ch5

• Organizational change


  Changes that occur within an organization
• Categories of organizational change

  • Incremental
  • Radical
  • Transformational
• External forces that create a need for change

  • Marketplace
  • Government laws and regulations
  • Technology
  • Labor markets
  • Economic changes
• Internal forces that create a need for change

  • Strategy
  • Composition of workforce
  • Employee attitudes
• Change agent


  People who act as catalysts and assume responsibility for managing the change process
• "Calm waters" metaphor


  • The status quo can be considered a state of equilibrium
  • Increase the driving force
  • Decrease the restraining force
  • Do both
• "White-water rapids" metaphor


  • Change is the status quo
  • Managing change is a continual process
• Organization development (OD)


  Efforts that assist organizational members with a planned change by focusing on their attitudes and values
• Organization development efforts


  • Survey feedback
  • Process consultation
  • Team-building
  • Intergroup development
• Resistance to change


  • Uncertainty
  • Concern over personal loss
  • Habit
  • Belief change is not in organization's best interests
• Reducing resistance to change

  1. Grab the employees' attention

  2. Education and communication

  3. Participation

  4. Facilitation and support

  5. Negotiation

  6. Manipulation and co-optation

  7. Coercion
• Employee reactions to change

  • Response to anxiety over intense demands, constraints, and opportunities
  • Functional stress
  • Potential stress to become actual stress
• Symptoms of stress


  • Physical
  • Psychological
  • Behavioral
• Causes of stress: job related

  • Task demands
  • Role demands
  • Interpersonal demands
  • Organizational structure
  • Organizational leadership
• Causes of stress: personal


  • Family and personal issues
  • Personality type
• Reducing stress: general guidelines

  • Stress can never be totally eliminated
  • Not all stress is dysfunctional
  • Reduce dysfunctional stress by controlling job-related factors and offering help for personal stress
• Reducing stress: job-related factors


  • Employee selection
• Stress due to managers' supervisory style

  • Culture of tension, fear, anxiety, unrealistic pressures to perform in the short run, excessively tight controls, and routine firing of employees who don't measure up
• Causes of Stress: Personal

  • Family and personal issues
  • Personality type
• 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
• Stress can never be totally eliminated
• Not all stress is dysfunctional
• Reducing Stress: General Guideline

  1. Controlling job-related factors

  2. Offering help for personal stress
• Reducing Stress: Job-Related Factor

  1. Employee selection

  2. Improve organizational communications to minimize ambiguity

  3. Use a performance planning program to clarify job responsibilities, provide clear performance goals and reduce ambiguity through feedback

  4. Redesign job

  5. Allow employees to participate in decisions and to gain social support
• Reducing Stress: Personal Factors

  1. Employees assistance program (EAPs): the goal is to get a productive employee back on the job as quickly as possible

  2. Wellness programs: the goal is to keep employees healthy and well, in all life areas
• Creativity


  The ability to produce novel and useful ideas
• Innovation


  The process of taking a creative idea and turning it into a useful product, service, or method of operation
• Innovation Process


  1. Perception

  2. Incubation

  3. Inspiration

  4. Innovation
• How can a Manager Foster Innovation?


  • Creative people and groups
  • Right environment
  • Innovative product and work methods
• Structural Variables and Innovation

  • Organic structures
  • Abundant resources
  • High interunit communication
  • Minimal time pressure
  • Work and non work support
• Culture and Innovation


  • Acceptance of ambiguity
  • Tolerance of the impractical
  • Low external controls
  • Tolerance of risks
  • Tolerance of conflict
  • Focus on ends
  • Open-system focus
  • Positive feedback
• HR and Innovation


  • Actively promote the training and development
  • Offer high job security
  • Encourages to be Idea champions
• Idea Champion


  Individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented
• Idea Champion Characteristics


  • Extremely high self-confidence
  • Persistence
  • Energy
  • Tendency toward risk taking
  • Dynamic leadership
  • Inspire and energize others with their vision
  • Good at gaining the commitment of others to support their mission
• Design Thinking and Innovation


  • Focus on what customers need and want not just achieving sales target
  • Provide a process for coming up with things that don't exist
• Disruptive innovation


  Innovation in products, services, or processes that radically change an industry's rules of the game
• Sustaining innovation


  Innovations that represent small and incremental changes in established products rather than dramatic breakthroughs
• Examples of Past Disruptive Innovators


  • Compact disc -> Apple iTunes
  • Carbon paper -> Xerox copy machine
  • Canvas tennis shoes -> Nike athletic shoes
  • Portable radio -> Sony Walkman
  • Sony Walkman -> Apple iPod
  • Typewriters -> IBM PC
  • Weekly news magazines -> CNN
  • TV networks -> Cable and Netflix
  • Local travel agencies -> Expedia
  • Stockbrokers -> eTrade
  • Traveler's checks -> ATMs and Visa
  • Encyclopedias -> Wikipedia
  • Newspaper classified ads -> Craig's List
  • AM/FM radio stations -> Sirius XM
  • Tax preparation services -> Intuit's Turbo Tax
  • Yellow Pages -> Google
  • Paper maps -> Garmin's GPS
  • Paperback books -> Kindle
  • Lawyers -> Legal Zoom
  • Taxis -> Uber
• Success can breed failure