Chapter 12 Managing Change Chapter 12 Stephen P

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Chapter 12 Managing Change Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton,

Chapter 12 Managing Change Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -1

LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter •

LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter • Forces for Change – Define organizational change – Discuss the external and internal forces for change – Contrast internal and external change agents Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -2

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter • Two Views of the Change Process – Contrast the calm waters and white-water rapids metaphors of change – Explain Lewin’s three-step model of the change process – Discuss the environment that managers face today Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -3

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter • Managing Change – Explain how managers might change structure, technology, and people – Discuss what it takes to make change happen successfully – Explain why people resist change and how resistance might be managed Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -4

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter

LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter • Current 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 it Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -5

What Is Change? • Organizational Change – Any alterations in the people, structure, or

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 Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -6

Forces for Change • External forces – Marketplace – Governmental laws and regulations –

Forces for Change • External forces – Marketplace – Governmental laws and regulations – Technology – Labour markets – Economic changes • Internal Forces – Changes in organizational strategy – Workforce changes – New equipment – Employee attitudes Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -7

The Manager as Change Agent • Change Agents – People who act as catalysts

The Manager as Change Agent • Change Agents – People who act as catalysts and assume the responsibility for changing process • Types of Change Agents – Managers: internal entrepreneurs – Nonmanagers: change specialists – Outside consultants: change implementation experts Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -8

Change Process Viewpoints • The Calm Waters Metaphor – Lewin: a break in the

Change Process Viewpoints • The Calm Waters Metaphor – Lewin: 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 Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -9

Exhibit 12. 1 The Change Process Unfreezing Changing Chapter 12, Stephen P. Robbins, Mary

Exhibit 12. 1 The Change Process Unfreezing Changing Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada Refreezing 12 -10

Exhibit 12. 2 Three Categories of Change Structure Work specialization, departmentalization, chain of command,

Exhibit 12. 2 Three Categories of Change Structure Work specialization, departmentalization, chain of command, span of control, centralization, formalization, job redesign, or actual structural design Technology Work processes, methods, and equipment People Attitudes, expectations, perceptions, and behaviour Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -11

Types of Change • Structural – Changing the organization’s structure or its structural components

Types of Change • Structural – Changing the organization’s structure or its structural components • Technological – Adopting new equipment or operating methods that displace old skills and require new ones • People – Changing attitudes, expectations, perceptions, and behaviours of the workforce. • Automation: replacing certain tasks done by people with machines • Computerization Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -12

Exhibit 12. 3 Organizational Development Techniques A method of changing behaviour through unstructured group

Exhibit 12. 3 Organizational Development Techniques A method of changing behaviour through unstructured group interaction. A technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving the differences by using survey information in feedback groups. Sensitivity Training Survey Feedback Activities that help team members learn how each member thinks and works. MORE EFFECTIVE INTERPERSONAL WORK RELATIONSHIPS Process Consultation Team Building Intergroup Development An outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done. Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada Changing the attitudes, stereotypes, and perceptions that work groups have about each other. 12 -13

Introducing Change • Making Change Happen Successfully – – – Embrace change Explain why

Introducing Change • Making Change Happen Successfully – – – Embrace change Explain why change is necessary Communicate constantly and honestly Encourage employee participation Encourage employee flexibility Remove those who resist and cannot be changed Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -14

Exhibit 12. 4 Mistakes Managers Make When Leading Change Chapter 12, Stephen P. Robbins,

Exhibit 12. 4 Mistakes Managers Make When Leading Change Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -15

Exhibit 12. 5 Characteristics of Change-Capable Organizations • Link the present and the future

Exhibit 12. 5 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 Source: Based on P. A. Mc. Lagan, “The Change Capable Organization, ” Training & Development, January 2003, pp. 50 -58. Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -16

Managing Resistance to Change • Why People Resist Change – The ambiguity and uncertainty

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 interests of the organization Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -17

Exhibit 12. 6 Helping Employees Accept Change Unfreezing • Give reasons. • Be empathetic.

Exhibit 12. 6 Helping Employees Accept Change Unfreezing • Give reasons. • Be empathetic. • Communicate clearly. Changing • Explain the benefits. • Identify a champion. • Get input from employees. • Watch timing. • Maintain job security. • Provide training. • Proceed at a manageable pace. Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada Refreezing • Show top management’s support. • Publicize successes. • Make midcourse corrections. • Help employees deal with stress. Source: G. J. Iskat, “What to Do When Employees Resist Change, ” Supervision 57, no. 8 (August 1996), pp. 3 -5. 12 -18

Issues in Managing Change • Changing Organizational Cultures – Cultures are naturally resistant to

Issues in Managing Change • Changing Organizational Cultures – Cultures are naturally resistant to change – Conditions that help cultural change: • • Dramatic crisis Change of leadership Young, flexible, and small organization Weak organizational culture Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -19

Tips for Managers: Strategies for Managing Cultural Change • Set the tone through management

Tips for Managers: Strategies for Managing Cultural Change • Set the tone through management behaviour. Managers, particularly top management, need to be positive role models. • Create new stories, symbols, and rituals to replace those currently in vogue. • Select, promote, and support employees who adopt the new values that are sought. • Redesign socialization processes to align with the new values. Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -20

Tips for Managers: Strategies for Managing Cultural Change (cont’d) • Change the reward system

Tips for Managers: Strategies for Managing Cultural Change (cont’d) • Change the reward system to encourage acceptance of a new set of values. • Replace unwritten norms with formal rules and regulations that are tightly enforced. • Shake up current subcultures through transfers, job rotation, and/or terminations. • Work to get peer-group consensus through employee participation and creation of a climate with a high level of trust. Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -21

Issues in Managing Change (cont’d) • Handling Employee Stress – Stress • The physical

Issues in Managing Change (cont’d) • Handling Employee Stress – Stress • The physical and psychological tension an individual feels when confronted with extraordinary demands, constraints, or opportunities and their associated importance and uncertainties • Functional Stress – Stress that has a positive effect on performance Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -22

Exhibit 12. 7 Causes of Stress Chapter 12, Stephen P. Robbins, Mary Coulter, and

Exhibit 12. 7 Causes of Stress Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -23

Exhibit 12. 8 Symptoms of Stress PHYSICAL PSYCHOLOGICAL Changes in metabolism, increased heart and

Exhibit 12. 8 Symptoms of Stress PHYSICAL PSYCHOLOGICAL Changes in metabolism, increased heart and breathing rates, raised blood pressure, headaches, and potential of heart attacks SYMPTOMS OF STRESS Job-related dissatisfaction, tension, anxiety, irritability, boredom, and procrastination BEHAVIOURAL Changes in productivity, absenteeism, job turnover, changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, sleep disorders Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -24

Issues in Managing Change (cont’d) • Reducing Stress – – – – – Engage

Issues in Managing Change (cont’d) • Reducing Stress – – – – – Engage in proper employee selection Match employees’ abilities to job requirements Use realistic job previews to reduce ambiguity Improve organizational communications Develop a performance planning program Use job redesign Provide a counselling program Offer time planning management assistance Sponsor wellness programs Chapter 12, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 12 -25

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