Fundamentals of Management

Sixth Edition

Robbins and DeCenzo

with contributions from Henry Moon

CHAPTER

Part III: Organizing

Managing Change, Stress, and Innovation

PowerPoint Presentation by Charlie Cook The University of West Alabama

2008 Prentice Hall, Inc. All rights reserved.

LEARNING OUTCOMES After reading this chapter, you will be able to:
1. Describe what change variables are within a managers control. 2. Identify external and internal forces for change. 3. Explain how managers can serve as change agents. 4. Contrast the calm waters and white-water rapids metaphors for change. 5. Explain why people are likely to resist change. 6. Describe techniques for reducing resistance to change.

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L E A R N I N G O U T C O M E S (contd) After reading this chapter, you will be able to:

7. Identify what is meant by the term organization development (OD) and specify four popular OD techniques. 8. Explain the causes and symptoms of stress. 9. Differentiate between creativity and innovation. 10. Explain how organizations can stimulate innovation.

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What Is Change?
Change
Is an alteration of an organizations environment,

structure, technology, or people.

A constant force An organizational reality An opportunity or a threat

Change Agent
Is a person who initiates and assumes the

responsibility for managing a change in an organization.

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EXHIBIT 71

Three Categories of Change

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Forces For Change

External Forces
Marketplace

Internal Forces
Strategy modifications New equipment

competition Government laws and regulations New technologies Labor market shifts Cycles in the economy Social change

New processes
Workforce

composition Restructured jobs Compensation and benefits Labor surpluses and shortages Employee attitudes
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Two Views Of The Change Process

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

Describes the organization as a small raft navigating

a raging river.

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Steps in Change-Management

1. Assess the climate for change.

2. Choose an appropriate approach for managing the resistance to change. 3. During the time the change is being implemented and after the change is completed, communicate with employees regarding what support you may be able to provide.

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Change in Calm Waters

Kurt Lewins 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.

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EXHIBIT 72

The Change Process

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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 by:
Being alert to problems and opportunities.
Becoming change agents in stimulating,

implementing and supporting change in the organization.

2008 Prentice Hall, Inc. All rights reserved.

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EXHIBIT 73

Why People Resist Change

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EXHIBIT 74

Techniques for Reducing Resistance to Change

Education and communication

Participation Facilitation and support

Negotiation
Manipulation and co-optation Coercion

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Making Changes in the Organization

Managers Options for Change

Change Structure

Change Technology

Change People

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Implementing Planned Changes

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 organizations culture.

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Typical OD Techniques

Popular Organizational Development Techniques

Survey Feedback

Process Consultation

Team-Building

Intergroup Development

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Stress: The Aftermath Of Organizational Change

Stress
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

Stressor
Is a factor that causes stress.

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Sources of Stress
Constraints
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

Demands
Cause persons to give up something they desire.

Can preoccupy your time and force you to shift

priorities.

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EXHIBIT 75

Change, Dilbert Style

Source: Dilbert reprinted United Feature Syndicate, Inc. 2008 Prentice Hall, Inc. All rights reserved. 719

EXHIBIT 76

Major Stressors

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Organizational Stress Factors

Tasks

Organizational Leadership

Roles

Organization Structure

Interpersonal Demands

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Organizational Stressors: Role Demands

Role Conflicts
Are work expectations that are hard to satisfy.

Role Overload
Is the result of having more work to accomplish than

time permits.

Role Ambiguity
Occurs when role expectations are not clearly

understood.

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Personal Factors: Personality Types

Type A Personality
People who have a

Type B Personality
People who are

chronic sense of urgency and an excessive competitive drive.

relaxed and easygoing and accept change easily.

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Symptoms Of Stress
Psychological Symptoms
Increased tension

Behavior-related Symptoms
Changes in eating

Anxiety
Boredom Procrastination

habits Increased smoking Substance consumption Rapid speech Sleep disorders

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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)

Help employees overcome personal and health-

related problems.

Wellness Programs
Help employees prevent health problems.

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Stimulating Innovation
Creativity
Is the ability to combine ideas in a unique way or to

make unusual connections.

Innovation
Is the process of taking a creative idea and turning it

into a useful product, service, or method of operation.

Perception Incubation Inspiration

Innovation

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Variables Stimulating Innovation

Organization Structure Organizational Culture

Innovation

Human Resources Practices

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Structural Variables Affecting Innovation

Organic Structure
Positively influences 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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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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HR Variables Affecting Innovation

HR 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

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