MANAGEMENT

Managing Change

Chapter 8 & Innovation

What is Change?

– Alterations in people
– Alterations in structure
– Alterations in technology
External Forces of Change

– Marketplace
– Government laws and regulations
– Technology
– Economy
Internal Forces of Change

– Corporate strategy
– The workforce
– Technology and equipment
– Employee attitudes
Categories of Change
(Exhibit 8-1)

STRUCTURE
Changing PEOPLE
TECHNOLOGY
organizational
structure like Changing
Changing Work
Authority attitudes,
processes,
relationships, Expectations,
Work methods, and
Coordinating Perceptions,
Equipment
mechanisms, and
Job redesign, and Behavior
Spans of
control.
 Organization
Development
is an ongoing process of
implementing effective change in
how an organization operates.

6
Popular OD Techniques
The Manager as Change Agent

– Change Agents
People who act as catalysts and assume the responsibility for
changing process are called change agents.
– Types of Change Agents
– Managers: internal entrepreneurs
– Nonmanagers: change specialists
– Outside consultants: change implementation experts
Change
Process
Viewpoints
• The Calm Waters Metaphor
• White-Water Rapids Metaphor
 The “Calm Waters” Metaphor

• One metaphor envisions the organization as a large ship crossing a calm sea.

• The ship’s captain and crew know exactly where they’re going because

they’ve made the trip many times before.

• Change comes in the form of an occasional storm, a brief distraction in an

otherwise calm and predictable trip.

• In this calm waters metaphor, change is seen as an occasional disruption in the

normal ¨ow of events.

The “Calm Waters” Metaphor

• Lewin’s description of the change process as a break in the

organization’s equilibrium state
• Unfreezing the status quo
• Changing to a new state
• Refreezing to make the change permanent
 Lewin’s Three-Step Process

Unfreezing Changing Refreezing

The “Calm Waters” Metaphor

White-Water Rapids Metaphor

• The organization is seen as a small raft navigating a raging river with

uninterrupted white-water rapids.

• Aboard the raft are half a dozen people who have never worked together,

are totally unfamiliar with the river, are unsure of their eventual

destination, and are traveling at night.

• In this metaphor, change is normal and expected and managing it is a

continual process.
White-Water Rapids Metaphor

• The stability and predictability of the calm waters metaphor don’t exist.

• Disruptions in the status quo are not occasional and temporary, and they

are not followed by a return to calm waters.

• The lack of environmental stability and predictability requires that

managers and organizations continually adapt (manage change actively)

to survive.
 Lack of Lack of
Stability Predictability

The “White-
Water Rapids”
Metaphor
Virtual Constant
Disorder Change

C
Resistance to Change

Fear of
Fear of losing
something unknown
of value

Individual
Resistance

Belief that change

Is not good for
organization
Techniques for Reducing Resistance to
Change

– Education and communication : can help reduce resistance to

change by helping employees see the logic of the change

effort.

– It is used when resistance is due to misinformation.

Techniques for Reducing Resistance to
Change

– Participation : involves bringing those individuals directly affected

by the proposed change into the decision-making process. Their
participation allows these individuals to express their feelings,
increase the quality of the process, and increase employee
commitment to the final decision.

– It is used when resisters have the expertise to make a contribution

Techniques for Reducing Resistance to
Change

– Facilitation and support : involve helping employees deal with

the fear and anxiety associated with the change effort.

– It is used when resisters are fearful and anxiety ridden

Techniques for Reducing Resistance to
Change

– Negotiation : involves exchanging something of value for an

agreement to lessen the resistance to the change effort.

– It is used when resistance comes from a powerful group

Techniques for Reducing Resistance to
Change

– Manipulation and co-potation : refer to covert attempts to

influence others about the change. It may involve distorting facts to

make the change appear more attractive.

– It is used when a powerful group’s endorsement is needed

Techniques for Reducing Resistance to
Change

– Coercion : involves the use of direct threats or force against the

resisters.

– It is used when a powerful group’s endorsement is needed

 Combining new ideas in unique ways or
making unusual connections

Combining new ideas in

What Is Process of taking creative idea and
unique ways or making
making into a useful product, service,
Creativity? or method ofunusual
operationconnections
 Combining new ideas in unique ways or
making unusual connections

Process of taking creative

What Is Process of takingidea
creativeand making into a
idea and
making into a useful product, service,
Innovation? or method of useful
operation
product, service, or
method of operation
Stimulating and Nurturing Innovation

– An environment that stimulates innovation includes three variables:

– the organization’s structure

– culture

– human resource practices

Innovation Variables

Exhibit 7-9 shows the three variables in an environment that stimulates innovation.
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Structural Variables

– Organic structures
– Abundant resources
– High interunit communication
– Minimal time pressure
– Work and non-work support
Cultural Variables

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

– Idea champion: individual who actively and enthusiastically

supports new ideas, builds support, overcomes resistance, and

ensures that innovations are implemented

Innovation and Design Thinking

– When a business approaches innovation with a design-thinking

mentality, the emphasis is on getting a deeper understanding of

what customers need and want.

Disruptive Innovation Definition

– Disruptive innovation: innovations in products, services, or

processes that radically change an industry’s rules of the game

– Sustaining innovation: small and incremental changes in

established products rather than dramatic breakthroughs

Examples of Past Disruptive Innovators
Established Business Disruptor Established Business Disruptor
Compact disc Apple iTunes Traveler’s checks ATMs and Visa
Carbon paper Xerox copy machine Encyclopedias Wikipedia
Canvas tennis shoes Nike athletic shoes Newspaper Craig’s List
classified ads
Portable radio Sony Walkman AM/FM radio stations Sirius XM

Sony Walkman Apple iPod Tax preparation services Intuit’s Turbo Tax

Typewriters IBM PC Yellow Pages Google

Weekly news magazines CNN Paper maps Garmin’s GPS

TV networks Cable and Netflix Paperback books Kindle

Local travel agencies Expedia Lawyers Legal Zoom

Stockbrokers eTrade Taxis Uber

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Why Disruptive Innovation Is
Important

– Disruptive innovations are a threat to many established

businesses, and responding with sustaining innovations isn’t

enough.
Who’s Vulnerable?

– Large, established, and highly profitable organizations are most

vulnerable to disruptive innovations because they have the most

to lose and are most vested in their current markets and

technologies.
Employee Stress

– Stress: the adverse reaction people have to excessive pressure

placed on them from extraordinary demands, constraints, or

opportunities

– Stressors: factors that cause stress

What Causes Stress?

– Task demands
– Role demands
– Role conflicts
– Role overload
– Role ambiguity
– Interpersonal demands
– Organization structure
– Organizational leadership
Personal Factors

– Type A personality: people who have a chronic sense of urgency

and an excessive competitive drive

– Type B personality: people who are relaxed and easygoing and

accept change easily

Symptoms of Stress

stress symptoms can be grouped under three general categories: physical, psychological, and behavioral.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
How Can Stress Be Reduced?

– Realistic job preview during selection process

– Performance planning program, e.g. MBO

– Job redesign
How Can Stress Be Reduced?

– Addressing personal stress

– counseling

– time management programs

– wellness programs