1. Chapter 13
MANAGING
CHANGE AND
INNOVATION
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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
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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
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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
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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
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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
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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
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8. The Change Process
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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
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10. Three Categories Of Change
Work specialization,
departmentalization,
chain of command, span of
control, centralization,
formalization, job redesign,
or actual design
Structure
Attitudes, expectations,
perceptions, and
behavior
People
Work processes, methods,
and equipment
Technology
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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
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12. Managing Change (cont.)
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
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13. Managing Change (cont.)
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
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14. Organizational Development Techniques
More
Effective
Interpersonal
Work
Environment
Process
Consultation
Intergroup
Development
Sensitivity
Training
Survey
Feedback
Team
Building
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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
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16. Managerial Actions to Reduce Resistance to Change
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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
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18. Contemporary Issues (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
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19. The Road to Cultural Change
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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
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21. Continuous Quality Improvement Versus Reengineering
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
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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
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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
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24. Causes Of Stress STRESS Job-Related Personal Factors
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25. Symptoms Of Stress Physiological Psychological Symptoms of Stress
Behavioral
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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
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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
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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
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29. Systems View Of Innovation
Inputs
Transformation
Outputs
Creative individuals,
groups,
organizations
Creative process
Creative situation
Creative product(s)
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30. Stimulating Innovation (cont.)
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
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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
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32. Innovation Variables
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