©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

InternalInternalForces ofForces ofChangeChange Impact ofImpact of

ExternalExternalEventsEvents

Impact ofImpact ofExternalExternalEventsEvents

InternalInternalOperationsOperations

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

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

Uncertainty and Ambiguity

Fear of Personal Loss

Lack of Faith in Change

©Prentice Hall, 2001 Chapter 7 11

Education andCommunicationEducation and

Communication ParticipationParticipation

NegotiationNegotiation Facilitationand SupportFacilitationand Support

CoercionCoercionManipulationand CooptationManipulation

and Cooptation

Techniques forReducing Resistance

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

ImportanceImportanceImportanceImportanceUncertaintyUncertaintyUncertaintyUncertainty

What Is Stress?What Is Stress?What Is Stress?What Is Stress?

DemandsDemandsDemandsDemandsConstraintsConstraintsConstraintsConstraints

©Prentice Hall, 2001 Chapter 7 15

OrganizationalOrganizational

Stress FactorsStress Factors

OrganizationalOrganizational

Stress FactorsStress Factors

Task DemandsTask DemandsTask DemandsTask Demands

Role DemandsRole DemandsRole DemandsRole Demands

Interpersonal DemandsInterpersonal DemandsInterpersonal DemandsInterpersonal Demands

Structural DimensionsStructural DimensionsStructural DimensionsStructural Dimensions

Leadership TechniquesLeadership TechniquesLeadership TechniquesLeadership Techniques

©Prentice Hall, 2001 Chapter 7 16

Personal StressPersonal StressFactorsFactors

FamilyFamilyFamilyFamily EconomicEconomicEconomicEconomicPersonalityPersonalityPersonalityPersonality

©Prentice Hall, 2001 Chapter 7 17

PhysiologicalPhysiological

PsychologicalPsychological

BehavioralBehavioral

Stress

Three General Symptoms

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?

What IsWhat IsCreativity?Creativity?

• Combining new ideas

in unique ways or

associating ideas in

unusual ways

• Combining new ideas

in unique ways or

associating ideas in

unusual ways

What IsWhat IsInnovation?Innovation?

What IsWhat IsInnovation?Innovation?

• Turning creative ideas

into useful products,

services, or methods

of operation

• 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

StructuralStructuralVariablesVariablesStructuralStructuralVariablesVariables

Sources ofSources ofInnovationInnovationSources ofSources ofInnovationInnovation

OrganizationalOrganizationalCultureCulture

OrganizationalOrganizationalCultureCulture

HumanHumanResourcesResources

HumanHumanResourcesResources