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Chapter8Managing Change and Innovation

Learning Outcomes

• Define organizational change and compare and contrast views on the change process.

• Explain how to manage resistance to change.• Describe what managers need to know about

employee stress.• Discuss techniques for stimulating innovation.

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8.1Define organizational change and compare and contrast views on the change process.

What is Organizational Change?

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External Factors

• Marketplace• Government laws and regulations• Technology• Labor markets• Economic changes

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Internal Factors

• Strategy• Composition of workforce• Employee attitudes

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Initiating Change

Organizational changes need a catalyst.

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Two Different Approaches

“Calm waters” metaphor

“White-water rapids” metaphor

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Calm Waters Change

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White-Water Rapids Change

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Leading a company in change, in an industry in change.

Implementing Change

Organization development (OD):Efforts that assist organizational members with a planned change by focusing on their attitudes and values.

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Organization Development Efforts

1. Survey feedback2. Process consultation3. Team-building4. Intergroup development

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8.2Explain how to manage resistance to change.

Resistance to Change

1. Uncertainty2. Habit3. Concern over

personal loss4. Belief change is not

in organization’s best interests

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Reducing Resistance to Change

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8.3 Describe what managers need to know about employee stress.

Employee Reactions to Change

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Change often creates stress for employees!

Change Often Creates Stress for Employees

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Symptoms of Stress

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Reducing Stress

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8.4Discuss techniques for stimulating innovation.

Creativity and Innovation

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Creativity:The ability to produce novel and useful ideas.

Innovation:The process of taking a creative idea and turning it into a useful product, service, or method of operation.

Innovation Process

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1. Perception2. Incubation3. Inspiration4. Innovation

Encouraging Innovation

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Structural Variables and Innovation

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1. Organic structures2. Abundant resources3. High interunit communication4. Minimal time pressure5. Work and nonwork support

Culture and Innovation

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• Acceptance of ambiguity• Tolerance of the impractical• Low external controls• Tolerance of risks• Tolerance of conflict• Focus on ends• Open-system focus• Positive feedback

HR and Innovation

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