Chapter
6
5e
Managing Change:
Innovation and
Diversity
Part III: Organizing
Copyright © 2011 Cengage Learning.
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Learning Outcomes
After studying this chapter, you should be able to:
1. Identify the sources of forces for change.
2. List the four types of change.
3. List the reasons people resist change, and suggest ways of
overcoming such resistance.
4. State the difference between a fact, a belief, and a value.
5. Explain intrapreneurship, and identify its three roles.
6. Discuss the relationship among diversity, innovation, and quality.
7. Explain the difference between team building and process
consultation.
8. State the difference in the use of forcefield analysis and survey
feedback.
9. Define the key terms listed at the end of the chapter.
Copyright © 2011 Cengage Learning. All rights reserved.
6–2
IDEAS ON MANAGEMENT at Xerox
1. What types of change did Ursula Burns make as
she worked her way up the corporate ladder at
Xerox?
2. How is Xerox committed to innovation?
3. How does Xerox embrace diversity?
4. How does Xerox use organizational development
(OD)?
Copyright © 2011 Cengage Learning. All rights reserved.
6–3
Forces for Change
• The Environment
 Changes in the business environment create the
necessity for change in a firm’s strategy which
requires altering the functions and structure of the
firm (technology and people) to support the strategy.

Management axiom: structure follows strategy
• The Management Functions and Change
 A competitive firm creates an organizational structure
that supports its strategy which, in turn, is constantly
revised to respond to environmental change.
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6–4
Exhibit 6–1 ● Types of Organizational Change
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6–5
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6–6
Forms of Change
• Incremental Change
 Continual improvement that takes place within
already accepted frameworks, value systems, or
organizational structure that is necessary for survival
and success.
• Radical Change
 Rapid change in strategy, structure, technology, or
people.
 Radical change alters accepted frameworks, value
systems, or organizational structure.
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6–7
Join the Discussion
Ethics & Social Responsibility
1. How do you feel about high school students
missing the experience of attending
traditional classes and socializing with their
peers?
2. Is it ethical and socially responsible to offer
an online high school for students?
3. How do you feel about students paying to
earn a high school diploma when they can
earn one for free at a public school?
Copyright © 2011 Cengage Learning. All rights reserved.
6–8
Exhibit 6–2 ● Stages in the Change Process
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6–9
Exhibit 6–3 ● Resistance to Change and Ways to Overcome Resistance
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6–10
Resistance to Change
• Intensity
 People vary in their attitudes towards change.
• Sources of Resistance to Change
 Facts

Provable statements that identify reality.
 Beliefs

Subjective opinions that cannot be proven.
 Values

What people believe are important and worth pursuing or
doing.
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6–11
Resistance to Change (cont’d)
• Focuses of Resistance to Change
 Self

The reaction of individuals who feel their self-interests are
threatened by change.
 Others

The consideration given to how others will be affected by
change.
 Work Environment

Change in the working environment threatens individuals
control of the environment.
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6–12
Exhibit 6–4 ● Resistance Matrix
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6–13
Innovation
• Innovative Organizational Structures
 Flat organizations with limited bureaucracy
 Generalist division of labor
 Coordinate with cross functional teams
 Informal with decentralized authority
 Create separate systems for innovative groups
 Attract and retain creative employees
 Reward innovation and creativity
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6–14
Innovation (cont’d)
• Innovative Organizational Cultures
 Encourage risk-taking
 Foster intrapreneurship
 Have open systems
 Focus on ends rather than means
 Accept ambiguous and impractical ideas
 Tolerate conflict
Copyright © 2011 Cengage Learning. All rights reserved.
6–15
Copyright © 2011 Cengage Learning. All rights reserved.
6–16
Diversity
• Diversity
 The degree of differences among members of a
group or an organization.

Race/ethnicity, religion, gender, age, ability

Diversity in all forms is increasing in the general population
and the workforce.
 Incorporating diversity opens up a larger labor pool of
skilled workers from which to recruit.
 Diversity is a legal requirement, an ethical obligation,
and a competitive advantage.
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6–17
Diversity (cont’d)
• Valuing Diversity
 Emphasizes training employees of different races and
ethnicities, religions, genders, ages, and abilities to
function together effectively.
• Managing Diversity
 Emphasizes fully utilizing human resources through
organizational actions that meet all employees’
needs.
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6–18
Exhibit 6–5 ● Managing Diversity
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6–19
Join the Discussion
Ethics & Social Responsibility
• Speaking English
1. Why are some organizations no longer requiring
workers to speak English?
2. Should a worker be required to be able to speak
English to get a job in the United States?
3. Is it ethical and socially responsible to hire people
who can’t speak English and to provide translators
and policies written in multiple languages?
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6–20
Gender Diversity
• Issues:
 Disappearance of the “traditional family”
 Increase in women as a percentage of the work force
 Women’s pay continuing to lag behind men’s
 Glass ceiling barring women from upper management
 Sexual harassment in the workplace
Copyright © 2011 Cengage Learning. All rights reserved.
6–21
Copyright © 2011 Cengage Learning. All rights reserved.
6–22
Organizational Development
• Organizational Development (OD)
 The ongoing planned process of change used as a
means of improving performance through
interventions.
• OD Interventions
 Specific actions taken to implement specific changes.
• Change Agent
 The person selected by human resources
management to be responsible for the OD program.
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6–23
Exhibit 6–6 ● Change Models
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6–24
Exhibit 6–7 ● OD Interventions and Their Focus
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6–25
OD Interventions
• Team Building
 Designed to help work
groups increase structural
and team dynamics
performance to get the job
done.
• Process Consultation
 Designed to improve team
dynamics by focusing on
how people interact as they
get the job done.
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• Stages in Team Building
1. Climate building and goals
2. Evaluation of structure and
team dynamics
3. Problem identification
4. Problem solving
5. Training
6. Closure
6–26
OD Interventions (cont’d)
• Forcefield Analysis
 Diagrams the current level of performance, the forces
hindering change, and the driving force toward
change.
• Survey Feedback
 Use of a questionnaire to gather data to use as the
basis for change.
• Large-Group Intervention
 Brings together participants from all parts of the
organization, and key outside stakeholders, to solve
problems or take advantage of opportunities.
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6–27
Exhibit 6–8 ● Forcefield Analysis
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6–28
Steps in the Survey Feedback Process
1. Management and the change agent do some preliminary planning
to develop an appropriate survey questionnaire.
2. The questionnaire is administered to all members of the
organization/unit.
3. The survey data are analyzed to uncover problem areas for
improvement.
4. The change agent reports the results to management.
5. Managers evaluate the feedback and discuss the results with their
subordinates.
6. Corrective intervention action plans are developed and
implemented.
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6–29
Steps in the GE Work Out Process
1. Select a work process or problem for improvement.
2. Select an appropriate cross-functional team with outside
stakeholder members. The team includes top leaders and a
human resources specialist to run the meetings. Outside
consultants with relevant expertise may also be included.
3. Appoint a “champion” to follow through on recommendations.
4. Meet for several days to come up with recommendations for
improvements.
5. Meet with leaders to get their immediate response to the
recommendations.
6. Hold follow-up meetings, as needed, to implement the
recommendations.
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6–30
OD Interventions (cont’d)
• Work Design
 Can be designed as an individual job, as a job for a
group to perform, or by departmentalization.
 Job enrichment is used to change jobs to make them
more interesting and challenging.
• Direct Feedback
 In certain situations, the most efficient intervention is
to have a change agent make a direct
recommendation about a specific change.
 Change agent is often an outside consultant.
Copyright © 2011 Cengage Learning. All rights reserved.
6–31
Copyright © 2011 Cengage Learning. All rights reserved.
6–32
KEY TERMS
•
•
•
•
•
•
•
•
•
•
forcefield analysis
information systems (IS)
large-group intervention
OD interventions
organizational development (OD)
process consultation
stages of the change process
survey feedback
team building
types of change
Copyright © 2011 Cengage Learning. All rights reserved.
6–33