. It can be done by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change; or by combining the two approaches. 2. Changing Once unfreezing is done, the change itself can be implemented. 6 Kurt Lewin’s three-step change process 3. Refreezing However, merely introducing change doesn’t ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is done, there’s a strong chance that employ- ees will revert back to the old equilibrium state—that is, the old ways of doing things. The objective of refreezing, then, is to stabilize the new situation by reinforcing the new behaviors. 7 8  Two Views of the Change Process 2. WHITE-WATER RAPIDS METAPHOR Today, any organization that treats change as the occasional disturbance in an otherwise calm and stable world runs a great risk. Too much is changing too fast for an organization or its managers to be complacent. It’s no longer business as usual. And managers must be ready to efficiently and effectively manage the changes facing their organization or their work area. 9 The Organizational Change  Most managers, at one point or another, will have to change some things in their workplace. We classify these changes as organizational change  which is any alteration of people, structure, or technology.  change agent : is someone who act as a catalyst and assume the responsibility for managing the change process. Change agents can be a manager within the organization, but could be a nonmanager. 10 Types of Change  Managers face three main types of change: 1. Structure, 2. Technology, 3. and People 11 12 Types of Change 1. CHANGING STRUCTURE Changes in the external environment or in organizational strategies often lead to changes in the organizational structure. Because an organization’s structure is defined by how work gets done and who does it, managers can alter one or both of these structural components. For instance, departmental responsibilities could be combined, orga- nizational levels eliminated, or the number of persons a manager supervises could be increased. 13 Types of Change 2. CHANGING TECHNOLOGY Managers can also change the technology used to convert inputs into outputs. Today, technological changes usually involve the introduction of new equipment, tools, or methods; automation; or computerization. Competitive factors or new innovations within an industry often require managers to introduce new equipment, tools, or operating methods 14 Types of Change 3. CHANGING PEOPLE Changing people involves changing attitudes, expectations, perceptions, and behaviors, something that’s not easy to do. Organizational development (OD) is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. The most popular OD techniques are described in Exhibit 6-4. Each seeks to bring about changes in the organization’s people and make them work together better. 15 EXHIBIT 6-4 Popular OD Techniques 16