MGM 3101 PRINCIPLES MANAGEMENT GROUP: 7

1. PRINCIPLES OF MANAGEMENT
(MGM3101)
Managing Change & Innovations
LECTURER: SIR GANESH A/L G.THANASEGARAN
PRESENTATION BY: GROUP 7

2. AGENDA
Organization Change
Disruptive Innovation & Ambidextrous Approach
Innovation Strategies
Characteristics of Creative People and Organizations
Coordination Model for Innovation
Changing People and Culture
Organizational Development
Force-Field Analysis
Tactics for Implementing Change

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ORGANIZATIONAL CHANGE
Define as:
The adoption of a new
idea or behavior by an
organization
Forces for change exist
in both:
i. External environment:
Customer, competitors,
technology & economic
ii. Within the
organization: Internal
activities & decisions

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REASONS
PEOPLE
FREQUENTLY
RESIST CHANGE
Lack of understanding & trust-
Don’t understand the intended
purpose & distrust management’s
intention
Uncertainty-
Lack
information
about future
events
Different assessments & goals-
Changed differently than an
idea champion or new-venture
team
Self interest-
Take away
something of
value

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Disruptive Innovation
• Innovations in product, services or processes that radically
change an industry’s rules of the game for producers &
consumers
• DVDs all but wiped out the videotape industry
Ambidextrous approach
• Incorporating structures & processes that are appropriate for
both the creative impulse & for the systematic
implementation of innovations
DISRUPTIVE INNOVATION &
AMBIDEXTROUS APPROACH

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CHANGING THINGS
PRODUCT CHANGE
• Change in
organization’s
product or
service output
TECHNOLOGY
CHANGE
• Change in
organization’s
production
process
3 INNOVATIONS
STRATEGIES
• Exploration
• Cooperation
• Entrepreneurship

7. THREE INNOVATION STRATEGIES
New products, services and technologies
• Involves designing
the organization to
encourage
creativity and the
initiation of new
ideas.
 Creativity
 Bottom-up
approach
 Internal contests
 Idea incubator
• Creating conditions
and systems to
facilitate internal
and external
coordination and
knowledge sharing.
 Horizontal
coordination
mechanisms
 Customers, partners
 Open innovation
• Managers put in
place processes
and structures to
ensure that new
ideas are carried
forward for
acceptance and
implementation.
 Idea champions
 New venture
teams
 Skunkworks
 New venture fund
a) Exploration c) Innovative Rolesb) Cooperation

8. a) Exploration
 The development of novel solutions to perceived
problems.
 Creative individuals develop ideas that can adopted by
the organization.
IDEA INCUBATOR
 A safe harbor where employees can develop ideas
without interference from company bureaucracy or
politics.
 Employees with good ideas can take them to the idea
incubator for consideration and development.

9. Characteristics of the Creative people and organizations

10. The World’s Most Innovative Companies 2013

11. b) Cooperation
1) Internal coordination
– Horizontal linkage model
provide a framework for shared development of
innovations among several departments.
Can saves both time and money in the development of
innovations by increasing coordination among
departments.
2) External coordination
• Includes customers and partners, suppliers
• Open innovation – commercialization of ideas
beyond the organization

12. COORDINATION MODEL FOR INNOVATION
• Causes the changing
in the organization’s
production processes.
• To make the
production of product
or service more
efficient.
• Extending the new
ideas beyond the
boundaries of the
organization and
industry.
• Smart companies find
and use ideas for solving
social problems.
• Solving social problem
• People from differ expertise
and department meet
frequently in teams and task
forces to share ideas and solve
problem
• Such as alliances
and joint ventures
to improve
innovation success

13. c) INNOVATION ROLES
– A person who sees the need for and champions productive change within
the organization
– Energy and effort is requires to promote a new idea.
• Managers should support entrepreneurship activities and
foster idea champions
• Sponsors is a high level of manager who approves and
protects the idea, and removes organization barriers.
- The critic counterbalances the zeal of the champion by challenging the
concepts
• New-venture team is a unit that responsible for developing
and initiating a major innovation.

14. INNOVATION ROLES
• Skunkworks are informal, autonomous
and often secretive group focuses on
breakthrough idea for the business
• New-venture fund provides resources from
which individuals and groups can draw to
develop new idea, products or business

15. CHANGING PEOPLE AND CULTURE
- Changes in how employees think (mind set).
- People change are employees to a training and
development course for improve their
skills.
- Culture change is refers to organizational
development.
Eg: Shifting the basic mind set of
organizational

16. A. Training and Development
• Training is one of the most frequently
approach to changing the organization’s
mind set.
 Offers training programs to large block of employees on
subjects. Such as:
I. Teamwork IV. Quality circles
II. Diversity V.Communication skills.
III. Emotional intelligence VI.Participate for
everyone
• Training and development is
emphasized for managers.
 The idea that the behavior and attitudes for
managers will influence people throughout the
organization and lead the culture change.

17. Sub-TitleOrganization Development
Planned, systematic process of change using
behavioral science knowledge and techniques
• techniques to improve an organization’s health and
effectiveness through its ability to adapt to the environment
• improve internal relationships
• increase learning and problem-solving capabilities

18. OD can help manager’s address
by:
• OD experts can help smooth the integration of
the firms.
Mergers/acquisitions.
• to cultural revitalization by managing conflicts
• fostering commitment
• facilitating communication
Organizational
decline/revitalization.
• help resolve conflict problems
Conflict management.

19. OD ACTIVITIES
Team-building
Survey feedback
Large-group intervention

20. • OD specialist, performs a systematic diagnosis
of the organization
• change agent implements a plan for training
managers and employees
• institutionalized in the organizational culture
OD STEPS

21. OD Approaches to culture change

22. IMPLEMENTING CHANGE
Create a sense of urgency
Apply Force-Field Analysis

23. Create a Sense of Urgency
• Recognize the problem
• Make organization aware of the need of
change(Disparity between existing and
desired performance levels)
• Understand the resistance to change
– Self-interest
– Lack of understanding and trust
– Uncertainty
– Different assessments and goals

24. Apply Force-Field Analysis
Change is a result of the competition between
driving forces and restraining forces
Driving forces – problems or opportunities that
provide motivation for change
Restraining forces – barriers to change
*By selectively removing the barriers that restrain
change, the driving forces will be strong enough to
enable implementation of the innovation.

25. Using Force-field Analysis To Change From
Traditional To Just-in-time Inventory System

26. Tactics For Implementing Change
APPROACH WHEN TO USE
Top management
support
• Changes involve multiple department or reallocation of
resources
• Users doubt legitimacy of change.
Communication and
education
• Change is technical
• Users need accurate information and analysis to understand
change
Participation • Users need to feel involved
• Design requires information from others
• Users have power to resist
Negotiation • Group has power over implementation
• Group will lose out in the change
Coercion • A crisis exist
• Initiators clearly have power
• Other implementation techniques have failed

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