PowerPoint Presentation by Charlie Cook The University of West Alabama chapter 6 Copyright © 2009 South-Western/Cengage Learning. All rights reserved. Managing Change: Innovation and Diversity

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–2 Learning Outcomes 1. 1.Identify the sources of forces for change List the four types of change List the reasons people resist change, and suggest ways of overcoming such resistance State the difference between a fact, a belief, and a value Explain intrapreneurship, and identify its three roles Discuss the relationship among diversity, innovation, and quality Explain the difference between team building and process consultation State the difference in the use of forcefield analysis and survey feedback Define the key terms listed at the end of the chapter. After studying this chapter, you should be able to:

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–3 IDEAS ON MANAGEMENT at Alcatel-Lucent 1. 1.What type of people and career changes did Patricia Russo encounter as she prepared for and worked her way up the corporate ladder, and what form and types of changes did she make at Lucent Technologies? 2. 2.What resistance did Patricia Russo have to overcome to complete the merger of Alcatel and Lucent? 3. 3.How is Alcatel-Lucent committed to innovation? 4. 4.How do Alcatel-Lucent and Patricia Russo embrace diversity? 5. 5.How does Alcatel-Lucent use organizational development (OD)?

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–4 Forces for Change The EnvironmentThe Environment  The internal and external business environments require change in an organization, and the organization needs to be proactive, rather than merely reactive, to the environment. The Management Functions and ChangeThe Management Functions and Change  When managers organize and delegate tasks, they often require employees to make some changes in their regular routine.  When managers hire, orient, train, and evaluate performance, change is required.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–5 Exhibit 6–1 ● Types of Organizational Change

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–6

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–7 Forms of Change Incremental ChangeIncremental Change  Continual improvement that takes place within already accepted frameworks, value systems, or organizational structure that is necessary for survival and success. Radical ChangeRadical Change  Rapid change in strategy, structure, technology, or people that alters accepted frameworks, value systems, or organizational structure.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–8 Join the Discussion Ethics & Social Responsibility Online High SchoolOnline High School 1. How do you feel about high school students missing the experience of attending classes? 2. Is it ethical and socially responsible to offer an online high school for students?

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–9 Exhibit 6–2 ● Stages in the Change Process

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–10 Exhibit 6–3 ● Resistance to Change and Ways to Overcome Resistance

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–11 Resistance to Change IntensityIntensity  People vary in their attitudes towards change. Sources of Resistance to ChangeSources of Resistance to Change  Facts  Provable statements that identify reality.  Beliefs  Subjective opinions that cannot be proven.  Values  What people believe are important and worth pursuing or doing.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–12 Resistance to Change (cont’d) Focuses of Resistance to ChangeFocuses of Resistance to Change  Self  The reaction of individuals who feel their self-interests are threatened by change.  Others  The consideration given to how others will be affected by change.  Work Environment  Change in the working environment threatens individuals control of the environment.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–13 Exhibit 6–4 ● Resistance Matrix Source: Adapted from Ken Hultman, Resistance Matrix: The Path of Least Resistance (Austin, TX: Learning Concepts, 1979).

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–14 Innovation Innovative Organizational StructuresInnovative Organizational Structures  Structured as flat organizations with limited bureaucracy  Have a generalist division of labor  Coordinate with cross-functional teams  Are informal with decentralized authority  Create separate systems for innovative groups  Attract and retain creative employees  Reward innovation and creativity

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–15 Innovation (cont’d) Innovative Organizational CulturesInnovative Organizational Cultures  Encourage risk-taking  Foster intrapreneurship  Have open systems  Focus on ends rather than means  Accept ambiguous and impractical ideas  Tolerate conflict

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–16

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–17 Join the Discussion Ethics & Social Responsibility UpgradingUpgrading 1. Do you believe that software companies come out with upgrades just to make more money, or are these companies being honestly innovative? 2. As a sales rep, would you push a customer to purchase an unnecessary upgrade so that you could make a commission? 3. What would you do if your boss pressured you to sell unneeded upgrades? 4. Is it ethical and socially responsible to “require companies to purchase upgrades if they wish to continue using the product or service”?

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–18 Diversity DiversityDiversity  The degree of differences among members of a group or an organization.  Race/ethnicity, religion, gender, age, ability, military status, sexual preference, expectations and values, lifestyle, socioeconomic class, work style, function/position  Diversity in all forms is increasing in the general population and the workforce. Diversity and Organizational CultureDiversity and Organizational Culture  Before organizations can improve the quality of their products or services, they must first understand and address the requirements of all their employees.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–19 Diversity (cont’d) Valuing DiversityValuing Diversity  Emphasizes training employees of different races and ethnicities, religions, genders, ages, and abilities to function together effectively. Managing DiversityManaging Diversity  Emphasizes fully utilizing human resources through organizational actions that meet all employees’ needs.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–20 Join the Discussion Ethics & Social Responsibility Speaking EnglishSpeaking English 1. Why are some organizations no longer requiring workers to speak English? 2. Should a worker be required to be able to speak English to get a job in the United States? 3. Is it ethical and socially responsible to hire people who can’t speak English and to provide translators and policies written in multiple languages?

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–21 Exhibit 6–5 ● Managing Diversity

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–22 Gender Diversity Issues:Issues:  Disappearance of the “traditional family”  Increase in women as a percentage of the workforce  Women’s pay continuing to lag behind men’s  Glass ceiling barring women from upper management  Sexual harassment in the workplace

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–23

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–24 Organizational Development Organizational Development (OD)Organizational Development (OD)  The ongoing planned process of change used as a means of improving performance through interventions. OD InterventionsOD Interventions  Specific actions taken to implement specific changes. Change AgentChange Agent  The person selected by human resources management to be responsible for the OD program.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–25 Exhibit 6–6 ● Change Models

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–26 Exhibit 6–7 ● OD Interventions and Their Focus

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–27 OD Interventions Training and DevelopmentTraining and Development  The process of developing skills, behaviors, and attitudes to be used on the job. Sensitivity TrainingSensitivity Training  Takes place in a group of 10 to 15 people.  Have no agenda.  People learn about how their behavior affects others and how others’ behavior affects theirs.  Is not commonly used in business today.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–28 OD Interventions (cont’d) Team BuildingTeam Building  Designed to help work groups increase structural and team dynamics performance to get the job done. Process ConsultationProcess Consultation  Designed to improve team dynamics by focusing on how people interact as they get the job done. Stages in Team BuildingStages in Team Building 1. Climate building and goals 2. Evaluation of structure and team dynamics 3. Problem identification 4. Problem solving 5. Training 6. Closure

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–29 OD Interventions (cont’d) Forcefield AnalysisForcefield Analysis  Diagrams the current level of performance, the forces hindering change, and the driving force toward change. Survey FeedbackSurvey Feedback  Use of a questionnaire to gather data to use as the basis for change. Large-Group InterventionLarge-Group Intervention  Brings together participants from all parts of the organization, and key outside stakeholders, to solve problems or take advantage of opportunities.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–30 Exhibit 6–8 ● Forcefield Analysis

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–31 Steps in the Survey Feedback Process 1.Management and the change agent do some preliminary planning to develop an appropriate survey questionnaire. 2.The questionnaire is administered to all members of the organization/unit. 3.The survey data are analyzed to uncover problem areas for improvement. 4.The change agent reports the results to management. 5.Managers evaluate the feedback and discuss the results with their subordinates. 6.Corrective intervention action plans are developed and implemented.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–32 Steps in the GE Work Out Process 1.Select a work process or problem for improvement. 2.Select an appropriate cross-functional team with outside stakeholder members. The team includes top leaders and a human resources specialist to run the meetings. Outside consultants with relevant expertise may also be included. 3.Appoint a “champion” to follow through on recommendations. 4.Meet for several days to come up with recommendations for improvements. 5.Meet with leaders to get their immediate response to the recommendations. 6.Hold follow-up meetings, as needed, to implement the recommendations.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–33 OD Interventions (cont’d) Work DesignWork Design  Can be designed as an individual job, as a job for a group to perform, or by departmentalization.  Job enrichment is used to change jobs to make them more interesting and challenging. Direct FeedbackDirect Feedback  In certain situations, the most efficient intervention is to have a change agent make a direct recommendation for a specific change.  A change agent is often an outside consultant.

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–34

Copyright © 2009 South-Western/Cengage Learning. All rights reserved.6–35 KEY TERMS types of changetypes of change information systems (IS)information systems (IS) stages of the change processstages of the change process organizational development (OD)organizational development (OD) OD interventionsOD interventions team buildingteam building process consultationprocess consultation forcefield analysisforcefield analysis survey feedbacksurvey feedback large-group interventionlarge-group intervention