Lecture 6-Principles of Management

Principles of Management
Lecture 6 Change Management and Innovation

: Sonya Omer
Todays Agenda
Change and Innovation

Types of change Organizational life cycle
Change management process Organizational Development Managing resistance to change
Change and Innovation
Change
Any alteration of the status quo
Innovation
A new idea applied to initiating or improving a process, product or service.

Someone who acts as a catalyst and assumes the responsibility for managing the change process.
Change Agent
Four Types of Change

Technology
Changes in production process Changes in outputs Administrative changes Changes in values, attitudes, behaviors
Products and Services
Strategy and Structure
Culture
Forces for Change
Environmental Forces

Customers Competitors Technology Economic International arena New organizational strategy Change in composition of workforce New equipment Changing employee attitudes
Internal Forces

Need for Change
Performance gap = disparity between existing and desired performance levels.
Current procedures are not up to standard
New idea or technology could improve current performance
Organizational Life Cycle
Stages of Life Cycle Development

Entrepreneurial Stage Collectivity Stage
Formalization Stage
Elaboration Stage
7
Entrepreneurial Stage
New organization created to support an invention or major innovation.
Little planning and coordination
entrepreneur makes the decisions
Focus: survival, seeking resources
Management style: Entrepreneurial

Crisis: Lack of/Need for leadership
8
Collectivity Stage:
Informal structure with short range planning.
Personal rewards aimed at individuals who

contribute to organizational success
Innovation from employees and managers

Focus: Growth Managers: entrepreneurs and early joiners Crisis: Lack of/need for delegation
9
Formalization Stage:
Formalized structure and long range planning
Impersonal rewards through formalized

systems Innovation from separate innovative groups Goal: efficiency (market stability and expansion) and coordination Management style: Delegation with control
Crisis: Too much red tape
10
Elaboration Stage:

Structure: Decentralization
Planning: long range, opportunistic

Extensive rewards tailored to product and department success Focus: restructuring Managers: professional managers, orchestrators
Innovation: Renewal
Crisis: Lack of/need for revitalization (renewal of innovative vigor or organization) 11

Large Development of Teamwork Continued maturity Addition of Internal Systems Provision of Clear Direction Creativity Crisis: Too much red tape Crisis: Need for delegation with control Crisis: Need for Leadership Decline Streamlining
Size
Crisis: Need for revitalization
Small
Entrepreneurial Collectivity Formalization Elaboration
?????????
12
Change Management Process
Reactive Change
Change that occurs when one takes action in response to perceived problems, threats or opportunities. Change that involves actions based on a carefully thought-out process
Planned Change
anticipates future difficulties, threats and opportunities.
13
1. 2.
3.
4. 5. 6. 7. 8.
Gain recognition of an opportunity or problem Line-up powerful sponsors Develop and communicate a vision Empower others to act out the vision Prepare to overcome resistance Plan for reward visible progress Consolidate improvements and facilitate further change Monitor and institutionalize changes 14
Change Management Process (8-Step Model)
Organizational Development (OD)
A change effort that is planned, focused on an entire organization or a large subsystem, managed from the top, aimed at enhancing organizational health and effectiveness, and based on planned interventions.
Is initiated when someone senses a performance gap.
15
OD Process
16
OD Interventions
Process Consultation Team Building Third-party Intervention
An outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done.
Technique aimed at helping work groups become effective at task accomplishment.
OD consultants help individuals, groups or departments resolve serious conflicts regarding work issues or interpersonal relations.
17
OD Interventions
Techno Structural Activities Survey Feedback Sensitivity Training
Activities intended to improve work technology and organization structure.
Assessing attitudes and perceptions, identifying discrepancies, and resolving the differences by using survey information in feedback groups.
A method of changing behavior through unstructured group interaction.

18
Implementing Change
Outline the Need for Change
Show the performance gap Self-Interest Lack of Understanding and Trust Uncertainty Different Assessments and Goals Low tolerance for change
Understand the Resistance to Change

19
Tactics for Overcoming Resistance to Change
20
The Worlds Most Innovative Companies
21
22

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Principles of Management

Lecture 6 Change Management and Innovation

Change and Innovation

Change management process Organizational Development Managing resistance to change

Change and Innovation

Any alteration of the status quo

A new idea applied to initiating or improving a process, product or service.

Four Types of Change

Products and Services

Strategy and Structure

Forces for Change

Need for Change

Performance gap = disparity between existing and desired performance levels.

Current procedures are not up to standard

New idea or technology could improve current performance

Organizational Life Cycle

Stages of Life Cycle Development

Organizational Life Cycle

New organization created to support an invention or major innovation.

Little planning and coordination

entrepreneur makes the decisions

Focus: survival, seeking resources

Management style: Entrepreneurial

Organizational Life Cycle

Informal structure with short range planning.

Personal rewards aimed at individuals who

Innovation from employees and managers

Organizational Life Cycle

Formalized structure and long range planning

Impersonal rewards through formalized

Crisis: Too much red tape

Organizational Life Cycle

Planning: long range, opportunistic

Crisis: Lack of/need for revitalization (renewal of innovative vigor or organization) 11

Organizational Life Cycle

Crisis: Need for revitalization

Entrepreneurial Collectivity Formalization Elaboration

Change Management Process

anticipates future difficulties, threats and opportunities.

Change Management Process (8-Step Model)

Organizational Development (OD)

Is initiated when someone senses a performance gap.

Technique aimed at helping work groups become effective at task accomplishment.

A method of changing behavior through unstructured group interaction.

Outline the Need for Change

Understand the Resistance to Change

Tactics for Overcoming Resistance to Change

The Worlds Most Innovative Companies

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