8 Chapter Managing Change and Innovation Copyright 2015

8 Chapter Managing Change and Innovation Copyright © 2015 Pearson Education, Inc. 8 -1

Learning Outcomes • Define organizational change and compare and contrast views on the change process. • Explain how to manage resistance to change. • Describe what managers need to know about employee stress. • Discuss techniques for stimulating innovation. Copyright © 2015 Pearson Education, Inc. 8 -2

8. 1 Define organizational change and compare and contrast views on the change process. Copyright © 2015 Pearson Education, Inc. 8 -3

What is Organizational Change? Copyright © 2015 Pearson Education, Inc. 8 -4

External Factors • • • Marketplace Government laws and regulations Technology Labor markets Economic changes Copyright © 2015 Pearson Education, Inc. 8 -5

Internal Factors • Strategy • Composition of workforce • Employee attitudes Copyright © 2015 Pearson Education, Inc. 8 -6

Initiating Change Organizational changes need a catalyst. Copyright © 2015 Pearson Education, Inc. 8 -7

Two Different Approaches “Calm waters” metaphor “White-water rapids” metaphor Copyright © 2015 Pearson Education, Inc. 8 -8

Calm Waters Change Copyright © 2015 Pearson Education, Inc. 8 -9

White-Water Rapids Change Leading a company in change, in an industry in change. Copyright © 2015 Pearson Education, Inc. 8 -10

Implementing Change Organization development (OD): Efforts that assist organizational members with a planned change by focusing on their attitudes and values. Copyright © 2015 Pearson Education, Inc. 8 -11

Organization Development Efforts 1. 2. 3. 4. Survey feedback Process consultation Team-building Intergroup development Copyright © 2015 Pearson Education, Inc. 8 -12

8. 2 Explain how to manage resistance to change. Copyright © 2015 Pearson Education, Inc. 8 -13

Resistance to Change 1. Uncertainty 2. Habit 3. Concern over personal loss 4. Belief change is not in organization’s best interests Copyright © 2015 Pearson Education, Inc. 8 -14

Reducing Resistance to Change Copyright © 2015 Pearson Education, Inc. 8 -15

8. 3 Describe what managers need to know about employee stress. Copyright © 2015 Pearson Education, Inc. 8 -16

Employee Reactions to Change often creates stress for employees! Copyright © 2015 Pearson Education, Inc. 8 -17

Change Often Creates Stress for Employees Copyright © 2015 Pearson Education, Inc. 8 -18

Symptoms of Stress Copyright © 2015 Pearson Education, Inc. 8 -19

Reducing Stress Copyright © 2015 Pearson Education, Inc. 8 -22

8. 4 Discuss techniques for stimulating innovation. Copyright © 2015 Pearson Education, Inc. 8 -23

Creativity and Innovation Creativity: The ability to produce novel and useful ideas. Innovation: The process of taking a creative idea and turning it into a useful product, service, or method of operation. Copyright © 2015 Pearson Education, Inc. 8 -24

Innovation Process 1. 2. 3. 4. Perception Incubation Inspiration Innovation Copyright © 2015 Pearson Education, Inc. 8 -25

Encouraging Innovation Copyright © 2015 Pearson Education, Inc. 8 -26

Structural Variables and Innovation 1. 2. 3. 4. 5. Organic structures Abundant resources High interunit communication Minimal time pressure Work and nonwork support Copyright © 2015 Pearson Education, Inc. 8 -27

Culture and Innovation • • Acceptance of ambiguity Tolerance of the impractical Low external controls Tolerance of risks Tolerance of conflict Focus on ends Open-system focus Positive feedback Copyright © 2015 Pearson Education, Inc. 8 -28

HR and Innovation Copyright © 2015 Pearson Education, Inc. 8 -29

8 -30