Presentation on theme: "Chapter 8 Managing Change and Innovation"— Presentation transcript:
1 Chapter 8 Managing Change and Innovation Organizational changeOrganization developmentStress: The aftermath of organizational changeStimulating innovation
2 Organizational Change External and internal forces for changeThe content of organizational change and change agentTwo views of the change processMember resistance to changeTechniques for reducing resistance to change
3 External forcesMarketplaceTechnologyEconomical factorsPolitical and legal factorsSocial and cultural factorsInternal forcesStrategy adjustmentThe introduction of new equipmentThe state of workforceEmployee attitude
4 The Content of Organizational Change StructureAuthority relationshipsCoordinating mechanismsJob redesignSpans of control+TechnologyWork processWork methodsEquipmentPeopleAttitudesExpectationsPerceptionsBehavior
5 Change AgentChange 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 UnfreezingChangingRefreezingExhibit 8-1 the Change Process
8 Exhibit 8-2 Unfreezing the Equilibrium State Driving forcesRestraining forcesTimePrevious EquilibriumOptimal stateExhibit 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 IndividualresistanceFear of losingsomething ofvalueFear ofthe unknownBelief that changeIs not good for theorganizationExhibit 8-2 Why People Resist Change
11 Techniques for Reducing Resistance to Change Education and communicationParticipationFacilitation and supportNegotiationManipulation and cooptationCoercion
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 SurveyfeedbackSensitivitytrainingIntergroupdevelopmentProcessconsultationTeambuildingMore constructive human relationships in organizationExhibit 8-3 Typical OD Techniques
14 Stress: The Aftermath of Organizational Change What is stress?Stressors: causes of stressThe symptoms of stressHow 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.
17 The Symptoms of Stress Physiological symptoms Psychological symptoms Behavioral symptoms
18 How can stress be reduced? Eliminate organizational stressorsEmployee assistance programs(EAPs)EAPs are programs offered by organizations to help their employees overcome personal and health-related problems.Wellness programWellness 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 variablesCultural variablesHuman resource variables
21 Structural variablesOrganic 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 impracticalLow external controlsTolerance of riskTolerance of conflictFocus on ends rather than on meansOpen systems focus
23 Human resource variables Promoting training and development of employeesOffering employees high job securityEncouraging 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?