Chapter 6: Change

and Innovation Copyright 2012 Pearson Education, Inc.

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Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
6-1
The Change Process

Organizations face change because

external and internal factors create the need
for change.

When managers recognize theat

change is need, then what? How do they
respond?
Copyright 2012 Pearson Education, Inc.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-2
 Exhibit 6-1: External and Internal
Forces for Change

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-3
 Two Views of the Change Process
Two Metaphors to Describe the Change Process
1. The Calm Waters Metaphor
The organization is a large ship crossing a calm sea. The ships
captain and crew know exactly where theyre going because
theyve made the trip many times before. Change comes in
the form of an occasional storm.
2. White-Water Rapids Metaphor
The organization is a small raft navigating a raging river with
uninterrupted white-water rapids. Aboard the raft are half a
dozen people who have never worked together before, who
are totally unfamiliar with the river, who are unsure of their
eventual destination, and are travelling at night.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-4
 The CALM WATERS METAPHOR
The Three-Step Change Process
Unfreezing
the Status Quo The new situation is
- Considered equilibrium REFROZEN to sustain
over time. Otherwise,
To move away from the Change is introduced there is a strong
equilibrium, unfreezing is and implemented. chance that employees
necessary. Unfreezing can will revert back to the
be thought of as preparing for old equilibrium state.
the needed change.

THRU:
Increasing the
DRIVING FORCES
and/or
Decreasing the
RESTRAINING
FORCES

Its a calm waters scenario where an occasional disruption (a storm means chaning to deal with the
disruption. Once it is dealt with, things can continue on under the new changed system.
MOST COMMONLY USED BY MANAGERS TODAY.
Copyright 2012 Pearson Education, Inc.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-5
White-Water Rapids Metaphor
The lack of environmental stability
and predictability requires that
managers and organizations
continually adapt (manage change
actively) to survive.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-6
 Organizational Change and
Change Agents

Organizational Change - any alterations in the

people, structure, or technology of an
organization.
Change Agents - persons who act as catalysts
and assume the responsibility for managing
the change process.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-7
Types of Change Agents

Managers: internal
entrepreneurs
Nonmanagers: change
specialists
Outside consultants:
change implementation
experts

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-8
 Three Types of Change

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-9
 In Changing People:
Organizational Development

Organizational Development (OD) -

techniques or programs to change people and
the nature and quality of interpersonal work
relationships.
Global OD keep in mind that OD techniques
that work for U.S. organizations may be
inappropriate in other countries and cultures.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-10
 Popular OD Techniques

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
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Managing Resistance to Change
Why People Resist Change?
The ambiguity and uncertainty that change
introduces
The comfort of old habits
A concern over personal loss of status, money,
authority, friendships, and personal convenience
The perception that change is incompatible with
the goals and interest of the organization

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-12
 Techniques for Reducing
Resistance to Change

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-13
 3 Contemporary Issues
in Managing Change

A. Changing Organizational Culture

B. Employee Stress
C. Making Change Happen Successfully

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-14
A. Changing Organizational Culture
Cultures are naturally resistant to change.
Conditions that facilitate cultural change:
The occurrence of a dramatic crisis
Leadership changing hands
A young, flexible, and small organization
A weak organizational culture

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
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 Changing Culture
Strategy for managing cultural change

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-16
 B. EMPLOYEE STRESS
Stress and Stressors

Stress - the adverse reaction people have to

excessive pressure placed on them from
extraordinary demands, constraints, or
opportunities.
Stressors - factors that cause stress.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-17
 What Causes Stress?
1. Task demands factors related to an employees job;
including the design of a persons job (autonomy, task,
variety, degree of automation)

2. Role demands relates to pressures placed on an employee as

a function of the particular role he/she plays in the organization.
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.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-18
 What Causes Stress?

3. Interpersonal Demands pressures created by other employees.

4. Organization structure Ex: excessive rules & an employees lack
of opportunity to participate in decisions that affect him or her.
5. Organizational leadership represents the supervisory style of
the organizations managers. Some managers create a culture of
characterized tension, fear & anxiety. Filtering down through the
organization and affects all employees.

* PERSONAL FACTORS family issues, personal economic

problems, & inherent personality characteristics. Bringing them
to work.
Copyright 2012 Pearson Education, Inc.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-19
Personal Factors Causing Stress

Type A 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.
Copyright 2012 Pearson Education, Inc.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-20
 Exhibit 6-7: Symptoms of Stress

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
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 How can stress be reduced?
Things that managers can do.

1. Employee Selection employees abilities must match job

requirements.
2. Reduce ambiguity over job expectations during selection
process & improved organizational communications.
3. Job redesign to increase challenge (boredom) or to reduce
the workload.
4. Counseling
5. Time management program can help employees whose
personal lives suffer from the lack of planning to sort out
their priorities.
6. Wellness programs ex: onsite health & fitness facility
Copyright 2012 Pearson Education, Inc.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-22
 C. Making Change Happen Successfully

Managers at all organizational levels are involved in the

change process.

How can managers make change happen successfully?

1. Make the organization change capable.
2. Understand their own role in the process. (catalyst & leader)
3. Give individual employees a role in the change process. (agents)

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-23
 Characteristics of
Change-Capable Organizations

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-24
Stimulating Innovation
Creativity - the ability to combine ideas in a
unique way or to make an unusual
association.
Innovation - turning the outcomes of the
creative process into useful products, services,
or work methods.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-25
Stimulating Innovation (cont.)

Idea Champions -
individuals who actively
and enthusiastically
support new ideas,
build support,
overcome resistance,
and ensure that
innovations are
implemented.

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-26
 Exhibit 6-9: Worlds Most
Innovative Companies

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-27
Right Environment that Stimulates Innovation:
Innovation Variables

Copyright 2012 Pearson Education, Inc.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter
2012 Pearson Education
Publishing as Prentice Hall 6-28