C H A N G E & I N N O V AT I O N MANAGEMENT

8-2
 QUOTE 
“Whosoever desires
constant success must
change his conduct
with the times.”
-Niccolo Machiavelli
 CHANGE

Nothing is permanent except change.

Change is a shift from existing to the desired state of affairs.

Change is the adoption of new idea or a behavior.

“The primary reasons cited for organizational problems is the failure by

managers to properly anticipate or respond to forces for change.”
-Barney & Griffin
 Organizational
Change
Organizational Change is a way of altering an existing
organization to increase its effectiveness for achieving its
objectives.
Organizational Change is primarily structural in nature and it is
designed to bring about alteration in organizational structure,
method and work process.

Organizational change involves bringing about changes in strategy, culture,

structure, technologies, or the attitudes and skills of the employees.
Organizational Change

01 02 03

STRUCTURE TECHNOLOGY PEOPLE

Design of jobs, Equipment, Behaviors,

Span of control, Work process or Perceptions,
Authority Work methods Expectations
relationships or or Attitude.
Coordinating
mechanism.
CHANGE MANAGEMENT

Manage the CHANGE, because change will MANAGE otherwise.

Change management is the disparate set of processes, tools, techniques,

methods and approaches to achieve a desired end state through change.

It is the deliberate mechanism that provides some control measures in the

alteration of a company’s strategy, organization or culture as a result of
changes in its environment, structure, technology or people.
 Change management approaches are broadly about four things

01 Clarifying what
Change is required

Determining how to 03 Implementing the

approach a change
02
Change in the best way

Ensuring that the

04
change is successful
 SOURCE OF CHANGE

1. 2.
Internally Externall
Driven y
Forces Driven
Forces
Employee’s Idea and Change in the size
Creative Thinking Skill of the Organization
.

1
Internally
Driven
Change Performance
Change in Gap
Top management

Employee needs
and values
Managing Change in Organization, Nilanjan S, Sengupta R N, pp 02
 More general Variation in the
Trend in society Competition

2
Externally
Driven
Change Improvements in
New Legislations and Technology
Regulations

Varying demand of
the customers
Growth as a factor of Change (GREINER’s MODEL)
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Crisis of
Large …?
Crisis of
R e d Ta p e
Size of the Organization Crisis of
Control
Crisis of
Autonomy
Crisis of
Leadershi Growth
p through
Collaboratio
Growth
n
through
Growth Coordinatio
through n

Growth Delegatio
through n
Growth Directio
through n
Small Creativity

Yo u n g Age of the organization Matured

O r g a n i z a t i o n E ff e c t i v e n e s s & C h a n g e M a n a g e m e n t , V G K h o n d a l k a r ,
  QUOTE 
“Your Life does not get
better by Chance, It’s
gets better by Change.”
-JIM ROHN
 IMPACT OF CHANGE
Reorganization among various work groups may require the
organizations to change from:
1 Change in
Structure
Functional to divisional structure or vice versa,
Centralization to decentralization and vice versa,
Wide span of control to narrow span and vice versa.

Technological change refers to change in any aspect of technology

Change in
2 Technology
to improve the goods and services and add new products to the
existing line of goods and services.

Change in people can be brought in the following ways:

Training and development can improve behavioral skills and knowledge.
3 Change in
Human
 Change in Recruitment and selection
desired people.
` procedures to appoint
 Organizational development techniques to change behavior.
 IMPACT OF CHANGE

1 2 3

STRUCTURAL TECHNOLOGICAL HUMAN

CHANGE CHANGE CHANGE
Job design Equipment Abilities and skill
Departmentalization Work process Performance Perception
Reporting relationship Work sequence Expectation
Authority distribution Information system Attitude
Coordination mechanism Control system values
Line staff structure
 Objectives of CHANGE
MANAGEMENT
Change Management approaches has two
fundamental goals:

1. To minimize the negative impact of any change.

2. To help the organization achieve its objectives which

cannot be met with the current way organizations is
structured, operating and serving its customers.
 Objectives of Change Management
The outcome on the right graph is noticeably better that than on the left one. Because

Profit
P Profit P
E E
R R
F F
O O
R R
M M

t
A

Profi
A
N N
C C
fit

E E
Pro

TIME TIME

1.The final level of performance achieved is higher.

2.The time to reach this level of performance is quicker.
3.The drop in performance post-change is shorter and shallower.
8-17
 Approaches to Change

Change as Change Embedde

Project with d
Taskforce Change
pproaches to Change (Cont’d)

1.Change as PROJECT

Projects are most useful in delivering

change when it is driven by some
form of development or has a
clearly defined end point.
 Development and implementation of new computer
system. A
Design, development of new product. B
A merger and the subsequent post-merger
integration is a change project. C
Alteration to facilities and office location.
D
Outsourcing part of your organization
is a change project. E

Examples of PROJECT driven Change

Change as Project
Change projects go through three main phases:

Firstly, startup phase- deliverables are agreed

and resource allocated;

Secondly, design and development stage- deliverables

are created.

Thirdly, implementation phase- deliverables are

applied to the organization.
 Approaches to Change (Cont’d)

2. Change with Task

Force
A task force is a group of people, usually from the
2 staff within your organization who are asked to
focus on improving some aspects of performance.

A task force can initiate project and a project may

contain task force. Task force comes under different
3 names- hit squads or performance improvement
teams.
 Approaches to Change (Cont’d)
3. Embedded Change

Change embedded within operational processes.

INSTRUCTIONS TO BE FOLLOWED

Embedded change can also be called continuous

performance improvement.

Embedded change is about staff performing their

normal role, making ongoing adoptions to any work
components and improving over time.
LEVELS OF CHANGE
Organization wide
Change
Group Level
Change
Attitudinal
Change
Knowledge
Change

1 2 3 4
 Types of Change
Strategic
01
Change

Structural 02
Change

Process oriented
03
Change

Cultural Change
04
 Types of Change (cont’d)
0 0 0 0
1
Strategic 2
Structura 3
Process- 4
Cultural
Change l oriented Change
Change Change

Required Change in To keep pace To introduce

when the with the right culture,
there authority development philosophy &
comes relationship, in ethical
Change in type of technology practice in
the ownership & the org.
mission/ formation.
vision.
 STEPs IN MANAGING CHANGE
Evaluation Develop new
& Fe e d B a c k 08 01 Goal &
Objective

Implementati Select a
on plan
07 02 Change
Agent

Strategy for Diagnose

Implementati 06 03 the
on Problem
Select
Develop 05 04 Methodolog
Plan
y
 CHANGE AGENT
Definition
The individual or group that undertakes the task of initiating
and managing change in an organization is known as a change
agent.

Change agents can be internal, such as managers or employees

who are appointed to oversee the change process.

Change agents also can be external, such as consultants from

outside the firm.

[email protected]
 Change Agents
Outside
Pressures

Change
F r o m To p

Internal Org.
development

Individual
Level Change
 Havelock & Shaskin

“HELP SCORES”
Homophil Capacity
y
Empathy
1 6 Openness

Linkage
2 7 Reward

Proximity
3 8 Energy

4 9 Synergy
Structurin
g
5 10
 Resistance to Change
0 Job
Security
1 Lack of
Communication 0
Rapidity 2
0 of change
3 Group
Resistance 0
0 Emotional 4
Turmoil
5 Loss of Power
& Control 0
0 Technology 6
7 New
0
Practices
8
Thank You
Thank You