Managing Change

What is change?

Chapter 12

Managing Change and Innovation

Organisational change

Any alterations in the people, structure, or technology of an organisation

Characteristics of change

Is constant yet varies in degree and direction Produces uncertainty yet is not completely unpredictable Creates both threats and opportunities

Managing change is an integral part of every manager’s job.

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Forces for change

External forces

Marketplace Governmental laws and regulations Technology Labor market Economic changes

The manager as change agent

Internal forces

Changes in organisational strategy Workforce changes New equipment Employee attitudes

Change agents

People who act as catalysts and assume the responsibility for changing process are called change agents.

Types of change agents

Managers: internal entrepreneurs Non-managers: change specialists Outside consultants: change implementation experts

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Change process viewpoints

The calm waters metaphor

Lewin’s description of the change process as a break in the organisation’s equilibrium state

Unfreezing the status quo Changing to a new state Refreezing to make the change permanent

The change process

White-water rapids metaphor

The lack of environmental stability and predictability requires that managers and organisations continually adapt (manage change actively) to survive.

Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

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Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia

Figure 12.1

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Managing change

Three categories of change

Organisational...