Managing Change and Innovation

Change and Innovation
Chapter 12
Management


Stephen P. Robbins Mary Coulter


tenth

edition

Outcomes Follow this Learning Outline as you read and study this

chapter.

12.1 The Change Process
Explain Lewin’s three-step model of the change process.
Contrast the calm waters and white-water rapids metaphors of change.
12.2 Managing Organizational Change
Define organizational change.
Explain how managers might change structure, technology, and people.

Outcomes
12.3 Managing Resistance to Change
Explain why people resist change and

how resistance might be managed.
12.4 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.

Outcomes
12.5 Stimulating Innovation
Explain how creativity and innovation differ from one

another.
Describe the structural, cultural, and human resource variables that are necessary for innovation.

12–1 External and Internal Forces for Change
External
• Changing consumer

needs and wants
• New governmental laws
• Changing technology
• Economic changes

Internal
• New organizational strategy
• Change in composition of workforce
• New equipment
• Changing employee attitudes

Is Change?

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.

Change Process
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.

12–2 The Change Process

Change and Change Agents
Organizational Change
Any alterations in the people, structure,

or technology of an organization
Change Agents
Persons who act as catalysts and assume the responsibility for managing the change process.
Types of Change Agents
Managers: internal entrepreneurs
Nonmanagers: change specialists
Outside consultants: change implementation experts

12–3 Three Types of Change

of Change
Structure
Changing an organization’s structural components or its structural design
Technology
Adopting

new equipment, tools, or operating methods that displace old skills and require new ones
Automation: replacing certain tasks done by people with machines
Computerization
People
Changing attitudes, expectations, perceptions, and behaviors of the workforce

Development
Organizational Development (OD)
Techniques or programs to change people and the

nature and quality of interpersonal work relationships.
Global OD
OD techniques that work for U.S. organizations may be inappropriate in other countries and cultures.

12–4 Popular OD Techniques

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

12–5 Reducing Resistance to Change

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

12–6 Strategies for Managing Cultural Change
Set the tone through management

behavior; top managers, particularly, need to be positive role models.
Create new stories, symbols, and rituals to replace those currently in use.
Select, promote, and support employees who adopt the new values.
Redesign socialization processes to align with the new values.
To encourage acceptance of the new values, change the reward system.
Replace unwritten norms with clearly specified expectations.
Shake up current subcultures through job transfers, job rotation, and/or terminations.
Work to get consensus through employee participation and creating a climate with a high level of trust.

in Managing Change (cont’d)
Handling Employee Stress
Stress
The adverse reaction people have

to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
Functional Stress
Stress that has a positive effect on performance.
How Potential Stress Becomes Actual Stress
When there is uncertainty over the outcome.
When the outcome is important.

12–7 Symptoms of Stress

in Managing Change (cont’d)
Reducing Stress
Engage in proper employee selection
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

in Managing Change (cont’d)
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.

12–8 Characteristics of Change-Capable Organizations
Link the present

and the future.
Make learning a way of life.
Actively support and encourage day-to-day improvements and changes.

Ensure diverse teams.
Encourage mavericks.
Shelter breakthroughs.
Integrate technology.
Build and deepen trust.

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.

12–9 World’s Most Innovative Companies
Source: “The World’s Most Innovative Companies by

Region,” BusinessWeek, BusinessWeekOnline, April 15, 2008, businessweek.com

12–10 Systems View of Innovation
Source: Adapted from R.W. Woodman, J.E. Sawyer,

and R.W. Griffin, “Toward a Theory of Organizational Creativity,” Academy of Management Review, April 1993, p. 309.

12–11 Innovation Variables

Innovation
Structural Variables
Adopt an organic structure
Make available plentiful resources
Engage in frequent

inter-unit communication
Minimize extreme time pressures on creative activities
Provide explicit support for creativity

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

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.
Idea Champion
Dynamic self-confident leaders who actively and enthusiastically inspire support for new ideas, build support, overcome resistance, and ensure that innovations are implemented.

to Know
organizational change
change agent
organizational development (OD)
stress
creativity
innovation
idea champion

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