Managing Change
and Innovation
©Prentice Hall, 2001
Chapter 7
1
Learning Outcomes
• Describe the change variables a manager
can control
• Study internal and external forces of change
• Analyze managers as change agents
• Contrast the “calm waters” and “white water
rapids” metaphors for change
• Explain why people resist change
©Prentice Hall, 2001
Chapter 7
2
Learning Outcomes
• Learn how to reduce resistance to change
• Define organization development and learn
four OD techniques
• Review the causes and symptoms of stress
• Compare creativity and innovation
• Learn how organizations can stimulate
innovation
©Prentice Hall, 2001
Chapter 7
3
Categories of Change
People
Structure
Technology
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Chapter 7
4
External Forces of Change
Competition
Government
Programs
Economic
Conditions
Technology
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Chapter 7
5
Internal
Operations
Internal
Forces of
Change
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Impact of
External
Events
Chapter 7
6
Agents of Change
Staff
Specialists
Managers
Outside
Consultants
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Chapter 7
7
Lewin’s Three-Step Process
Unfreezing
Changing
Refreezing
The “Calm Waters” Metaphor
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Chapter 7
8
Lack of
Stability
Lack of
Predictability
White-Water
Rapids
Virtual
Chaos
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Constant
Change
Chapter 7
9
Resistance to Change
Uncertainty and Ambiguity
Fear of Personal Loss
Lack of Faith in Change
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Chapter 7
10
Techniques for
Reducing Resistance
Education and
Communication
Participation
Negotiation
Facilitation
and Support
Manipulation
and Cooptation
Coercion
©Prentice Hall, 2001
Chapter 7
11
Techniques for
Managing Change
Structure
Technology
People
Authority
Processes
Attitudes
Coordination
Methods
Expectations
Centralization
Equipment
Behavior
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Chapter 7
12
Organizational Development
Techniques
• Intergroup development
• Process consultation
• Survey feedback
• Team building
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Chapter 7
13
Constraints
Demands
What Is Stress?
Uncertainty
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Importance
Chapter 7
14
Task Demands
Role Demands
Interpersonal Demands
Organizational
Stress Factors
Structural Dimensions
Leadership Techniques
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Chapter 7
15
Personal Stress
Factors
Family
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Personality Economic
Chapter 7
16
Stress
Physiological
Psychological
Behavioral
Three General Symptoms
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Chapter 7
17
Stress Management
• Selection and placement
• Job redesign
• Participation
• Wellness programs
• Employee assistance
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Chapter 7
18
What Is
Creativity?
• Combining new ideas
in unique ways or
associating ideas in
unusual ways
What Is
Innovation?
• Turning creative ideas
into useful products,
services, or methods
of operation
©Prentice Hall, 2001
Chapter 7
19
The Creative
Process
Perception
Incubation
Inspiration
Innovation
©Prentice Hall, 2001
Chapter 7
20
Structural
Variables
Sources of
Innovation
Organizational
Culture
Human
Resources
©Prentice Hall, 2001
Chapter 7
21