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8th edition
Steven P. Robbins
Mary Coulter

PowerPoint Presentation by Charlie Cook
Copyright © 2005 Prentice Hall, Inc.
All rights reserved.
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

What Is Change?
• Define organizational change.
• Explain how managers are affected by change.

Forces for Change
• Discuss the external and internal forces for change.
• Contrast internal and external change agents.

Two Views of the Change Process
• Contrast the calm waters and white-water rapids
metaphors of change.
• Explain Lewin’s three-step model of the change process.
• Discuss the environment that managers face today.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–2
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.

Managing Change
• Explain how managers might change structure,
technology, and people.
• Describe why people resist change and how resistance
might be managed.

Contemporary Issues in Managing Change
• Explain why changing organizational culture is so difficult
and how managers can do it.
• Describe employee stress and how managers can help
employees deal with stress.
• Discuss what it takes to make change happen
successfully.
Copyright © 2005 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)
Follow this Learning Outline as you read and study this chapter.

Stimulating Innovation
• Tell why innovate isn’t just creativity.
• Explain the systems view of innovation.
• Describe the structural, cultural, and human resource
variables that are necessary for innovation.
• Explain what idea champions are and why they’re
important to innovation.

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–4
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 manager’s job.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–5
Forces for Change
• External forces
 Marketplace

• Internal Forces

 Governmental laws
and regulations

 Changes in
organizational
strategy

 Technology

 Workforce changes

 Labor market

 New equipment

 Economic changes

 Employee attitudes

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–6
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

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–7
Change Process Viewpoints
• 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

• White-Water Rapids Metaphor
 The lack of environmental stability and predictability
requires that managers and organizations continually
adapt (manage change actively) to survive.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–8
Types of Change
• Structural
 Changing the organization’s structure or its structural
components

• Technological
 Adopting new equipment or operating methods that
displace old skills and require new ones

• Automation
 Replacing certain tasks done by people with machines

• Workforce
 Changing attitudes, expectations, perceptions, and
behaviors of the workforce

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–9
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 interest of the organization

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–10
Issues in Managing Change (cont’d)
• Changing Organizational Cultures
 Cultures are naturally resistant to change
 Conditions that facilitate cultural change:
 The

occurrence of a dramatic crisis
 Leadership changing hands
 A young, flexible, and small organization
 A weak organizational culture

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–11
Issues in Managing Change
• Handling Employee Stress due to Change
 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.

 How Potential Stress Becomes Actual Stress
 There

is uncertainty over the outcome
 When the outcome is important
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–12
Issues in Managing Change
• Reducing Stress
 Engage in proper employee selection
 Match employees’ KSA’s to jobs’ TDR’s
 Use realistic job interviews for reduce ambiguity
 Improve organizational communications
 Develop a performance planning program
 Use job redesign
 Provide a counseling program
 Offer time planning management assistance
 Sponsor wellness programs
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–13
Issues in Managing Change
• Making Change Happen Successfully
 Embrace change—become a change-capable
organization.
 Create a simple, compelling message explaining why
change is necessary.
 Communicate constantly and honestly.
 Foster as much employee participation as possible—
get all employees committed
 Encourage employees to be flexible
 Remove those who resist and cannot be changed.
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–14
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

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–15
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

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–16
Creating the “Right” Environment for
Innovation (cont’d)
• 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
Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–17
Creating the “Right” Environment for
Innovation (cont’d)
• Human Resource Variables
 Actively promote training and development to keep
employees’ skills current
 Offer high job security to encourage risk taking
 Encourage individual to be “champions” of change

Copyright © 2005 Prentice Hall, Inc. All
rights reserved.

13–18

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Management ch13

  • 1. 8th edition Steven P. Robbins Mary Coulter PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved.
  • 2. LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. What Is Change? • Define organizational change. • Explain how managers are affected by change. Forces for Change • Discuss the external and internal forces for change. • Contrast internal and external change agents. Two Views of the Change Process • Contrast the calm waters and white-water rapids metaphors of change. • Explain Lewin’s three-step model of the change process. • Discuss the environment that managers face today. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–2
  • 3. 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. Managing Change • Explain how managers might change structure, technology, and people. • Describe why people resist change and how resistance might be managed. Contemporary Issues in Managing Change • Explain why changing organizational culture is so difficult and how managers can do it. • Describe employee stress and how managers can help employees deal with stress. • Discuss what it takes to make change happen successfully. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–3
  • 4. 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. Stimulating Innovation • Tell why innovate isn’t just creativity. • Explain the systems view of innovation. • Describe the structural, cultural, and human resource variables that are necessary for innovation. • Explain what idea champions are and why they’re important to innovation. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–4
  • 5. 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 manager’s job. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–5
  • 6. Forces for Change • External forces  Marketplace • Internal Forces  Governmental laws and regulations  Changes in organizational strategy  Technology  Workforce changes  Labor market  New equipment  Economic changes  Employee attitudes Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–6
  • 7. 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 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–7
  • 8. Change Process Viewpoints • 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 • White-Water Rapids Metaphor  The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–8
  • 9. Types of Change • Structural  Changing the organization’s structure or its structural components • Technological  Adopting new equipment or operating methods that displace old skills and require new ones • Automation  Replacing certain tasks done by people with machines • Workforce  Changing attitudes, expectations, perceptions, and behaviors of the workforce Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–9
  • 10. 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 interest of the organization Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–10
  • 11. Issues in Managing Change (cont’d) • Changing Organizational Cultures  Cultures are naturally resistant to change  Conditions that facilitate cultural change:  The occurrence of a dramatic crisis  Leadership changing hands  A young, flexible, and small organization  A weak organizational culture Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–11
  • 12. Issues in Managing Change • Handling Employee Stress due to Change  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.  How Potential Stress Becomes Actual Stress  There is uncertainty over the outcome  When the outcome is important Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–12
  • 13. Issues in Managing Change • Reducing Stress  Engage in proper employee selection  Match employees’ KSA’s to jobs’ TDR’s  Use realistic job interviews for reduce ambiguity  Improve organizational communications  Develop a performance planning program  Use job redesign  Provide a counseling program  Offer time planning management assistance  Sponsor wellness programs Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–13
  • 14. Issues in Managing Change • Making Change Happen Successfully  Embrace change—become a change-capable organization.  Create a simple, compelling message explaining why change is necessary.  Communicate constantly and honestly.  Foster as much employee participation as possible— get all employees committed  Encourage employees to be flexible  Remove those who resist and cannot be changed. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–14
  • 15. 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 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–15
  • 16. 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 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–16
  • 17. Creating the “Right” Environment for Innovation (cont’d) • 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 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–17
  • 18. Creating the “Right” Environment for Innovation (cont’d) • Human Resource Variables  Actively promote training and development to keep employees’ skills current  Offer high job security to encourage risk taking  Encourage individual to be “champions” of change Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13–18