Copyright ©2015 Pearson Education, Inc.8-1 Chapter 7 Managing Change and Innovation

Learning Outcomes Define organizational change and compare and contrast views on the change process. Explain how to manage resistance to change. Describe what managers need to know about employee stress. Discuss techniques for stimulating innovation. Copyright ©2015 Pearson Education, Inc.8-2

Copyright ©2015 Pearson Education, Inc Define organizational change and compare and contrast views on the change process.

What is Organizational Change? Copyright ©2015 Pearson Education, Inc.8-4

External Factors Marketplace Government laws and regulations Technology Labor markets Economic changes Copyright ©2015 Pearson Education, Inc.8-5

Internal Factors Strategy Composition of workforce Employee attitudes Copyright ©2015 Pearson Education, Inc.8-6

Initiating Change Organizational changes need a catalyst. Copyright ©2015 Pearson Education, Inc.8-7

Two Different Approaches “Calm waters” metaphor “White-water rapids” metaphor 8-8Copyright ©2015 Pearson Education, Inc.

Calm Waters Change Copyright ©2015 Pearson Education, Inc.8-9

White-Water Rapids Change Copyright ©2015 Pearson Education, Inc.8-10 Leading a company in change, in an industry in change.

Implementing Change Organization development (OD): Efforts that assist organizational members with a planned change by focusing on their attitudes and values. Copyright ©2015 Pearson Education, Inc.8-11

Organization Development Efforts 1.Survey feedback 2.Process consultation 3.Team-building 4.Intergroup development 8-12Copyright ©2015 Pearson Education, Inc.

Explain how to manage resistance to change.

Resistance to Change 1.Uncertainty 2.Habit 3.Concern over personal loss 4.Belief change is not in organization’s best interests Copyright ©2015 Pearson Education, Inc.8-14

Reducing Resistance to Change 8-15Copyright ©2015 Pearson Education, Inc.

Describe what managers need to know about employee stress.

Employee Reactions to Change 8-17Copyright ©2015 Pearson Education, Inc. Change often creates stress for employees!

Change Often Creates Stress for Employees 8-18Copyright ©2015 Pearson Education, Inc.

Symptoms of Stress 8-19Copyright ©2015 Pearson Education, Inc.

Causes of Stress: Job Related 1.Task demands 2.Role demands 3.Interpersonal demands 4.Organization structure 5.Organizational leadership Copyright ©2015 Pearson Education, Inc.8-20

Causes of Stress: Personal 1.Family and personal issues 2.Personality type Copyright ©2015 Pearson Education, Inc.8-21

Reducing Stress Copyright ©2015 Pearson Education, Inc.8-22

Copyright ©2015 Pearson Education, Inc Discuss techniques for stimulating innovation.

Creativity and Innovation Copyright ©2015 Pearson Education, Inc.8-24 Creativity: The ability to produce novel and useful ideas. Innovation: The process of taking a creative idea and turning it into a useful product, service, or method of operation.

Innovation Process Copyright ©2015 Pearson Education, Inc Perception 2.Incubation 3.Inspiration 4.Innovation

Encouraging Innovation Copyright ©2015 Pearson Education, Inc.8-26

Structural Variables and Innovation Copyright ©2015 Pearson Education, Inc Organic structures 2.Abundant resources 3.High interunit communication 4.Minimal time pressure 5.Work and nonwork support

Culture and Innovation Copyright ©2015 Pearson Education, Inc.8-28 Acceptance of ambiguity Tolerance of the impractical Low external controls Tolerance of risks Tolerance of conflict Focus on ends Open-system focus Positive feedback

HR and Innovation Copyright ©2015 Pearson Education, Inc.8-29

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