Managing Change: Innovation and Diversity

Learning Outcomes Identify the sources of forces for change. List the four types of change. List the reasons people resist change, and suggest ways of overcoming such resistance. State the difference between a fact, a belief, and a value. Explain intrapreneurship, and identify its three roles. Discuss the relationship among diversity, innovation, and quality. Explain the difference between team building and process consultation. State the difference in the use of forcefield analysis and survey feedback. Define the key terms listed at the end of the chapter. After studying this chapter, you should be able to:

Identify the sources of forces for change.

List the four types of change.

List the reasons people resist change, and suggest ways of overcoming such resistance.

State the difference between a fact, a belief, and a value.

Explain intrapreneurship, and identify its three roles.

Discuss the relationship among diversity, innovation, and quality.

Explain the difference between team building and process consultation.

State the difference in the use of forcefield analysis and survey feedback.

Define the key terms listed at the end of the chapter.

IDEAS ON MANAGEMENT at Alcatel-Lucent What type of people and career changes did Patricia Russo encounter as she prepared for and worked her way up the corporate ladder, and what form and types of changes did she make at Lucent Technologies? What resistance did Patricia Russo have to overcome to complete the merger of Alcatel and Lucent? How is Alcatel-Lucent committed to innovation? How do Alcatel-Lucent and Patricia Russo embrace diversity? How does Alcatel-Lucent use organizational development (OD)?

What type of people and career changes did Patricia Russo encounter as she prepared for and worked her way up the corporate ladder, and what form and types of changes did she make at Lucent Technologies?

What resistance did Patricia Russo have to overcome to complete the merger of Alcatel and Lucent?

How is Alcatel-Lucent committed to innovation?

How do Alcatel-Lucent and Patricia Russo embrace diversity?

How does Alcatel-Lucent use organizational development (OD)?

Forces for Change The Environment The internal and external business environments require change in an organization, and the organization needs to be proactive, rather than merely reactive, to the environment. The Management Functions and Change When managers organize and delegate tasks, they often require employees to make some changes in their regular routine. When managers hire, orient, train, and evaluate performance, change is required.

The Environment

The internal and external business environments require change in an organization, and the organization needs to be proactive, rather than merely reactive, to the environment.

The Management Functions and Change

When managers organize and delegate tasks, they often require employees to make some changes in their regular routine.

When managers hire, orient, train, and evaluate performance, change is required.

Exhibit 6 – 1 ● Types of Organizational Change

Forms of Change Incremental Change Continual improvement that takes place within already accepted frameworks, value systems, or organizational structure that is necessary for survival and success. Radical Change Rapid change in strategy, structure, technology, or people that alters accepted frameworks, value systems, or organizational structure.

Incremental Change

Continual improvement that takes place within already accepted frameworks, value systems, or organizational structure that is necessary for survival and success.

Radical Change

Rapid change in strategy, structure, technology, or people that alters accepted frameworks, value systems, or organizational structure.

Join the Discussion Ethics & Social Responsibility Online High School How do you feel about high school students missing the experience of attending classes? Is it ethical and socially responsible to offer an online high school for students?

Online High School

How do you feel about high school students missing the experience of attending classes?

Is it ethical and socially responsible to offer an online high school for students?

Exhibit 6 –2 ● Stages in the Change Process

Exhibit 6 –3 ● Resistance to Change and Ways to Overcome Resistance

Resistance to Change Intensity People vary in their attitudes towards change. Sources of Resistance to Change Facts Provable statements that identify reality. Beliefs Subjective opinions that cannot be proven. Values What people believe are important and worth pursuing or doing.

Intensity

People vary in their attitudes towards change.

Sources of Resistance to Change

Facts

Provable statements that identify reality.

Beliefs

Subjective opinions that cannot be proven.

Values

What people believe are important and worth pursuing or doing.

Resistance to Change (cont’d) Focuses of Resistance to Change Self The reaction of individuals who feel their self-interests are threatened by change. Others The consideration given to how others will be affected by change. Work Environment Change in the working environment threatens individuals control of the environment.

Focuses of Resistance to Change

Self

The reaction of individuals who feel their self-interests are threatened by change.

Others

The consideration given to how others will be affected by change.

Work Environment

Change in the working environment threatens individuals control of the environment.

Exhibit 6 –4 ● Resistance Matrix Source : Adapted from Ken Hultman, Resistance Matrix: The Path of Least Resistance (Austin, TX: Learning Concepts, 1979).

Innovation Innovative Organizational Structures Structured as flat organizations with limited bureaucracy Have a generalist division of labor Coordinate with cross-functional teams Are informal with decentralized authority Create separate systems for innovative groups Attract and retain creative employees Reward innovation and creativity

Innovative Organizational Structures

Structured as flat organizations with limited bureaucracy

Have a generalist division of labor

Coordinate with cross-functional teams

Are informal with decentralized authority

Create separate systems for innovative groups

Attract and retain creative employees

Reward innovation and creativity

Innovation (cont’d) Innovative Organizational Cultures Encourage risk-taking Foster intrapreneurship Have open systems Focus on ends rather than means Accept ambiguous and impractical ideas Tolerate conflict

Innovative Organizational Cultures

Encourage risk-taking

Foster intrapreneurship

Have open systems

Focus on ends rather than means

Accept ambiguous and impractical ideas

Tolerate conflict

Join the Discussion Ethics & Social Responsibility Upgrading Do you believe that software companies come out with upgrades just to make more money, or are these companies being honestly innovative? As a sales rep, would you push a customer to purchase an unnecessary upgrade so that you could make a commission? What would you do if your boss pressured you to sell unneeded upgrades? Is it ethical and socially responsible to “require companies to purchase upgrades if they wish to continue using the product or service”?

Upgrading

Do you believe that software companies come out with upgrades just to make more money, or are these companies being honestly innovative?

As a sales rep, would you push a customer to purchase an unnecessary upgrade so that you could make a commission?

What would you do if your boss pressured you to sell unneeded upgrades?

Is it ethical and socially responsible to “require companies to purchase upgrades if they wish to continue using the product or service”?

Diversity Diversity The degree of differences among members of a group or an organization. Race/ethnicity, religion, gender, age, ability, military status, sexual preference, expectations and values, lifestyle, socioeconomic class, work style, function/position Diversity in all forms is increasing in the general population and the workforce. Diversity and Organizational Culture Before organizations can improve the quality of their products or services, they must first understand and address the requirements of all their employees.

Diversity

The degree of differences among members of a group or an organization.

Race/ethnicity, religion, gender, age, ability, military status, sexual preference, expectations and values, lifestyle, socioeconomic class, work style, function/position

Diversity in all forms is increasing in the general population and the workforce.

Diversity and Organizational Culture

Before organizations can improve the quality of their products or services, they must first understand and address the requirements of all their employees.

Diversity (cont’d) Valuing Diversity Emphasizes training employees of different races and ethnicities, religions, genders, ages, and abilities to function together effectively. Managing Diversity Emphasizes fully utilizing human resources through organizational actions that meet all employees’ needs.

Valuing Diversity

Emphasizes training employees of different races and ethnicities, religions, genders, ages, and abilities to function together effectively.

Managing Diversity

Emphasizes fully utilizing human resources through organizational actions that meet all employees’ needs.

Join the Discussion Ethics & Social Responsibility Speaking English Why are some organizations no longer requiring workers to speak English? Should a worker be required to be able to speak English to get a job in the United States? Is it ethical and socially responsible to hire people who can’t speak English and to provide translators and policies written in multiple languages?

Speaking English

Why are some organizations no longer requiring workers to speak English?

Should a worker be required to be able to speak English to get a job in the United States?

Is it ethical and socially responsible to hire people who can’t speak English and to provide translators and policies written in multiple languages?

Exhibit 6 –5 ● Managing Diversity

Gender Diversity Issues: Disappearance of the “traditional family” Increase in women as a percentage of the workforce Women’s pay continuing to lag behind men’s Glass ceiling barring women from upper management Sexual harassment in the workplace

Issues:

Disappearance of the “traditional family”

Increase in women as a percentage of the workforce

Women’s pay continuing to lag behind men’s

Glass ceiling barring women from upper management

Sexual harassment in the workplace

Organizational Development Organizational Development (OD) The ongoing planned process of change used as a means of improving performance through interventions. OD Interventions Specific actions taken to implement specific changes. Change Agent The person selected by human resources management to be responsible for the OD program.

Organizational Development (OD)

The ongoing planned process of change used as a means of improving performance through interventions.

OD Interventions

Specific actions taken to implement specific changes.

Change Agent

The person selected by human resources management to be responsible for the OD program.

Exhibit 6 –6 ● Change Models

Exhibit 6 –7 ● OD Interventions and Their Focus

OD Interventions Training and Development The process of developing skills, behaviors, and attitudes to be used on the job. Sensitivity Training Takes place in a group of 10 to 15 people. Have no agenda. People learn about how their behavior affects others and how others’ behavior affects theirs. Is not commonly used in business today.

Training and Development

The process of developing skills, behaviors, and attitudes to be used on the job.

Sensitivity Training

Takes place in a group of 10 to 15 people.

Have no agenda.

People learn about how their behavior affects others and how others’ behavior affects theirs.

Is not commonly used in business today.

OD Interventions (cont’d) Team Building Designed to help work groups increase structural and team dynamics performance to get the job done. Process Consultation Designed to improve team dynamics by focusing on how people interact as they get the job done. Stages in Team Building Climate building and goals Evaluation of structure and team dynamics Problem identification Problem solving Training Closure

Team Building

Designed to help work groups increase structural and team dynamics performance to get the job done.

Process Consultation

Designed to improve team dynamics by focusing on how people interact as they get the job done.

Stages in Team Building

Climate building and goals

Evaluation of structure and team dynamics

Problem identification

Problem solving

Training

Closure

OD Interventions (cont’d) Forcefield Analysis Diagrams the current level of performance, the forces hindering change, and the driving force toward change. Survey Feedback Use of a questionnaire to gather data to use as the basis for change. Large-Group Intervention Brings together participants from all parts of the organization, and key outside stakeholders, to solve problems or take advantage of opportunities.

Forcefield Analysis

Diagrams the current level of performance, the forces hindering change, and the driving force toward change.

Survey Feedback

Use of a questionnaire to gather data to use as the basis for change.

Large-Group Intervention

Brings together participants from all parts of the organization, and key outside stakeholders, to solve problems or take advantage of opportunities.

Exhibit 6 –8 ● Forcefield Analysis

Steps in the Survey Feedback Process Management and the change agent do some preliminary planning to develop an appropriate survey questionnaire. The questionnaire is administered to all members of the organization/unit. The survey data are analyzed to uncover problem areas for improvement. The change agent reports the results to management. Managers evaluate the feedback and discuss the results with their subordinates. Corrective intervention action plans are developed and implemented.

Management and the change agent do some preliminary planning to develop an appropriate survey questionnaire.

The questionnaire is administered to all members of the organization/unit.

The survey data are analyzed to uncover problem areas for improvement.

The change agent reports the results to management.

Managers evaluate the feedback and discuss the results with their subordinates.

Corrective intervention action plans are developed and implemented.

Steps in the GE Work Out Process Select a work process or problem for improvement. Select an appropriate cross-functional team with outside stakeholder members. The team includes top leaders and a human resources specialist to run the meetings. Outside consultants with relevant expertise may also be included. Appoint a “champion” to follow through on recommendations. Meet for several days to come up with recommendations for improvements. Meet with leaders to get their immediate response to the recommendations. Hold follow-up meetings, as needed, to implement the recommendations.

Select a work process or problem for improvement.

Select an appropriate cross-functional team with outside stakeholder members. The team includes top leaders and a human resources specialist to run the meetings. Outside consultants with relevant expertise may also be included.

Appoint a “champion” to follow through on recommendations.

Meet for several days to come up with recommendations for improvements.

Meet with leaders to get their immediate response to the recommendations.

Hold follow-up meetings, as needed, to implement the recommendations.

OD Interventions (cont’d) Work Design Can be designed as an individual job, as a job for a group to perform, or by departmentalization. Job enrichment is used to change jobs to make them more interesting and challenging. Direct Feedback In certain situations, the most efficient intervention is to have a change agent make a direct recommendation for a specific change. A change agent is often an outside consultant.

Work Design

Can be designed as an individual job, as a job for a group to perform, or by departmentalization.

Job enrichment is used to change jobs to make them more interesting and challenging.

Direct Feedback

In certain situations, the most efficient intervention is to have a change agent make a direct recommendation for a specific change.

A change agent is often an outside consultant.

KEY TERMS types of change information systems (IS) stages of the change process organizational development (OD) OD interventions team building process consultation forcefield analysis survey feedback large-group intervention

types of change

information systems (IS)

stages of the change process

organizational development (OD)

OD interventions

team building

process consultation

forcefield analysis

survey feedback

large-group intervention