1、CHAPTERTHIRTEENManaging Change and Innovation13Lecture OutlineIntroductionWhat Is Change?Forces for ChangeExternal ForcesTechnologyEconomic ChangesInternal ForcesThe Manager as Change AgentTwo Views of the Change ProcessThe Calm Waters MetaphorThe White-Water Rapids MetaphorPutting the Two Views in

2、PerspectiveManaging ChangeTypes of ChangeChanging StructureChanging TechnologyChanging PeopleDealing with Resistance to ChangeWhy People Resist ChangeTechniques for Reducing ResistanceEducation and CommunicationParticipationFacilitation and SupportNegotiationManipulation and CooptationCoercionContem

3、porary Issues in Managing ChangeChanging Organizational CulturesUnderstanding the Situational FactorsHow Can Cultural Change Be Accomplished?Continuous Quality Improvement Programs versus Process ReengineeringContinuous Quality Improvement ProgramsProcess ReengineeringHandling Employee StressWhat Is

4、 Stress?Causes of StressSigns of StressReducing StressStimulating InnovationCreativity versus InnovationStimulating and Nurturing InnovationStructural VariablesCultural VariablesHuman Resource VariablesChange. Its a constant that organizations and managers face. In the chapter-opening Managers Dilem

5、ma, Francisco Sanchez-Loaeza, Panamcos Chairman and CEO, is constantly confronting change. Panamco is Latin Americas largest Coca-Cola bottler and distributor and is a vital part of Cokes global operations. Sanchez-Loaeza proclaims that his most important managerial responsibility is keeping the com

6、panys employees focused on successful performance in a sea of change. Managers at Panamco are always encouraged to focus on flexibility, good communications, and quick reaction. However, although Panamcos managers appreciate and support the need for continual adaptation to marketplace demands, regul

7、ar nonmanagerial employees often dont understand why so much change is necessary. How would you educate your employees about the importance and necessity of change? This chapter covers the managers role in managing change and innovation.Many PowerPoint Slides, including both original text art and ne

8、wly created images, have been developed and are available for you to coordinate with Chapter 13 materials presentation.ANNOTATED OUTLINE1.INTRODUCTION.Change has always been a part of a managers job. Managing change and innovation are the focus of this chapter.NOTESEducational Materials to Use2.WHAT

9、 IS CHANGE?Organizational change is defined as any alteration in people, structure, or technology. Change is ever present in organizations and cannot be eliminated. Instead, we need to look at the key issues related to managing change.NOTESEducational Materials to Use3.FORCES FOR CHANGE.There are ex

10、ternal and internal forces that create the need for change. A.External forces that create the need for change come from various sources.1.The marketplace2.Government laws and regulations3.Technology4.Labor markets5.Economic changesNOTESEducational Materials to UseB.Internal forces tend to originate

11、primarily from the internal operations of the organization or from the impact of external changes.1.Changes in strategy2.Changes in the workforce3.New equipment4.Change in employee attitudesNOTESEducational Materials to UseC.The Manager as Change Agent.The manager may act as a change agent, which is

12、 an individual who acts as a catalyst and manages the change process.NOTESEducational Materials to Use4.TWO VIEWS OF THE CHANGE PROCESS.Two very different metaphors can be used to describe the change process.A.The calm waters metaphor characterizes the process of change as being like a ship crossing

13、 a calm sea. Its best illustrated by Lewins three-step process for change. (See Exhibit 13.1 on p. 340.)1.Unfreezing the equilibrium is the first step. This can be accomplished in one of three ways.a.Increasing driving forces, which direct behavior away from the status quo.b.Decreasing restraining f

14、orces, which hinder movement from the existing equilibrium. c.Combining the two approaches.2.The next step is to implement the change itself.3.The final step is to refreeze the situation.NOTESEducational Materials to UseB.The white-water rapids metaphor describes change that takes place in uncertain

15、 and dynamic environments. NOTESEducational Materials to UseC.If we put the two views in perspective, we must note that not every manager faces a world of constant and chaotic change. However, the number of managers who dont face this type of environment is dwindling fast!NOTESEducational Materials

16、to Use5.MANAGING CHANGE.A.Types of Change.The managers options for change essentially fall into three categories: structure, technology, and people. (See Exhibit 13.2 on p. 343.)1.Changing Structurea.Managers can alter one or more of the structural components such as work specialization, departmenta

17、lization, chain of command, span of control, centralization and decentralization, and formalization.b.Structural Designthe design of the organizational structure can be changed to meet new demands.NOTESEducational Materials to Use2.Changing Technology.a.Competitive factors or new innovations often r

18、equire introduction of new equipment, tools, or operating methods.b.Automation is a technological change that replaces certain tasks done by people with machines.c.Computerization has probably been the most visible technological change in recent years.NOTESEducational Materials to Use3.Changing peop

19、le is the third and final option. (See Exhibit 13.3 on p. 345.)a.Organizational development focuses on techniques or programs to change people and the nature and quality of interpersonal work relationships.b.Sensitivity training is a method of changing behavior through unstructured group interaction

20、.c.Survey feedback is a technique for assessing attitudes, identifying discrepancies in them, and resolving the differences by using survey information in feedback groups.d.Process consultation involves help given by an outside consultant to a manager in perceiving, understanding, and acting upon in

21、terpersonal processes.e.Team building includes interaction among members of work teams to learn how each member thinks and works.f.Intergroup development involves changing the attitudes, stereotypes, and perceptions that work groups have of each other.NOTESEducational Materials to UseB.Dealing with

22、Resistance to Change.Organizations can build up inertia that drives them to resist change.1.Why People Resist Change.a.Uncertaintyb.Concern over personal lossc.Belief that the change is not in the best interest of the organizationNOTESEducational Materials to Use2.Techniques for Reducing Resistance.

23、 (See Exhibit 13.4 on p. 347.)Six tactics have been proposed for use by managers in dealing with resistance to change.a.Education and communicationb.Participationc.Facilitation and supportd.Negotiatione.Manipulation and cooptationf.CoercionNOTESEducational Materials to UseManaging Your CareerReinven

24、t YourselfThe only constant thing about change is that it is constant. The workplace seems to change almost continuously. Being prepared means the employee must take the initiative and be responsible for his or her own personal career development. Upgrading skills to keep them current is one of the

25、most important things an employee can do to reinvent himself or herself. Organizational change provides employees with the opportunity to take advantage of changes, as long as they are willing to continually reinvent themselves.Encourage students to brainstorm when, how, and how often they will need

26、 to reinvent themselves to stay vital and able to take advantage of organizational opportunities in their respective business fields and/or occupations.6.CONTEMPORARY ISSUES IN MANAGING CHANGE.There are some critical change issues that will affect managers in the 21st century.A.Changing organization

27、al cultures is one of those issues. If an organizations culture becomes inappropriate, it may need to be changed. 1.Understanding the situational factors can help facilitate cultural change. The following conditions stimulate cultural change:a.A dramatic crisis occurs.b.Theres a change in leadership

28、.c.The organization is young and small.d.The culture is weak.2.Cultural change can be accomplished by approaching it using a series of steps. (See Exhibit 13.5 on p. 349.)a.Conduct a cultural analysis.b.Make the crisis visible.c.Appoint new leadership with a new vision.d.Initiate a reorganization.e.

29、Introduce new stories and rituals that convey the new vision.f.Change selection and socialization processes and the evaluation and reward systems.NOTESEducational Materials to UseMANAGING WORKFORCE DIVERSITYThe Paradox of DiversityWhen organizations bring diverse individuals in and socialize them in

30、to the culture, a paradox is created. Managers want these new employees to accept the organizations core cultural values, while retaining their own diverse perspectives and ideas. A managers challenge in this paradox of diversity is to balance two conflicting goals: to encourage employees to accept

31、the organizations dominant values and to encourage employees to accept differences.Encourage students to discuss, even if it is a second time, the positive aspect and/or benefits of having a diverse workforce. What advantages does the organization gain from diversity? What challenges are present wit

32、h a diverse workforce? B.Continuous Quality Improvement Programs versus Process Reengineering (See Exhibit 13.6 on p. 350 for a summary of key differences between the two approaches.)1.Continuous Quality Improvement Programsa.Rely on continuous, small, and incremental changes to improve activities t

33、hat are basically OK.b.These programs are compatible with the calm waters metaphorc.Participative decision making from the bottom levels up is important in both planning and implementing this type of program.NOTESEducational Materials to Use2.Process Reengineering.a.Todays dynamic “white-water rapid

34、s world demands a new kind of change agentone who can throw out conventional wisdom and initiate radical change.b.Turbulent times demand revolutionary, not orderly change.c.Reengineering is not a replacement for any other organizational change efforts. Instead, its probably the first step in changin

35、g.d.Process reengineering requires significant hands-on input from managers and workers and participative decision making.3.Reengineering isnt just another term for TQM. Although both are focused on organizational change, the goals and means they use are clearly different. (See Exhibit 13.6 on p. 35

36、0.)NOTESEducational Materials to UseC.The last contemporary change issue were going to look at is handling employee stress. Change can create stress.1.Stress is defined as a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she de

37、sires and for which the outcome is perceived to be both uncertain and important. 2.Causes of stress can be found in personal factors and job-related factors. (See Exhibit 13.7 on p. 352.)3.Signs of stress can be found in three different categories. (See Exhibit 13.8 on p. 352.)a.Physiological (physi

38、cal) factorsb.Psychological factorsc.Behavioral factors4.Reducing stress can be done through various methods.a.Employee selection plays an important role in preventing some job-related stress.b.Employee counseling can provide stress relief.c.Time-management programs may be helpful in sorting out emp

39、loyee priorities.d.Physical activity programs can also be useful.e.Job redesign that increase opportunities for employee participation and social support can lessen stress.?Thinking Critically About Ethics(Organizational Stress Reduction Programs)Many organizations provide stress reduction programs,

40、 although many employees choose not to participate. Why? This critical thinking exercise asks students to examine this paradoxwhen employees need stress reduction programs the most, theyre often reluctant to utilize them. If you want to make this exercise more intensive, you could have students do s

41、ome research on organizational stress reduction programs, healthy living programs, or physical fitness programs. Then they could examine the ethical issues surrounding such programs. NOTESEducational Materials to Use7.STIMULATING INNOVATION.Innovation is important to organizational success in the ma

42、rketplace.A.Creativity versus Innovation.There is a difference between creativity and innovation.1.Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas.2.Innovation is the process of taking a creative idea and turning it into a useful product, serv

43、ice, or method of operation.NOTESEducational Materials to UseManaging in An E-Business WorldNurturing Innovation inan E-BusinessAlthough innovation is important for all organizations, its absolutely critical for e-businesses, as change is continual, unpredictable, and sudden. This box examines the n

44、eed for innovation in e-business, as well as the organizational factors of structure, culture, and human resources that enable innovation in e-business. B.Stimulating and Nurturing Innovation.How can managers foster innovation? By using the systems model, we can see how to foster innovation. (See Ex

45、hibit 13.9 on p. 355.) Three sets of variables have been found to stimulate innovation. (See Exhibit 13.10 on p. 356.)1.Structural variables can be summarized as follows.a.Organic structures positively influence innovation.b.The easy availability of organizational resources provides a critical build

46、ing block for innovation.c.Frequent interunit communication helps break down barriers to innovation.2.Cultural variables show that an innovative culture is likely to be characterized by the following:a.Acceptance of ambiguityb.Tolerance of the impracticalc.Low external controlsd.Tolerance of riske.T

47、olerance of conflictf.Focus on ends rather than meansg.Open systems focus3.Human resources variables are indicative of the important role that people play in innovative organizations.a.Innovative organizations actively promote the training and development of their employees so their knowledge remain

48、s current.b.Innovative organizations offer employees high job security.c.Innovative organizations encourage individuals to become idea championsindividuals who actively and enthusiastically support a new idea, build support, overcome resistance, and ensure that the innovation is implemented.NOTESEdu

49、cational Materials to Use.Answers to Testing . Testing 1,2,31.Why is handling change an integral part of every managers job?Handling change is an integral part of the managers job because change is an organizational reality for all managers.2.What external and internal forces create the need for org

50、anizations to change?External forces that create the need for change include changes in the marketplace, government laws and regulations, technology, the fluctuation in labor markets, and economic change. Internal forces include the organizations strategy, workforce composition changes, the introduc

51、tion of new equipment, and employee attitude shifts.Answers to Testing . Testing 1,2,3 Continued3.Who are change agents, and what role do they play in the change process?Any manager can be a change agent, someone who acts as a catalyst for change and assumes responsibility for managing the change pr

52、ocess.4.What types of change can managers make in organizations?The managers options for change essentially fall into three categories: structure, technology, and people.5.Why do people resist change?People resist change for three reasons: uncertainty, concern over personal loss, and the belief that

53、 the change is not in the organizations best interest.6.Describe the techniques for reducing resistance to change.Techniques for reducing resistance include education and communication (giving employees the full facts and clarification), participation (bringing opponents into the decision process),

54、facilitation and support (counseling and therapy, training, or a leave of absence), negotiation (exchanging something of value for a reduction in resistance), manipulation (covert attempts to influence), cooptation (“buying off the leaders of a resistance group by giving them a key role in the decis

55、ion), and coercion (using direct threats of force, which is very often illegal).7.What situational factors might facilitate cultural change in an organization?Situational factors that facilitate cultural change include a dramatic crisis; a change of leadership, age, and size of the organization; and

56、 a weak existing culture.8.How can cultural change be implemented?Cultural change can be accomplished by these steps: conduct a cultural analysis, make it clear to employees that survival is at stake, appoint new leadership with a new vision, initiate a reorganization, introduce new stories and ritu

57、als, and change the selection and socialization processes and the evaluation and reward systems.9.Contrast continuous quality improvement programs and reengineering.Continuous quality improvement programs are characterized by continuous incremental change, fixing and improving, focusing on what is,

58、and working from the bottom up in the organization. Reengineering is a radical change characterized by redesign that starts over from scratch, focuses on what can be, and is initiated by top management.10.How can managers best manage a downsized workplace?Managing a downsized workplace calls for mai

59、ntaining open and honest communication, offering severance pay and/or benefits for a time, and providing opportunities for counseling to deal with guilt, anger, and anxiety.11.What signs might indicate to a manager that an employees stress level is too high?An employee experiencing a high level of s

60、tress may be depressed, accident prone, or argumentative; have difficulty making routine decisions; and become easily distracted. Symptoms can be categorized as physiological, psychological, or behavioral.Answers to Testing . Testing 1,2,3 Continued12.Describe what managers can do to reduce employee