Organisational Change and Innovation

Aravind .T.S

Change

■ Can be reactive or proactive ■ Forces for change may consist of forces

outside the organization ❑ PESTLN

Two types of change

■ Reactive: Making changes in response to problems or opportunities as they arise. ❑ Putting out fires

■ Proactive: Planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities.

■ Changing technology ❑ Not just computer technology, it is any machine or

process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product.

The need for change

Outside the Organization

■ Demographic characteristics

■ Market changes

■ Technological advancements

■ Social and political pressures

Inside the Organization

■ Employee problems

■ Managers’ behavior (conflict)

Three Kinds of Change

■ Adaptive Change – reintroduction of a familiar practice

■ Innovative Change – the introduction of a practice that is new to the organization

■ Radically Innovative Change – involves introducing a practice that is new to the industry

Kotter’s Eight Steps for Leading Organization Change

1. Establish a sense of urgency

2. Create the guiding coalition

3. Develop a vision and a strategy

4. Communicate the change vision

5. Empower broad based action

6. Generate short-term wins

7. Consolidate gains and produce more change

8. Anchor new approaches in the culture

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TYPES OF CHANGE

1.INDIVIDUAL LEVEL CHANGE :Individual level changes may take place due to changes in job assignment, transfer of an employee to a different location or the change in the maturity level of a person which occurs over a passage of time.

2.GROUP LEVEL CHANGE : Formal or Informal

3.ORGANISATIONAL LEVEL CHANGE :The organizational change involves major programmes which affect both the individuals and the groups.

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ORGANISATIONAL LEVEL CHANGE

1.Strategic change: is the change in the very basic objectives or mission of the organisation

2.Structural change: Structural change involves changing the internal structure of the organization.

3.Process oriented change :These changes relate to the recent technological developments, information processing and automation

4.People oriented change :are directed towards performance improvement, group cohesion, dedication, and loyalty to the organizations

Change Agent

■ A consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways.

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PLANNING FOR CHANGE Develop new goals and objectives

Select an agent of change

Diagnose the problem

Select Methodology

Develop a plan

Strategy for the implementation of the plan

Lewin’s change model

■ Unfreezing – creating the motivation to change

■ Changing – learning new ways of doing things

■ Refreezing – making the new ways normal

Resistance to change

■ An emotional/behavioral response to real or imagined threats to an established work routine.

■ Invention - creating or making up something new

■ Creativity – the act of developing new and imaginative ideas into reality.

The seeds of innovation

■ Hard work in a specific direction ■ Hard work with direction change ■ Curiosity ■ Wealth and money ■ Necessity ■ Combination of seeds

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Organisational innovation means the implementation of a new organisational method in the undertaking’s business practices, workplace organisation or external relations.

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• Changes in business practices,• Workplace organisation or external relations that are based on

organisational methods already in use in the undertaking, • Changes in management strategy, • Mergers and acquisitions, • Ceasing to use a process, • Simple capital replacement or extension, • Changes resulting purely from changes in factor prices, • Customisation, • Regular seasonal and other cyclical changes

Types of Innovation

■ Product or Process ■ Incremental or Radical

Product Innovation

■ A change in the appearance or the performance of a product or a service or the creation of a new one.

Process Innovation

■ A change in the way a product or service is conceived, manufactured, or disseminated.

Core Innovations

■ The optimizing of products or services for existing customers.

Transformational Innovations

■ The invention of breakthrough products or services that don’t exist yet and that are aimed at creating brand new markets and customers.

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