1. Managing Organizational Change and Innovation
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. To survive, organizations must be…
Introduction
To survive, organizations must be…
Flexible
Creative
Responsive

6. Organizations best suited for success
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
Power
Reason
Reeducation

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

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
External Change Agents
Internal Change Agents
External- Internal Change Agents

11. The more significant the change, the more intense the…
Resistance to Change
The more significant the change, the more intense the…
Fear
Anxiety
Resistance
Resistance is often triggered by a change in 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 control of management
Economic forces
Technological forces
Social forces
Political forces
Internal Forces
Generally within management’s control
Process problems
Behavioral problems

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

22. Questions to help pinpoint a diagnosis
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. Obtaining answers to the questions
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. Approaches to Change Management
Common Approaches
People
Structural
Task & Technological

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

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

28. People Approaches Team Building Mentorship Programs Ethics Training
Introspection

29. Introspection Development Goals
Developing Objectivity
Learning
Improving Self-confidence
Achieving life balance
Egolessness
More creativity and intuition
Increased sense of personal responsibility
More tolerance for ambiguity and paradox
Action taking

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. A method of focusing on positive aspects or potential opportunities
Appreciative Inquiry
A method of focusing on positive aspects or potential opportunities

32. Impediments and Limiting Conditions
Leadership Climate
Organizational Culture
Formal Organization
Choice of a change method is tempered by the conditions that exist at the time

33. Implementing the Method
Implementation of a change method has two 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 improves organization effectiveness
Multimethod approaches are more successful 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 participation and 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. Guidelines for Managing Change
Organizational change is a significant undertaking that managers should go about in a systematic way