Man101 Chapter7


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  • Change is an alteration of an organization’s environment, structure, technology, or people. Because change is an organizational reality, handling it is an integral part of every manager’s job. People who are the catalysts for change and manage the change process are change agents . A manager may be a change agent. However, the change agent can be a nonmanager—for example, an internal staff specialist or outside consultant. Management often uses outside consultants because they can offer a fresh perspective which insiders lack. But, they may not understand the organization’s history, culture, operating procedures, and personnel. Furthermore, outside change agents often initiate more drastic changes because they do not have to live with the repercussions after the changes have been implemented.
  • The external forces of change come from various sources. In recent years, the marketplace has affected firms by introducing new competition. Bell Atlantic, for example, is experiencing competition from cable companies to provide local phone service. Government laws and regulations are also an impetus for change. In 1990 the passage of the Americans with Disabilities Act required businesses to widen doorways, reconfigure restrooms, add ramps, and take other actions to improve accessibility. Technology causes change. E-commerce and the Internet have changed how we sell products and access information. Economic changes affect almost all organizations. Dramatic decreases in interest rates in the late 1990s fostered significant growth in the housing market. This meant more jobs, more people working, and more sales for other businesses that support the building industry. Internal forces originate from the operations of the organization or from the impact of external changes: such as management redefining its strategies, new equipment in workplace, and demographic changes in the organization’s workforce. These forces lead to changes in the policies and practices of management.
  • Two metaphors exemplify the process of change: The calm waters metaphor likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm. The white water rapids metaphor likens an organization to a group of strangers on a small raft navigating the uninterrupted white water rapids of an unfamiliar river to an unknown destination in the dark of night.
  • Until recently, the calm waters metaphor dominated the thinking of practicing managers and academics. Kurt Lewin’s three-step description of the change process epitomizes this metaphor. According to Lewin, successful change requires unfreezing the status quo, changing to a new state, and refreezing the change to make it permanent. The status quo represents a state of equilibrium that must be thawed in one of three ways for change to occur: 1. The driving forces which direct behavior away from the status quo can be increased. 2. The restraining forces which hinder movement from equilibrium can be decreased. 3. The two approaches can be combined. In the relatively calm environment of the 1950s through the early 1970s, Lewin’s model may have been workable. Given chaotic change and the global village, however, this metaphor is outdated.
  • The white water rapids metaphor reflects uncertain, dynamic environments. The concepts of stability and predictability are relics of days gone by. Disruptions in the status quo are no longer occasional and temporary, only to be followed by “smooth sailing” and halcyon days. Many managers today never get out of the rapids. They face constant, wrenching change that boarders on chaos. These managers are playing a game that they have never played before that is governed by rules which are created as the game progresses. Few organizations today can treat change as the occasional ripple in a still pool. Too much is changing too fast! Complacency is a “luxury” because most competitive advantages last less than eighteen months. According to Tom Peters, the old saying, “If it ain’t broke, don’t fix it” is no longer relevant. In its place, he suggests “If it ain’t broke, you just haven’t looked hard enough. Fix it anyway.” Peters’ observation is consistent with current reengineering trends. And, the quantum changes required to remain competitive in the global marketplace cannot be overstated.
  • The term organizational development refers to a collection of techniques for understanding, changing, and developing work force effectiveness: process consultation, survey feedback, team building, and intergroup development.
  • Stress is a force or influence that a person feels when facing opportunities, constraints, or demands which are important yet uncertain. Stress can be positive in a situation that offers an opportunity for gain. But, stress is most often associated with constraints (barriers that keep someone from doing what he or she wants) and demands (things that take up someone’s time and require the person to shift priorities). Furthermore, when constraints or demands have an effect on an important event and the outcome is unknown, pressure is added—pressure resulting in stress.
  • Stress can be positive in a situation that offers an opportunity for gain. But, stress is most often associated with constraints (barriers that keep someone from doing what he or she wants) and demands (things that take up someone’s time and require the person to shift priorities). Furthermore, when constraints or demands have an effect on an important event and the outcome is unknown, pressure is added—pressure resulting in stress.
  • Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload occurs when an employee is expected to do more than time permits. Role ambiguity occurs when role expectations are not clearly understood, and the employee is not sure what he or she should do
  • Some employees are more prone to stress. Consider the Type A-Type B personality dichotomy. Type A personalities are characterized by a chronic sense of urgency and an intense drive to compete. These ambitious, achievement oriented workers have difficulty accepting and enjoying leisure time. On the other hand, type B personalities are more relaxed and easy-going. Managers must recognize that Type A employees are more likely to show symptoms of stress, even if organizational and personal stress factors are low.
  • Stress reveals itself psychological symptoms, such as boredom, anxiety, and procrastination; and behavioral symptoms, such as substance abuse sleep disorders, or excessive absence. Most of the early interest in stress management focused heavily on health-related or physiological concerns: changes in metabolism, elevated blood pressure, and increased risk of heart attacks. Many of these physiological concerns require the skills of trained medical personnel, so their immediate and direct relevance to HRM is negligible. Of greater importance to managers are psychological and behavioral symptoms of stress that can be witnessed in the employee.
  • Without some stress, people would have no energy. Accordingly, stress reduction programs should target the dysfunctional aspects of stress. One way to reduce stress is to make sure that employees are properly matched to their jobs and that they know the extent of their “authority.” Furthermore, by letting employees know precisely what is expected, role conflict and ambiguity can be minimized. On-the-job stress can also be reduced by redesigning jobs and encouraging employee participation. Many companies have started employee assistance and wellness programs. An extension of substance abuse programs, employee assistance programs (EAPs) have focused on new areas, such as health care. Studies suggest that organizations can save $5 for every EAP dollar spent. Designed to keep workers healthy, wellness programs focus on weight control, stress management, or physical fitness. Studies show that such programs control health care costs and reduce health related absenteeism.
  • Given the dynamics of the global marketplace, organizations must create new products and adopt new technologies. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas. Creative organizations develop novel approaches or unique solutions to challenges and opportunities. Innovation is the process of turning a creative idea into a marketable product, service, or operating method. Innovative organizations channel creativity into useful outcomes. While some believe that creativity is inborn, others believe that creativity can be stimulated by using a fourfold process: perception, incubation, inspiration, and innovation. Moving from creative perception to reality is not automatic. Instead, ideas go through an incubation process. During incubation, employees collect, store, retrieve, study, and reshape data until they create something new. This process can take years. Inspiration occurs when all of your prior efforts successfully come together. Innovation means turning inspiration into a useful product, service, or methodology.
  • Three sets of organizational variables stimulate innovation: structure, culture, and human resource practices. Structural variables affect innovation in three ways: (1) organic structures promote innovation, (2) plentiful resources stimulate innovation, and (3) effective communication overcomes barriers to innovation. All three require the commitment of top management.
  • Innovative organizations encourage experimentation and risk-taking behavior by rewarding both successes and failures. Such organizations are likely to have the following seven characteristics: 1. Acceptance of ambiguity 2. Tolerance of the impractical 3. Low external controls 4. Tolerance of risk 5. Tolerance of conflict 6. Focus on ends rather than on means 7. Open systems focus
  • Innovative organizations train and develop their members to keep their knowledge, skills, and abilities current; offer job security rather than the fear of being fired to promote risk-taking; and encourage individuals to become champions of change . Once a new idea is developed, champions of change promote the idea and build support. Then, they overcome resistance to the idea and ensure that the innovation is completed. These persons are self confident, energetic, persistent, risk-takers. In addition, they have the decision-making discretion to induce and implement innovations.
  • Man101 Chapter7

    1. 1. Managing Change, Stress, and Innovation
    2. 2. What Is Change? <ul><li>Change </li></ul><ul><ul><li>Is an alteration of an organization’s environment, structure, technology, or people. </li></ul></ul><ul><ul><ul><li>A constant force </li></ul></ul></ul><ul><ul><ul><li>An organizational reality </li></ul></ul></ul><ul><ul><ul><li>An opportunity or a threat </li></ul></ul></ul><ul><li>Change Agent </li></ul><ul><ul><li>Is a person who initiates and assumes the responsibility for managing a change in an organization. </li></ul></ul>
    3. 3. Forces For Change <ul><li>External Forces </li></ul><ul><ul><li>Marketplace competition </li></ul></ul><ul><ul><li>Government laws and regulations </li></ul></ul><ul><ul><li>New technologies </li></ul></ul><ul><ul><li>Labor market shifts </li></ul></ul><ul><ul><li>Cycles in the economy </li></ul></ul><ul><ul><li>Social change </li></ul></ul><ul><li>Internal Forces </li></ul><ul><ul><li>Strategy modifications </li></ul></ul><ul><ul><li>New equipment </li></ul></ul><ul><ul><li>New processes </li></ul></ul><ul><ul><li>Workforce composition </li></ul></ul><ul><ul><li>Restructured jobs </li></ul></ul><ul><ul><li>Compensation and benefits </li></ul></ul><ul><ul><li>Labor surpluses and shortages </li></ul></ul><ul><ul><li>Employee attitudes </li></ul></ul>
    4. 4. Two Views Of The Change Process <ul><li>“Calm Waters” Metaphor </li></ul><ul><ul><li>Describes traditional practices in and theories about organizations that likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm. </li></ul></ul><ul><li>“White-Water Rapids” Metaphor </li></ul><ul><ul><li>Describes the organization as a small raft navigating a raging river. </li></ul></ul>
    5. 5. Change in “Calm Waters” <ul><li>Kurt Lewin’s Three-Step Process </li></ul><ul><ul><li>Unfreezing </li></ul></ul><ul><ul><ul><li>The driving forces, which direct behavior away from the status quo, can be increased. </li></ul></ul></ul><ul><ul><ul><li>The restraining forces, which hinder movement from the existing equilibrium, can be decreased. </li></ul></ul></ul><ul><ul><ul><li>The two approaches can be combined. </li></ul></ul></ul><ul><ul><li>Implementation of change </li></ul></ul><ul><ul><li>Refreezing </li></ul></ul><ul><ul><ul><li>Establishing a new equilibrium state. </li></ul></ul></ul>
    6. 6. Change In “White-Water Rapids” <ul><li>Change is constant in a dynamic environment. </li></ul><ul><li>The only certainty is continuing uncertainty. </li></ul><ul><li>Competitive advantages do not last. </li></ul><ul><li>Managers must quickly and properly react to unexpected events by: </li></ul><ul><ul><li>Being alert to problems and opportunities. </li></ul></ul><ul><ul><li>Becoming change agents in stimulating, implementing and supporting change in the organization. </li></ul></ul>
    7. 7. Implementing Planned Changes <ul><li>Organization Development (OD) </li></ul><ul><ul><li>Is an activity ( intervention ) designed to facilitate planned, long-term organization-wide change. </li></ul></ul><ul><ul><ul><li>Focuses on the attitudes and values of organizational members; </li></ul></ul></ul><ul><ul><ul><li>Is essentially an effort to change an organization’s culture. </li></ul></ul></ul>
    8. 8. Stress: The Aftermath Of Organizational Change <ul><li>Stress </li></ul><ul><ul><li>Occurs when individuals confront a situation related to their desires for which the outcome is perceived to be both uncertain and important. </li></ul></ul><ul><ul><ul><li>Positive stress: when the situation offers an opportunity for one to gain something </li></ul></ul></ul><ul><ul><ul><li>Negative stress: when constraints or demands are placed on individuals </li></ul></ul></ul><ul><li>Stressor </li></ul><ul><ul><li>Is a factor that causes stress. </li></ul></ul>
    9. 9. Sources of Stress <ul><li>Constraints </li></ul><ul><ul><li>Are barriers that keep us from doing what we desire. </li></ul></ul><ul><ul><li>Inhibit individuals in ways that take the control of a situation out of their hands </li></ul></ul><ul><li>Demands </li></ul><ul><ul><li>Cause persons to give up something they desire. </li></ul></ul><ul><ul><li>Can preoccupy your time and force you to shift priorities. </li></ul></ul>
    10. 10. Organizational Stressors: Role Demands <ul><li>Role Conflicts </li></ul><ul><ul><li>Are work expectations that are hard to satisfy. </li></ul></ul><ul><li>Role Overload </li></ul><ul><ul><li>Is the result of having more work to accomplish than time permits. </li></ul></ul><ul><li>Role Ambiguity </li></ul><ul><ul><li>Occurs when role expectations are not clearly understood. </li></ul></ul>
    11. 11. Personal Factors: Personality Types <ul><li>Type A Personality </li></ul><ul><ul><li>People who have a chronic sense of urgency and an excessive competitive drive. </li></ul></ul><ul><li>Type B Personality </li></ul><ul><ul><li>People who are relaxed and easygoing and accept change easily. </li></ul></ul>
    12. 12. Symptoms Of Stress <ul><li>Psychological Symptoms </li></ul><ul><ul><li>Increased tension </li></ul></ul><ul><ul><li>Anxiety </li></ul></ul><ul><ul><li>Boredom </li></ul></ul><ul><ul><li>Procrastination </li></ul></ul><ul><li>Behavior-related Symptoms </li></ul><ul><ul><li>Changes in eating habits </li></ul></ul><ul><ul><li>Increased smoking </li></ul></ul><ul><ul><li>Substance consumption </li></ul></ul><ul><ul><li>Rapid speech </li></ul></ul><ul><ul><li>Sleep disorders </li></ul></ul>
    13. 13. Reducing Stress <ul><li>Person-Job Fit Concerns </li></ul><ul><ul><li>Match employees to their jobs, clarify expectations, redesign jobs, and increase employee involvement and participation. </li></ul></ul><ul><li>Employee Assistance Programs (EAPs) </li></ul><ul><ul><li>Help employees overcome personal and health-related problems. </li></ul></ul><ul><li>Wellness Programs </li></ul><ul><ul><li>Help employees prevent health problems. </li></ul></ul>
    14. 14. Stimulating Innovation <ul><li>Creativity </li></ul><ul><ul><li>Is the ability to combine ideas in a unique way or to make unusual connections. </li></ul></ul><ul><li>Innovation </li></ul><ul><ul><li>Is the process of taking a creative idea and turning it into a useful product, service, or method of operation. </li></ul></ul><ul><ul><ul><li>Perception </li></ul></ul></ul><ul><ul><ul><li>Incubation </li></ul></ul></ul><ul><ul><ul><li>Inspiration </li></ul></ul></ul><ul><ul><ul><li>Innovation </li></ul></ul></ul>
    15. 15. Structural Variables Affecting Innovation <ul><li>Organic Structure </li></ul><ul><ul><li>Positively influences innovation through less work specialization, fewer rules and decentralization. </li></ul></ul><ul><li>Easy Availability of Plentiful Resources </li></ul><ul><ul><li>Allow management to purchase innovations, bear the cost of instituting innovations, and absorb failures. </li></ul></ul><ul><li>Frequent Interunit Communication </li></ul><ul><ul><li>Helps to break down barriers to innovation by facilitating interaction across departmental lines. </li></ul></ul>
    16. 16. Characteristics of an Innovative Culture <ul><li>Acceptance of ambiguity </li></ul><ul><li>Tolerance of the impractical </li></ul><ul><li>Low external controls </li></ul><ul><li>Tolerance of risk </li></ul><ul><li>Tolerance of conflict </li></ul><ul><li>Focus on ends rather than on means </li></ul><ul><li>Open systems focus </li></ul>
    17. 17. HR Variables Affecting Innovation <ul><li>HR Practices that Foster Innovation </li></ul><ul><ul><li>Promoting of training and development so employee knowledge remains current </li></ul></ul><ul><ul><li>Offering employees high job security to reduce fear of making mistakes and taking risks </li></ul></ul><ul><ul><li>Encouraging employees to become champions of change </li></ul></ul>