©Prentice Hall, 2001 Chapter 7 1

Managing Change Managing Change and Innovationand Innovation

©Prentice Hall, 2001 Chapter 7 2

Learning OutcomesLearning Outcomes• Describe the change variables a manager can

control• Study internal and external forces of change• Analyze managers as change agents• Contrast the “calm waters” and “white water

rapids” metaphors for change• Explain why people resist change

©Prentice Hall, 2001 Chapter 7 3

Learning OutcomesLearning Outcomes• Learn how to reduce resistance to change• Define organization development and learn

four OD techniques• Review the causes and symptoms of stress• Compare creativity and innovation• Learn how organizations can stimulate

innovation

©Prentice Hall, 2001 Chapter 7 4

Categories of Categories of ChangeChange

StructureStructurePeoplePeople

TechnologyTechnology

©Prentice Hall, 2001 Chapter 7 5

CompetitionCompetition

TechnologyTechnologyEconomicEconomicConditionsConditions

GovernmentGovernmentProgramsPrograms

External Forces of External Forces of ChangeChange

©Prentice Hall, 2001 Chapter 7 6

InternalInternalForces ofForces ofChangeChange Impact ofImpact of

ExternalExternalEventsEvents

InternalInternalOperationsOperations

©Prentice Hall, 2001 Chapter 7 7

OutsideOutsideConsultantsConsultants

StaffStaffSpecialistsSpecialistsManagersManagers

Agents of ChangeAgents of Change

©Prentice Hall, 2001 Chapter 7 8

The “Calm Waters” The “Calm Waters” MetaphorMetaphor

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

©Prentice Hall, 2001 Chapter 7 9

Lack ofLack ofStabilityStability

ConstantConstantChangeChange

Virtual Virtual ChaosChaos

Lack ofLack ofPredictabilityPredictability

White-WaterWhite-WaterRapidsRapids

©Prentice Hall, 2001 Chapter 7 10

Resistance to ChangeResistance to Change

Uncertainty and Ambiguity

Fear of Personal Loss

Lack of Faith in Change

©Prentice Hall, 2001 Chapter 7 11

Education andCommunication Participation

Negotiation Facilitationand Support

CoercionManipulationand Cooptation

Techniques forReducing Resistance

©Prentice Hall, 2001 Chapter 7 12

Techniques for Techniques for Managing ChangeManaging Change

AuthorityAuthority

CoordinationCoordination

CentralizationCentralization

AttitudesAttitudes

ExpectationsExpectations

BehaviorBehavior

ProcessesProcesses

MethodsMethods

EquipmentEquipment

PeoplePeopleTechnologyTechnologyStructureStructure

©Prentice Hall, 2001 Chapter 7 13

Organizational Organizational Development TechniquesDevelopment Techniques

• Intergroup development

• Process consultation

• Survey feedback

• Team building

©Prentice Hall, 2001 Chapter 7 14

ImportanceImportanceUncertaintyUncertainty

What Is Stress?What Is Stress?

DemandsDemandsConstraintsConstraints

©Prentice Hall, 2001 Chapter 7 15

OrganizationalOrganizationalStress FactorsStress Factors

Task DemandsTask Demands

Role DemandsRole Demands

Interpersonal DemandsInterpersonal Demands

Structural DimensionsStructural Dimensions

Leadership TechniquesLeadership Techniques

©Prentice Hall, 2001 Chapter 7 16

Personal StressPersonal StressFactorsFactors

FamilyFamily EconomicEconomicPersonalityPersonality

©Prentice Hall, 2001 Chapter 7 17

Physiological

Psychological

Behavioral

Stress

Three General Symptoms

©Prentice Hall, 2001 Chapter 7 18

Stress ManagementStress Management• Selection and placement

• Job redesign

• Participation

• Wellness programs

• Employee assistance

©Prentice Hall, 2001 Chapter 7 19

What IsWhat IsCreativity?Creativity?

• Combining new ideas in unique ways or associating ideas in unusual ways

What IsWhat IsInnovation?Innovation?

• Turning creative ideas into useful products, services, or methods of operation

©Prentice Hall, 2001 Chapter 7 20

The CreativeThe CreativeProcessProcess

PerceptionPerception

InnovationInnovation

IncubationIncubation

InspirationInspiration

©Prentice Hall, 2001 Chapter 7 21

StructuralStructuralVariablesVariables

Sources ofSources ofInnovationInnovation

OrganizationalOrganizationalCultureCulture

HumanHumanResourcesResources