1. PowerPoint Presentation by Charlie Cook The University of West Alabama C H A P T E R 7 Part III: Organizing Fundamentals of Management Sixth Edition Robbins and DeCenzo with contributions from Henry Moon © 2008 Prentice Hall, Inc. All rights reserved. Managing Change, Stress, and Innovation

2. © 2008 Prentice Hall, Inc. All rights reserved.7–2 What Is Change? ChangeChange  Is an alteration of an organization’s environment, structure, technology, or people.  A constant force  An organizational reality  An opportunity or a threat Change AgentChange Agent  Is a person who initiates and assumes the responsibility for managing a change in an organization.

3. © 2008 Prentice Hall, Inc. All rights reserved.7–3 Forces For Change External ForcesExternal Forces  Marketplace competition  Government laws and regulations  New technologies  Labor market shifts  Cycles in the economy  Social change Internal ForcesInternal Forces  Strategy modifications  New equipment  New processes  Workforce composition  Restructured jobs  Compensation and benefits  Labor surpluses and shortages  Employee attitudes

4. © 2008 Prentice Hall, Inc. All rights reserved.7–4 Two Views Of The Change Process “Calm Waters” Metaphor“Calm Waters” Metaphor  Describes 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“White-Water Rapids” Metaphor  Describes the organization as a small raft navigating a raging river.

5. © 2008 Prentice Hall, Inc. All rights reserved.7–5 Change in “Calm Waters” Kurt Lewin’s Three-Step ProcessKurt 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  Establishing a new equilibrium state.

6. © 2008 Prentice Hall, Inc. All rights reserved.7–6 Change In “White-Water Rapids” Change is constant in a dynamic environment.Change is constant in a dynamic environment. The only certainty is continuing uncertainty.The only certainty is continuing uncertainty. Competitive advantages do not last.Competitive advantages do not last. Managers must quickly and properly react to unexpected events by:Managers must quickly and properly react to unexpected events by:  Being alert to problems and opportunities.  Becoming change agents in stimulating, implementing and supporting change in the organization.

7. © 2008 Prentice Hall, Inc. All rights reserved.7–7 Implementing Planned Changes Organization Development (OD)Organization Development (OD)  Is 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.

8. © 2008 Prentice Hall, Inc. All rights reserved.7–8 Stress: The Aftermath Of Organizational Change StressStress  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 StressorStressor  Is a factor that causes stress.

9. © 2008 Prentice Hall, Inc. All rights reserved.7–9 Sources of Stress ConstraintsConstraints  Are barriers that keep us from doing what we desire.  Inhibit individuals in ways that take the control of a situation out of their hands DemandsDemands  Cause persons to give up something they desire.  Can preoccupy your time and force you to shift priorities.

10. © 2008 Prentice Hall, Inc. All rights reserved.7–10 Organizational Stressors: Role Demands Role ConflictsRole Conflicts  Are work expectations that are hard to satisfy. Role OverloadRole Overload  Is the result of having more work to accomplish than time permits. Role AmbiguityRole Ambiguity  Occurs when role expectations are not clearly understood.

11. © 2008 Prentice Hall, Inc. All rights reserved.7–11 Personal Factors: Personality Types Type A PersonalityType A Personality  People who have a chronic sense of urgency and an excessive competitive drive. Type B PersonalityType B Personality  People who are relaxed and easygoing and accept change easily.

12. © 2008 Prentice Hall, Inc. All rights reserved.7–12 Symptoms Of Stress Psychological SymptomsPsychological Symptoms  Increased tension  Anxiety  Boredom  Procrastination Behavior-related SymptomsBehavior-related Symptoms  Changes in eating habits  Increased smoking  Substance consumption  Rapid speech  Sleep disorders

13. © 2008 Prentice Hall, Inc. All rights reserved.7–13 Reducing Stress Person-Job Fit ConcernsPerson-Job Fit Concerns  Match employees to their jobs, clarify expectations, redesign jobs, and increase employee involvement and participation. Employee Assistance Programs (EAPs)Employee Assistance Programs (EAPs)  Help employees overcome personal and health- related problems. Wellness ProgramsWellness Programs  Help employees prevent health problems.

14. © 2008 Prentice Hall, Inc. All rights reserved.7–14 Stimulating Innovation CreativityCreativity  Is the ability to combine ideas in a unique way or to make unusual connections. InnovationInnovation  Is the process of taking a creative idea and turning it into a useful product, service, or method of operation.  Perception  Incubation  Inspiration  Innovation

15. © 2008 Prentice Hall, Inc. All rights reserved.7–15 Structural Variables Affecting Innovation Organic StructureOrganic Structure  Positively influences innovation through less work specialization, fewer rules and decentralization. Easy Availability of Plentiful ResourcesEasy Availability of Plentiful Resources  Allow management to purchase innovations, bear the cost of instituting innovations, and absorb failures. Frequent Interunit CommunicationFrequent Interunit Communication  Helps to break down barriers to innovation by facilitating interaction across departmental lines.

16. © 2008 Prentice Hall, Inc. All rights reserved.7–16 Characteristics of an Innovative Culture Acceptance of ambiguityAcceptance of ambiguity Tolerance of the impracticalTolerance of the impractical Low external controlsLow external controls Tolerance of riskTolerance of risk Tolerance of conflictTolerance of conflict Focus on ends rather than on meansFocus on ends rather than on means Open systems focusOpen systems focus

17. © 2008 Prentice Hall, Inc. All rights reserved.7–17 HR Variables Affecting Innovation HR Practices that Foster InnovationHR Practices that Foster Innovation  Promoting of training and development so employee knowledge remains current  Offering employees high job security to reduce fear of making mistakes and taking risks  Encouraging employees to become champions of change