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Chapter 13

Chapter 13. MANAGING CHANGE AND INNOVATION. © Prentice Hall, 2002. 13- 1. Learning Objectives. You should learn to: Contrast the calm waters and white-water rapids metaphors of change Describe what managers can change in organizations Explain why people are likely to resist change

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Chapter 13

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  1. Chapter 13 MANAGING CHANGEAND INNOVATION © Prentice Hall, 2002 13-1

  2. Learning Objectives You should learn to: Contrast the calm waters and white-water rapids metaphors of change Describe what managers can change in organizations Explain why people are likely to resist change List techniques for reducing resistance to change Describe the situational factors that facilitate cultural change © Prentice Hall, 2002 13-2

  3. Learning Objectives (cont.) You should learn to: Explain how process reengineering is related to change Describe techniques for reducing employee stress Differentiate between creativity and innovation Explain how organizations can stimulate and nurture innovation © Prentice Hall, 2002 13-3

  4. What Is Change? Change alterations in people, structure, or technology change is an organizational reality managing change is an integral part of every manager’s job complicates the jobs of managers © Prentice Hall, 2002 13-4

  5. Forces For Change External Forces marketplace - adapt to changing consumer desires governmental laws and regulations - frequent impetus for change technology - source of change in almost all industries labor markets - HRM activities must change to attract and retain skilled employees in the areas of greatest need economic - uncertainties about interest rates, budget deficits, and currency exchange rates © Prentice Hall, 2002 13-5

  6. Forces For Change (cont.) Internal Forces originate from the operations of the organization forces may include strategy, workforce, new equipment, or employee attitudes Manager as Change Agent change agents - act as catalysts and assume responsibility for change manager may serve as change agent may be more thoughtful, overcautious outside consultant - used for systemwide changes produce more drastic changes than insiders © Prentice Hall, 2002 13-6

  7. Two Views Of The Change Process The Calm Waters Metaphor Lewin’s three-step model unfreezing - preparing for the needed change by: increasing the driving forces that direct behavior away from the status quo decreasing the restraining forces that push behavior towards the status quo status quo - conceived to be an equilibrium changing - move to another equilibrium level refreezing - make change permanent objective is to stabilize the new situation change is a break in the organization’s equilibrium state © Prentice Hall, 2002 13-7

  8. The Change Process © Prentice Hall, 2002 13-8

  9. Two Views Of The Change Process (cont.) White-Water Rapids Metaphor consistent with uncertain and dynamic environments consistent with a world increasingly dominated by information, ideas, and knowledge managers must continually maneuver in uninterrupted rapids managers face constant change today, managers must be ready to efficiently and effectively manage the changes facing their organizations or their work areas © Prentice Hall, 2002 13-9

  10. Three Categories Of Change Work specialization, departmentalization, chain of command, span of control, centralization, formalization, job redesign, or actual design Structure Work processes, methods, and equipment Technology Attitudes, expectations, perceptions, and behavior People © Prentice Hall, 2002 13-10

  11. Managing Change Initiating Change: identifying what organizational areas might need to be changed putting the change process in motion managing employee resistance to change Types of Change changing structure - organization’s formal design, centralization, degree of formalization, and work specialization structural components and structural design © Prentice Hall, 2002 13-11

  12. Types of Change (cont.) changing technology - modifications in the way work is performed alterations in the methods and equipment used consequence of competitive factors or innovations within an industry automation - replaces tasks done by people with machines computerization - recent visible changes in information systems Managing Change (cont.) © Prentice Hall, 2002 13-12

  13. Type of Change (cont.) changing people - changes in employee attitudes, expectations, perceptions, and behavior organizational development (OD) - techniques or programs to change people and the nature and quality of interpersonal work relationships intended to help individuals and groups work together more effectively Managing Change (cont.) © Prentice Hall, 2002 13-13

  14. Organizational Development Techniques Sensitivity Training Team Building Survey Feedback More Effective Interpersonal Work Environment Process Consultation Intergroup Development © Prentice Hall, 2002 13-14

  15. Managing Change (cont.) Dealing with Resistance to Change Why people resist change change replaces the known with ambiguity and uncertainty change threatens investments in the status quo belief that change is incompatible with the goals and interests of the organization Techniques for reducing resistance a variety of actions available to managers to deal with dysfunctional resistance © Prentice Hall, 2002 13-15

  16. Managerial Actions to Reduce Resistance to Change © Prentice Hall, 2002 13-16

  17. Contemporary Issues In Managing Change Changing Organizational Culture culture resistant to change because it is made up of relatively stable and permanent characteristics strong cultures are particularly resistant to change Understanding the Situational Factors - makes cultural change more likely dramatic crisis occurs leadership changes hands organization is young and small culture is weak © Prentice Hall, 2002 13-17

  18. ContemporaryIssues (cont.) Changing Organizational Culture (cont.) How Can Cultural Change Be Accomplished? requires a comprehensive and coordinated strategy unfreeze the current culture implement new “ways of doing things” reinforce those new values change, if it comes, is likely to be slow protect against any return to old, familiar practices and traditions © Prentice Hall, 2002 13-18

  19. The Road to Cultural Change © Prentice Hall, 2002 13-19

  20. Contemporary Issues (cont.) Continuous Quality Improvement Programs continuous, small, incremental changes fix and improve current work activities rely on participative decision making from the bottom levels Process Reengineering dramatic shift in the way an organization does its work begins with the redesign of work define customer needs design work processes to best meet those needs requires participation from managers and workers © Prentice Hall, 2002 13-20

  21. Continuous Quality Improvement Versus Reengineering • Continuous Quality Improvement • Continuous, incremental change • Fixing and improving • Mostly “as is” • Works from bottom up in • organization • Reengineering • Radical change • Redesigning - starting over • Mostly “what can be” • Initiated by top management © Prentice Hall, 2002 13-21

  22. Contemporary Issues (cont.) Handling Employee Stress What is Stress? a dynamic condition a person faces when confronted with an opportunity, constraint, or demand related to what s/he desires outcome is perceived to be both uncertain and important typically associated with constraints and demands stress is not necessarily bad potential stress becomes actual stress when: outcome is both uncertain outcome is important © Prentice Hall, 2002 13-22

  23. Contemporary Issues (cont.) Handling Employee Stress (cont.) Causes of Stress found in organizational and personal factors change of any kind is potentially stressful uncertainty around important matters © Prentice Hall, 2002 13-23

  24. Causes Of Stress STRESS Personal Factors Job-Related © Prentice Hall, 2002 13-24

  25. Symptoms Of Stress Physiological Psychological Symptoms of Stress Behavioral © Prentice Hall, 2002 13-25

  26. Contemporary Issues (cont.) Handling Employee Stress (cont.) Reducing stress controlling certain organizational factors employee’s abilities should match job requirements improve organizational communications reduce ambiguity performance planning program clarify job responsibilities provide performance feedback job redesign reduce boredom or work overload © Prentice Hall, 2002 13-26

  27. Contemporary Issues (cont.) Handling Employees Stress (cont.) Reducing stress (cont.) offering help for personal stress general considerations difficult for manager to control this source of stress ethical considerations available approaches employee counseling time management program sponsored wellness programs © Prentice Hall, 2002 13-27

  28. Stimulating Innovation Creativity versus Innovation creativity - ability to combine ideas in a unique way or to make unusual associations between ideas innovation - process of transforming creative ideas into a useful product, service, or method of operation © Prentice Hall, 2002 13-28

  29. Systems View Of Innovation Inputs Transformation Outputs Creative individuals, groups, organizations Creative process Creative situation Creative product(s) © Prentice Hall, 2002 13-29

  30. Stimulating and Nurturing Innovation must focus on inputs creative people and groups within the organization requires appropriate environment structural variables organic design plentiful resources frequent inter-unit communication Stimulating Innovation (cont.) © Prentice Hall, 2002 13-30

  31. Stimulating Innovation (cont.) Stimulating and Nurturing Innovation (cont.) requires appropriate environment (cont.) cultural variables encourage experimentation reward success and failures celebrate mistakes human resource variables promote training and development of employees offer high job security encourage individuals to become idea champions self-confident, persistent, risk taking energize others with visions of innovation © Prentice Hall, 2002 13-31

  32. Innovation Variables © Prentice Hall, 2002 13-32

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