Chapter 13 Understanding Individual Behavior Ppt13

Managing Change and Innovation Chapter 13

L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter . Forces for Change: Two Views of the Change Process Discuss the external and internal forces for change. Contrast the calm waters and white-water rapids metaphors of change. Explain Lewin’s three-step model of the change process. Managing Organizational Change Define organizational change. Contrast internal and external change agents. Explain how managers might change structure, technology, and people.

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Managing Change Explain why people resist change and how resistance might be managed. Contemporary Issues in Managing Change Explain why changing organizational culture is so difficult and how managers can do it. Describe employee stress and how managers can help employees deal with stress. Discuss what it takes to make change happen successfully.

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Stimulating Innovation Explain why innovation isn’t just creativity. Explain the systems view of innovation. Describe the structural, cultural, and human resource variables that are necessary for innovation. Explain what idea champions are and why they’re important to innovation.

What Is Change? Organizational Change Any alterations in the people, structure, or technology of an organization Characteristics of Change Is constant yet varies in degree and direction Produces uncertainty yet is not completely unpredictable Creates both threats and opportunities Managing change is an integral part of every manager’s job.

Forces for Change External Forces Marketplace Governmental laws and regulations Technology Labor market Economic changes Internal Forces Changes in organizational strategy Workforce changes New equipment Employee attitudes

Change Process Viewpoints The Calm Waters Metaphor Lewin’s description of the change process as a break in the organization’s equilibrium state Unfreezing the status quo Changing to a new state Refreezing to make the change permanent White-Water Rapids Metaphor The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.

Exhibit 13–1 The Change Process

Change Agents Change Agents Persons who act as catalysts and assume the responsibility for managing the change process. Types of Change Agents Managers: internal entrepreneurs Nonmanagers: change specialists Outside consultants: change implementation experts

Exhibit 13–2 Three Categories of Change

Types of Change Structural Changing an organization’s structural components or its structural design Technological Adopting new equipment, tools, or operating methods that displace old skills and require new ones Automation: replacing certain tasks done by people with machines Computerization People Changing attitudes, expectations, perceptions, and behaviors of the workforce Organizational development (OD) Techniques or programs to change people and the nature and quality of interpersonal work relationships.

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

Exhibit 13–3 Organizational Development Techniques

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

Exhibit 13–4 Managerial Actions to Reduce Resistance to Change Education and communication Participation Facilitation and support Negotiation Manipulation and co-optation Selecting people who accept change Coercion

Issues in Managing Change (cont’d) Changing Organizational Cultures 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

Exhibit 13–5 Strategies for Managing Cultural Change Set the tone through management behavior; top managers, particularly, need to be positive role models. Create new stories, symbols, and rituals to replace those currently in use. Select, promote, and support employees who adopt the new values. Redesign socialization processes to align with the new values. To encourage acceptance of the new values, change the reward system. Replace unwritten norms with clearly specified expectations. Shake up current subcultures through job transfers, job rotation, and/or terminations. Work to get consensus through employee participation and creating a climate with a high level of trust.

Issues in Managing Change (cont’d) Handling Employee Stress Stress The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Functional Stress Stress that has a positive effect on performance. How Potential Stress Becomes Actual Stress When there is uncertainty over the outcome. When the outcome is important.

Exhibit 13–6 Causes of Stress

Exhibit 13–7 Symptoms of Stress

Issues in Managing Change (cont’d) Reducing Stress Engage in proper employee selection Match employees’ KSA’s to jobs’ Tasks, Duties, and Responsibilities (TDR’s) Use realistic job interviews for reduce ambiguity Improve organizational communications Develop a performance planning program Use job redesign Provide a counseling program Offer time planning management assistance Sponsor wellness programs

Issues in Managing Change (cont’d) Making Change Happen Successfully Embrace change —become a change-capable organization. Create a simple, compelling message explaining why change is necessary. Communicate constantly and honestly. Foster as much employee participation as possible—get all employees committed. Encourage employees to be flexible. Remove those who resist and cannot be changed.

Exhibit 13–8 Characteristics of Change-Capable Organizations Link the present and the future. Make learning a way of life. Actively support and encourage day-to-day improvements and changes. Ensure diverse teams. Encourage mavericks. Shelter breakthroughs Integrate technology. Build and deepen trust.

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. Idea Champion Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.

Exhibit 13–9 Innovative Companies Around the World Data: Boston Consulting Group * We broke ties by comparing 10-year annualized total shareholder returns. In ties between a public and a private company, the public company was favored. Source: “A Global Pulse of Innovation,” BusinessWeek , April 24, 2006, p. 74.

Exhibit 13–10 Systems View of Innovation Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, “Toward a Theory of Organizational Creativity,” Academy of Management Review , April 1993, p. 309.

Exhibit 13–11 Innovation Variables

Creating the “Right” Environment for Innovation Structural Variables Adopt an organic structure Make available plentiful resources Engage in frequent interunit communication Minimize extreme time pressures on creative activities Provide explicit support for creativity

Creating the “Right” Environment for Innovation (cont’d) Cultural Variables Accept ambiguity Tolerate the impractical Have low external controls Tolerate risk taking Tolerate conflict Focus on ends rather than means Develop an open-system focus Provide positive feedback

Creating the “Right” Environment for Innovation (cont’d) Human Resource Variables Actively promote training and development to keep employees’ skills current. Offer high job security to encourage risk taking. Encourage individual to be “champions” of change.

Terms to Know organizational change change agent organizational development (OD) stress creativity innovation idea champion

Chapter 13 Understanding Individual Behavior Ppt13

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Chapter 13 Understanding Individual Behavior Ppt13