PowerPoint Presentation to Accompany Chapter 18 of Management, 8/e John R. Schermerhorn, Jr. Prepared by:Michael K. McCuddy Valparaiso University Published by: John Wiley & Sons, Inc.

Management 8/e - Chapter 182 Study Question 1: What are the challenges of strategic leadership and innovation?  Strategic leadership creates the capacity for ongoing strategic change.  Components of strategic leadership: – Determining the organization’s purpose or vision. – Exploiting and maintaining the organization’s core competencies. – Developing the organization’s human capital. – Sustaining an effective organizational culture. – Emphasizing and displaying ethical practices. – Establishing balanced organizational controls.

Management 8/e - Chapter 183 Study Question 1: What are the challenges of strategic leadership and innovation?  Sustainable competitive advantage relies on creativity and innovation.  Creativity is the generation of a novel idea or unique approach to solving problems or crafting opportunities.  Innovation is the process of creating new ideas and putting them into practice.

Management 8/e - Chapter 184 Study Question 1: What are the challenges of strategic leadership and innovation?  Two forms of innovation: –Process. Results in better ways of doing things. –Product. Results in the creation of new or improved goods and services.  Innovations require invention and application. – Invention. Act of discovery. Development of new ideas. –Application. Act of use. Implementation of new ideas.

Management 8/e - Chapter 185 Study Question 1: What are the challenges of strategic leadership and innovation?  Leadership responsibilities for the innovation process: –Imagining. –Designing. –Experimenting. –Assessing. –Scaling: Commercializing

Management 8/e - Chapter 186 Study Question 2: What is the nature of organizational change?  Change leader. –A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or social system.  Change leadership. –Forward-looking. –Proactive. –Embraces new ideas.

Management 8/e - Chapter 187 Study Question 2: What is the nature of organizational change?  Top-down change. –Strategic and comprehensive change that is initiated with the goals of comprehensive impact on the organization and its performance capabilities. –Driven by the organization’s top leadership. –Success depends on support of middle-level and lower-level workers.

Management 8/e - Chapter 188 Study Question 2: What is the nature of organizational change?  Bottom-up change. –The initiatives for change come from any and all parts of the organization, not just top management. –Crucial for organizational innovation. –Made possible by: Employee empowerment. Employee involvement. Employee participation.

Management 8/e - Chapter 189 Study Question 2: What is the nature of organizational change?  Integrated change leadership. –Successful and enduring change combines advantages of top-down and bottom-up approaches. –Top-down: Breaks up traditional patterns. Implements difficult economic adjustments. –Bottom-up: Builds capability for sustainable change. Builds capability for organizational learning.

Management 8/e - Chapter 1810 Study Question 2: What is the nature of organizational change?  Transformational and incremental change. –Unplanned change. Response to unanticipated events. Good leaders act on opportunities for reactive change. –Planned change Aligning the organization with anticipated future challenges. Activated by proactive leaders who are sensitive to performance gaps. Transformational change  major and comprehensive redirection. Incremental change  adjusting existing systems and practices.

Management 8/e - Chapter 1811 Study Question 2: What is the nature of organizational change?  How to lead transformational change: –Establish a sense of urgency for change. –Form a powerful coalition to lead the change. –Create and communicate a change vision. –Empower others to move change forward. –Celebrate short-term “wins” and recognize those who help. –Build on success; align people and systems with new ways. –Stay with it; keep the message consistent; champion the vision.

Management 8/e - Chapter 1812 Study Question 2: What is the nature of organizational change?  External forces for change: –Globalization. –Market competition. –Local economic conditions. –Government laws and regulations. –Technological developments. –Market trends. –Social forces and values.  Internal forces for change: –Arise when change in one part of the system creates the need for change in another part of the system. –May be in response to one or more external forces.

Management 8/e - Chapter 1813 Study Question 3: How can planned organizational change be managed?  Phases of planned change –Unfreezing The phase in which a situation is prepared for change and felt needs for change are developed. –Changing The phase in which something new takes place in the system, and change is actually implemented. –Refreezing The phase of stabilizing the change and creating the conditions for its long-term continuity.

Management 8/e - Chapter 1814 Study Question 3: How can planned organizational change be managed?  Force-coercion strategy of change. –Uses power bases of legitimacy, rewards and punishments to induce change. –Relies on belief that people are motivated by self- interest. –Direct forcing and political maneuvering. –Produces limited and temporary results. –Most useful in the unfreezing phase.

Management 8/e - Chapter 1815 Study Question 3: How can planned organizational change be managed?  Rational persuasion strategy of change. –Bringing about change through persuasion backed by special knowledge, empirical data, and rational argument. –Relies on expert power. –Relies on belief that reason guides people’s decisions and actions. –Useful in the unfreezing and refreezing phases. –Produces longer-lasting and internalized change.

Management 8/e - Chapter 1816 Study Question 3: How can planned organizational change be managed?  Shared power strategy of change. –Engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge. –Time consuming but likely to yield high commitment. –Involves others in examining sociocultural factors related to the issue at hand. –Relies on referent power and strong interpersonal skills in team situations. –Relies on belief that people respond to sociocultural norms and expectations of others.

Management 8/e - Chapter 1817 Study Question 3: How can planned organizational change be managed?  Reasons for people resisting change: –Fear of the unknown –Disrupted habits –Loss of confidence –Loss of control –Poor timing –Work overload –Loss of face –Lack of purpose

Management 8/e - Chapter 1818 Study Question 5: How can stress be managed in a change environment?  Stress –A state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities.  Stressors –Things that cause stress –Originate in work, personal, and nonwork situations. –Have the potential to influence work attitudes, behavior, job performance, and health.

Management 8/e - Chapter 1819 Study Question 5: How can stress be managed in a change environment?  Work factors as potential stressors: –Includes: Excessively high or low task demands. Role conflicts or ambiguities. Poor interpersonal relationships. Too slow or too fast career progress. –Work-related stress syndromes: Set up to fail. Mistaken identity.

Management 8/e - Chapter 1820 Study Question 5: How can stress be managed in a change environment?  Consequences of stress: –Constructive stress. Acts as a positive influence. Can be energizing and performance enhancing. –Destructive stress. Acts as a negative influence. Breaks down a person’s physical and mental systems. Can lead to job burnout and/or workplace rage.

Management 8/e - Chapter 1821 Study Question 5: How can stress be managed in a change environment?  Personal wellness: –The pursuit of personal and mental potential though a personal health-promotion program. –A form of preventative stress management. –Enables people to be better prepared to deal with stress.

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