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Chapter
Managing
Change and
Innovation
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-2
Learning Outcomes
• Define organizational change and compare
and contrast views on the change process
• Explain how to manage resistance to change
• Describe what managers need to know about
employee stress
• Discuss techniques for stimulating innovation
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-3
What Is Change and How Do
Managers Deal with It?
• Organizational
Change
– Any alteration of an
organization’s
people, structure, or
technology
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-4
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-5
WHAT EXTERNAL FORCES CREATE A
NEED TO CHANGE?
• The external forces that create the need for
organizational change come from various
sources
– Marketplace
– Technology
– Government laws and regulations
– Economy
– Labor markets
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-6
Who Initiates Organizational
Change?
• Change Agents
– People who act as
change catalysts and
assume the
responsibility for
managing the change
process
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-7
Change Metaphors
• “Calm Waters” metaphor of change
– Likens organizational change to a large ship
making a predictable trip across a calm sea and
experiencing an occasional storm
• “White-Water Rapids” metaphor of change
– Likens organizational change to a small raft
navigating a raging river
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-8
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-9
Practical Steps For Using the
Framework
Unfreezing:
1. Determine what needs to change
2. Ensure there is strong support from upper managementt
3. Create the need for change
4. Manage and understand the doubts and concerns
Change:
1. Communicate often
2. Dispel rumors
3. Empower action
4. Involve people in the process
Refreeze:
1. Anchor the changes into the culture
2. Develop ways to sustain the change
3. Provide support and training
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-10
How Do Organizations Implement
Planned Changes?
• Organization Development (OD)
– Efforts that assist organizational members with a
planned change by focusing on their attitudes and
values
– Popular OD efforts in organizations rely heavily on
group interactions and cooperation
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-11
Organizational Development
Activities
• Survey feedback
– A method of assessing employees’ attitudes
toward and perceptions of a change
• Process Consultation
– Using outside consultants to assess organizational
processes such as workflow, informal intra-unit
relationships, and formal communication channels
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-12
OD Activities (cont.)
• Team-Building
– Using activities to help work groups set goals,
develop positive interpersonal relationships, and
clarify the roles and responsibilities of each team
member
• Intergroup Development
– Activities that attempt to make several work
groups more cohesive
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-13
Why Do People Resist
Organizational Change?
Why do people resist organizational change?
– Change replaces the known with uncertainty
– We do things out of habit
– Fear of losing something already possessed
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-14
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-15
What Is Stress?
• Stress
– The adverse reaction
people have to
excessive pressure
placed on them from
extraordinary
demands, constraints,
or opportunities
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-16
What Causes Stress?
• Stressors
– Factors that cause stress
• Karoshi
– A Japanese term that refers to a sudden death
caused by overworking
• Role Conflicts
– Work expectations that are hard to satisfy
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-17
Stressors (cont.)
• Role Overload
– Having more work to accomplish than time
permits
• Role Ambiguity
– When role expectations are not clearly
understood
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-18
Personal Factors
• Type A Personality
– People who have a chronic sense of urgency and
an excessive competitive drive
• Type B Personality
– People who are relaxed and easygoing and accept
change easily
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-19
How Can Stress Be Reduced?
• Employee Assistance Programs (EAPs)
– Programs offered by organizations to help
employees overcome personal and health related
problems
• Wellness Programs
– Programs offered by organizations to help
employees prevent health problems
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-20
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-21
How Can Managers Encourage
Innovation?
• Creativity
– The ability to combine ideas in a unique way or to
make unusual associations between ideas
• Innovation
– The process of taking a creative idea and turning it
into a useful product, service, or method of
operation
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-22
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-23
Fostering Innovation
• Idea Champions
– Individuals who
actively and
enthusiastically
support new ideas,
build support for,
overcome resistance
to, and ensure that
innovations are
implemented
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.
7-24
Copyright ©2011 Pearson Education, Inc.
Publishing as Prentice Hall.

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Change and innovation_management

  • 1. Chapter Managing Change and Innovation Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 2. 7-2 Learning Outcomes • Define organizational change and compare and contrast views on the change process • Explain how to manage resistance to change • Describe what managers need to know about employee stress • Discuss techniques for stimulating innovation Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 3. 7-3 What Is Change and How Do Managers Deal with It? • Organizational Change – Any alteration of an organization’s people, structure, or technology Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 4. 7-4 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 5. 7-5 WHAT EXTERNAL FORCES CREATE A NEED TO CHANGE? • The external forces that create the need for organizational change come from various sources – Marketplace – Technology – Government laws and regulations – Economy – Labor markets Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 6. 7-6 Who Initiates Organizational Change? • Change Agents – People who act as change catalysts and assume the responsibility for managing the change process Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 7. 7-7 Change Metaphors • “Calm Waters” metaphor of change – Likens organizational change to a large ship making a predictable trip across a calm sea and experiencing an occasional storm • “White-Water Rapids” metaphor of change – Likens organizational change to a small raft navigating a raging river Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 8. 7-8 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 9. 7-9 Practical Steps For Using the Framework Unfreezing: 1. Determine what needs to change 2. Ensure there is strong support from upper managementt 3. Create the need for change 4. Manage and understand the doubts and concerns Change: 1. Communicate often 2. Dispel rumors 3. Empower action 4. Involve people in the process Refreeze: 1. Anchor the changes into the culture 2. Develop ways to sustain the change 3. Provide support and training Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 10. 7-10 How Do Organizations Implement Planned Changes? • Organization Development (OD) – Efforts that assist organizational members with a planned change by focusing on their attitudes and values – Popular OD efforts in organizations rely heavily on group interactions and cooperation Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 11. 7-11 Organizational Development Activities • Survey feedback – A method of assessing employees’ attitudes toward and perceptions of a change • Process Consultation – Using outside consultants to assess organizational processes such as workflow, informal intra-unit relationships, and formal communication channels Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 12. 7-12 OD Activities (cont.) • Team-Building – Using activities to help work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member • Intergroup Development – Activities that attempt to make several work groups more cohesive Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 13. 7-13 Why Do People Resist Organizational Change? Why do people resist organizational change? – Change replaces the known with uncertainty – We do things out of habit – Fear of losing something already possessed Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 14. 7-14 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 15. 7-15 What Is Stress? • Stress – The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 16. 7-16 What Causes Stress? • Stressors – Factors that cause stress • Karoshi – A Japanese term that refers to a sudden death caused by overworking • Role Conflicts – Work expectations that are hard to satisfy Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 17. 7-17 Stressors (cont.) • Role Overload – Having more work to accomplish than time permits • Role Ambiguity – When role expectations are not clearly understood Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 18. 7-18 Personal Factors • Type A Personality – People who have a chronic sense of urgency and an excessive competitive drive • Type B Personality – People who are relaxed and easygoing and accept change easily Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 19. 7-19 How Can Stress Be Reduced? • Employee Assistance Programs (EAPs) – Programs offered by organizations to help employees overcome personal and health related problems • Wellness Programs – Programs offered by organizations to help employees prevent health problems Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 20. 7-20 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 21. 7-21 How Can Managers Encourage Innovation? • Creativity – The ability to combine ideas in a unique way or to make unusual associations between ideas • Innovation – The process of taking a creative idea and turning it into a useful product, service, or method of operation Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 22. 7-22 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 23. 7-23 Fostering Innovation • Idea Champions – Individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.
  • 24. 7-24 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Editor's Notes

  1. Change is an organizational reality. Most managers, at one point or another, will have to change some things in their workplace. We classify these changes as organizational change, which is any alteration of an organization’s people, structure or technology.
  2. Changing structure includes any alteration in authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables.Changing technology encompasses modifications in the way work is done or the methods and equipment usedChanges in people refer to changes in employee attitudes, expectations, perceptions, or behaviors
  3. In Chapter 2 we pointed out that both external and internal forces constrain managers. These same forces also bring about the need for change
  4. Organizational changes need a catalyst. People who act as catalysts and assume the responsibility for managing the change process are called change agents.
  5. Until recently, the “calm waters” metaphor dominated the thinking of practicing managers and academics. The prevailing model forhandling change in such circumstances ideas, and knowledge is best illustrated in Kurt Lewin’s three-step description of the change process. (See Exhibit 7-2.)White-water rapids is consistent with a world that’s increasingly dominated by information,
  6. Often managers make a concerted effort to alter some aspect of the organization. Whatever happens—in terms ofstructure or technology—ultimately affects organizational members. Efforts to assist organizational members with a planned change are referred to as organization development (OD).
  7. Survey feedback efforts are designed to assess employee attitudes about and perceptions of the change they are encountering. Employees are generally asked to respond to a set of specific questions regarding how they view such organizational aspects as decisionmaking, leadership, communication effectiveness, and satisfaction with their jobs, coworkers, and managementIn process consultation, outside consultants help managers to perceive, understand, and act on process elements with which they must deal. These elements might include, for example, workflow, informal relationships among unit members, and formal communicationschannels.
  8. Team-building is generally an activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member.Whereas team-building focuses on helping a work group become more cohesive, intergroup development attempts to achieve the same results among different work groups. That is, intergroup development attempts to change attitudes, stereotypes, and perceptionsthat one group may have toward another group
  9. Why do people resist organizational change? The main reasons include uncertainty, habit, concern over personal loss, and the belief thatthe change is not in the organization’s best interest
  10. When managers see resistance to change as dysfunctional, what can they do? Several strategies have been suggested in dealing with resistance to change. These approaches include education and communication, participation, facilitation and support, negotiation, manipulationand co-optation, and coercion. These tactics are summarized here and described in Exhibit 7-3
  11. Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Stress isn’t always bad. Although it’s often discussed in a negative context, stress can be positive, especially when it offers apotential gain. For instance, functional stress allow an athlete, stage performer, or employee to perform at his or her highest level at crucial times.
  12. Stress can be caused by personal factors and by job-related factors called stressors. Clearly, change of any kind—personal or job-related—has the potential to cause stress as it can involve demands, constraints, or opportunitiesRole demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy.
  13. Role overload is experienced when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood and the employee is not sure what he or she is to do.
  14. Evidence also indicates that employees’ personalities have an effect on how susceptible they are to stress. The most commonlyused labels for these personality traits are Type A and Type B.Type A personality is characterized by chronic feelings of a sense of time urgency, an excessive competitivedrive, and difficulty accepting and enjoying leisure time.The opposite of Type A is Type B personality. Type Bs never suffer from time urgency or impatience. Until quite recently, itwas believed that Type As were more likely to experience stress on and off the job
  15. As mentioned earlier, not all stress is dysfunctional. Since stress can never be totally eliminated from a person’s life, managers wantto reduce the stress that leads to dysfunctional work behavior. How? Through controlling certain organizational factors to reducejob-related stress, and to a more limited extent, offering help for personal stress
  16. As Exhibit 7-4 shows, stress symptoms can be grouped under three general categories: physical, psychological, andbehavioral. All of these can significantly affect an employee’s work.
  17. Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas. A creative organization develops unique ways of working or novel solutions to problems. The outcomes of the creative process need to be turned into useful products or work methods, which is defined as innovation
  18. The transformation process requires having the right environment to turn those inputs into innovative products or work methods. This “right” environment—that is, an environment that stimulates innovation—includes three variables: the organization’s structure, culture, and human resource practices. (See Exhibit 7-5.)
  19. Innovative organizations actively promote the training and development of their members so their knowledge remains current; offer their employees high job security to reduce the fear of getting fired for making mistakes; and encourage individuals to become idea champions, actively and enthusiastically supporting new ideas, building support, overcoming resistance, and ensuring that innovations are implemented.