Post on 31-Dec-2015
Copyright ©2015 Pearson Education, Inc. 8-1
Chapter7Managing 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.
Copyright ©2015 Pearson Education, Inc. 8-2
Copyright ©2015 Pearson Education, Inc. 8-3
8.1Define organizational change and compare and contrast views on the change process.
What is Organizational Change?
Copyright ©2015 Pearson Education, Inc. 8-4
External Factors
• Marketplace• Government laws and regulations• Technology• Labor markets• Economic changes
Copyright ©2015 Pearson Education, Inc. 8-5
Internal Factors
• Strategy• Composition of workforce• Employee attitudes
Copyright ©2015 Pearson Education, Inc. 8-6
Initiating Change
Organizational changes need a catalyst.
Copyright ©2015 Pearson Education, Inc. 8-7
Two Different Approaches
“Calm waters” metaphor
“White-water rapids” metaphor
8-8Copyright ©2015 Pearson Education, Inc.
Calm Waters Change
Copyright ©2015 Pearson Education, Inc. 8-9
White-Water Rapids Change
Copyright ©2015 Pearson Education, Inc. 8-10
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.
Copyright ©2015 Pearson Education, Inc. 8-11
Organization Development Efforts
1. Survey feedback2. Process consultation3. Team-building4. Intergroup development
8-12Copyright ©2015 Pearson Education, Inc.
Copyright ©2015 Pearson Education, Inc. 8-13
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
Copyright ©2015 Pearson Education, Inc. 8-14
Reducing Resistance to Change
8-15Copyright ©2015 Pearson Education, Inc.
Copyright ©2015 Pearson Education, Inc. 8-16
8.3 Describe what managers need to know about employee stress.
Employee Reactions to Change
8-17Copyright ©2015 Pearson Education, Inc.
Change often creates stress for employees!
Change Often Creates Stress for Employees
8-18Copyright ©2015 Pearson Education, Inc.
Symptoms of Stress
8-19Copyright ©2015 Pearson Education, Inc.
Reducing Stress
Copyright ©2015 Pearson Education, Inc. 8-22
Copyright ©2015 Pearson Education, Inc. 8-23
8.4Discuss techniques for stimulating innovation.
Creativity and Innovation
Copyright ©2015 Pearson Education, Inc. 8-24
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
Copyright ©2015 Pearson Education, Inc. 8-25
1. Perception2. Incubation3. Inspiration4. Innovation
Encouraging Innovation
Copyright ©2015 Pearson Education, Inc. 8-26
Structural Variables and Innovation
Copyright ©2015 Pearson Education, Inc. 8-27
1. Organic structures2. Abundant resources3. High interunit communication4. Minimal time pressure5. Work and nonwork support
Culture and Innovation
Copyright ©2015 Pearson Education, Inc. 8-28
• 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
Copyright ©2015 Pearson Education, Inc. 8-29
8-30