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Introduction to Management
LECTURE 25:
Introduction to Management
MGT 101
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Introduction to Management
In lecture 24 we discussed
Topics from Chapter 11:• Group Decision• Conflict Management• Teams Management
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Introduction to Management
Today in Chapter 12 we will discuss
• What is Change ?• The Change Process.• Organizational Development• Innovation
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Introduction to Management (Chapter 12)
Chapter 12:
Managing Change & Innovations
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Introduction to Management (Chapter 12)
What is Change ?
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Introduction to Management (Chapter 12)
What Is Change?
Characteristics of ChangeIs constant yet varies in degree and directionProduces uncertainty yet is not completely unpredictableCreates both threats and opportunities
Managing change is an integral partof every manager’s job.
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Introduction to Management (Chapter 12)
External and Internal Forces for Change
External• Changing consumer needs and wants• New governmental laws• Changing technology• Economic changes
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Introduction to Management (Chapter 12)
External and Internal Forces for Change
Internal• New organizational strategy• Change in composition of workforce• New equipment• Changing employee attitudes
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Introduction to Management (Chapter 12)
The Change Process
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Introduction to Management (Chapter 12)
The Change Process
The Calm Waters MetaphorLewin’s description of the change process as a break in the organization’s equilibrium stateUnfreezing the status quoChanging to a new stateRefreezing to make the change permanent
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Introduction to Management (Chapter 12)
The Change Process
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Introduction to Management (Chapter 12)
White-Water Rapids Metaphor
The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.
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Introduction to Management (Chapter 12)
Organizational Change & Change Agents
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Introduction to Management (Chapter 12)
Organizational ChangeAny alterations in the people, structure, or technology of an organization
Change AgentsPersons who act as catalysts and assume the responsibility for managing the change process.
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Introduction to Management (Chapter 12)
Types of Change Agents
Managers: internal entrepreneurs
Nonmanagers: change specialists
Outside consultants: change implementation experts
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Introduction to Management (Chapter 12)
Structure
Changing an organization’s structural components or its structural design
Types of Change
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Introduction to Management (Chapter 12)
TechnologyAdopting new equipment, tools, or operating methods that displace old skills and require new ones
Automation: replacing certain tasks done by people with machinesComputerization
PeopleChanging attitudes, expectations, perceptions, and behaviors of the workforce
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Introduction to Management (Chapter 12)
Three Types of Change
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Introduction to Management (Chapter 12)
Organizational Development
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Introduction to Management (Chapter 12)
Organizational Development (OD)
Techniques or programs to change people and the nature and quality of interpersonal work relationships.
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Introduction to Management (Chapter 12)
Popular OD Techniques
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Introduction to Management (Chapter 12)
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 interest of the organization
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Introduction to Management (Chapter 12)
Issues in Managing Change
Changing Organizational Cultures
Cultures are naturally resistant to change.
Conditions that facilitate cultural change:
The occurrence of a dramatic crisis
Leadership changing hands
A young, flexible, and small organization
A weak organizational culture
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Introduction to Management (Chapter 12)
Issues in Managing Change
Handling Employee StressStress
The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
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Introduction to Management (Chapter 12)
Issues in Managing Change
Functional StressStress that has a positive effect on performance.
How Potential Stress Becomes Actual Stress
When there is uncertainty over the outcome.When the outcome is important.
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Introduction to Management (Chapter 12)
Symptoms of Stress
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Introduction to Management (Chapter 12)
Innovation
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Introduction to Management (Chapter 12)
CreativityThe ability to combine ideas in a unique way or to make an unusual association.
InnovationTurning the outcomes of the creative process into useful products, services, or work methods.
Stimulating Innovation
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Introduction to Management (Chapter 12)
Systems View of Innovation
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Introduction to Management (Chapter 12)
Innovation Variables