Managing Change

and Innovation

©Prentice Hall, 2001 Chapter 7 1

 Learning Outcomes
• Describe the change variables a manager
can control
• Study internal and external forces of change
• Analyze managers as change agents
• Contrast the “calm waters” and “white water
rapids” metaphors for change
• Explain why people resist change
©Prentice Hall, 2001 Chapter 7 2
 Learning Outcomes
• Learn how to reduce resistance to change
• Define organization development and learn
four OD techniques
• Review the causes and symptoms of stress
• Compare creativity and innovation
• Learn how organizations can stimulate
innovation
©Prentice Hall, 2001 Chapter 7 3
 Categories of Change

People Structure

Technology

©Prentice Hall, 2001 Chapter 7 4

 External Forces of Change

Government
Competition
Programs

Economic
Technology
Conditions

©Prentice Hall, 2001 Chapter 7 5

 Internal
Operations
Internal
Forces of
Change Impact of
External
Events
©Prentice Hall, 2001 Chapter 7 6
 Agents of Change

Staff
Managers Specialists
Outside
Consultants

©Prentice Hall, 2001 Chapter 7 7

 Lewin’s Three-Step Process

Unfreezing Changing Refreezing

The “Calm Waters” Metaphor

©Prentice Hall, 2001 Chapter 7 8
 Lack of Lack of
Stability Predictability

White-Water
Rapids

Virtual Constant
Chaos Change
©Prentice Hall, 2001 Chapter 7 9
 Resistance to Change

Uncertainty and Ambiguity

Fear of Personal Loss

Lack of Faith in Change

©Prentice Hall, 2001 Chapter 7 10

 Techniques for
Reducing Resistance
Education and
Participation
Communication

Facilitation
Negotiation
and Support

Manipulation
Coercion
and Cooptation
©Prentice Hall, 2001 Chapter 7 11
 Techniques for
Managing Change
Structure Technology People

Authority Processes Attitudes

Coordination Methods Expectations
Centralization Equipment Behavior

©Prentice Hall, 2001 Chapter 7 12

 Organizational Development
Techniques

• Intergroup development

• Process consultation

• Survey feedback

• Team building

©Prentice Hall, 2001 Chapter 7 13

 Constraints Demands

What Is Stress?

Uncertainty Importance

©Prentice Hall, 2001 Chapter 7 14

 Task Demands

Role Demands

Organizational
Interpersonal Demands
Stress Factors

Structural Dimensions

Leadership Techniques
©Prentice Hall, 2001 Chapter 7 15
 Personal Stress
Factors

Family Personality Economic

©Prentice Hall, 2001 Chapter 7 16

 Stress Physiological

Psychological

Behavioral
Three General Symptoms

©Prentice Hall, 2001 Chapter 7 17

 Stress Management
• Selection and placement

• Job redesign

• Participation

• Wellness programs

• Employee assistance
©Prentice Hall, 2001 Chapter 7 18
 • Combining new ideas
What Is in unique ways or
Creativity? associating ideas in
unusual ways

• Turning creative ideas

What Is into useful products,
Innovation? services, or methods
of operation

©Prentice Hall, 2001 Chapter 7 19

The Creative Perception
Process
Incubation

Inspiration

Innovation
©Prentice Hall, 2001 Chapter 7 20
 Structural
Variables

Sources of Organizational
Innovation Culture

Human
Resources
©Prentice Hall, 2001 Chapter 7 21