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Managing Change and Innovation

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Casey Forrest

on 14 May 2014

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Transcript of Managing Change and Innovation

Managing Change and Innovation

External factors
- the marketplace
- government Laws and Regulations
- technology
- the economy
Internal Factors
- strategy
- their workforce
- employee's attitudes

Take on the responsibility for making change happen

- a manager
- internal staff specialist
- external expert consultants

Expert consultants have specialist knowledge and an objective perspective

Costs can be expensive

Lack of knowledge of business history and culture

Whereas internal managers tend to be more cautious

What is change?
How do we deal with it?
Change is a constant reality affecting every part of a managers job.
Calm Waters Metaphor
increase driving forces & decrease resistance
White Water Rapids Metaphor
Todays business environment is rapidly changing making it very unpredictable

"Trying to lead a company in change in an industry in change"

Changes in technology
Changes the way businesses do their work through the methods and equipment used
Changes in Structure
- authority
- coordination devices
- centralization
- job design
Changes to people
- attitudes
- expectations
- perceptions
- behaviours
Why do we need change?
Change Agents
reinforce the benefits of the change
Define organisational change and compare and contrast views on the change process

Explain why change might be unsuccessful

Describe what managers need to know about employee stress

Discuss techniques for stimulating innovation
What managers need to know about employee stress?
What is Stress?
- over-worked
- over-loaded
- up-tight
- overwhelming pressure
Causes of Stress

6 main factors:
- Demand
- Control
- Support
- Relationship
- Role
- Change
How do we indentify stress? What are its Symptoms?

- Physical Symptoms
- Mental Symptoms
- Behavioral Symptoms

- Strategic employee selection
- job design
- employee assistance programs (EAP's)
- Wellness programs

- sleep
- exercise
- healthy diet
- prioritising
- organising
- plan your day
- stay positive
How can managers encourage innovation in an organisation?
“Nothing is more risky than not innovating.” - (Hattori & Wycoff 2004, p. 24)

- Expressing creative thinking
- Pursuing the innovative idea with the involvement of others
- Human Resources
- Marketers
What’s involved in innovation?
How can managers foster innovation?
Step 1 – Inputs: Includes managers, human resources, marketers and creative people who develop these innovative ideas.

Step 2 – Transformation Process: Having the correct environment that can help foster and turn these innovative ideas or inputs into outputs.

Step 3 – Outputs: The innovative ideas or products are then made into reality.

Is innovation and creativity a quality of persons, processes, and products?
How do structural variables affect innovation?
- Communication
- Abundances of Resources
- Eliminate Time Pressures
- Organic structure
- Showing support
How does an organisation’s culture affect innovation?
- acceptance of ambiguity
- tolerance of the impractical
- low external controls
- tolerance of risks
- tolerance of conflicts
- focus on ends
- open-system focus
- postive feeback
What human resource variables affect innovation?
- Human resources
- Promising a high job security
- ‘Idea champions’

Why might change fail?
Resistance to change;
- failure to see the need
- uncertainty
- personal interests
- worries about
its benefits
- limited
It doesnt follow their mental map of how the organisation should run
They are uncertain about adopting new methods of operating
The fear of losing something such as status, money, authority and other valued benefits.
How much change the employees can actually handle
Overcoming Barriers
Education and Communication;
Help employees understand the change and the logic behind it
Envolving the employee in the decision makig process
Facilitation and Support;
Helps employees deal with their fear and anxiety associated with the change.
Exchanging something of value for an agreement
Manipulation and co-optation
An attempt to influence others about the change
Using direct threats to lower the resistance to change
Does Heinz use a 'calm waters' or 'white water rapids' approach to organisational change?
How to implement planned changes
Organisations Development (OD)

- survey feedback
- process consultantion
- team building
- intergroup development
‘Calm waters’ indicates that change is a usual disruption that can be handle. While the ‘white-water rapid’ concept suggests that managing change is an on going process.

Change might be unsuccessful as it is not a permanent feature in businesses therefore employees and managers struggle with it.

The third feature depicts that managers need to comprehend the stress that employees could go under.

Lastly, in order to manage innovation managers should stimulate it with the organisation’s internal environment.
1. Kotter, JP, 1995, ‘Leading change: Why transformation efforts fail’, Harvard Business Review, vol. 73, no. 2, pp. 59-67.
2. Mintzberg, H, 1978, ‘Patterns in strategy formation’, Management science, vol. 24, no. 9, pp. 934-948.
3. 2013, Brisbane’s golden circle factory an innovation leader, viewed 4th may 2014, <http://edm.australiatradecoast.com.au/newsletters/57/8article.html>.
4. H.J.Heinz | Business Excellence Magazine. 2014. H.J.Heinz | Business Excellence Magazine. [ONLINE] Available at: http://www.bus-ex.com/article/hjheinz. [Accessed 14 May 2014].
5. Burnes, B 2004, ‘Managing Change: A strategic approach to organizational change’, Journal of Management Studies, vol 41, no. 6, pp. 977-1002
6. Kotter, J.P 1996, ‘Leading Change’, Library of Congress Cataloging-in-Publication Data, vol 1, no. 1, pp. 53

How has the HGPS produced changes in structure, technology an people within the organisations?
How has Heinz used the HGPS to foster innovation and creativity?
What barriers to change might the company have experienced with HGPS? How could it have dealt with those barriers?
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