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Chapter 13

Managing Change
and Innovation

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 1
What is Change?
 Alterations in people
 Alterations in structure
 Alterations in technology

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 2
Categories of Change
(Exhibit 13-1)

STRUCTURE
Authority PEOPLE
TECHNOLOGY
relationships
Coordinating Attitudes
Work processes
mechanisms Expectations
Work methods
Job redesign Perceptions
Equipment
Spans of Behaviour
control

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 3
External Forces of Change
 Marketplace
 Government laws and regulations
 Technology
 Economic

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 4
Internal Forces of Change
 Corporate strategy
 The workforce
 Technology and equipment
 Employee attitudes

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 5
Lewin’s Three-Step Process

Unfreezing Changing Refreezing

The “Calm Waters” Metaphor


Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. 6
Lack of Lack of
Stability Predictability

The “White-
Water Rapids”
Metaphor
Virtual Constant
Chaos Change

C
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. 7
Entrepreneurs and Change
 Context facing entrepreneurs is
dynamic change
 Opportunities and problems
 Entrepreneur acts as catalyst

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 8
Resistance to Change
Fear of losing
Fear of
something unknown
of value

Individual
Resistance
Belief that change
Is not good for
organization

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 9
Reducing Resistance to
Change
 Education and communication
 Participation
 Facilitation and support
 Negotiation
 Manipulation and co-optation
 Coercion

Robbins et al., Fundamentals of Management, 4th Canadian Edition


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Organization Development

Planned, long-term, organization-


wide change initiative that focuses
on values and beliefs

Robbins et al., Fundamentals of Management, 4th Canadian Edition


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Stressors

Personal
Personality Organizational
Family Task demands
Finances Role demands
Interpersonal
Structure
STRESS Leadership

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 12
Ways to Reduce Stress
 Proper match of employees to job
 Clear expectations
 Employee assistance programs
 Wellness programs

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 13
Combining new ideas in
What Is unique ways or making
Creativity? unusual connections

Process of taking creative


What Is idea and making into a
Innovation? useful product, service,
or method of operation
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. 14
Risk
Ambiguity
Conflict

Characteristics
Impractical
of an
Ends/Means
Innovative
Culture
External Open
Controls Systems

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 15
Entrepreneurs and Innovation
 Key characteristic
 Supportive culture
 Need to be able to do something with
ideas

Robbins et al., Fundamentals of Management, 4th Canadian Edition


©2005 Pearson Education Canada, Inc. 16

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