Chapter 8 managing change and innovation

Editor's Notes

• #4: Change is an organizational reality. Most managers, at one point or another, will have to change some things in their workplace. We classify these changes as organizational change, which is any alteration of an organization’s people, structure or technology.
• #5: Changing structure includes any alteration in authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables. Changing technology encompasses modifications in the way work is done or the methods and equipment used Changes in people refer to changes in employee attitudes, expectations, perceptions, or behaviors
• #6: In Chapter 2 we pointed out that both external and internal forces constrain managers. These same forces also bring about the need for change
• #8: Often managers make a concerted effort to alter some aspect of the organization. Whatever happens—in terms of structure or technology—ultimately affects organizational members. Efforts to assist organizational members with a planned change are referred to as organization development (OD).
• #9: Survey feedback efforts are designed to assess employee attitudes about and perceptions of the change they are encountering. Employees are generally asked to respond to a set of specific questions regarding how they view such organizational aspects as decision making, leadership, communication effectiveness, and satisfaction with their jobs, coworkers, and management In process consultation, outside consultants help managers to perceive, understand, and act on process elements with which they must deal. These elements might include, for example, workflow, informal relationships among unit members, and formal communications channels.
• #10: Team-building is generally an activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member. Whereas team-building focuses on helping a work group become more cohesive, intergroup development attempts to achieve the same results among different work groups. That is, intergroup development attempts to change attitudes, stereotypes, and perceptions that one group may have toward another group
• #11: Why do people resist organizational change? The main reasons include uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization’s best interest
• #12: When managers see resistance to change as dysfunctional, what can they do? Several strategies have been suggested in dealing with resistance to change. These approaches include education and communication, participation, facilitation and support, negotiation, manipulation and co-optation, and coercion. These tactics are summarized here and described in Exhibit 7-3
• #13: Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Stress isn’t always bad. Although it’s often discussed in a negative context, stress can be positive, especially when it offers a potential gain. For instance, functional stress allow an athlete, stage performer, or employee to perform at his or her highest level at crucial times.
• #14: Stress can be caused by personal factors and by job-related factors called stressors. Clearly, change of any kind—personal or job-related—has the potential to cause stress as it can involve demands, constraints, or opportunities Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy.
• #15: Role overload is experienced when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood and the employee is not sure what he or she is to do.
• #16: Evidence also indicates that employees’ personalities have an effect on how susceptible they are to stress. The most commonly used labels for these personality traits are Type A and Type B. Type A personality is characterized by chronic feelings of a sense of time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time. The opposite of Type A is Type B personality. Type Bs never suffer from time urgency or impatience. Until quite recently, it was believed that Type As were more likely to experience stress on and off the job
• #17: As Exhibit 7-4 shows, stress symptoms can be grouped under three general categories: physical, psychological, and behavioral. All of these can significantly affect an employee’s work.
• #18: There are five major potential stressors. They are each discussed in the following slides.
• #19: Personal sources of stress can come from major life events or minor life events and may be positive or negative in nature. How stressed a person generally feels appears to depend not only on the extent to which the stressors occur and how significant they are for the person but on how many of them occur simultaneously during any given period.
• #20: This slide presents six job-related stressors. Role conflict occurs when expected behaviors or tasks are at odds with each other. Role ambiguity is the uncertainty that occurs when employees are not sure about what is expected of them and how they should perform their jobs. This is especially important for new employees. Overload is the condition of having too many tasks to perform. According to a recent study, dual-career couples worked, on average, 91 hours per week, compared to an average of 81 hours per week in 1977. Overload is particularly prevalent among middle and top managers. Underload means not having enough work to do and it can also be a source of stress. Promotions and challenging assignments can be a source of stress for employees with low self-efficacy and/or ability. Stressors that affect employees’ economic well-being and job security are also powerful sources of stress (e.g., threats of layoffs and downsizing).
• #21: At the work-group level, misunderstandings, conflicts, and interpersonal disagreements can be sources of negative stress for group members. More organizations are assembling cross-cultural teams whose members come from different countries. Misunderstandings and conflicts due to cultural differences are sometimes sources of stress in these teams. Uncomfortable working conditions are another source of stress. Examples include excessive noise, temperature extremes, poorly designed office equipment and machinery. Unsafe working conditions such as working with toxic chemicals, with dangerous machinery, in nuclear power plants, or with people who have communicable diseases like AIDS can cause stress and injuries. Mergers and acquisitions are often a source of stress, particularly for employees in the acquired firm. They may feel like second-class citizens and fear that they might be laid off.
• #22: A recent study found that 85% of US employees have responsibilities for family members living at home. This, in conjunction with the fact that employees are working longer hours than they did 20 years ago, suggests that achieving a balance between work and life outside of work can be a real challenge. Another form of conflict between work and personal life occurs when employees are requested to do things that go against their own personal values or when they work in organizations with ethics different from their own.
• #23: Employees also experience stress from uncertainty and crises in the wider environment in which organizations operate. This slide lists examples of stressors stemming from the wider environment.
• #24: The extent to which stress is experienced and whether stress is positive or negative depends on how people cope (manage or deal) with stress. There are two basic types of coping: emotion-focused and problem-focused. Problem-focused coping is the steps people take to deal directly with and act on the source of stress. When problem-focused coping is successful, it helps employees deal with opportunities and threats that are causing stress. Emotion-focused coping is the steps people take to deal with and control their stressful feelings and emotions. Research suggests that people tend to engage in both kinds of coping when dealing with a stressor. Problem-focused coping is directly tailored to the stressor being experienced. Time management is a good strategy for dealing with overload and work-family conflict. Getting help from a mentor can be useful for dealing with role conflict, role ambiguity, overload, and challenging assignments and promotions. Role negotiation is the process through which employees actively try to change their roles in order to reduce role conflict, role ambiguity, overload, or underload. It may mean simply saying no to additional assignments.
• #26: While exercise, meditation, social support of family and friends, and clinical counseling are all functional, emotion-focused coping strategies, there are other emotion-focused ways of coping that are less functional. Some people react to high levels of stress by eating too much, drinking too much, or taking drugs. These ways are never effective in alleviating stressful feelings and emotions in the long run and may create more problems such as being overweight, being addicted to alcohol or drugs, and being unable to function to one’s fullest capacity.
• #27: As mentioned earlier, not all stress is dysfunctional. Since stress can never be totally eliminated from a person’s life, managers want to reduce the stress that leads to dysfunctional work behavior. How? Through controlling certain organizational factors to reduce job-related stress, and to a more limited extent, offering help for personal stress
• #28: Managers and organizations can do several things to deal with problems and opportunities that are sources of stress for employees. Some problem-focused coping strategies for organizations are job redesign and rotation, reduction of uncertainty, job security, company day care, flexible work schedules, job sharing, and telecommuting. Job redesign can reduce negative stress caused by high levels of role conflict, role ambiguity, overload, or underload, or to improve working conditions. The job characteristics model suggests which aspects are especially important to consider – skill variety, task identity, task significance, autonomy, and feedback. When job redesign is not an option, job rotation can sometimes alleviate stress. Increasing employee participation in decision making is one way to reduce uncertainty for employees. Another way is to improve communication. Whenever possible, provide employees with job security. Organizations can help employees cope effectively with stressful feelings and emotions through such things as on-site exercise facilities, organizational support, employee assistance programs, and personal days and sabbaticals. Employee assistance programs (EAPs) provide employees with professional help to deal with stressors. Employee health management programs (EHMPs) are a special kind of EAP designed to promote the well-being of employees and encourage healthy lifestyles.
• #29: Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas. A creative organization develops unique ways of working or novel solutions to problems. The outcomes of the creative process need to be turned into useful products or work methods, which is defined as innovation
• #30: The transformation process requires having the right environment to turn those inputs into innovative products or work methods. This “right” environment—that is, an environment that stimulates innovation—includes three variables: the organization’s structure, culture, and human resource practices. (See Exhibit 7-5.)
• #31: Innovative organizations actively promote the training and development of their members so their knowledge remains current; offer their employees high job security to reduce the fear of getting fired for making mistakes; and encourage individuals to become idea champions, actively and enthusiastically supporting new ideas, building support, overcoming resistance, and ensuring that innovations are implemented.