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Chapter 16

Managing Change and Innovation


with Duane Weaver

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 1
What Is Change?
Organizational Change
Any alterations in the people, structure, or technology of
an organization
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities
Managing change is an integral part
of every managers job

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 2
Forces for Change

External forces Internal Forces


Marketplace Changes in
Governmental laws and organizational strategy
regulations Workforce changes
Technology New equipment
Labour markets Employee attitudes
Economic changes

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 3
The Manager as Change Agent

Change Agents
People who act as catalysts and assume the
responsibility for changing process
Types of Change Agents
Managers: internal entrepreneurs
Nonmanagers: change specialists
Outside consultants: change implementation
experts

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 4
Change Process Viewpoints

The Calm Waters Metaphor


Lewin: a break in the organizations equilibrium state
Unfreezing the status quo
Changing to a new state
Refreezing to make the change permanent
White-water Rapids Metaphor
The lack of environmental stability and predictability
requires that managers and organizations continually
adapt (manage change actively) to survive

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 5
Exhibit 16.2 Three Categories of
Change
Work specialization, departmentalization,
Structure chain of command, span of control,
centralization, formalization,
job redesign, or actual structural design

Technology Work processes, methods,


and equipment

Attitudes, expectations, perceptions,


People and behaviour

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 6
Exhibit 16.3 Organizational
Development Techniques A method of changing behaviour
through unstructured group interaction.

A technique for assessing attitudes


and perceptions, identifying Sensitivity
discrepancies in these, and resolving Training Activities that help team
the differences by using survey members learn how each
information in feedback groups. member thinks and works.

Survey Team
Feedback MORE Building
EFFECTIVE
INTERPERSONAL
WORK
RELATIONSHIPS

Process Intergroup
Consultation Development

An outside consultant helps the Changing the attitudes,


manager understand how interpersonal stereotypes, and perceptions that
processes are affecting the way work work groups have about each other.
is being done.

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 7
Managing Resistance to Change

Why People Resist Change


The ambiguity and uncertainty that change
introduces
The comfort of old habits
A concern over personal loss of status, money,
authority, friendships, and personal convenience
The perception that change is incompatible with
the goals and interests of the organization

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 8
Exhibit 16.4 Helping Employees
Accept Change
Unfreezing Changing Refreezing

Give reasons. Explain the benefits. Show top


Be empathetic. Identify a champion. managements support.
Communicate clearly. Get input from Publicize successes.
employees. Make midcourse
Watch timing. corrections.
Maintain job security. Help employees deal
Provide training. with stress.
Proceed at a
manageable pace.

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 9
Stimulating Innovation

Creativity
The ability to combine ideas in a unique way or
to make an unusual association
Innovation
Turning the outcomes of the creative process into
useful products, services, or work methods

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 10
Creating the Right Environment
for Innovation
Structural Variables
Adopt an organic structure
Make available plentiful resources
Engage in frequent interunit communication
Minimize extreme time pressures on creative
activities
Provide explicit support for creativity

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 11
Creating the Right Environment
for Innovation (contd)
Cultural Variables
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an open-system focus
Provide positive feedback
Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 12
Creating the Right Environment
for Innovation (contd)
Human Resource Variables
Actively promote training and development to
keep employees skills current
Offer high job security to encourage risk taking
Encourage individuals to be champions of
change

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 13
Tips for Managers:
Strategies for Managing Cultural
Change
Set the tone through management behaviour. Managers,
particularly top management, need to be positive role
models.
Create new stories, symbols, and rituals to replace those
currently in vogue.
Select, promote, and support employees who adopt the new
values that are sought.
Redesign socialization processes to align with the new
values.

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 14
Tips for Managers:
Strategies for Managing Cultural
Change (contd)
Change the reward system to encourage acceptance of a
new set of values.
Replace unwritten norms with formal rules and regulations
that are tightly enforced.
Shake up current subcultures through transfers, job
rotation, and/or terminations.
Work to get peer-group consensus through employee
participation and creation of a climate with a high level of
trust.
Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 15
Issues in Managing Change
Employee Stress

Handling Employee Stress


Stress
The physical and psychological tension an individual
feels when confronted with extraordinary demands,
constraints, or opportunities and their associated
importance and uncertainties
Functional Stress
Stress that has a positive effect on performance

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 16
Exhibit 16.7 Causes of Stress

Personal Job-Related
Factors STRESS
Factors

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 17
Exhibit 16.8 Symptoms of Stress

PHYSICAL
PSYCHOLOGICAL

Changes in metabolism, SYMPTOMS


increased heart and OF Job-related dissatisfaction,
breathing rates, raised STRESS tension, anxiety, irritability,
blood pressure, headaches, boredom, and
and potential of heart procrastination
attacks

BEHAVIOURAL

Changes in productivity, absenteeism, job


turnover, changes in eating habits, increased
smoking or consumption of alcohol, rapid
speech, fidgeting, sleep disorders

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 18
Reducing Stress

Engage in proper employee selection


Match employees abilities to job requirements
Use realistic job previews to reduce ambiguity
Improve organizational communications
Develop a performance planning program
Use job redesign
Provide a counselling program
Offer time planning management assistance
Sponsor wellness programs
Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 19
Exhibit 16.9 Mistakes Managers
Make When Leading Change
Unfreezing Changing Refreezing

Not communicating a Not creating a vision Quitting before change


sense of urgency Not communicating the is finished
Not forming a guiding vision Not making changes
coalition Not empowering others part of the organizational
to act on the vision culture
Not planning for and
creating short-term wins

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 20
The End! (whew!)

Chapter 16, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 21

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