Managing Change, Stress, and Innovation Chapter 7 Managing Change, Stress, and Innovation PowerPoint Presentation by Charlie Cook Copyright © 2004 Prentice Hall, Inc. All rights reserved.

L E A R N I N G O U T C O M E S After reading this chapter, I will be able to: Describe what change variables are within a manager’s control. Identify external and internal forces for change. Explain how managers can serve as change agents. Contrast the calm waters and white-water rapids metaphors for change. Explain why people are likely to resist change. Describe techniques for reducing resistance to change. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

L E A R N I N G O U T C O M E S (cont’d) After reading this chapter, I will be able to: Identify what is meant by the term organization development (OD) and specify four popular OD techniques. Explain the causes and symptoms of stress. Differentiate between creativity and innovation. Explain how organizations can stimulate innovation. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

What Is Change? Change Change agent An alteration of an organization’s environment, structure, technology, or people A constant force An organizational reality An opportunity or a threat Change agent A person who initiates and assumes the responsibility for managing a change in an organization Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Three Categories of Change Copyright © 2004 Prentice Hall, Inc. All rights reserved. EXHIBIT 7.1

Forces For Change External forces Internal forces Marketplace competition Government laws and regulations New technologies Labor market shifts Cycles in the economy Social change Internal forces Strategy modifications New equipment New processes Workforce composition Restructured jobs Compensation and benefits Labor surpluses and shortages Employee attitudes Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Two Views Of The Change Process “Calm waters” metaphor A description of traditional practices in and theories about organizations that likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm “White-water rapids” metaphor A description of the organization as a small raft navigating a raging river Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Change in “Calm Waters” Kurt Lewin’s Three-Step Process Unfreezing The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. The two approaches can be combined. Implementation of change Refreezing Copyright © 2004 Prentice Hall, Inc. All rights reserved.

The Change Process EXHIBIT 7.2 Copyright © 2004 Prentice Hall, Inc. All rights reserved. EXHIBIT 7.2

Change In “White-water Rapids” Change is constant in a dynamic environment. The only certainty is continuing uncertainty. Competitive advantages do not last. Managers must quickly and properly react to unexpected events. Be alert to problems and opportunities Become change agents in stimulating, implementing and supporting change in the organization Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Why People Resist Change Copyright © 2004 Prentice Hall, Inc. All rights reserved. EXHIBIT 7.3

Techniques for Reducing Resistance to Change TECHNIQUE WHEN USED Education and When resistance is due to misinformation communication Participation When resisters have the expertise to make a contribution Facilitation and When resisters are fearful and anxiety-ridden support Negotiation Necessary when resistance comes from a powerful group Manipulation When a powerful group’s cooperation and an endorsement is is needed Coercion When a powerful group’s endorsement is needed Copyright © 2004 Prentice Hall, Inc. All rights reserved. EXHIBIT 7.4

Making Changes In The Organization Changing structure Alterations in authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables. Changing technology Modifications in the way work is processed or the methods and equipment used. Changes in people Changes in employee attitudes, expectations, perceptions, or behaviors. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Implementing Planned Changes Organization development (OD) An activity (intervention) designed to facilitate planned, long-term organization-wide change Focuses on the attitudes and values of organizational members; Is essentially an effort to change an organization’s culture. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Typical OD Techniques Survey feedback Process consultation A method of assessing employees’ attitudes toward and perceptions of a change they are encountering by asking specific questions Process consultation The use of consultants from outside an organization to help change agents within the organization assess process events such as workflow, informal intraunit relationships, and formal communications channels Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Typical OD Techniques (cont’d) Team-building An activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member Intergroup development An activity that attempts to make several work groups become more cohesive Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Stress: The Aftermath Of Organizational Change Occurs when individuals confront a situation related to their desires for which the outcome is perceived to be both uncertain and important. Positive stress: when the situation offers an opportunity for one to gain something Negative stress: when constraints or demands are placed on individuals Stressors A factor that causes stress Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Sources of Stress Constraints Demands Barriers that keep us from doing what we desire. Inhibit individuals in ways that take the control of a situation out of their hands Demands Cause persons to give up something they desire. Demands preoccupy your time and force you to shift priorities. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Major Stressors EXHIBIT 7.6 Copyright © 2004 Prentice Hall, Inc. All rights reserved. EXHIBIT 7.6

Stressors Personal Organizational Family issues Personal economic problems Inherent personality characteristics. Organizational Task demands Role ambiguity Role conflict Role overload Technological advancements Work process engineering Downsizing Restructuring Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Organizational Stressors: 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 Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Personality Types Type A personality Type B personality People who have a chronic sense of urgency and an excessive competitive drive Type B personality People who are relaxed and easygoing and accept change easily Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Symptoms Of Stress Psychological symptoms Behavior-related symptoms Increased tension Anxiety Boredom Procrastination Behavior-related symptoms Changes in eating habits Increased smoking Substance consumption Rapid speech Sleep disorders Copyright © 2004 Prentice Hall, Inc. All rights reserved.

REDUCING STRESS Person-job fit Concerns Match employees to their jobs, clarify expectations, redesign jobs, and increase employee involvement and participation Employee assistance programs (EAPs) Programs that help employees overcome personal and health-related problems Wellness programs Programs that help employees prevent health problems Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Stimulating Innovation Creativity The ability to combine ideas in a unique way or to make unusual connections Innovation The process of taking a creative idea and turning it into a useful product, service, or method of operation Perception Incubation Inspiration Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Structural Variables Affecting Innovation Organic structures Positively influence innovation through less work specialization, fewer rules and decentralization Easy availability of plentiful resources Allow management to purchase innovations, bear the cost of instituting innovations, and absorb failures. Frequent interunit communication Helps to break down barriers to innovation by facilitating interaction across departmental lines. Copyright © 2004 Prentice Hall, Inc. All rights reserved.

Characteristics of an Innovative Culture 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 Copyright © 2004 Prentice Hall, Inc. All rights reserved.

HR Variables Affecting Innovation HR practices that foster innovation Promotion of training and development so employee knowledge remains current Offer employees high job security to reduce fear of making mistakes and taking risks Encourage employees to become champions of change Copyright © 2004 Prentice Hall, Inc. All rights reserved.