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Transcript of 9erobbins_ppt13
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ninth edition
STEPHEN P. ROBBINS
PowerPoint Presentation by Charlie CookThe University of West Alabama
MARY COULTER
2007 Prentice Hall, Inc.All rights reserved.
Managing Change
and Innovation
Chapter
13
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What Is Change?
Organizational Change
Any alterations in the people, structure, or technologyof an organization
Characteristics of Change
Is constant yet varies in degree and directionProduces uncertainty yet is not completely
unpredictable
Creates both threats and opportunities
Managing change is an integral partof every managers job.
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Forces for Change
External Forces
Marketplace
Governmental lawsand regulations
Technology
Labor market
Economic changes
Internal Forces
Changes inorganizationalstrategy
Workforce changesNew equipment
Employee attitudes
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Exhibit 132 Three Categories of Change
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Types of Change
Structural
Changing an organizationsstructural components or itsstructural design
Technological
Adopting new equipment,tools, or operating methodsthat displace old skills andrequire new ones
Automation: replacingcertain tasks done bypeople with machines
Computerization
People
Changing attitudes,expectations, perceptions,and behaviors of theworkforce
Organizationaldevelopment (OD)
Techniques or programs tochange people and thenature and quality of
interpersonal workrelationships.
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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 thegoals and interest of the organization
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Book Summary
Leading ChangeBy John P. KotterHarvard Business School Press,1996
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Leading ChangeBy John P. Kotter
1. Create a Sense of Urgency
2. Create a Guiding Coalition & Mobilize Commitment
3. Develop and Communicate a Shared Vision
4. Empower Employees to Make the Change5. Generate Short-term Wins
6. Consolidate Gains and Produce More Change
7. Anchor the New Ways of Doing Things in the CompanyCulture
8. Monitor Progress and Adjust the Vision as Required
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Exhibit 135 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 thosecurrently in use.
Select, promote, and support employees who adopt the newvalues.
Redesign socialization processes to align with the new values.
To encourage acceptance of the new values, change the rewardsystem.
Replace unwritten norms with clearly specified expectations.
Shake up current subcultures through job transfers, jobrotation, and/or terminations.
Work to get consensus through employee participation andcreating a climate with a high level of trust.
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Issues in Managing Change
Handling Employee Stress
Stress
The adverse reaction people have to excessive pressureplaced on them from extraordinary demands, constraints, oropportunities.
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.
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The Relationship Between Stress & JobPerformance
Level of Stress
P
erformance
Low High
Low
High
OptimalStress/Performance
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Issues in Managing Change (contd)
Reducing Stress
Engage in proper employee selection
Match employees KSAs to jobs Tasks, Duties, andResponsibilities (TDRs)
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
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Stimulating Innovation
Creativity
The ability to combine ideas in a unique way or tomake an unusual association.
Innovation
Turning the outcomes of the creative process intouseful products, services, or work methods.
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Deliberate Bureaucracy Busting
Citicorp managers stay fresh by shuffling the
deck once in a while, and we do it when wearent in trouble. Reorganize on the crest of the
wave, not when youre down in the trough.Richard Huber, Citicorp CEO
Every three years or so, a company should be
put on trial for its life every product, process,
technology, service, and market.Peter Drucker
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Exhibit 13.11
InnovationVariables
Chapter 10
Capital commitment
Deming: Drive fear out of the workplace.
Q: The reward/remuneration system??
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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 creativeactivities
Provide explicit support for creativity
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Creating the Right Environment for
Innovation (contd)
Cultural Variables
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than meansDevelop an open-system focus
Provide positive feedback
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Creating the Right Environment for
Innovation (contd)
Human Resource Variables
Actively promote training and development to keepemployees skills current.
Offer high job security to encourage risk taking.
Encourage individual to be champions of change.