Topic/Objectives: The external environment and managing change and innovation Chapter 3 & 7 Essential Question: Class: Management Date: 16/5/17 1 What are the features of the external environment? > How does the environment drive change and innovation? What are the challenges of change and innovation? > How can change be managed? What is innovation? > What are characteristics of innovative organisations? Questions: Forces for change Environmental uncertainty Matrix Two views on change Challenges of change Resistance to change Notes: · Internal environment o New organisation strategy Change in workforce o New equipment o Changing employee attitudes . External environment o Global o Economic o Political/Legal o Sociocultural o Demographic o Technological o Global See figure 1 . Contains 4 cells · Degree of change o Stable o Dynamic · Degree of complexity o Simple o Complex See figure 2 · The calm waters metaphor o Occasional issues or distractions in an otherwise stable and predictable environment · The white-water rapids metaphor o A dynamic, complex and highly uncertain environment that requires continuous change and innovation from organisations. · Environmental uncertainty · Commercialising innovation o The process of turning new ideas into products or processes that can make an economic difference to profits through higher sakes or reduced costs. . Incorporating sustainability · Employee stress · Resistance · Change typically brings with it resistance which is best viewed as feedback to modify a planned change to better fit the situation · Approaches to effectively manage resistance include: o Education and communication o Participation and involvement o Facilitation and support o Manipulation and co-optation
Managing change Lewis process for managing planned change Managing change through organisational development Managing cultural change Change and innovation Internal environmental conditions stimulating and nurturing innovation o Explicit and implicit coercion . Structure o Work specialisation, departmentalisation, chain of command · Technology o Work processes, methods and equipment's · People o Attitudes, expectations my perceptions and behaviour - individual and group · Change agent o A person or group who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system See figure 3 · Sensitivity training o A method of changing behaviour through unstructured group interaction · Team building o Activities that help team members learn how each member thinks and works · Intergroup development o Changing the attitudes, perceptions and stereotypes that work groups have of each other · Process consultation o Outside consultant · Survey feedback o Assess the attitudes and perceptions, identifying discrepancies in these and o resolving the differences by using survey information in feedback groups. . Set the tone through management behaviour · Create new stories, symbols and rituals · Select, promote and support employees who adapt the new values · Redesign socialisation processes . Encourage acceptance of the new values . Replace unwritten norms with clearly specified expectations · Shake up current subcultures through job transfers · Employee participation · Change dries innovation o Innovation is "the process of taking a creative idea and turning it