Explain why handling change is an integral part of

every managers job.

Compare and contrast the two views on the change
process
Classify types of organisational change
Explain how to manage resistance to change
Discuss contemporary issues in managing change
Describe techniques for stimulating innovation
Explain the connection between change, innovation
and sustainability
What Is Change?
Organisational Change
Any alterations in the people, structure, or technology of an
organisation
Change is required to
To meet existing and future challenges
To meet corporate goals and objectives
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities
Managing change is an integral part of every managers job.
External and Internal forces for Change
The Change Process
The Calm Waters Metaphor
Change is seen as an occasional disruption in the normal
flow of events.
Lewins description of the change process as a break in the
organisations equilibrium state.
Unfreezing the status quo
Changing to a new state
Refreezing to make the change permanent
The status quo is the equilibrium state which requires
unfreezing preparing for the needed change
To make the change sustained over time refreezing is
required stabilise the new situation by reinforcing the
new behaviour
Figure 6.1 The Change Process
The Calm Waters Metaphor
The Change Process
WhiteWater Rapids Metaphor
Change is an expected and natural state, and managing
change is a continual process.
The business environment today is uncertain and dynamic
that is increasingly dominated by information, ideas and
knowledge
To succeed in this type of environment, organisations have
to be incredibly flexible and able to respond quickly.
The lack of environmental stability and predictability
requires that managers and organisations continually
adapt (manage change actively) to survive.
Organisational Change and
Change Agents
Organisational Change any alterations in the
people, structure, or technology of an
organisation.
Change Agents persons who act as catalysts
and assume the responsibility for managing
the change process.
Types of Change Agents
Managers: internal
entrepreneurs
Nonmanagers: change
specialists
Outside consultants:
change implementation
experts
Types of Change
Structure
Changing an organisations structural components or its
structural design
Technology
Adopting new equipment, tools, or operating methods
that displace old skills and require new ones
Automation replacing certain tasks done by people with
machines
Computerisation
People
Changing attitudes, expectations, perceptions, and
behaviors of the workforce
Figure 6.2 Three categories of Change
work specialisation,
departmentalisation,
chain of command,
span of control,
centralisation,
formalisation,
job redesign,
automation,
or
computerisation
team building,
Intergroup
development,
survey feedback,
sensitivity training,
processconsultation
Organisational Development
Organisational Development (OD)
techniques or programs to change people and
the nature and quality of interpersonal work
relationships.
Global OD OD techniques that work for U.S.
organisations may be inappropriate in other
countries and cultures.
Figure 6.3 Organisational Development (OD)
Techniques
Managing Resistance to Change
Why People Resist 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 organisation
Techniques for reducing Resistance to Change
Changing Organisational Culture
Cultures are naturally resistant to change
particularly the strong cultures.
Conditions that facilitate cultural change:
The occurrence of a dramatic crisis
Leadership changing hands
A young, flexible, and small organisation
A weak organisational culture
Table 6.2 Strategies for managing cultural
change
Stress and Stressors
Stress the adverse reaction people have to excessive
pressure placed on them from extraordinary demands,
constraints, or opportunities.
Functional stress does have positive value in
enhancing performance. E.g. athlete, stage performer
Potential stress can become actual stress when
outcomes are uncertain and are important
Stressors factors that cause stress.
Personal factors
Job related factors
What Causes Stress?
Role Conflicts work expectations that are
contradictory and hard to satisfy.
Role Overload having more work to
accomplish than time permits.
Role Ambiguity when role expectations are
uncertain and not clearly understood.
Job boredom, excessive rules and regulations, an unresponsive
and unsupportive boss, ambiguous communication, and
unpleasant working conditions (poor lighting, distracting noises
and extreme temperature)
Personal Factors Causing Stress
Type A personality
people who have a
chronic sense of
urgency and an
excessive competitive
drive.
Type B personality
people who are relaxed
and easygoing and
accept change easily.
Figure 6.6 Symptoms of Stress
An employee who is experiencing a high level of stress may become depressed, accident
prone or argumentative, may have difficulty making routine decisions, easily distracted
and so on.
Managing Stress
Stress cannot be eliminated in totality but can
be reduced.
Concern is over dysfunctional stress resulting
is dysfunctional behaviour.
Controlling certain job related stress factors
and by offering help in coping with personal
stress.
Reducing Stress
Engage in proper employee selection
Match employees abilities to jobs requirement
Use job preview in interviews to reduce ambiguity
Improve organisational communications
Develop a performance planning program
Use job redesign
Provide a counseling program
Offer time planning management assistance
Sponsor wellness programs
Making change happen successfully
Managers can increase likelihood of success
by
1. Focusing on making the organisation ready for
change
2. Understanding their own role in the process
3. Increasing the role of individual employees
Create a simple, compelling message
explaining why change is necessary.
Communicate constantly and honestly.
Table 6.4 Characteristics of changecapable
Organisations
Stimulating Innovation
Creativity the ability to combine ideas in a
unique way or to make an unusual
associations between ideas.
Innovation turning the outcomes of the
creative process into useful products, services,
or work methods.
Table 6.5 Worlds Most
Innovative Companies
Stimulating Innovation (cont.)
Idea Champions
individuals who actively
and enthusiastically
support new ideas,
build support,
overcome resistance,
and ensure that
innovations are
implemented.
Figure 6.7 Systems view of innovation
Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, Toward a Theory of Organisational Creativity, Academy of
Management Review, April 1993, p. 309.
Stimulating and nurturing innovation
From systems view it is evident that creative people
& groups within organisations require creative
environment for transformation process.
What is this right environment to nurture creativity
and innovation?
three sets of variables that stimulate innovation in
organisations
structure
culture
human resource practices
Figure 6.8 Innovation Variables
Structural Variables
Adopt an organic structure
Low in formalisation, centralisation and work specialisation
High in flexibility, adaptability and crossfertilisation
Make available plentiful resources
Engage in frequent interunit communication
Minimise extreme time pressures on creative
activities
Provide explicit support for creativity
Cultural Variables
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an opensystem focus
Provide positive feedback
Human Resource Variables
Actively promote training and development to
keep employees skills current
Offer high job security to encourage risk taking
Encourage individuals to be champions of
change or idea champions
Sustainability driven change
As opposed to traditional marketdriven innovation, sustainabilitydriven
innovation incorporates environmental and social impact variables.
Innovation resulting in economic, environmental and social sustainability
requires major efforts and sacrifices.
Elements integrating sustainability into the innovation process:
1. Organisations need to see sustainability as a driver for, rather than a barrier
to, innovation
2. Companies need to acknowledge that sustainability is about more than
generating sustainability reports.
3. The innovation process must be supported by a capability to learn the
external views
4. Measurable targets are needed to ensure that sustainability efforts are
maintained
5. Any change towards more sustainable innovation needs to be inspired by
clear leadership and internal support.
Terms to Know
organisational change
change agent
organisational development (OD)
stress
creativity
innovation
idea champion
sustainability driven innovation