13
Managing Change and Innovation
1. INTRODUCTION.
Change and change management are important aspects of the manager’s job. Managing change and innovation are the focus of this chapter.
2. WHAT IS CHANGE?
Organizational change is defined as any alteration in people, structure, or technology. Change is ever prent in organizations and cannot be eliminated. Instead, we need to look at the key issues related to managing change.
3. FORCES FOR CHANGE.
There are external and internal forces that create the need for change.
A. External forces that create the need for change come from various sources.
1. The marketplace
2. Government laws and regulations
3. Technology
4. Labor markets
5. Economic changes
B. Internal forces tend to originate primarily from the internal operations of the organization or from the impact of external changes.
1. Changes in strategy
2. Changes in the workforce
3. New equipment
4. Change in employee attitudes
C. The Manager as Change Agent.
Change requires a catalyst. The manager may act as a change agent, which is an individual who acts as a catalyst and manages the change process.
4. TWO VIEWS OF THE CHANGE PROCESS.
Two very different metaphors can be ud to describe the change process.
A. The calm waters metaphor characterizes the process of change as being like a ship crossing a calm a. It’s best illustrated by Lewin’s three-step process for change. (See Exhibit 13.1)
1. Unfreezing the equilibrium is the first step. This can be accomplished in one of three ways.
a. Increasing driving forces, which direct behavior away from the status quo.
b. Decreasing restraining forces, which hinder movement from the existing equilibrium.
c. Combining the two approaches.
2. The next step is to implement the change itlf.
3. The final step is to refreeze the situation.
B. The white-water rapids metaphor describes change that takes place in uncertain and dynamic environments.
C. If we put the two views in perspective, we must note that not every manager faces a world of constant and chaotic change. However, the number of managers who don’t face this type of environment is dwindling fast!
5. MANAGING CHANGE.
As change agents, managers are motivated to initiate change becau they are committed to improving organizational performance.
A. Types of Change.
The manager’s options for change esntially fall into three categories: structure, technology, and people. (See Exhibit 13.2.)
1. Changing Structure
a. Managers can alter one or more of the structural components such as work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization.
b. Changing Structure—the design of the organizational structure can be changed to meet new demands.
2. Changing Technology.
a. Competitive factors or new innovations often require introduction of new equipment, tools, or operating methods.
b. Automation is a technological change that replaces certain tasks done by people with machines.
c. Computerization has probably been the most visible technological change in recent years.
3. Changing people: (attitudes, expectations, perceptions, and behaviors)
Exhibit 13.3 provides descriptions of the most popular OD approaches.
a. Organizational development focus on techniques or programs to change people and the nature and quality of interpersonal work relationships.
B. Managing Resistance to Change.
Organizations can build up inertia that drives them to resist change.
1. Why People Resist Change.
a. Uncertainty
b. Concern over personal loss
c. Belief that the change is not in the best interest of the organization
2. Techniques for Reducing Resistance. (See Exhibit 13.4)
Six actions have been propod for u by managers in dealing with resistance to change.
a. Education and communication
b. Participation
c. Facilitation and support
d. Negotiation
e. Manipulation and cooptation
f. Coercion
6. CONTEMPORARY ISSUES IN MANAGING CHANGE.
Critical change issues today include: organizational cultures, employee stress, and successful change action.
A. Changing Organizational Culture
1. Culture is resistant to change
a. Consists of relatively stable and permanent characteristics
b. Takes a long time to form
c. Strong cultures have highly committed people
2. Understanding the Situational Factors. What might facilitate
