M A N A G E M E N T F U N D A M E N TA L S C H A N G E G R A D U - - PowerPoint PPT Presentation
M A N A G E M E N T F U N D A M E N TA L S C H A N G E G R A D U AT E D I P L O M A I N M A N A G E M E N T Page 344 De Defin inition ition Organization rganization Change hange The adaptation of a new idea and behaviour by an
M A N A G E M E N T F U N D A M E N TA L S C H A N G E
G R A D U AT E D I P L O M A I N M A N A G E M E N T
E.g. New idea Introduce a new variant to the existing product range New behaviour Start exporting your products
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WHY COMPANIES SHOULD
IF COMPANIES DO NOT CHANGE WHAT WOULD HAPPEN TO THEM?
Discussion
Change is needed for the survival
KODAK
Kodak dominated in the photographic film industry in the 20th century. The company failed to get adopted with and take the initiation in the digita tal photogra
phy y revolu
tion
Infact, the management were hesitating to change and to perceive the digital photography as the next disruptive innovation by that time The company announced bankruptcy in 2012 12
Unilever employs 7,300 people in the UK and 3,100 in the Netherlands Year ago, Unilever reorganized its business into three divisions: beauty and personal care, home care, foods and refreshment. The first two divisions to have their headquarters in London, while the third will continue to be based in Rotterdam Since 1930, Unilever has operated with two head
a Dutch NV based in Rotterdam in Netherlands. Paul Polman Ex-CEO Unilever
Unilever House - London
FORCES INFLUENCE CHANGE
Need for change
External forces Internal forces
Customers, competitors, PESTEEL factors and market conditions Goals/objectives, plans, company problems
Mangers should study these forces and implement the necessary changes without delaying
ernal Organi anizati zation
l Fact ctor
– New organisational strategy (e.g. Cost so high, need to reduce) – Change in composition of workforce (e.g. Talented employees leave
– New equipment (e.g. Existing old machines need regular repairing) – Changing employee attitudes (e.g. Poor teamwork)
Externa ernal l En Environme
ntal Fact ctor
– Changing consumer needs and wants (e.g. customers are moving to competitors new product range) – New government laws (e.g. tax revision by the government) – Changing technology (e.g. Need to start selling online) – Economic changes (e.g. macro economical conditions are becoming more and more tough)
FACTORS DRIVING ORGANISATIONAL CHANGE
Incremental Change Step-wise Change
Among other changes, there are 3 changes which are critical to an
need effective prior planning
Product changes New products Technology changes People and Cultural changes
CHANGES TO BE WELL PLANNED
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Product changes can occur in terms of innovation and renovation
M Benz now & then
Customers find a lot of innovative and renovated
In 1885 In 2017
Creativity Bottom-up approach Internal contests Idea incubators
Refer Page 347
The above strategies are relevant for both product and technology changes
Creating conditions and systems to facilitate internal and external coordination and knowledge sharing Processes and structures are put in place to ensure that new ideas are carried forward for acceptance and implementation Innovation roles
P353
Page 347-357
Creativity Bottom-up approach Internal contests Idea incubators
Designing the organization to encourage creativity and the initiation of new ideas within the organization
Designing the
encourage creativity and the initiation of new ideas within the
Creating conditions and systems to facilitate internal and external coordination and knowledge sharing Processes and structures are put in place to ensure that new ideas are carried forward for acceptance and implementation Innovation roles
P353
Page 347-357
Creativity Bottom-up approach Internal contests Idea incubators
Processes and structures are put in place to ensure that new ideas are carried forward for acceptance and implementation Innovation roles
Designing the
encourage creativity and the initiation of new ideas within the
Creating conditions and systems to facilitate internal and external coordination and knowledge sharing Processes and structures are put in place to ensure that new ideas are carried forward for acceptance and implementation Innovation roles
P353
Page 347-357
Creativity Bottom-up approach Internal contests Idea incubators
People and Culture Changes
Two methods could be used to implement these changes:
People and Culture Changes
Unfreezing Organization is considered as a solid ice cube Changing Refreezing
Organization Development Process
Self-Interest Lack of Understanding and Trust Different Assessments and Goals Uncertainty
Force Field Theory - by Kurt Lewin
‘Kurt Lewin’ explained ‘change’ as a result of the competition between driving and restraining forces
Direction of change
Driv iving ing forc rces es – problems or opportunities that provide motivation for change
Restraining raining forces ces – barriers to change
Direction of change
Driving forces Restraining forces
Potential gains in revenue, cost reductions, higher market share, competitiveness, long- term survival Resistance from employees/managers, lack of resources, lack of skills, etc.
Force Field Theory - by Kurt Lewin
Tactics for Overcoming Resistance to Change
1. Explain the importance of ‘changing
be faced by management whilst incorporating structural changes 2. Discuss the usefulness of open innovation to organizations