1. 8Chapter Managing Change and Innovation Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

2. 7-2 Learning Outcomes Define organizational change and compare and contrast views on the change process Explain how to manage resistance to change Describe what managers need to know about employee stress Discuss techniques for stimulating innovation Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 3. 7-3 What Is Change and How Do Managers Deal with It? Organizational Change Any alteration of an organizations people, structure, or technology Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 4. 7-4 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 5. 7-5 WHAT EXTERNAL FORCES CREATE A NEED TO CHANGE? The external forces that create the need for organizational change come from various sources: Marketplace Technology Government laws and regulations Economy Labor markets Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 6. 7-6 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 7. 7-7 How Do Organizations Implement Planned Changes? Organization Development (OD) Efforts that assist organizational members with a planned change by focusing on their attitudes and values Popular OD efforts in organizations rely heavily on group interactions and cooperation Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 8. 7-8 Organizational Development Activities Survey feedback A method of assessing employees attitudes toward and perceptions of a change Process Consultation Using outside consultants to assess organizational processes such as workflow, informal intra-unit relationships, and formal communication channels Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 9. 7-9 OD Activities (cont.) Team-Building Using activities to help work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member Intergroup Development Activities that attempt to make several work groups more cohesive Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 10. 7-10 Why Do People Resist Organizational Change? Why do people resist organizational change? Change replaces the known with uncertainty We do things out of habit Fear of losing something already possessed What are the techniques for reducing resistance to change? Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 11. 7-11 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 12. 7-12 What Is Stress? Stress The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 13. 7-13 What Causes Stress? Stressors Factors that cause stress Karoshi A Japanese term that refers to a sudden death caused by overworking Role Conflicts Work expectations that are hard to satisfy Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 14. 7-14 Stressors (cont.) Role Overload Having more work to accomplish than time permits Role Ambiguity When role expectations are not clearly understood Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 15. 7-15 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 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 16. 7-16 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 17. 7-17 Sources of Stress Job Responsibilities Personal Life Membership in Groups Work-Life Balance Environmental Uncertainty 18. 7-18 Personal Sources of Stress Major Life Events Death of a loved one Divorce Serious illness Getting arrested Getting married Buying a house Having a baby Minor Life Events Getting a speeding ticket Have trouble with your in-laws Getting caught in traffic Going on vacation Getting a new assignment at work 19. 7-19 Job-Related Stressors Role conflict Role ambiguity Overload Underload Challenging assignments Economic well-being and job security 20. 7-20 Group and Organization-Related Stressors Cultural differences Uncomfortable working conditions Unsafe working conditions Mergers and acquisitions 21. Work-Life Balance Elder care Child care Value conflict 22. 7-22 Environmental Uncertainty Global instability Aftermath of war and terrorism SARS Corporate scandals Exposure to toxins 23. 7-23 Coping Strategies for Individuals Problem-focused Time Management Mentoring Role Negotiation Emotion-focused Exercise Meditation Social Support Clinical Counseling 24. 7-24 Time-Management Steps Make lists of all tasks to accomplish during day Prioritize tasks Estimate length of time required to complete each task 25. 7-25 Nonfunctional Coping Strategies Entertaining/ Relaxing Eating Drinking Taking drugs 26. 7-26 How Can Stress Be Reduced? Employee Assistance Programs (EAPs) Programs offered by organizations to help employees overcome personal and health related problems Wellness Programs Programs offered by organizations to help employees prevent health problems Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 27. 7-27 Coping Strategies for Organizations Problem-focused Job redesign Job rotation Uncertainty reduction Job security Company day care Flextime/job sharing Telecommuting Emotion-focused On-site exercise facilities Organizational support Employee assistance programs Personal days/ Sabbaticals 28. 7-28 How Can Managers Encourage Innovation? Creativity The ability to combine ideas in a unique way or to make unusual associations between ideas Innovation The process of taking a creative idea and turning it into a useful product, service, or method of operation. How to stimulate innovation (What are Innovation variables)? Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 29. 7-29 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 30. 7-30 Fostering Innovation Idea Champions Individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 31. 7-31 Practice: Stress & Innovation Make a script for a 5-min-play about stress and how to deal with stress. Assessment: - Creativity: 50p - Acting skills: 50p - Logic: 50p - Ways to deal with stress: 50p - Total: 200p Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall. 32. 7-32 Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.