Lec 6 managing change and innovation

Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice HallManagement, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
6-1

6-2
• Compare and contrast views on the change
process
• Classify types of organizational change
• Explain how to manage resistance to change
• Discuss contemporary issues in managing
change
• Describe techniques for stimulating innovation

6-3
The Change Process
If it weren’t for change, a manager’s job would be
relatively easy. Planning would be simple because
tomorrow would be no different from today. Similarly,
decision making would be easy.
•But that’s not the way it is. Change is an organizational
reality.
•Organizations face change because external and
internal factors create the need for change

6-4
Exhibit 6-1: External and Internal
Forces for Change

6-5
The Three-Step Change Process
Kurt Lewin Said successful
change can be planned and
requires:
1. Unfreezing the status quo.
2.Changing to a new state
3. Refreezing to make the
change permanent.

6-6
Organizational Change and
Change Agents
• Organizational Change - any alterations in the
people, structure, or technology of an
organization.
• Change Agents - persons who act as catalysts
and assume the responsibility for managing
the change process.

6-7
Types of Change Agents
• Managers: internal
entrepreneurs
• Non-managers: change
specialists
• Outside consultants:
change implementation
experts

6-8
Types of Change
• Structure
– Changing an organization’s structural components or its
structural design
• Technology
– Adopting new equipment, tools, or operating methods
that displace old skills and require new ones
• Automation - replacing certain tasks done by people with
machines
• Computerization
• People
– Changing attitudes, expectations, perceptions, and
behaviors of the workforce

6-9
Exhibit 6-3: Three Types of Change

6-10
Organizational Development
• Organizational Development (OD) -
techniques or programs to change people and
the nature and quality of interpersonal work
relationships.

6-11
Exhibit 6-4: Popular OD Techniques

6-12
Managing Resistance to Change
• Why People Resist Change
– The ambiguity and uncertainty that change
introduces
– The comfort of old habits
– A concern over personal loss of status, money,
authority, friendships, and personal convenience
– The perception that change is incompatible with
the goals and interest of the organization

6-13
Exhibit 6-5: Techniques for Reducing
Resistance to Change

6-14
Changing Organizational Culture
• Cultures are naturally resistant to change.
• Conditions that facilitate cultural change:
– The occurrence of a dramatic crisis
– Leadership changing hands
– A young, flexible, and small organization
– A weak organizational culture

6-15
Exhibit 6-6: Changing Culture

6-16
Stress and Stressors
• Stress - the adverse reaction people have to
excessive pressure placed on them from
extraordinary demands, constraints, or
opportunities.
• Stressors - factors that cause stress. In can be
organizational factors or personal factors

6-17
What Causes Stress? (Organizational
factors)
1. Task demands :factors related to an employee’s
job.
2. Role Demands:
 Role Conflicts - work expectations that are hard to
satisfy.
 Role Overload - having more work to accomplish
than time permits.
 Role Ambiguity - when role expectations are not
clearly understood.
3. Interpersonal demands: pressures created by
other employees. (Lack of social support from
colleagues & poor interpersonal relationships)

6-18
Exhibit 6-7: Symptoms of Stress

6-19
Innovation
• Innovation is the key to continued success.
• Creativity - the ability to combine ideas in a
unique way or to make an unusual
association.
• Innovation - turning the outcomes of the
creative process into useful products, services,
or work methods.

6-20
Exhibit 6-9: World’s Most
Innovative Companies

6-21
Stimulating and Nurturing
Innovation
• Getting the desired outputs (innovative products and
work methods) involves transforming inputs. These inputs
include creative people and groups within the
organization.
• But having creative people isn’t enough. It takes the
right environment to help transform those inputs into
innovative products or work methods.
• This “right” environment is, an environment that
stimulates innovation. It includes three variables: the
structural Variable, cultural variable, and human
resource variable.

6-22
Exhibit 6-10: Innovation Variables
IDEAL CHAMPION

6-23
Ideal Champions
• Idea Champions -
individuals who actively
and enthusiastically
support new ideas,
build support,
overcome resistance,
and ensure that
innovations are
implemented.

6-24
Terms to Know
• organizational change
• change agent
• organizational development (OD)
• stress
• creativity
• innovation
• idea champion

6-25

Lec 6 managing change and innovation

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