Chapter 6 - Managing Change: Innovation and Diversity

Copyright © 2009 South-Western/Cengage Learning.All rights reserved.Copyright © 2009 South-Western/Cengage Learning.All rights reserved.

PowerPoint Presentation by Charlie CookThe University of West Alabama

PowerPoint Presentation by Charlie CookThe University of West Alabama

chapter 6

Managing Change: Innovation and Diversity

Managing Change: Innovation and Diversity

Copyright © 2009 South-Western/Cengage Learning. All rights reserved. 6–2

Learning OutcomesLearning OutcomesLearning OutcomesLearning Outcomes

1. Identify the sources of forces for change.

2. List the four types of change.

3. List the reasons people resist change, and suggest ways of overcoming such resistance.

4. State the difference between a fact, a belief, and a value.

5. Explain intrapreneurship, and identify its three roles.

6. Discuss the relationship among diversity, innovation, and quality.

7. Explain the difference between team building and process consultation.

8. State the difference in the use of forcefield analysis and survey feedback.

9. Define the key terms listed at the end of the chapter.

After studying this chapter, you should be able to:


IDEAS ON MANAGEMENT at Alcatel-Lucent

1. What type of people and career changes did Patricia Russo encounter as she prepared for and worked her way up the corporate ladder, and what form and types of changes did she make at Lucent Technologies?

2. What resistance did Patricia Russo have to overcome to complete the merger of Alcatel and Lucent?

3. How is Alcatel-Lucent committed to innovation?

4. How do Alcatel-Lucent and Patricia Russo embrace diversity?

5. How does Alcatel-Lucent use organizational development (OD)?


Forces for Change Forces for Change

• The EnvironmentThe Environment The internal and external business environments The internal and external business environments

require change in an organization, and the require change in an organization, and the organization needs to be proactive, rather than organization needs to be proactive, rather than merely reactive, to the environment.merely reactive, to the environment.

• The Management Functions and ChangeThe Management Functions and Change When managers organize and delegate tasks, they When managers organize and delegate tasks, they

often require employees to make some changes in often require employees to make some changes in their regular routine.their regular routine.

When managers hire, orient, train, and evaluate When managers hire, orient, train, and evaluate performance, change is required.performance, change is required.


Exhibit 6–1 ● Types of Organizational Change


Forms of ChangeForms of Change

• Incremental ChangeIncremental Change Continual improvement that takes place within Continual improvement that takes place within

already accepted frameworks, value systems, or already accepted frameworks, value systems, or organizational structure that is necessary for survival organizational structure that is necessary for survival and success.and success.

• Radical ChangeRadical Change Rapid change in strategy, structure, technology, or Rapid change in strategy, structure, technology, or

people that alters accepted frameworks, value people that alters accepted frameworks, value systems, or organizational structure.systems, or organizational structure.


Join the DiscussionJoin the Discussion Ethics & Social ResponsibilityEthics & Social Responsibility

• Online High SchoolOnline High School

1.1. How do you feel about high school students missing How do you feel about high school students missing the experience of attending classes?the experience of attending classes?

2.2. Is it ethical and socially responsible to offer an online Is it ethical and socially responsible to offer an online high school for students?high school for students?


Exhibit 6–2 ● Stages in the Change Process


Exhibit 6–3 ● Resistance to Change and Ways to Overcome Resistance


Resistance to ChangeResistance to Change

• IntensityIntensity People vary in their attitudes towards change.People vary in their attitudes towards change.

• Sources of Resistance to ChangeSources of Resistance to Change FactsFacts

Provable statements that identify reality.Provable statements that identify reality.

BeliefsBeliefs Subjective opinions that cannot be proven.Subjective opinions that cannot be proven.

ValuesValues What people believe are important and worth pursuing or What people believe are important and worth pursuing or

doing.doing.


Resistance to Change (cont’d)Resistance to Change (cont’d)

• Focuses of Resistance to ChangeFocuses of Resistance to Change SelfSelf

The reaction of individuals who feel their self-interests are The reaction of individuals who feel their self-interests are threatened by change.threatened by change.

OthersOthers The consideration given to how others will be affected by The consideration given to how others will be affected by

change.change.

Work EnvironmentWork Environment Change in the working environment threatens individuals Change in the working environment threatens individuals

control of the environment.control of the environment.


Exhibit 6–4 ● Resistance Matrix

Source: Adapted from Ken Hultman, Resistance Matrix: The Path of Least Resistance (Austin, TX: Learning Concepts, 1979).


InnovationInnovation

• Innovative Organizational StructuresInnovative Organizational Structures Structured as flat organizations with limited Structured as flat organizations with limited

bureaucracybureaucracy

Have a generalist division of laborHave a generalist division of labor

Coordinate with cross-functional teamsCoordinate with cross-functional teams

Are informal with decentralized authorityAre informal with decentralized authority

Create separate systems for innovative groupsCreate separate systems for innovative groups

Attract and retain creative employeesAttract and retain creative employees

Reward innovation and creativityReward innovation and creativity


Innovation (cont’d)Innovation (cont’d)

• Innovative Organizational CulturesInnovative Organizational Cultures Encourage risk-takingEncourage risk-taking

Foster intrapreneurshipFoster intrapreneurship

Have open systemsHave open systems

Focus on ends rather than meansFocus on ends rather than means

Accept ambiguous and impractical ideasAccept ambiguous and impractical ideas

Tolerate conflictTolerate conflict



• UpgradingUpgrading

1.1. Do you believe that software companies come out Do you believe that software companies come out with upgrades just to make more money, or are with upgrades just to make more money, or are these companies being honestly innovative?these companies being honestly innovative?

2.2. As a sales rep, would you push a customer to As a sales rep, would you push a customer to purchase an unnecessary upgrade so that you could purchase an unnecessary upgrade so that you could make a commission?make a commission?

3.3. What would you do if your boss pressured you to sell What would you do if your boss pressured you to sell unneeded upgrades?unneeded upgrades?

4.4. Is it ethical and socially responsible to “require Is it ethical and socially responsible to “require companies to purchase upgrades if they wish to companies to purchase upgrades if they wish to continue using the product or service”?continue using the product or service”?


DiversityDiversity

• DiversityDiversity The degree of differences among members of a The degree of differences among members of a

group or an organization.group or an organization. Race/ethnicity, religion, gender, age, ability, military status, Race/ethnicity, religion, gender, age, ability, military status,

sexual preference, expectations and values, lifestyle, sexual preference, expectations and values, lifestyle, socioeconomic class, work style, function/positionsocioeconomic class, work style, function/position

Diversity in all forms is increasing in the general population Diversity in all forms is increasing in the general population and the workforce.and the workforce.

• Diversity and Organizational CultureDiversity and Organizational Culture Before organizations can improve the quality of their Before organizations can improve the quality of their

products or services, they must first understand and products or services, they must first understand and address the requirements of all their employees.address the requirements of all their employees.


Diversity (cont’d)Diversity (cont’d)

• Valuing DiversityValuing Diversity Emphasizes training employees of different races and Emphasizes training employees of different races and

ethnicities, religions, genders, ages, and abilities to ethnicities, religions, genders, ages, and abilities to function together effectively.function together effectively.

• Managing DiversityManaging Diversity Emphasizes fully utilizing human resources through Emphasizes fully utilizing human resources through

organizational actions that meet all employees’ organizational actions that meet all employees’ needs.needs.



• Speaking EnglishSpeaking English

1.1. Why are some organizations no longer requiring Why are some organizations no longer requiring workers to speak English?workers to speak English?

2.2. Should a worker be required to be able to speak Should a worker be required to be able to speak English to get a job in the United States?English to get a job in the United States?

3.3. Is it ethical and socially responsible to hire people Is it ethical and socially responsible to hire people who can’t speak English and to provide translators who can’t speak English and to provide translators and policies written in multiple languages?and policies written in multiple languages?


Exhibit 6–5 ● Managing Diversity


Gender DiversityGender Diversity

• Issues:Issues: Disappearance of the “traditional family”Disappearance of the “traditional family”

Increase in women as a percentage of the workforceIncrease in women as a percentage of the workforce

Women’s pay continuing to lag behind men’sWomen’s pay continuing to lag behind men’s

Glass ceiling barring women from upper managementGlass ceiling barring women from upper management

Sexual harassment in the workplaceSexual harassment in the workplace


Organizational DevelopmentOrganizational Development

• Organizational Development (OD)Organizational Development (OD) The ongoing planned process of change used as a The ongoing planned process of change used as a

means of improving performance through means of improving performance through interventions.interventions.

• OD InterventionsOD Interventions Specific actions taken to implement specific changes.Specific actions taken to implement specific changes.

• Change AgentChange Agent The person selected by human resources The person selected by human resources

management to be responsible for the OD program.management to be responsible for the OD program.


Exhibit 6–6 ● Change Models


Exhibit 6–7 ● OD Interventions and Their Focus


OD InterventionsOD Interventions

• Training and DevelopmentTraining and Development The process of developing skills, behaviors, and The process of developing skills, behaviors, and

attitudes to be used on the job.attitudes to be used on the job.

• Sensitivity TrainingSensitivity Training Takes place in a group of 10 to 15 people.Takes place in a group of 10 to 15 people. Have no agenda.Have no agenda. People learn about how their behavior affects others People learn about how their behavior affects others

and how others’ behavior affects theirs.and how others’ behavior affects theirs. Is not commonly used in business today.Is not commonly used in business today.


OD Interventions (cont’d)OD Interventions (cont’d)

• Team BuildingTeam Building Designed to help work Designed to help work

groups increase structural groups increase structural and team dynamics and team dynamics performance to get the job performance to get the job done.done.

• Process ConsultationProcess Consultation Designed to improve team Designed to improve team

dynamics by focusing on dynamics by focusing on how people interact as they how people interact as they get the job done. get the job done.

• Stages in Team BuildingStages in Team Building

1.1. Climate building and goalsClimate building and goals

2.2. Evaluation of structure and Evaluation of structure and team dynamicsteam dynamics

3.3. Problem identificationProblem identification

4.4. Problem solvingProblem solving

5.5. TrainingTraining

6.6. ClosureClosure



• Forcefield AnalysisForcefield Analysis Diagrams the current level of performance, the forces Diagrams the current level of performance, the forces

hindering change, and the driving force toward hindering change, and the driving force toward change.change.

• Survey FeedbackSurvey Feedback Use of a questionnaire to gather data to use as the Use of a questionnaire to gather data to use as the

basis for change.basis for change.

• Large-Group InterventionLarge-Group Intervention Brings together participants from all parts of the Brings together participants from all parts of the

organization, and key outside stakeholders, to solve organization, and key outside stakeholders, to solve problems or take advantage of opportunities.problems or take advantage of opportunities.


Exhibit 6–8 ● Forcefield Analysis


Steps in the Survey Feedback ProcessSteps in the Survey Feedback Process

1.1. Management and the change agent do some preliminary planning Management and the change agent do some preliminary planning to develop an appropriate survey questionnaire.to develop an appropriate survey questionnaire.

2.2. The questionnaire is administered to all members of the The questionnaire is administered to all members of the organization/unit.organization/unit.

3.3. The survey data are analyzed to uncover problem areas for The survey data are analyzed to uncover problem areas for improvement.improvement.

4.4. The change agent reports the results to management.The change agent reports the results to management.

5.5. Managers evaluate the feedback and discuss the results with their Managers evaluate the feedback and discuss the results with their subordinates.subordinates.

6.6. Corrective intervention action plans are developed and Corrective intervention action plans are developed and implemented.implemented.


Steps in the GE Work Out ProcessSteps in the GE Work Out Process

1.1. Select a work process or problem for improvement.Select a work process or problem for improvement.

2.2. Select an appropriate cross-functional team with outside Select an appropriate cross-functional team with outside stakeholder members. The team includes top leaders and a stakeholder members. The team includes top leaders and a human resources specialist to run the meetings. Outside human resources specialist to run the meetings. Outside consultants with relevant expertise may also be included.consultants with relevant expertise may also be included.

3.3. Appoint a “champion” to follow through on recommendations.Appoint a “champion” to follow through on recommendations.

4.4. Meet for several days to come up with recommendations for Meet for several days to come up with recommendations for improvements. improvements.

5.5. Meet with leaders to get their immediate response to the Meet with leaders to get their immediate response to the recommendations.recommendations.

6.6. Hold follow-up meetings, as needed, to implement the Hold follow-up meetings, as needed, to implement the recommendations.recommendations.



• Work DesignWork Design Can be designed as an individual job, as a job for a Can be designed as an individual job, as a job for a

group to perform, or by departmentalization.group to perform, or by departmentalization.

Job enrichment is used to change jobs to make them Job enrichment is used to change jobs to make them more interesting and challenging.more interesting and challenging.

• Direct FeedbackDirect Feedback In certain situations, the most efficient intervention is In certain situations, the most efficient intervention is

to have a change agent make a direct to have a change agent make a direct recommendation for a specific change. recommendation for a specific change.

A change agent is often an outside consultant.A change agent is often an outside consultant.


KEY TERMSKEY TERMS

• types of changetypes of change• information systems (IS)information systems (IS)• stages of the change processstages of the change process• organizational development (OD)organizational development (OD)• OD interventionsOD interventions• team buildingteam building• process consultationprocess consultation• forcefield analysisforcefield analysis• survey feedbacksurvey feedback• large-group interventionlarge-group intervention

Chapter 6 - Managing Change: Innovation and Diversity

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Transcript of Chapter 6 - Managing Change: Innovation and Diversity