Management Managing Change and Innovation

Geronimo L. Jamisola II MBE-TEP PLM

Learning Objectives
At the end of this presentation, you should be able to answer the following questions:

• What factors create the need for change?

• Is change a continual or occasional process ?
• How do organizations manage change and resistance to change? • What are some current issues in managing change? • How to make change successful?

• What is innovation and how does it occur in organizations?
• How do organizations stimulate innovation?

What is Organizational Change?
• Organizational Change – Any alterations in the people, structure, or technology of an organization • 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 manager’s job

Forces For Change
• External forces – Changing consumer needs and wants – New Governmental laws and regulations – Changing Technology – Labour markets shifts – Economic and social changes • Internal Forces – New organizational strategy – Change in composition of Workforce – New equipment – Changing Employee attitudes – Compensation and benefits

Two Views of the Change Process
• The Calm Waters Metaphor
– Kurt Lewin: Change is a break in the organization’s equilibrium state.
3 Step Change Process (see exhibit 1): • Unfreezing the status quo • Changing to a new state • Refreezing to make the change permanent

• White-water Rapids Metaphor
– The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive

The Change Process

Change Agents
• Change Agents
– Persons who act as catalysts and assume the responsibility for managing the change process.

• Who are Change Agents?
– Managers: