1. Chapter 8 Managing Change and Innovation
Organizational change
Organization development
Stress: The aftermath of organizational change
Stimulating innovation

2. Organizational Change
External and internal forces for change
The content of organizational change and change agent
Two views of the change process
Member resistance to change
Techniques for reducing resistance to change

3. External forces
Marketplace
Technology
Economical factors
Political and legal factors
Social and cultural factors
Internal forces
Strategy adjustment
The introduction of new equipment
The state of workforce
Employee attitude

4. The Content of Organizational Change
Structure
Authority relationships
Coordinating mechanisms
Job redesign
Spans of control +
Technology
Work process
Work methods
Equipment
People
Attitudes
Expectations
Perceptions
Behavior

5. Change Agent
Change agent is a person who initiates and assumes the responsibility for managing a change in organization.
The change agent can be a manager or nonmanager, for example, an internal staff specialist or outside consultant.

6. “Calm Water” Metaphor
“Calm water” metaphor envisions the organization as a large ship making a predictable trip across a calm sea and experiencing an occasional storm.

7. Exhibit 8-1 the Change Process
Unfreezing
Changing
Refreezing
Exhibit 8-1 the Change Process

8. Exhibit 8-2 Unfreezing the Equilibrium State
Driving forces
Restraining forces
Time
Previous Equilibrium
Optimal state
Exhibit 8-2 Unfreezing the Equilibrium State

9. “White-Water Rapids” Metaphor
“White-water rapids” metaphor describes the organization as a small raft navigating a raging river with uninterrupted white-water rapids.
This metaphor takes into consideration the fact that environments are both uncertain and dynamic.

10. Exhibit 8-2 Why People Resist Change
Individual
resistance
Fear of losing
something of
value
Fear of
the unknown
Belief that change
Is not good for the
organization
Exhibit 8-2 Why People Resist Change

11. Techniques for Reducing Resistance to Change
Education and communication
Participation
Facilitation and support
Negotiation
Manipulation and cooptation
Coercion

12. Organization development is an activity designed to facilitate planned, long-term organization-wide change that focuses on the attitudes and values of organizational members; essentially an effort to change an organization’s culture.
One of the fundamental issues behind OD is to foster an environment of communication and trust.

13. Exhibit 8-3 Typical OD Techniques
Survey
feedback
Sensitivity
training
Intergroup
development
Process
consultation
Team
building
More constructive human relationships in organization
Exhibit 8-3 Typical OD Techniques

14. Stress: The Aftermath of Organizational Change
What is stress?
Stressors: causes of stress
The symptoms of stress
How can stress be reduced?

15. Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires,and for which the outcome is perceived to be both uncertain and important.

16. Exhibit 8-4 Major Stressors
Organizational factors
Task demands
Role demands
Interpersonal demands
Organization structure
Leadership styles
Personal factors
Personality types
Family matters
Financial problems
Environmental factors
Economical uncertainty
Political uncertainty
Technology uncertainty
Exhibit 8-4 Major Stressors

17. The Symptoms of Stress Physiological symptoms Psychological symptoms
Behavioral symptoms

18. How can stress be reduced?
Eliminate organizational stressors
Employee assistance programs(EAPs)
EAPs are programs offered by organizations to help their employees overcome personal and health-related problems.
Wellness program
Wellness programs offered by organizations to help their employees prevent health problems.

19. Creativity and Innovation
Creativity means the ability to combine ideas in a unique way or to make unusual associations between ideas.
Innovation is the process of taking a creative idea and turning into a useful product, service, or method of operation.

20. Three Sets of Variables to Simulate Innovation
Structural variables
Cultural variables
Human resource variables

21. Structural variables
Organic structures positively influence innovation.
Easy availability of plentiful resources is a key building block for innovation.
Frequent interunit communication helps to break down possible barriers to innovation by facilitating interaction across departmental lines.

22. Cultural variables Acceptance of ambiguity
Tolerance of the impractical
Low external controls
Tolerance of risk
Tolerance of conflict
Focus on ends rather than on means
Open systems focus

23. Human resource variables
Promoting training and development of employees
Offering employees high job security
Encouraging individuals to become champions of change

24. Practices: What content can include organizational changes?
What resistances exist in the organization during the process of the change?
How should organizations and individuals deal with the negative effect of the stress?
What should an innovative culture be?