1. Managing Change, Stress, and Innovation
Chapter 7
Managing Change, Stress, and Innovation
PowerPoint Presentation by Charlie Cook
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2. 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.
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3. 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.
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4. 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
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5. Three Categories of Change
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EXHIBIT 7.1

6. 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
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7. 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
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8. 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
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9. The Change Process EXHIBIT 7.2
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EXHIBIT 7.2

10. 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
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11. Why People Resist Change
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EXHIBIT 7.3

12. 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
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EXHIBIT 7.4

13. 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.
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14. 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.
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15. 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
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16. 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
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17. 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
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18. 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.
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19. Major Stressors EXHIBIT 7.6
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EXHIBIT 7.6

20. 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
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21. 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
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22. 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
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23. 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
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24. 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
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25. 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
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26. 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.
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27. 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
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28. 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
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