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Managing Organizational Change and Innovation

Chapter 17. Managing Organizational Change and Innovation. Learning Objectives. Define what is meant by organizational change management Identify the major steps in undertaking organizational change effort Describe how appreciative inquiry is conducted

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Managing Organizational Change and Innovation

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  1. Chapter 17 Managing Organizational Change and Innovation

  2. Learning Objectives • Define what is meant by organizational change management • Identify the major steps in undertaking organizational change effort • Describe how appreciative inquiry is conducted • Discuss the role of problem diagnosis in organizational change management • Identify a number of change methods and the relative depth of intervention each represents

  3. Learning Objectives • Recognize the impediments and conditions that may limit change management effectiveness • Discuss the ethical implications of change management • Understand how adapting innovation is a natural outcome in organizations that effectively manage change

  4. Change Pervasive Persistent Permanent Accelerating

  5. Introduction To survive, organizations must be… Flexible Creative Responsive

  6. Introduction • Organizations best suited for success • Relatively small • Compete in industries where R&D expenditures are high, barriers to entry low

  7. Alternative Change Management Approaches Reeducation Power Reason

  8. Unfreezing Movement Refreezing Deals with resistance to change Management must show employees why they want to change Training Demonstration Empowerment Receiving positive rewards, information, or feelings for doing something Learning Principles in Change Management

  9. Change Agents: Forms of Intervention • A change agent • Brings a different perspective • Challenges the status quo • Success of the program • Rests on the relationship between the change agent and key decision makers

  10. Change Agents: Forms of Intervention ExternalChangeAgents InternalChangeAgents External-InternalChangeAgents

  11. Resistance to Change • The more significant the change, the more intense the… • Fear • Anxiety • Resistance • Resistance is often triggered by a changein routing, patterns, and habits

  12. Individual Resistance Behaviors

  13. Reasons for Individual Resistance • Perceived loss of position, power, status, quality of life, authority • Economic insecurity • Alteration of social friendships and interactivity • Fear of the unknown • Failure to recognize the need for change • Cognitive dissonance due to new people, processes, systems, technology, expectations • Fear of a lack of competence • Believing the proposed change is wrong or bad

  14. Coping With Resistance Ways to Cope With Resistance Increase communication Have people participate in the change process Let change champions within the group be facilitators Negotiating the type and pace of change Few long-term benefits from coercion, threats, manipulation

  15. Organizational Resistance • Organizational barriers to change • Professional and functional orientation of a department, unit, or team • Structural inertia • Perceived threats to the power balance • Previous change failure

  16. Strategies for Overcoming Resistance Give people and organizations a reason to change Get more people involved Increase communication Identify & guide champions/supporters of change Obtain upper-level management support Create a learning organization

  17. Characteristics of a Learning Organization • Open discussions and accessibility to information • Clear vision expressed at all levels • Strong emphasis on interdependence, worth, and importance of each person and unit • Clear goals and concepts of performance expectations • Commitment to learning, improving, personal growth • Concern for measurable results whenever possible • Curiosity to try new methods and experiment • Acceptance of failure

  18. Model for Managing Organizational Change

  19. Managing Organizational Change • Forces for change continually act on the organization • It’s the manager’s responsibility to determine the magnitude of the change • They must diagnose the problem and identify techniques for dealing with it • They must implement the change and then monitor the process and results

  20. Forces for Change External Forces Beyond the controlof management • Economic forces • Technological forces • Social forces • Political forces Internal Forces Generally within management’s control • Process problems • Behavioral problems

  21. Diagnosis of a Problem • Change agents facilitate diagnostic phase • They gather, interpret, and present data

  22. Diagnosis of a Problem • Questions to help pinpoint a diagnosis • What is the problem versus the symptoms? • What must be changed to resolve the problem? • What outcomes are expected from the change? • How will those outcomes be measured?

  23. Diagnosis of a Problem • Obtaining answers to the questions • Review data in the firm’s information system • Generate ad hoc information through committees or task forces • Direct observation • Hold meetings with managers and employees • Interview key personnel • Conduct an attitude survey

  24. Choosing a Development Method • The development method depends on • The nature of the problem • The depth of the intended change

  25. Structural People Task & Technological Approaches to Change Management Common Approaches

  26. Structural Approaches to Change Management by Objectives (MBO) • Objective setting • Subordinate participation • Feedback • Evaluation ReengineeringEfforts • Streamlining • Integrating • Transforming

  27. Task and Technological Approaches These approaches focus onthe work being performed Task changesjob design changes and job enrichment Technological approacheschanges in work flow Training is integral to the process

  28. People Approaches Team Building Mentorship Programs Ethics Training Introspection

  29. Introspection Development Goals Improving Self-confidence Learning Developing Objectivity More creativityand intuition Egolessness Achieving life balance Action taking More tolerancefor ambiguityand paradox Increased senseof personal responsibility

  30. TQM: A Multifaceted Approach • Key TQM components • Goal • Definition of quality • Nature of the environment • Role of management • Role of employees • Structural rationality • Philosophy toward change

  31. Appreciative Inquiry A method of focusing on positiveaspects or potential opportunities

  32. Choice of a change method is tempered by the conditions that exist at the time Impediments and Limiting Conditions LeadershipClimate OrganizationalCulture FormalOrganization

  33. Implementing the Method Implementation of a change method hastwo dimensions Timing:selection of the appropriate time at which to initiate the intervention Scope: selection of the appropriate scale

  34. Evaluating Program Effectiveness • Bringing about change • An expenditure of organizational resources • In exchange for some desired result • Evaluating the program has two problems • Obtaining data that measure the desired results • Determining the trend of improvement over time

  35. Evaluating Program Effectiveness • Six steps of evaluative research • Determine the objectives of the program • Describe the activities taken to achieve the objectives • Measure the effects of the program • Establish baseline points • Control extraneous factors • Detect unanticipated consequences

  36. How Effective are Change Interventions? Critical Test of Change Intervention Whether it improvesorganization effectiveness Multimethod approaches are moresuccessful than single-method ones

  37. Significant Changes Can Occur • Significant changes occur when • All employees participate in goal setting, decision making, and job redesign • Employee collaboration is developed through team building • The organizational structure is reorganized to accommodate the new levels of participationand collaboration

  38. Steps to Take When Managing Change • Management and all involved must have high and visible commitment to the effort • People involved need advance information that tells them what is to happen, and why they are to do what they are to do • The effort must be connected to other parts of the organization • The effort must be directed by line managers and assisted by a change agent if necessary

  39. Steps to Take When Managing Change • The effort is based on good diagnosis and is consistent with the conditions in the organization • Management must remain committed to the effort through all its steps • Evaluation is essential and must be more than asking people how they feel about the effort • People must see the relationship between the effort and the organization’s mission and goals • Any change agent must be clearly competent

  40. Organizational change is a significant undertaking that managers should go about in a systematic way Guidelines for Managing Change

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