Change management and innovation

Question 1

Define change

Answer 1

Change in an organisation context refers to methods and/or techniques for initiating and implementing alterations to how the organisation operates in relation to processes, systems, organisation structure or job roles and responsibilities.

Question 2

Define innovation

Answer 2

In a business context, innovation refers to the successful exploitation of new ideas around the technical design, manufacturing, management and commercial activities involved in developing new products or services, processes or equipment.

Question 3

Key factors of change management

Answer 3

1. The scope of change required
2. Timeframe for undertaking each successive stage of change
3. Financing the change
4. Identification of resources required for implementing a strategy of change
5. The resources to be retained and the procurement of new resources
6. The design of the most appropriate organizational structure
7. The human resource management implication of introducing large-scale change
8. The levels of technology required for effective change
9. The level of risk and the likely benefits involved in implementing change management

Question 4

Explain Kurt Lewin’s, forces for change

Answer 4

Unfreezing: finding ways of making the need for change so clear that most people will understand and support it

Changing behavior: bring to bear the new attitudes, values and behaviour that become the dominant culture within the organisation

Refreezing: introducing supporting mechanisms that consolidate and maintaining the new behaviour patterns

Question 5

Explain the four Scale of change management

Answer 5

1. Paradigm shift: A paradigm shift refers to a radical rethinking of the nature of the business and the nature of the organisation. This scale of change usually occurs when the organisation finds it difficult to compete effectively in the industry sector.
2. Business Process Reengineering (BPR): radical reorganisation of internal business processes.
   Key steps:
   2.1 Develop a flow chart of the total business process
   2.2 Try to simplify the process first; eliminate tasks and streamline
   2.3 Determine which parts of the process can be automated
   2.4 Benchmark strategy-critical activities; consider outsourcing or reorganising others
   2.5 Design a structure for performing remaining activities and then reorganise(assign people accordingly
3. Business process improvement (BPI) is a less radical approach to change that BPR. It is incremental in scale and involves introducing change to optimize existing processes using information technology.
4. Automation: machines undertake tasks previously done by humans.

Question 6

Define Change management

Answer 6

Change management is the process, tools and techniques to manage the people-side of change to achieve a required business outcome.