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8Chapter
Managing Change andInnovation
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 8-1
Learning Outcomes
After studying this chapter, you will be able to:• 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 ©2012 Pearson Education, Inc.
Publishing as Prentice Hall 8-2
What Is Organizational Change?
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 8-4
The Need for Change: External Factors
External factors:• Marketplace• Government laws
and regulations• Technology• Fluctuations in labor
markets• Economic changes
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 8-5
The Need for Change: Internal Forces
Internal forces:• Redefined or
modified organizational strategy
• Composition of workforce
• Employee attitudes
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 8-6
Initiating Change
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-7
Organizational change – Any alteration of an organization’s people, structure, or technology
“White-Water Rapids” Change
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-10
Implementing Change
Organization development – Efforts that assist members with a planned change by focusing on their attitudes and values
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 8-11
Implementing Change (cont.)
Organizational development tactics:
• Survey feedback• Process consultation• Team-building• Intergroup development
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-12
Resistance to Change
• Fear about adaptation• Habits• Fear of losing something already
possessed• Belief that the change is
incompatible with the goals and interests of the organization
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-14
Reducing Resistance to Change
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-15
Employee Reactions to Change
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-17
What Is Stress?
Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-18
Causes of Stress
Categories of organizational stressors:1. Task demands2. Role demands3. Interpersonal demands4. Organization structure5. Organizational leadership
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-20
Personal Factors that Create Stress
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-21
Reducing Stress
• Match employee skills to job requirements
• Redesign jobs• Offer employee
assistance programs
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-22
Encouraging Innovation (cont.)
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-25
Structural Variables and Innovation
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-26
Culture and Innovation
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-27
Innovative organizations:• Encourage
experimentation• Reward both
successes and failures
• Celebrate mistakes
HR and Innovation
HR aids innovation by:• Promoting training and development• Offering high job security• Encouraging individuals to become idea champions• Supporting new ideas• Overcoming resistance• Implementing innovations
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall. 8-28
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