MANAGEMENT

FUNDAMENTALS
Lesson 6

Managing Change and Innovation

Innovation and Change in the

Workplace

If organisations dont successfully change and

innovate, they die

Change and innovation can come from outside

forces

Managers want to initiate change from the inside

Disruptive innovation is a goal for global

competition

Organisational Change

Organisational change is defined as the adoption of a new

idea or behavior by an organisation

Change is not easy; organisations must take an

ambidextrous approach

An ambidextrous approach means incorporating structure

and processes that appropriate for both creative impulse
and systematic implementation of innovations

Managers encourage flexibility and freedom to innovate

Changing Things: New Products and

Technologies

Product Change a change in the

organisations product or service outputs

Technology Change a change in the

organisations production process

Three innovation strategies:

exploration, cooperation, and
entrepreneurship

Three Innovation Strategies

Exploration

Creativity novel ideas that meet

perceived needs or offer opportunities

Idea incubator a safe harbor where

employees can develop ideas and
experiment

Cooperation

Horizontal coordination mechanisms

simultaneously contribute to innovation

Internal and external

Open innovation commercialization of

ideas beyond the organisation

Includes customers and partners

Coordination Model for

Innovation

Entrepreneurship

Managers should support entrepreneurship activities

and foster idea champions

Energy and effort is required to promote a new idea

Sponsors approve and protect ideas when critics

challenge the concept

New-venture teams give free rein to creativity

New-venture funds provide resources for new ideas

Skunkworks are informal, autonomous, secretive

groups that focus on breakthrough ideas

Four Roles in Organisational

Change

Changing People and

Culture

Changes in how employees think

Changes in mind-set
People
Culture

change = Training and Development

change = Organisational Development

Large culture change is not easy

Organisational
Development

Planned, systematic process of change

using behavioral science

Addresses three types of problems:

Mergers and acquisitions

Organisational decline and revitalization

Conflict management

OD Steps

Unfreezing

Change efforts to overcome the

pressures of both individual
resistance and group conformity

Changing

Efforts to get employees involved

in the change process

Refreezing

Stabilizing a change intervention

by balancing driving and
restraining forces

OD Approaches to Culture
Change

Need for Change

Changes in products or services

Changes in size or structure

Changes in administrative structures

Changes in technology

Government regulation

Economic competition

Performance Gaps

Resistance to Change

Self-Interest

Lack of Understanding and Trust

Different Assessments and Goals

Uncertainty

Force-Field Analysis

Driving forces problems or

opportunities that provide motivation for
change

Restraining forces barriers to change

Force-Field Analysis
Example

Tactics for Overcoming Resistance to

Change

Managing Diversity

The Changing Workplace

The differences people bring to the workplace

are valuable

The workforce is changing as organisations

build cohesive teams:

Three-generation workforce

Aging workers

Growth in number of Hispanic and Asian workers

Women outnumbering men

Growth in foreign-born population

Diversity on a Global Scale

Social and cultural differences can create difficulties

Europe has very complex social and cultural systems

National cultures are intangible, pervasive, and

difficult to comprehend

It is imperative to understand local cultures

Managing Diversity

Today diversity is defined broadly:

Race

Gender

Age

Lifestyle

Disability

Traditional vs. Inclusive Models of

Diversity

Dividends of Workplace
Diversity

Better use of employee talent

Increase understanding of the marketplace

Enhanced breadth of understanding in

leadership positions

Increased quality of team problem solving

Reduced cost associated with high turnover

absenteeism and lawsuits

Factors Shaping Personal

Bias

Prejudice different is
deficient

Discrimination acting
on prejudicial attitudes

Stereotypes rigid,
exaggerated, and irrational
beliefs

Stereotyping versus Valuing Cultural

Differences

The Female Advantage

There are advantages to hiring, retaining,

and promoting women in organisations

Men still have higher wages and faster

promotions than women, but

Women have the female advantage

because they are more collaborative, less
hierarchical, and more relationship-oriented

Factors Affecting Womens

Careers

Glass Ceiling an
invisible barrier that
separates women from
top management
positions

Opt-Out Trend women

are voluntarily leaving the
workforce for various
reasons

Cultural Competence

Managers struggle to create culture that values

and nurtures diverse employees

Organisations must reduce obstacles for

disadvantaged employees

Managers must have the ability to interact

effectively with people of different
cultures

Five Steps to Develop

Diversity

Diversity Initiatives and

Programs

Changing Structures and Policies

Expanding Recruitment Efforts

Establishing Mentor Relationships

Accommodating Special Needs

Providing Diversity Skills Training

Increasing Awareness of Sexual Harassment

New Diversity Initiatives

Companies believe that diversity initiatives help

maintain competitive advantage, and

Improving morale

Decreasing interpersonal conflict

Facilitating progress in new markets

Increasing creativity

Multicultural teams and employee network

groups are two new approaches to diversity

Reaching a Win-Win
Solution

Separate the people from the problem

Focus on interests, not current demands

Generate many alternatives for mutual gain

Insist that results be based on objective

standards

Questions?