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Chapter 13: Managing Change and Innovation

Chapter 13: Managing Change and Innovation. Learning Objectives. Forces for change “Calm waters” versus “white-water rapids” metaphors Change agents Types of change Why people resist change Techniques for reducing resistance to change Innovation versus creativity

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Chapter 13: Managing Change and Innovation

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  1. Chapter 13:Managing Change and Innovation

  2. Learning Objectives • Forces for change • “Calm waters” versus “white-water rapids” metaphors • Change agents • Types of change • Why people resist change • Techniques for reducing resistance to change • Innovation versus creativity • Stimulating and nurturing innovation

  3. External Forces for Change • Marketplace • Governmental laws and regulations • Technology • Labor markets • Economy

  4. What Can Change? Structure People Technology

  5. Internal Forces for Change • Business strategy • Workforce • Technology and Equipment • Employee attitudes

  6. Change Agents • What are “change agents”? • Who can be a change agent? • External vs. internal change agents • Evolution of change agents

  7. Calm Waters vs. White Water Rapids Metaphors

  8. The Change Process • The Calm Waters Metaphor • Change viewed as a break in the organization’s equilibrium state • Unfreezing the status quo • Changing to a new state • Refreezing to make the change permanent • White-Water Rapids Metaphor • No stability and predictability • Organizations must constantly change to survive

  9. The Change Process Unfreezing Changing Refreezing

  10. What Can a Manager Change? • Specialization • Span of control • Formalization • Centralization • Departmentalization Structure • Work processes • Methods • Equipment Technology • Attitudes • Expectations • Perceptions • Behavior People

  11. Resistance to Change Uncertainty and Ambiguity Concern Over Personal Loss Belief That Change Is Not Beneficial

  12. Fear of Change

  13. Techniques for Reducing Resistance to Change • Education and Communication • Facilitation and support • Participation • Negotiation • Manipulation and Co-optation • Coercion

  14. Case Study: Ann Lyman’s Proposal • Why do Ann’s colleagues resist change at CPC? At root, what are the sources of resistance? • Design a proposal for influencing Ann’s colleagues and superiors, drawing on one or more of the techniques for reducing resistance to change:- education/communication - facilitation/support • - participation- negotiation- manipulation/co-optation- coercion Which would you draw on, and why? Give specific examples of how the techniques you chose would “look like” in practice.

  15. Combining new ideas in unique ways or associating ideas in unusual ways Turning creative ideas into useful products, services, or methods of operation What Is Creativity? What Is Innovation?

  16. Three Sets of VariablesThat Stimulate Innovation Structural Cultural Human Resources

  17. Innovation Variables Structural Variables • Organic structures • Abundant resources • High interunit communication Cultural Variables • Acceptance of ambiguity • Tolerance of the impractical • Low external controls • Tolerance of risks • Tolerance of conflicts • Focus on ends • Open-system focus Stimulates Innovation Human Resource Variables • High commitment to • training and development • High job security • Creative people

  18. IDEO Video • How does IDEO stimulate creativity and innovation? Look for aspects of: • Culture • Structure • Human resources • ANYTHING ELSE!!

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