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L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapterFollow this Learning Outline as you read and study this chapter..
Forces for Change: Two Views of the Change Forces for Change: Two Views of the Change ProcessProcess
• Discuss the external and internal forces for change.Discuss the external and internal forces for change.
• Contrast the calm waters and white-water rapids Contrast the calm waters and white-water rapids metaphors of change.metaphors of change.
• Explain Lewin’s three-step model of the change process.Explain Lewin’s three-step model of the change process.
L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
Managing ChangeManaging Change
• Explain why people resist change and how resistance Explain why people resist change and how resistance might be managed.might be managed.
Contemporary Issues in Managing ChangeContemporary Issues in Managing Change
• Explain why changing organizational culture is so difficult Explain why changing organizational culture is so difficult and how managers can do it.and how managers can do it.
• Describe employee stress and how managers can help Describe employee stress and how managers can help employees deal with stress.employees deal with stress.
• Discuss what it takes to make change happen Discuss what it takes to make change happen successfully.successfully.
L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter.
Stimulating InnovationStimulating Innovation
• Explain why innovation isn’t just creativity.Explain why innovation isn’t just creativity.
• Explain the systems view of innovation.Explain the systems view of innovation.
• Describe the structural, cultural, and human resource Describe the structural, cultural, and human resource variables that are necessary for innovation.variables that are necessary for innovation.
• Explain what idea champions are and why they’re Explain what idea champions are and why they’re important to innovation.important to innovation.
• 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.
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.
• 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
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.
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
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
Exhibit 13–5Exhibit 13–5 Strategies for Managing Cultural ChangeStrategies for Managing Cultural Change
• Set the tone through management behavior; top managers, Set the tone through management behavior; top managers, particularly, need to be positive role models.particularly, need to be positive role models.
• Create new stories, symbols, and rituals to replace those Create new stories, symbols, and rituals to replace those currently in use.currently in use.
• Select, promote, and support employees who adopt the new Select, promote, and support employees who adopt the new values.values.
• Redesign socialization processes to align with the new values.Redesign socialization processes to align with the new values.
• To encourage acceptance of the new values, change the reward To encourage acceptance of the new values, change the reward system.system.
• Replace unwritten norms with clearly specified expectations.Replace unwritten norms with clearly specified expectations.
• Shake up current subcultures through job transfers, job rotation, Shake up current subcultures through job transfers, job rotation, and/or terminations.and/or terminations.
• Work to get consensus through employee participation and Work to get consensus through employee participation and creating a climate with a high level of trust.creating a climate with a high level of trust.
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.
Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)
• Reducing StressReducing Stress Engage in proper employee selectionEngage in proper employee selection Match employees’ KSA’s to jobs’ Tasks, Duties, and Match employees’ KSA’s to jobs’ Tasks, Duties, and
Responsibilities (TDR’s)Responsibilities (TDR’s) 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 Sponsor wellness programsSponsor wellness programs
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.
• 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.