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©Prentice Hall, 2001 Chapter 7 1
Managing Change Managing Change and Innovationand Innovation
©Prentice Hall, 2001 Chapter 7 2
Learning OutcomesLearning 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 3
Learning OutcomesLearning 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 4
Categories of Categories of ChangeChange
StructureStructurePeoplePeople
TechnologyTechnology
©Prentice Hall, 2001 Chapter 7 5
CompetitionCompetition
TechnologyTechnologyEconomicEconomicConditionsConditions
GovernmentGovernmentProgramsPrograms
External Forces of External Forces of ChangeChange
©Prentice Hall, 2001 Chapter 7 6
InternalInternalForces ofForces ofChangeChange
InternalInternalForces ofForces ofChangeChange Impact ofImpact of
ExternalExternalEventsEvents
Impact ofImpact ofExternalExternalEventsEvents
InternalInternalOperationsOperations
InternalInternalOperationsOperations
©Prentice Hall, 2001 Chapter 7 7
OutsideOutsideConsultantsConsultants
StaffStaffSpecialistsSpecialistsManagersManagers
Agents of ChangeAgents of Change
©Prentice Hall, 2001 Chapter 7 8
The “Calm Waters” The “Calm Waters” MetaphorMetaphor
The “Calm Waters” The “Calm Waters” MetaphorMetaphor
Unfreezing Changing Refreezing
Lewin’s Three-Step Process
©Prentice Hall, 2001 Chapter 7 9
Lack ofLack ofStabilityStability
ConstantConstantChangeChange
Virtual Virtual ChaosChaos
Lack ofLack ofPredictabilityPredictability
White-WaterWhite-WaterRapidsRapids
©Prentice Hall, 2001 Chapter 7 10
Resistance to ChangeResistance to Change
Uncertainty and Ambiguity
Fear of Personal Loss
Lack of Faith in Change
Uncertainty and Ambiguity
Fear of Personal Loss
Lack of Faith in Change
©Prentice Hall, 2001 Chapter 7 11
Education andCommunicationEducation and
Communication ParticipationParticipation
NegotiationNegotiation Facilitationand SupportFacilitationand Support
CoercionCoercionManipulationand CooptationManipulation
and Cooptation
Techniques forReducing Resistance
Techniques forReducing Resistance
©Prentice Hall, 2001 Chapter 7 12
Techniques for Techniques for Managing ChangeManaging Change
AuthorityAuthority
CoordinationCoordination
CentralizationCentralization
AttitudesAttitudes
ExpectationsExpectations
BehaviorBehavior
ProcessesProcesses
MethodsMethods
EquipmentEquipment
PeoplePeopleTechnologyTechnologyStructureStructure
©Prentice Hall, 2001 Chapter 7 13
Organizational Organizational Development TechniquesDevelopment Techniques
• Intergroup development
• Process consultation
• Survey feedback
• Team building
©Prentice Hall, 2001 Chapter 7 14
ImportanceImportanceImportanceImportanceUncertaintyUncertaintyUncertaintyUncertainty
What Is Stress?What Is Stress?What Is Stress?What Is Stress?
DemandsDemandsDemandsDemandsConstraintsConstraintsConstraintsConstraints
©Prentice Hall, 2001 Chapter 7 15
OrganizationalOrganizational
Stress FactorsStress Factors
OrganizationalOrganizational
Stress FactorsStress Factors
Task DemandsTask DemandsTask DemandsTask Demands
Role DemandsRole DemandsRole DemandsRole Demands
Interpersonal DemandsInterpersonal DemandsInterpersonal DemandsInterpersonal Demands
Structural DimensionsStructural DimensionsStructural DimensionsStructural Dimensions
Leadership TechniquesLeadership TechniquesLeadership TechniquesLeadership Techniques
©Prentice Hall, 2001 Chapter 7 16
Personal StressPersonal StressFactorsFactors
FamilyFamilyFamilyFamily EconomicEconomicEconomicEconomicPersonalityPersonalityPersonalityPersonality
©Prentice Hall, 2001 Chapter 7 17
PhysiologicalPhysiological
PsychologicalPsychological
BehavioralBehavioral
Stress
Three General Symptoms
Stress
Three General Symptoms
©Prentice Hall, 2001 Chapter 7 18
Stress ManagementStress Management• Selection and placement
• Job redesign
• Participation
• Wellness programs
• Employee assistance
©Prentice Hall, 2001 Chapter 7 19
What IsWhat IsCreativity?Creativity?
What IsWhat IsCreativity?Creativity?
• Combining new ideas
in unique ways or
associating ideas in
unusual ways
• Combining new ideas
in unique ways or
associating ideas in
unusual ways
What IsWhat IsInnovation?Innovation?
What IsWhat IsInnovation?Innovation?
• Turning creative ideas
into useful products,
services, or methods
of operation
• Turning creative ideas
into useful products,
services, or methods
of operation
©Prentice Hall, 2001 Chapter 7 20
The CreativeThe CreativeProcessProcess
PerceptionPerception
InnovationInnovation
IncubationIncubation
InspirationInspiration
©Prentice Hall, 2001 Chapter 7 21
StructuralStructuralVariablesVariablesStructuralStructuralVariablesVariables
Sources ofSources ofInnovationInnovationSources ofSources ofInnovationInnovation
OrganizationalOrganizationalCultureCulture
OrganizationalOrganizationalCultureCulture
HumanHumanResourcesResources
HumanHumanResourcesResources