BBPP1103 : MANAGEMENT PRINCIPLES

Chapter

11 : Innovation and changes

Introduction
Organizational innovation means success in the implementation of creative ideas in the organizations Organizational change means the modification or alteration of organizations from one structure , quality or condition into another from time to time.

Organization needs to change due to environmental changes.

Why is innovation important?

To keep abreast with technology Technology becomes outdated and replaced with new technology that is more sophisticated. Technology refers to knowledge , tools, and equipment also techniques and methods used to change inputs into outputs.

Managing innovation
Innovation must be managed properly for organizations to enjoy its benefits. How to manage innovation resources:

Challenging work (will encourage creativity) Encouragement from organizations (encourage risk-taking, support new ideas) Encouragement from supervisor Encouragement from work group (diversity, openness, sharing ideas) Freedom (amount of power or authority but with control to perform work successfully)

Organizational change
Organizations

normally face 2 types of environment :stable environment and dynamic environment Most organizations today face dynamic environment where changes occur rapidly Forces of changes : workforce, technology, economy, competition, social trends, and politics.

Managing changes
Robbin

(1998) stated 2 goals to changes:

To increase the capability of organizations to deal with challenges and changing environment To change behavior of individuals within the organizations

types of changes:
Linear

Change of first order

change, slow in nature and implemented in stages in nature, multidimensional and multilevel. Needs high level of leadership in order to realize the changes. There is intense pressure from the environment that can disrupt the survival of organizations.

Change of second order

Radical

Change agents

Who can be the change agents?

Anyone of us : managers, non-managers, employees or even external negotiator

What aspects can be changed by change agents

Change of structure Change of technology Change of physical layout Change of employees (refer to pg301-302)

Barriers to change

Individual barriers vs organizational barriers i. individuals barriers

Human habits (hard to change) Anxious towards employment security Economic factor (afraid if change will affect income) Anxiety towards unknown (uncertain with the impacts the change brings) Selective nature in processing information (people want to hear what they like to hear)

 ii.

Organizational barriers
Organizations

Structure inertia
refuse to change because they have been so comfortable and successful with the present system and practice that also provide stability
refuse changes due to certain reasons (economic threat, threat to expertise etc)

Group inertia
Group

Overcoming the barriers to change

Communication and learning Involvement

Tell the employees the need to change (face to face, memo, report etc) Try to get as many employees to involve in the process Counseling service, therapy, new skill training etc Offer reward packages

Facilities and support

Negotiation

Manipulation and Co-optation

Force

Altering and changing the info to make it nice to the employees Buy group leader who then can influence other to accept changes Threats towards the persons who are the barriers (losing promotion chances, bad performance evaluation, demoted, transfer etc)

Managing change
Liquidation

Getting individuals in believing and accepting changes

Change

intervention

The process of changes take place

Freezing

To support and maintain the changes in order for it to prolong