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Managing
Change,
Stress, and
Innovation
LEARNING OUTCOMES
6  
 
 
J escribe what change variables are within a
manager¶s control
 Identify external and internal forces for change
 xplain how managers can serve as change
agents
 Contrast the calm waters and white-water
rapids metaphors for change
 xplain why people are likely to resist change
 escribe techniques for reducing resistance to
change
L E A R N I N G O U T C O M E S (cont¶d)
6  
 
 
„ Identify what is meant by the term organization
development (O and specify four popular O
techniques
xplain the causes and symptoms of stress

ifferentiate between creativity and innovation
J xplain how organizations can stimulate
innovation
hat Is Change?
D Change
r An alteration of an organization¶s environment,
structure, technology, or people
A constant force
An organizational reality
An opportunity or a threat
D Change agent
r A person who initiates and assumes the responsibility
for managing a change in an organization
Managers and staff specialists
Outside consultants
©hree Categories of Change

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åorces åor Change
D xternal forces D Internal forces
r Marketplace competition r Strategy modifications
r Government laws and r New equipment
regulations r New processes
r New technologies r orkforce composition
r Labor market shifts r Restructured jobs
r Cycles in the economy r Compensation and
r Social change benefits
r Labor surpluses and
shortages
r mployee attitudes
©wo Views Of ©he Change Process
D Calm waters´ metaphor
r A description of traditional practices in and theories
about organizations that likens the organization to a
large ship making a predictable trip across a calm sea
and experiencing an occasional storm
D hite-water rapids´ metaphor
r A description of the organization as a small raft
navigating a raging river
Change in ³Calm aters´
D urt Lewin¶s Three-Step Process
r Unfreezing
The driving forces, which direct behavior away from the
status quo, can be increased.
The restraining forces, which hinder movement from the
existing equilibrium, can be decreased.
The two approaches can be combined.
r Implementation of change
r Refreezing
©he Change Process

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Change In ³hite-water Rapids´
D Change is constant in a dynamic environment.
D The only certainty is continuing uncertainty.
D Competitive advantages do not last.
D Managers must quickly and properly react to
unexpected events.
r Îe alert to problems and opportunities
r Îecome change agents in stimulating, implementing
and supporting change in the organization
hy People Resist Change

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©echniques for Reducing Resistance to
Change
©C NIQU  N US
ducation and hen resistance is due to misinformation
communication
Participation hen resisters have the expertise to make
a contribution
åacilitation and hen resisters are fearful and anxiety-ridden
support
Negotiation Necessary when resistance comes from
a powerful group
Manipulation hen a powerful group¶s cooperation and
an endorsement is is needed
Coercion hen a powerful group¶s endorsement is needed

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Making Changes In ©he Organization
D Changing structure
r Alterations in authority relationships, coordination
mechanisms, degree of centralization, job design, or
similar organization structure variables.
D Changing technology
r Modifications in the way work is processed or the
methods and equipment used.
D Changes in people
r Changes in employee attitudes, expectations,
perceptions, or behaviors.
Implementing Planned Changes
D Organization development (OD)
r An activity (|  | ) designed to facilitate
planned, long-term organization-wide change
åocuses on the attitudes and values of organizational
members;
Is essentially an effort to change an organization¶s
culture.
©ypical O ©echniques
D Survey feedback
r A method of assessing employees¶ attitudes toward
and perceptions of a change they are encountering by
asking specific questions
D Process consultation
r The use of consultants from outside an organization
to help change agents within the organization assess
process events such as workflow, informal intraunit
relationships, and formal communications channels
©ypical O ©echniques (cont¶d
D Team-building
r An activity that helps work groups set goals, develop
positive interpersonal relationships, and clarify the
roles and responsibilities of each team member
D Intergroup development
r An activity that attempts to make several work groups
become more cohesive
Stress: ©he Aftermath Of Organizational
Change
D Stress
r Occurs when individuals confront a situation related
to their desires for which the outcome is perceived to
be both uncertain and important.
Positive stress: when the situation offers an opportunity
for one to gain something
Negative stress: when constraints or demands are
placed on individuals
D Stressors
r A factor that causes stress
Sources of Stress
D Constraints
r Îarriers that keep us from doing what we desire.
r Inhibit individuals in ways that take the control of a
situation out of their hands
D Demands
r Cause persons to give up something they desire.
r Demands preoccupy your time and force you to shift
priorities.
Major Stressors

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Stressors
D Personal D Organizational
r åamily issues r ©ask demands
r Personal economic r Role demands
problems r ©echnological
r Inherent personality advancements
characteristics r ork process
engineering
r ownsizing
r Restructuring
Organizational Stressors: Role emands
D Role conflicts
r ork expectations that are hard to satisfy
D Role overload
r Having more work to accomplish than time permits
D Role ambiguity
r hen role expectations are not clearly understood
Personality ©ypes
D ©ype A personality D ©ype B personality
r People who have a r People who are
chronic sense of relaxed and
urgency and an easygoing and
excessive accept change easily
competitive drive
Symptoms Of Stress
D Psychological D Behavior-related
symptoms symptoms
r Increased tension r Changes in eating
r Anxiety habits
r Boredom r Increased smoking
r Procrastination r Substance
consumption
r Rapid speech
r Sleep disorders
RUCING S©RSS
D Person-job fit Concerns
r Match employees to their jobs, clarify expectations,
redesign jobs, and increase employee involvement
and participation
D Employee assistance programs (EAPs)
r Programs that help employees overcome personal
and health-related problems
D ellness programs
r Programs that help employees prevent health
problems
Stimulating Innovation
D Creativity
r The ability to combine ideas in a unique way or to
make unusual connections
D Innovation
r The process of taking a creative idea and turning it
into a useful product, service, or method of operation
Perception
Incubation
Inspiration
Innovation
Structural Variables Affecting Innovation
D Organic structures
r Positively influence innovation through less work
specialization, fewer rules and decentralization
D Easy availability of plentiful resources
r Allow management to purchase innovations, bear the
cost of instituting innovations, and absorb failures.
D årequent interunit communication
r Helps to break down barriers to innovation by
facilitating interaction across departmental lines.
Characteristics of an Innovative Culture
D Acceptance of ambiguity
D Tolerance of the
impractical
D Low external controls
D Tolerance of risk
D Tolerance of conflict
D åocus on ends rather than
on means
D Open systems focus
R Variables Affecting Innovation
D HR practices that foster innovation:
r Promotion of training and development so employee
knowledge remains current
r Offer employees high job security to reduce fear of
making mistakes and taking risks
r Encourage employees to become î | 
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