PART III Organizing 7 Chapter 7 Managing Change

PART III: Organizing 7 Chapter 7 Managing Change, Stress, and Innovation Copyright © 2005 Prentice Hall, Inc. All rights reserved. Power. Point Presentation by Charlie Cook The University of West Alabama

Learning Outcomes After reading this chapter, I will be able to: 1. Describe what change variables are within a manager’s control. 2. Identify external and internal forces for change. 3. Explain how managers can serve as change agents. 4. Contrast the “calm waters” and “white-water rapids” metaphors for change. 5. Explain why people are likely to resist change. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2

Learning Outcomes (cont’d) After reading this chapter, I will be able to: 6. Describe techniques for reducing resistance to change. 7. Identify what is meant by the term organization development (OD) and specify four popular OD techniques. 8. Explain the causes and symptoms of stress. 9. Differentiate between creativity and innovation. 10. Explain how organization can stimulate innovation. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 3

What Is Change? • Change Ø An alteration of an organization’s environment, structure, technology, or people v. A constant force v An organizational reality v An opportunity or a threat • Change agent Ø A person who initiates and assumes the responsibility for managing a change in an organization Copyright © 2005 Prentice Hall, Inc. All rights reserved. 4

Three Categories of Change Exhibit 7. 1 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 5

Forces For Change • External forces Ø Marketplace competition Ø Government laws and regulations Ø New technologies Ø Labor market shifts Ø Cycles in the economy Ø Social change Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Internal forces Ø Strategy modifications Ø New equipment Ø New processes Ø Workforce composition Ø Restructured jobs Ø Compensation and benefits Ø Labor surpluses and shortages Ø Employee attitudes 6

Two Views Of The Change Process • “Calm waters” metaphor Ø A description of traditional practices in and theories about organizations that likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm • “White-water rapids” metaphor Ø A description of the organization as a small raft navigating a raging river Copyright © 2005 Prentice Hall, Inc. All rights reserved. 7

Change in “Calm Waters” • Kurt Lewin’s Three-Step Process Ø Unfreezing v The driving forces, which direct behavior away from the status quo, can be increased. v The restraining forces, which hinder movement from the existing equilibrium, can be decreased. v The two approaches can be combined. Ø Implementation of change Ø Refreezing Copyright © 2005 Prentice Hall, Inc. All rights reserved. 8

The Change Process Exhibit 7. 2 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9

Change In “White-water Rapids” • Change is constant in a dynamic environment. • The only certainty is continuing uncertainty. • Competitive advantages do not last. • Managers must quickly and properly react to unexpected events. Ø Be alert to problems and opportunities Ø Become change agents in stimulating, implementing and supporting change in the organization Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10

Why People Resist Change Exhibit 7. 3 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 11

Techniques for Reducing Resistance to Change TECHNIQUE WHEN USED Education and communication When resistance is due to misinformation Participation When resisters have the expertise to make a contribution Facilitation and support When resisters are fearful and anxiety-ridden Negotiation Necessary when resistance comes from a powerful group Manipulation When a powerful group’s cooperation and an endorsement is is needed Coercion When a powerful group’s endorsement is needed Exhibit 7. 4 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12

Making Changes In The Organization • Changing structure Ø Alterations in authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables. • Changing technology Ø Modifications in the way work is processed or the methods and equipment used. • Changes in people Ø Changes in employee attitudes, expectations, perceptions, or behaviors. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13

Implementing Planned Changes • Organization development (OD) Ø An activity (intervention) designed to facilitate planned, long-term organization-wide change v Focuses on the attitudes and values of organizational members; v Is essentially an effort to change an organization’s culture. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 14

Typical OD Techniques • Survey feedback Ø A method of assessing employees’ attitudes toward and perceptions of a change they are encountering by asking specific questions • Process consultation Ø The use of consultants from outside an organization to help change agents within the organization assess process events such as workflow, informal intraunit relationships, and formal communications channels Copyright © 2005 Prentice Hall, Inc. All rights reserved. 15

Typical OD Techniques (cont’d) • Team-building Ø An activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member • Intergroup development Ø An activity that attempts to make several work groups become more cohesive Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16

Stress: The Aftermath Of Organizational Change • Stress Ø Occurs when individuals confront a situation related to their desires for which the outcome is perceived to be both uncertain and important. v Positive stress: when the situation offers an opportunity for one to gain something v Negative stress: when constraints or demands are placed on individuals • Stressor Ø A factor that causes stress Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17

Sources of Stress • Constraints Ø Barriers that keep us from doing what we desire. Ø Inhibit individuals in ways that take the control of a situation out of their hands • Demands Ø Cause persons to give up something they desire. Ø Demands preoccupy your time and force you to shift priorities. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 18

Change, Dilbert Style Source: DILBERT reprinted by permission of United Feature Syndicate, Inc. Copyright © 2005 Prentice Hall, Inc. All rights reserved. Exhibit 7. 5 19

Stressors • Personal Ø Family issues Ø Personal economic problems Ø Inherent personality characteristics. Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Organizational Ø Task demands Ø Role demands Ø Technological advancements Ø Work process engineering Ø Downsizing Ø Restructuring 20

Organizational Stressors: Role Demands • Role conflicts Ø Work expectations that are hard to satisfy • Role overload Ø Having more work to accomplish than time permits • Role ambiguity Ø When role expectations are not clearly understood Copyright © 2005 Prentice Hall, Inc. All rights reserved. 21

Personality Types • Type A personality Ø People who have a chronic sense of urgency and an excessive competitive drive Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Type B personality Ø People who are relaxed and easygoing and accept change easily 22

Symptoms Of Stress • Psychological symptoms Ø Increased tension Ø Anxiety Ø Boredom Ø Procrastination Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Behavior-related symptoms Ø Changes in eating habits Ø Increased smoking Ø Substance consumption Ø Rapid speech Ø Sleep disorders 23

Reducing Stress • Person-job fit concerns Ø Match employees to their jobs, clarify expectations, redesign jobs, and increase employee involvement and participation • Employee assistance programs (EAPs) Ø Programs that help employees overcome personal and health-related problems • Wellness programs Ø Programs that help employees prevent health problems Copyright © 2005 Prentice Hall, Inc. All rights reserved. 24

Stimulating Innovation • Creativity Ø The ability to combine ideas in a unique way or to make unusual connections • Innovation Ø The process of taking a creative idea and turning it into a useful product, service, or method of operation v Perception v Incubation v Inspiration v Innovation Copyright © 2005 Prentice Hall, Inc. All rights reserved. 25

Structural Variables Affecting Innovation • Organic structures Ø Positively influence innovation through less work specialization, fewer rules and decentralization • Easy availability of plentiful resources Ø Allow management to purchase innovations, bear the cost of instituting innovations, and absorb failures. • Frequent interunit communication Ø Helps to break down barriers to innovation by facilitating interaction across departmental lines. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 26

Characteristics of an Innovative Culture • Acceptance of ambiguity • Tolerance of the impractical • Low external controls • Tolerance of risk • Tolerance of conflict • Focus on ends rather than on means • Open systems focus Copyright © 2005 Prentice Hall, Inc. All rights reserved. 27

HR Variables Affecting Innovation • HR practices that foster innovation Ø Promotion of training and development so employee knowledge remains current Ø Offer employees high job security to reduce fear of making mistakes and taking risks Ø Encourage employees to become champions of change Copyright © 2005 Prentice Hall, Inc. All rights reserved. 28

Web Links • Visit the Robbins/De. Cenzo companion Website Ø At www. prenhall. com/robbins for this chapter’s Internet resources, including chapter quiz and student Power. Points. • Enhancing Your Communication Skills Ø Go to the employee assistance program provider Interlock’s Web site at www. interlock. com. Research the following information: v (a) What are the components of an EAP and how does Interlock evaluate an EAP program’s success? v (b) Identify how Interlock recommends implementing an EAP in an organization. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 29

Web Links (cont’d) • Diversity Perspectives Ø Log onto www. prenhall. com/onekey and imagine you are a member of the OD (Organizational Development) team working to reduce resistance to change and lower stress. • Enhancing Your Skill in Ethical Decision Making Ø An independent panel investigating Boeing’s hiring practices recommended 10 changes to prevent future ethical problems. Now it’s your turn—log onto www. prenhall. com/onekey and build your skill in ethical decision making! Copyright © 2005 Prentice Hall, Inc. All rights reserved. 30

Video Case Application Stress Insert Video Link Here (Size to this window) Copyright © 2005 Prentice Hall, Inc. All rights reserved. 31