Chapter 19 Managing Change and Innovation

1. By: Nessel D. Montejo
Master of Arts in Education Major
in Administration & Supervision

2. What Is Change?
Organizational Change
Any alterations in the people,
structure, or technology of an
organization

3. 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

4. Forces for Change
External forces
 Marketplace
 Governmental laws
and regulations
 Technology
 Labor market
 Economic changes
 Changes in organizational
strategy
 Workforce changes
 New equipment
 Employee attitudes
Internal Forces

5. The Manager as Change Agent
Change Agents
People who act as catalysts and assume the responsibility for changing
process are called change agents.
Types of Change Agents
 External Change Agents- person from the outside
 Internal Change Agents- working in the
organization
 External-Internal Agents

6. Change Process Viewpoints
The Calm Waters Metaphor
Lewin’s description of the change process as a break in the organization’s
equilibrium state
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.

7. Types of Change
Structural
 Changing the organization’s structure or its structural components
Technological
 Adopting new equipment or operating methods that displace old skills and
require new ones
Automation
 Replacing certain tasks done by people with machines
Workforce
 Changing attitudes, expectations, perceptions, and behaviors of the
workforce

8. 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 organization

9. Strategies for Overcoming Resistance to Change
1. Individuals and organizations must have a reason to change
2. The more involved people at all levels of the hierarchy are in the
planning, implementation, and monitoring of the change, the higher
the likelihood of success.
3. Communication is an ongoing and not a one-time factor successful
change programs.
4. An organization undertaking change needs to identify and help guide
champions or supporters of change.
5. The creation of a learning organization or one that has the capacity,
resilience and flexibility to change is deal

10. Learning Organizations Characteristics
• Open discussions and accessibility to information and data.
• Clear vision expressed at all levels.
• Strong emphasis on interdependence, worth, and the
importance of each person and unit.
• Clear goals and concept of performance expectations.
• Commitment to learning, improving and personal growth.
• Concern for measurable results whenever possible.
• A willingness to try new methods, experiment, and accept
failure.

11. Techniques for Reducing Resistance to Change
• Education and Communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation
• Coercion

12. Making Change Happen Successfully
Embrace change—become a change-capable
organization.
Create a simple, compelling message explaining
why change is necessary.
Communicate constantly and honestly.
Foster as much employee participation as
possible— get all employees committed
Encourage employees to be flexible
Remove those who resist and cannot be changed.

13. Stimulating Innovation
Creativity
The ability to combine ideas in a unique way or to make an
unusual association.
Innovation
 Turning the outcomes of the creative process into
useful products, services, or work methods

14. Creating the “Right” Environment for Innovation
Structural Variables
Adopt an organic structure
Make available plentiful resources
Engage in frequent inter-unit
communication
Minimize extreme time pressures on
creative activities
Provide explicit support for creativity

15. Creating the “Right” Environment for Innovation
Cultural Variables
 Accept ambiguity
 Tolerate the impractical
 Have low external controls
 Tolerate risk taking
 Tolerate conflict
 Focus on ends rather than means
 Develop an open-system focus
 Provide positive feedback

16. Creating the “Right” Environment for Innovation
Human Resource Variables
 Actively promote training and
development to keep employees’ skills
current
 Offer high job security to encourage risk
taking
 Encourage individual to be “champions”
of change

17. 21st Century Innovation
Managing Change is about managing innovation and
being very good and very fast. Organizations need to
be more agile to be able to innovate and use the
innovations successfully. The most important assets
are no longer physical. The most important assets
now are people. Thus, understanding organizational
behavior is now a critical management skill.

18. “To fear change is to fear being
challenged. To fear being
challenged is to fear growth and
new possibilities.”
-Ty Howard-

19. Thank you!