managing change and innovation

ninth edition
STEPHEN P. ROBBINS
© 2007 Prentice Hall, Inc.
© 2007 Prentice Hall, Inc.
All rights reserved.
All rights reserved.
PowerPoint Presentation by Charlie Cook
PowerPoint Presentation by Charlie Cook
The University of West Alabama
The University of West Alabama
MARY COULTER
Managing Change
Managing Change
and Innovation
and Innovation
Chapter
Chapter
13
13
© 2007 Prentice Hall, Inc. All rights
reserved. 13–2
L E A R N I N G O U T L I N E
L E A R N I N G O U T L I N E
Follow this Learning Outline as you read and study this chapter
Follow this Learning Outline as you read and study this chapter
.
.
Forces for Change: Two Views of the Change
Forces for Change: Two Views of the Change
Process
Process

•
Discuss the external and internal forces for change.
Discuss the external and internal forces for change.
•
Contrast the calm waters and white-water rapids
Contrast the calm waters and white-water rapids
metaphors of change.
metaphors of change.
•
Explain Lewin’s three-step model of the change process.
Explain Lewin’s three-step model of the change process.
Managing Organizational Change
Managing Organizational Change
•
Define organizational change.
Define organizational change.
•
Contrast internal and external change agents.
Contrast internal and external change agents.
•
Explain how managers might change structure,
Explain how managers might change structure,
technology, and people.
technology, and people.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–3
L E A R N I N G O U T L I N E (cont’d)
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.
Follow this Learning Outline as you read and study this chapter.

Managing Change
Managing Change
•
Explain why people resist change and how resistance
Explain why people resist change and how resistance
might be managed.
might be managed.
Contemporary Issues in Managing Change
Contemporary Issues in Managing Change
•
Explain why changing organizational culture is so difficult
Explain why changing organizational culture is so difficult
and how managers can do it.
and how managers can do it.
•
Describe employee stress and how managers can help
Describe employee stress and how managers can help
employees deal with stress.
employees deal with stress.
•
Discuss what it takes to make change happen
Discuss what it takes to make change happen
successfully.
successfully.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–4
L E A R N I N G O U T L I N E (cont’d)
L E A R N I N G O U T L I N E (cont’d)
Follow this Learning Outline as you read and study this chapter.
Follow this Learning Outline as you read and study this chapter.

Stimulating Innovation
Stimulating Innovation
•
Explain why innovation isn’t just creativity.
Explain why innovation isn’t just creativity.
•
Explain the systems view of innovation.
Explain the systems view of innovation.
•
Describe the structural, cultural, and human resource
Describe the structural, cultural, and human resource
variables that are necessary for innovation.
variables that are necessary for innovation.
•
Explain what idea champions are and why they’re
Explain what idea champions are and why they’re
important to innovation.
important to innovation.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–5
What Is Change?
What Is Change?
•
Organizational Change
Organizational Change

Any alterations in the people, structure, or technology
Any alterations in the people, structure, or technology
of an organization
of an organization

•
Characteristics of Change
Characteristics of Change

Is constant yet varies in degree and direction
Is constant yet varies in degree and direction

Produces uncertainty yet is not completely
Produces uncertainty yet is not completely
unpredictable
unpredictable

Creates both threats and opportunities
Creates both threats and opportunities
•
Managing change is an integral part
Managing change is an integral part
of every manager’s job.
of every manager’s job.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–6
Forces for Change
Forces for Change
•
External Forces
External Forces

Marketplace
Marketplace


Governmental laws
Governmental laws
and regulations
and regulations

Technology
Technology

Labor market
Labor market

Economic changes
Economic changes
•
Internal Forces
Internal Forces

Changes in
Changes in
organizational
organizational
strategy
strategy

Workforce changes
Workforce changes

New equipment
New equipment


Employee attitudes
Employee attitudes
© 2007 Prentice Hall, Inc. All rights
reserved. 13–7
Change Process Viewpoints
Change Process Viewpoints
•
The Calm Waters Metaphor
The Calm Waters Metaphor

Lewin’s description of the change process as a break
Lewin’s description of the change process as a break
in the organization’s equilibrium state
in the organization’s equilibrium state

Unfreez ing
Unfreez ing
the status quo
the status quo

Changing
Changing
to a new state
to a new state

Refreezing
Refreezing
to make the change permanent
to make the change permanent
•

White-Water Rapids Metaphor
White-Water Rapids Metaphor

The lack of environmental stability and predictability
The lack of environmental stability and predictability
requires that managers and organizations continually
requires that managers and organizations continually
adapt (manage change actively) to survive.
adapt (manage change actively) to survive.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–8
Exhibit 13–1
Exhibit 13–1
The Change Process
The Change Process
© 2007 Prentice Hall, Inc. All rights
reserved. 13–9
Change Agents
Change Agents
•
Change Agents
Change Agents

Persons who act as catalysts and assume the
Persons who act as catalysts and assume the
responsibility for managing the change process.
responsibility for managing the change process.
•
Types of Change Agents
Types of Change Agents


Managers: internal entrepreneurs
Managers: internal entrepreneurs

Nonmanagers: change specialists
Nonmanagers: change specialists

Outside consultants: change implementation experts
Outside consultants: change implementation experts
© 2007 Prentice Hall, Inc. All rights
reserved. 13–10
Exhibit 13–2
Exhibit 13–2
Three Categories of Change
Three Categories of Change
© 2007 Prentice Hall, Inc. All rights
reserved. 13–11
Types of Change
Types of Change
•
Structural
Structural

Changing an organization’s
Changing an organization’s
structural components or its
structural components or its
structural design
structural design
•

Technological
Technological

Adopting new equipment,
Adopting new equipment,
tools, or operating methods
tools, or operating methods
that displace old skills and
that displace old skills and
require new ones
require new ones

Automation: replacing
Automation: replacing
certain tasks done by
certain tasks done by
people with machines
people with machines

Computerization
Computerization
•
People
People

Changing attitudes,
Changing attitudes,
expectations, perceptions,
expectations, perceptions,
and behaviors of the

and behaviors of the
workforce
workforce
•
Organizational
Organizational
development (OD)
development (OD)

Techniques or programs to
Techniques or programs to
change people and the
change people and the
nature and quality of
nature and quality of
interpersonal work
interpersonal work
relationships.
relationships.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–12
Organizational Development
Organizational Development
•
Organizational Development (OD)
Organizational Development (OD)

Techniques or programs to change people and the
Techniques or programs to change people and the
nature and quality of interpersonal work relationships.

nature and quality of interpersonal work relationships.
•
Global OD
Global OD

OD techniques that work for U.S. organizations may
OD techniques that work for U.S. organizations may
be inappropriate in other countries and cultures.
be inappropriate in other countries and cultures.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–13
Exhibit 13–3
Exhibit 13–3
Organizational Development Techniques
Organizational Development Techniques
© 2007 Prentice Hall, Inc. All rights
reserved. 13–14
Managing Resistance to Change
Managing Resistance to Change
•
Why People Resist Change?
Why People Resist Change?

The ambiguity and uncertainty that change introduces
The ambiguity and uncertainty that change introduces

The comfort of old habits
The comfort of old habits

A concern over personal loss of status, money,

A concern over personal loss of status, money,
authority, friendships, and personal convenience
authority, friendships, and personal convenience

The perception that change is incompatible with the
The perception that change is incompatible with the
goals and interest of the organization
goals and interest of the organization
© 2007 Prentice Hall, Inc. All rights
reserved. 13–15
Exhibit 13–4
Exhibit 13–4
Managerial Actions to Reduce Resistance to Change
Managerial Actions to Reduce Resistance to Change
•
Education and communication
Education and communication
•
Participation
Participation
•
Facilitation and support
Facilitation and support
•
Negotiation
Negotiation
•
Manipulation and co-optation
Manipulation and co-optation
•

Selecting people who accept change
Selecting people who accept change
•
Coercion
Coercion
© 2007 Prentice Hall, Inc. All rights
reserved. 13–16
Issues in Managing Change (cont’d)
Issues in Managing Change (cont’d)
•
Changing Organizational Cultures
Changing Organizational Cultures

Cultures are naturally resistant to change.
Cultures are naturally resistant to change.

Conditions that facilitate cultural change:
Conditions that facilitate cultural change:

The occurrence of a dramatic crisis
The occurrence of a dramatic crisis

Leadership changing hands
Leadership changing hands

A young, flexible, and small organization
A young, flexible, and small organization

A weak organizational culture
A weak organizational culture

© 2007 Prentice Hall, Inc. All rights
reserved. 13–17
Exhibit 13–5
Exhibit 13–5
Strategies for Managing Cultural Change
Strategies for Managing Cultural Change
•
Set the tone through management behavior; top managers,
Set the tone through management behavior; top managers,
particularly, need to be positive role models.
particularly, need to be positive role models.
•
Create new stories, symbols, and rituals to replace those currently
Create new stories, symbols, and rituals to replace those currently
in use.
in use.
•
Select, promote, and support employees who adopt the new
Select, promote, and support employees who adopt the new
values.
values.
•
Redesign socialization processes to align with the new values.
Redesign socialization processes to align with the new values.
•
To encourage acceptance of the new values, change the reward
To encourage acceptance of the new values, change the reward
system.
system.
•

Replace unwritten norms with clearly specified expectations.
Replace unwritten norms with clearly specified expectations.
•
Shake up current subcultures through job transfers, job rotation,
Shake up current subcultures through job transfers, job rotation,
and/or terminations.
and/or terminations.
•
Work to get consensus through employee participation and
Work to get consensus through employee participation and
creating a climate with a high level of trust.
creating a climate with a high level of trust.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–18
Issues in Managing Change (cont’d)
Issues in Managing Change (cont’d)
•
Handling Employee Stress
Handling Employee Stress

Stress
Stress

The adverse reaction people have to excessive pressure
The adverse reaction people have to excessive pressure
placed on them from extraordinary demands, constraints, or
placed on them from extraordinary demands, constraints, or
opportunities.
opportunities.


Functional Stress
Functional Stress
–
Stress that has a positive effect on performance.
Stress that has a positive effect on performance.

How Potential Stress Becomes Actual Stress
How Potential Stress Becomes Actual Stress

When there is uncertainty over the outcome.
When there is uncertainty over the outcome.

When the outcome is important.
When the outcome is important.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–19
Exhibit 13–6
Exhibit 13–6
Causes of Stress
Causes of Stress
© 2007 Prentice Hall, Inc. All rights
reserved. 13–20
Exhibit 13–7
Exhibit 13–7
Symptoms of Stress
Symptoms of Stress
© 2007 Prentice Hall, Inc. All rights
reserved. 13–21
Issues in Managing Change (cont’d)
Issues in Managing Change (cont’d)

•
Reducing Stress
Reducing Stress

Engage in proper employee selection
Engage in proper employee selection

Match employees’ KSA’s to jobs’ Tasks, Duties, and
Match employees’ KSA’s to jobs’ Tasks, Duties, and
Responsibilities (TDR’s)
Responsibilities (TDR’s)

Use realistic job interviews for reduce ambiguity
Use realistic job interviews for reduce ambiguity

Improve organizational communications
Improve organizational communications

Develop a performance planning program
Develop a performance planning program

Use job redesign
Use job redesign

Provide a counseling program
Provide a counseling program

Offer time planning management assistance
Offer time planning management assistance


Sponsor wellness programs
Sponsor wellness programs
© 2007 Prentice Hall, Inc. All rights
reserved. 13–22
Issues in Managing Change (cont’d)
Issues in Managing Change (cont’d)
•
Making Change Happen Successfully
Making Change Happen Successfully

Embrace change
Embrace change
—become a change-capable
—become a change-capable
organization.
organization.

Create a simple, compelling message explaining why
Create a simple, compelling message explaining why
change is necessary.
change is necessary.

Communicate constantly and honestly.
Communicate constantly and honestly.

Foster as much employee participation as possible—
Foster as much employee participation as possible—
get all employees committed.
get all employees committed.


Encourage employees to be flexible.
Encourage employees to be flexible.

Remove those who resist and cannot be changed.
Remove those who resist and cannot be changed.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–23
Exhibit 13–8
Exhibit 13–8
Characteristics of Change-Capable Organizations
Characteristics of Change-Capable Organizations
•
Link the present and
Link the present and
the future.
the future.
•
Make learning a way
Make learning a way
of life.
of life.
•
Actively support and
Actively support and
encourage day-to-day
encourage day-to-day
improvements and
improvements and
changes.
changes.

•
Ensure diverse teams.
Ensure diverse teams.
•
Encourage mavericks.
Encourage mavericks.
•
Shelter breakthroughs
Shelter breakthroughs
•
Integrate technology.
Integrate technology.
•
Build and deepen trust.
Build and deepen trust.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–24
Stimulating Innovation
Stimulating Innovation
•
Creativity
Creativity

The ability to combine ideas in a unique way or to
The ability to combine ideas in a unique way or to
make an unusual association.
make an unusual association.
•
Innovation
Innovation


Turning the outcomes of the creative process into
Turning the outcomes of the creative process into
useful products, services, or work methods.
useful products, services, or work methods.
•
Idea Champion
Idea Champion

Dynamic self-confident leaders who actively and
Dynamic self-confident leaders who actively and
enthusiastically inspire support for new ideas, build
enthusiastically inspire support for new ideas, build
support, overcome resistance, and ensure that
support, overcome resistance, and ensure that
innovations are implemented.
innovations are implemented.
© 2007 Prentice Hall, Inc. All rights
reserved. 13–25
Exhibit 13–9
Exhibit 13–9
Innovative Companies Around the World
Innovative Companies Around the World
Data: Boston Consulting Group * We broke ties by comparing 10-year annualized total shareholder
returns. In ties between a public and a private company, the public company was favored.
Source: “A Global Pulse of Innovation,” BusinessWeek, April 24, 2006, p. 74.