Chapter 6: Managing Change and Innovation

Question 1

What is change?

Answer 1

• Organisational Change
–Any alterations in the people, structure, or technology of an organisation

• Change is required to
–To meet existing and future challenges
–To meet corporate goals and objectives

• Characteristics of Change
–Is constant yet varies in degree and direction
–Produces uncertainty yet is not completely unpredictable
–Creates both threats and opportunities

Question 2

Classify types of organizational change.

Answer 2

Structure
- changing of organization’s structural components or its structural design.

Technology
- adopting new equipment, tools or operating methods that displace old skills and require new ones

People
- changing attitudes, expectations, perceptions and behaviors of the workforce

Question 3

What is organisational change?

Answer 3

• Organisational Change - any alterations in the people, structure, or technology of an organisation.
• Change Agents - persons who act as catalysts and assume the responsibility for managing the change process.

Question 4

What are the innovation variables?

Answer 4

Structural variables

• organic structures
• abundant resources
• high interunit communication
• minimize extreme time pressures

Human Resource Variables

• high commitment to training and development
• high job security
• creative people

Cultural Variable

• acceptance of ambiguity
• tolerance of the impractical
• tolerance of risks
• tolerance of conflicts
• focus on ends
• provide positive feedback

Question 5

What are the organisational development techniques?

Answer 5

Sensitivity Training
– A method of changing behaviour through unstructured group interaction

Team Building
– Activities that help team members learn how each member thinks and works.

Intergroup Development
– Changing the attitudes, stereotypes and perceptions that work groups have about each other.

Process Consultation
– An outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done

Survey Feedback
– A technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving the differences by using survey information in feedback groups.

Question 6

What is involved in changing organisational culture?

Answer 6

•Cultures are naturally resistant to change particularly the strong cultures.

•Conditions that facilitate cultural change:
–The occurrence of a dramatic crisis
–Leadership changing hands
–A young, flexible, and small organisation
–A weak organisational culture

Question 7

What are the external and internal forces for change?

Answer 7

External
– Changing consumer needs and wants
– New governmental laws
– Changing technology
– Economic changes

Internal
– New organizational strategy
– Change in composition of workforce
– New equipment
– Changing employee attitudes