Management of Change,

Creativity and Innovation

 Managing Change

• Change is an alteration of an organization’s

environment, structure, technology or people
• Change is an organizational reality
• Handling change is an integral part of managerial
functioning
• Options of managing change – altering structure,
technology or people
 Three Categories of Change

Structure People
Technology
Authority relationships Attitudes
Work processes
Coordinating mechanisms Expectations
+ +
Work methods
Job redesign Perceptions
Equipment
Spans of control Behavior
 Creativity & Innovation

• Creativity means the ability to combine ideas in a unique

way or to make unusual associations between ideas
• At Mattel, Project Platypus got employees to “think out of
the box” in order to understand the sociology and
psychology behind children’s play patterns
• Innovation is the process of taking creative idea and turning
it into a useful product, service or method of operation
• 3M turned novel ideas and turned them into profitable
products like cellophane tapes, Scotch Guard protective
coatings, Post-it notes and diapers with elastic waistbands
 How can Manager Foster Innovation?

• Organic structures positively influence innovation because

they have less work specialization and fewer rules and are
more decentralized than mechanistic the adoption of
innovations easier
• Easy availability of plentiful resources is a key building
block for innovation. An abundance of resources allows
management to purchase innovations, bear the cost of
instituting innovations and absorb failures
• Frequent inter unit communication helps to break down
possible barriers to innovation by facilitating interaction
across departmental lines
Innovative Organizational Culture

• Acceptance of ambiguity
• Tolerance of the impractical
• Low external controls
• Tolerance of risks
• Tolerance of conflicts
• Focus on ends rather than means
• Open system focus