chapter 13 managing change and innovation © 2003 pearson education canada inc.13.1

Chapter 13MANAGING

CHANGE ANDINNOVATION

© 2003 Pearson Education Canada Inc. 13.113.1

© 2003 Pearson Education Canada Inc.

LEARNING OBJECTIVES• You should be able to:

– Contrast the calm waters and white-water rapids metaphors of change

– Describe what managers can change in organizations– Explain why people are likely to resist change– List techniques for reducing resistance to change– Describe the situational factors that facilitate cultural

change

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LEARNING OBJECTIVES (continued)

• You should be able to:

– Explain how process reengineering is related to change

– Describe techniques for reducing employee stress

– Differentiate between creativity and innovation– Explain how organizations can stimulate and

nurture innovation

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WHAT IS CHANGE?

• Organizational Change

– Alterations in people, structure, or technology

– Change is an organizational reality

– Managing change is an integral part of every manager’s job

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FORCES FOR CHANGE

• External Forces– Marketplace - adapt to changing consumer desires– Governmental laws and regulations - frequent impetus

for change– Technology - source of change in almost all industries– Labour markets - ability to attract and retain skilled

employees in the areas of greatest need– Economic - uncertainties about interest rates, budget

deficits, and currency exchange rates

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FORCES FOR CHANGE (continued)

• Internal Forces– Originate from the operations of the organization– Forces may include strategy, workforce, new

equipment, or employee attitudes

• Manager as change agent– Change agents - act as catalysts and assume

responsibility for change

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TWO VIEWS OF THE CHANGE PROCESS

• The Calm Waters Metaphor– Unfreezing - preparing for the needed change by:

• increasing the driving forces that direct behaviour away from the status quo

• decreasing the restraining forces that push behaviour towards the status quo

– Changing - move to another equilibrium level– Refreezing - make change permanent– Change is a break in the organization’s equilibrium

state13.713.7


THE CHANGE PROCESS (Exhibit 13.1)

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TWO VIEWS OF THE CHANGE PROCESS (continued)

• White-Water Rapids Metaphor– Consistent with uncertain and dynamic environments– Consistent with a world increasingly dominated by

information, ideas, and knowledge– Managers must continually maneuver in uninterrupted

rapids– Today, managers must be ready to efficiently and

effectively manage the changes facing their organizations or their work areas

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CATEGORIES OF CHANGE (Exhibit 13.2)

Work specialization,departmentalization, chain of command, span of control, centralization, formalization, job redesign, or actual design

Structure

Attitudes, expectations,perceptions, andbehavior

People

Work processes, methods,and equipment

Technology

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MANAGING CHANGE• Initiating Change:

– Identifying what organizational areas might need to be changed

– Putting the change process in motion– Managing employee resistance to change

• Types of Change– Changing structure - organization’s

formal design, centralization, degree of formalization, and work specialization

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MANAGING CHANGE(continued)

• Types of Change (continued)– Changing technology - modifications in

the way work is performed– Changing people - changes in employee

attitudes, expectations, perceptions, and behaviour• organizational development (OD) -

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

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ORGANIZATIONAL DEVELOPMENT TECHNIQUES (Exhibit 13.3)

MOREEFFECTIVE

INTERPERSONALWORK

ENVIRONMENT

ProcessConsultation

IntergroupDevelopment

SensitivityTraining

SurveyFeedback

TeamBuilding

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MANAGING CHANGE (continued)

• Dealing with Resistance to Change– Why people resist change

• change replaces the known with ambiguity and uncertainty

• change threatens investments in the status quo

• belief that change is incompatible with the goals and interests of the organization

– Techniques for reducing resistance• a variety of actions available to managers to deal

with dysfunctional resistance

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WAYS TO REDUCE RESISTANCE TO CHANGE (Exhibit 13.4)

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CONTEMPORARY ISSUES IN MANAGING CHANGE

• Changing Organizational Culture– Culture resistant to change because it is made up of

relatively stable and permanent characteristics– Strong cultures are particularly resistant to change– Understanding the situational factors - makes cultural

change more likely• dramatic crisis occurs

• leadership changes hands

• organization is young and small

• culture is weak

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CONTEMPORARY ISSUES IN MANAGING CHANGE (continued)

• Changing Organizational Culture (continued)– How Can Cultural Change Be Accomplished?

• requires a comprehensive and coordinated strategy– unfreeze the current culture– implement new “ways of doing things”– reinforce those new values

• change, if it comes, is likely to be slow

• protect against any return to old, familiar practices and traditions

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THE ROAD TO CULTURAL CHANGE (Exhibit 13.5)

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CONTINUOUS QUALITY IMPROVEMENT VERSUS

REENGINEERING (Exhibit 13.6)Continuous Quality Improvement• Continuous, incremental change

• Fixing and improving

• Mostly “as is”

• Works from bottom up in organization

Reengineering• Radical change

• Redesigning - starting over

• Mostly “what can be”

• Initiated by top management

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CONTEMPORARY ISSUES IN MANAGING CHANGE (continued)• Continuous Quality Improvement Programs

– Continuous, small, incremental changes– Fix and improve current work activities– Rely on participative decision making from the

bottom levels• Process reengineering

– Dramatic shift in the way an organization does its work

– Begins with the redesign of work– Requires participation from managers and workers

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CONTEMPORARY ISSUES IN MANAGING CHANGE (continued)• Handling Employee Stress

– What is Stress? • a dynamic condition a person faces when confronted

with an opportunity, constraint, or demand related to what s/he desires

• stress is not necessarily bad

• potential stress becomes actual stress when:

– outcome is both uncertain

– outcome is important

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CONTEMPORARY ISSUES IN MANAGING CHANGE (continued)• Handling Employee Stress (continued)

– Causes of Stress• found in organizational and personal factors• change of any kind is potentially stressful• uncertainty around important matters

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CAUSES OF STRESS

STRESS Job-RelatedPersonal Factors

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SYMPTOMS OF STRESS (Exhibit 13.7)

Symptomsof Stress

Physiological

Behavioural

Psychological

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– Reducing stress• controlling certain organizational factors

– employee’s abilities should match job requirements– improve organizational communications

• reduce ambiguity– performance planning program

• clarify job responsibilities• provide performance feedback

– job redesign• reduce boredom or work overload

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– Reducing stress (continued)• offering help for personal stress

– general considerations– available approaches

• employee counseling• time management program• sponsored wellness programs

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STIMULATING INNOVATION

• Creativity versus Innovation– Creativity - ability to combine ideas in a

unique way or to make unusual associations between ideas

– Innovation - process of transforming creative ideas into a useful product, service, or method of operation

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SYSTEMS VIEW OF INNOVATION (Exhibit 13.8)

Creative individuals,groups,organizations

Creative processCreative situation

Creative product(s)

Inputs Transformation Outputs



STIMULATING INNOVATION (continued)

• Stimulating and Nurturing Innovation– Must focus on inputs

– Requires appropriate environment • structural variables cultural variables

– encourage experimentation

– reward success and failures

– celebrate mistakes

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STIMULATING INNOVATION (continued)

• Stimulating and Nurturing Innovation (continued)– Appropriate environment (continued)

• cultural variables– encourage experimentation– reward success and failures– celebrate mistakes

• human resource variables– promote training and development of employees– offer high job security– encourage individuals to become idea champions

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INNOVATION VARIABLES (Exhibit 13.9)


chapter 13 managing change and innovation © 2003 pearson education canada inc.13.1

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