1. Innovation and Change

2. WHAT IS INNOVATION?

3. Innovation The outcomes of the creative process need to be turned into useful products or work methods, is defined as innovation (Robbins, DeCenzo, Coulter & Woods, 2011).

4. What is involved? Perception: seeing things from a unique perspective Incubation: a period of collecting information or data and eventually moulding it into something new Inspiration: taking an idea and converting it into a useful product or method

5. How can innovation be fostered? Right people and groups within an organisation Right environment to turn inputs into innovative products The right environment includes 3 key variables: structure, culture and human resource practices

6. Structual variables Structural – Organic structures work best – less formalisation, centralistion and work specialisation which create silos – Resources are plentiful and abundant which enable affordability – Frequent communication between business breaks down barriers – helps facilitate interactivity and cross functionality.

7. Human Resource variables Actively promote training and development their staff members to keep their knowledge current Offer high job security to reduce fear of getting fired for making mistakes Encourage individual to become idea champions; actively & enthusiastically supporting new ideas. 3M examples: see moodle for direct link or cut and paster this URL ( http://solutions.3m.com/innovation/en_US/stories)

8. Cultural variables Accept ambiguity Tolerate the impractical Keep external controls minimal Tolerate risk Tolerate conflict Focus on ends rather than the means Use an open-system focus Provide positive feedback

9. What is change?

10. Change is… An organisation reality and affects every part of a managers job ( Robbins et al, 2011). At some point or another, will have to change somethings in the workplace This is called organisational change

11. Categories of Change Structure: – Authority relationships, co-ordination mechanisms, degree of centralisation, job design Technology: – The way work is done or the methods and equipment used – Streamlining processes and helping staff to develop new skills and knowledge People: – Attitudes expectations, perceptions or behaviours – Committed to quality and continuous improvement – Proper education and training – Performance evaluation and reward system to support improvements

12. Why the need for organisations to change? External forces – The market place – Govt laws and regulations e.g GST – Technology – Labour markets – Economic changes

13. Why the need for organisations to change? Internal forces – Interanl operations forced to change due to external factors – Redefining the organisations strategy – Composition of an organisations workforce (age, education, gender, nationality etc)

14. Who initiates organisational change? Change Agents – A manager, internal staff specialist, or consultant Why a consultant? – Objectivity – BUT lack understanding of org. history, culture, operating procedures and personnel – Changes are sometimes DRASTIC

15. The change Process The “clam waters” metaphor – Ships captain and crew know each well & where they are going as made the trip many times before – Change surfaces as the odd storm and brief distraction but a predictable trip The “white water rapids” metaphor – Small raft with small group people who never made the trip together before, totally unfamiliar with the river, unsure of destination & travelling at night! – Change is a natural state and managing change a continual process

16. The “calm waters” approach Kurt Lewins 3 step model 1.UnFreeze the status quo 2.Change the current state 3.Freeze the new state to make it permanent

17. The “white water rapids” metaphor Leading in change in an industry in change Characteristic of a world that’s increasingly dominated by infromation, ideas and knowledge Dynamic and Evolving Organisation Development – Deals with ongoing change – Changing attitudes and values of staff members – Needs staff participaton – Usually encounters high stress levels with staff – Surveys are frequently employed to assess attitudes and perceptions – Process consultations – consultants help to understand, act on process elements to address

18. Reasons for failure Resistance to change – Cant see the need for change – Uncertainty about adopting the new methods – Fear of losing something; see change as a threat – Incompatible with goals and interests of the organisation

19. Techniques for overcoming change Education and communication Participation – involvement in decision making process and special projects Facilitation and support – helping and supportive activities – counselling, therapy etc Negotiation – exchanging something of value to lessen the resistance and or perceived threat Manipulation and co-optation – covert attempts to influence others Coercion – direct threats or force

20. Group Activity: Discuss in your groups innovation and change in relation to your organisation in your project. In particular: – Identify an area of innovation that could result from your project. – As part of the solution will change be necessary for your organisation? If so, what will you recommend?