Chapter 12 management (9 th edition) by robbins and coulter

ninth edition

STEPHEN P. ROBBINS

© 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved.All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

MARY COULTER

Managing Change Managing Change and Innovationand Innovation

ChapterChapter

1313

© 2007 Prentice Hall, Inc. All rights reserved. 13–2

What Is Change?What Is Change?• Organizational ChangeOrganizational Change

Any alterations in the people, structure, or technology Any alterations in the people, structure, or technology of an organizationof an organization

• Characteristics of ChangeCharacteristics of Change Is constant yet varies in degree and directionIs constant yet varies in degree and direction Produces uncertainty yet is not completely Produces uncertainty yet is not completely

unpredictableunpredictable Creates both threats and opportunitiesCreates both threats and opportunities

• Managing change is an integral partManaging change is an integral partof every manager’s job.of every manager’s job.


Forces for ChangeForces for Change• External ForcesExternal Forces

MarketplaceMarketplace Governmental laws Governmental laws

and regulationsand regulations TechnologyTechnology Labor marketLabor market Economic changesEconomic changes

• Internal ForcesInternal Forces Changes in Changes in

organizational organizational strategystrategy

Workforce changesWorkforce changes New equipmentNew equipment Employee attitudesEmployee attitudes


Change Process ViewpointsChange Process Viewpoints• The Calm Waters MetaphorThe Calm Waters Metaphor

Lewin’s description of the change process as a break Lewin’s description of the change process as a break in the organization’s equilibrium statein the organization’s equilibrium state UnfreezingUnfreezing the status quo the status quo ChangingChanging to a new state to a new state RefreezingRefreezing to make the change permanent to make the change permanent

• White-Water Rapids MetaphorWhite-Water Rapids Metaphor The lack of environmental stability and predictability The lack of environmental stability and predictability

requires that managers and organizations continually requires that managers and organizations continually adapt (manage change actively) to survive.adapt (manage change actively) to survive.


Exhibit 13–1Exhibit 13–1 The Change ProcessThe Change Process


Change AgentsChange Agents• Change AgentsChange Agents

Persons who act as catalysts and assume the Persons who act as catalysts and assume the responsibility for managing the change process.responsibility for managing the change process.

• Types of Change AgentsTypes of Change Agents Managers: internal entrepreneursManagers: internal entrepreneurs Nonmanagers: change specialistsNonmanagers: change specialists Outside consultants: change implementation expertsOutside consultants: change implementation experts


Exhibit 13–2Exhibit 13–2 Three Categories of ChangeThree Categories of Change


Types of ChangeTypes of Change• StructuralStructural

Changing an organization’s Changing an organization’s structural components or its structural components or its structural designstructural design

• TechnologicalTechnological Adopting new equipment, Adopting new equipment,

tools, or operating methods tools, or operating methods that displace old skills and that displace old skills and require new onesrequire new ones Automation: replacing Automation: replacing

certain tasks done by certain tasks done by people with machinespeople with machines

ComputerizationComputerization

• PeoplePeople Changing attitudes, Changing attitudes,

expectations, perceptions, expectations, perceptions, and behaviors of the and behaviors of the workforceworkforce

• Organizational Organizational development (OD)development (OD) Techniques or programs to Techniques or programs to

change people and the change people and the nature and quality of nature and quality of interpersonal work interpersonal work relationships.relationships.


Organizational DevelopmentOrganizational Development• Organizational Development (OD)Organizational Development (OD)

Techniques or programs to change people and the Techniques or programs to change people and the nature and quality of interpersonal work relationships.nature and quality of interpersonal work relationships.

• Global ODGlobal OD OD techniques that work for U.S. organizations may OD techniques that work for U.S. organizations may

be inappropriate in other countries and cultures.be inappropriate in other countries and cultures.


Exhibit 13–3Exhibit 13–3 Organizational Development TechniquesOrganizational Development Techniques


Managing Resistance to ChangeManaging Resistance to Change• Why People Resist Change?Why People Resist Change?

The ambiguity and uncertainty that change introducesThe ambiguity and uncertainty that change introduces

The comfort of old habitsThe comfort of old habits

A concern over personal loss of status, money, A concern over personal loss of status, money, authority, friendships, and personal convenienceauthority, friendships, and personal convenience

The perception that change is incompatible with the The perception that change is incompatible with the goals and interest of the organizationgoals and interest of the organization


Exhibit 13–4Exhibit 13–4 Managerial Actions to Reduce Resistance to ChangeManagerial Actions to Reduce Resistance to Change

• Education and communicationEducation and communication• ParticipationParticipation• Facilitation and supportFacilitation and support• Manipulation and co-optationManipulation and co-optation• Selecting people who accept changeSelecting people who accept change• CoercionCoercion


Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)• Changing Organizational CulturesChanging Organizational Cultures

Cultures are naturally resistant to change.Cultures are naturally resistant to change. Conditions that facilitate cultural change:Conditions that facilitate cultural change:

The occurrence of a dramatic crisisThe occurrence of a dramatic crisis Leadership changing handsLeadership changing hands A young, flexible, and small organizationA young, flexible, and small organization A weak organizational cultureA weak organizational culture


Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)• Handling Employee StressHandling Employee Stress

StressStress The adverse reaction people have to excessive pressure The adverse reaction people have to excessive pressure

placed on them from extraordinary demands, constraints, or placed on them from extraordinary demands, constraints, or opportunities. opportunities.

Functional StressFunctional Stress

– Stress that has a positive effect on performance.Stress that has a positive effect on performance.

How Potential Stress Becomes Actual StressHow Potential Stress Becomes Actual Stress When there is uncertainty over the outcome.When there is uncertainty over the outcome. When the outcome is important.When the outcome is important.


Exhibit 13–6Exhibit 13–6 Causes of StressCauses of Stress


Exhibit 13–7Exhibit 13–7 Symptoms of StressSymptoms of Stress


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

Engage in proper employee selectionEngage in proper employee selection Use realistic job interviews for reduce ambiguityUse realistic job interviews for reduce ambiguity Improve organizational communicationsImprove organizational communications Develop a performance planning programDevelop a performance planning program Use job redesignUse job redesign Provide a counseling programProvide a counseling program Offer time planning management assistanceOffer time planning management assistance


Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)• Making Change Happen SuccessfullyMaking Change Happen Successfully

Embrace changeEmbrace change—become a change-capable —become a change-capable organization.organization.

Create a simple, compelling message explaining why Create a simple, compelling message explaining why change is necessary.change is necessary.

Communicate constantly and honestly.Communicate constantly and honestly. Foster as much employee participation as possible—Foster as much employee participation as possible—

get all employees committed.get all employees committed. Encourage employees to be flexible.Encourage employees to be flexible. Remove those who resist and cannot be changed.Remove those who resist and cannot be changed.


Exhibit 13–8Exhibit 13–8 Characteristics of Change-Capable OrganizationsCharacteristics of Change-Capable Organizations

• Link the present and Link the present and the future.the future.

• Make learning a way Make learning a way of life.of life.

• Actively support and Actively support and encourage day-to-day encourage day-to-day improvements and improvements and changes.changes.

• Ensure diverse teams.Ensure diverse teams.

• Encourage mavericks.Encourage mavericks.

• Shelter breakthroughsShelter breakthroughs

• Integrate technology.Integrate technology.

• Build and deepen trust.Build and deepen trust.


Stimulating InnovationStimulating Innovation• CreativityCreativity

The ability to combine ideas in a unique way or to The ability to combine ideas in a unique way or to make an unusual association.make an unusual association.

• InnovationInnovation Turning the outcomes of the creative process into Turning the outcomes of the creative process into

useful products, services, or work methods.useful products, services, or work methods.• Idea ChampionIdea Champion

Dynamic self-confident leaders who actively and Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that support, overcome resistance, and ensure that innovations are implemented.innovations are implemented.


Exhibit 13–9Exhibit 13–9 Innovative Companies Around the WorldInnovative Companies Around the World

Data: Boston Consulting Group * We broke ties by comparing 10-year annualized total shareholder returns. In ties between a public and a private company, the public company was favored.

Source: “A Global Pulse of Innovation,” BusinessWeek, April 24, 2006, p. 74.


Exhibit 13–10Exhibit 13–10 Systems View of InnovationSystems View of Innovation

Source: Adapted from R.W. Woodman, J.E. Sawyer, and R.W. Griffin, “Toward a Theory of Organizational Creativity,” Academy of Management Review, April 1993, p. 309.


Exhibit 13–11Exhibit 13–11Innovation Innovation VariablesVariables


Terms to KnowTerms to Know• organizational changeorganizational change• change agentchange agent• organizational organizational

development (OD)development (OD)• stressstress• creativitycreativity• innovationinnovation• idea championidea champion