1. ninth edition
STEPHEN P. ROBBINS
© 2007 Prentice Hall, Inc.© 2007 Prentice Hall, Inc.
All rights reserved.All rights reserved.
PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
The University of West AlabamaThe University of West Alabama
MARY COULTER
Managing ChangeManaging Change
and Innovationand Innovation
ChapterChapter
1313

2. © 2007 Prentice Hall, Inc. All rights
reserved. 13–2
What Is Change?What Is Change?
• Organizational ChangeOrganizational Change
 Any alterations in the people, structure, or technologyAny alterations in the people, structure, or technology
of an organizationof an organization
• Characteristics of ChangeCharacteristics of Change
 Is constant yet varies in degree and directionIs constant yet varies in degree and direction
 Produces uncertainty yet is not completelyProduces uncertainty yet is not completely
unpredictableunpredictable
 Creates both threats and opportunitiesCreates both threats and opportunities
• Managing change is an integral partManaging change is an integral part
of every manager’s job.of every manager’s job.

3. © 2007 Prentice Hall, Inc. All rights
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Forces for ChangeForces for Change
• External ForcesExternal Forces
 MarketplaceMarketplace
 Governmental lawsGovernmental laws
and regulationsand regulations
 TechnologyTechnology
 Labor marketLabor market
 Economic changesEconomic changes
• Internal ForcesInternal Forces
 Changes inChanges in
organizationalorganizational
strategystrategy
 Workforce changesWorkforce changes
 New equipmentNew equipment
 Employee attitudesEmployee attitudes

4. © 2007 Prentice Hall, Inc. All rights
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Change Process ViewpointsChange Process Viewpoints
• The Calm Waters MetaphorThe Calm Waters Metaphor
 Lewin’s description of the change process as a breakLewin’s description of the change process as a break
in the organization’s equilibrium statein the organization’s equilibrium state
 UnfreezingUnfreezing the status quothe status quo
 ChangingChanging to a new stateto a new state
 RefreezingRefreezing to make the change permanentto make the change permanent
• White-Water Rapids MetaphorWhite-Water Rapids Metaphor
 The lack of environmental stability and predictabilityThe lack of environmental stability and predictability
requires that managers and organizations continuallyrequires that managers and organizations continually
adapt (manage change actively) to survive.adapt (manage change actively) to survive.

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Exhibit 13–1Exhibit 13–1 The Change ProcessThe Change Process

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Change AgentsChange Agents
• Change AgentsChange Agents
 Persons who act as catalysts and assume thePersons who act as catalysts and assume the
responsibility for managing the change process.responsibility for managing the change process.
• Types of Change AgentsTypes of Change Agents
 Managers: internal entrepreneursManagers: internal entrepreneurs
 Nonmanagers: change specialistsNonmanagers: change specialists
 Outside consultants: change implementation expertsOutside consultants: change implementation experts

7. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–2Exhibit 13–2 Three Categories of ChangeThree Categories of Change

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Types of ChangeTypes of Change
• StructuralStructural
 Changing an organization’sChanging an organization’s
structural components or itsstructural components or its
structural designstructural design
• TechnologicalTechnological
 Adopting new equipment,Adopting new equipment,
tools, or operating methodstools, or operating methods
that displace old skills andthat displace old skills and
require new onesrequire new ones
 Automation: replacingAutomation: replacing
certain tasks done bycertain tasks done by
people with machinespeople with machines
 ComputerizationComputerization
• PeoplePeople
 Changing attitudes,Changing attitudes,
expectations, perceptions,expectations, perceptions,
and behaviors of theand behaviors of the
workforceworkforce
• OrganizationalOrganizational
development (OD)development (OD)
 Techniques or programs toTechniques or programs to
change people and thechange people and the
nature and quality ofnature and quality of
interpersonal workinterpersonal work
relationships.relationships.

9. © 2007 Prentice Hall, Inc. All rights
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Organizational DevelopmentOrganizational Development
• Organizational Development (OD)Organizational Development (OD)
 Techniques or programs to change people and theTechniques or programs to change people and the
nature and quality of interpersonal work relationships.nature and quality of interpersonal work relationships.
• Global ODGlobal OD
 OD techniques that work for U.S. organizations mayOD techniques that work for U.S. organizations may
be inappropriate in other countries and cultures.be inappropriate in other countries and cultures.

10. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–3Exhibit 13–3 Organizational Development TechniquesOrganizational Development Techniques

11. © 2007 Prentice Hall, Inc. All rights
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Managing Resistance to ChangeManaging Resistance to Change
• Why People Resist Change?Why People Resist Change?
 The ambiguity and uncertainty that change introducesThe ambiguity and uncertainty that change introduces
 The comfort of old habitsThe comfort of old habits
 A concern over personal loss of status, money,A concern over personal loss of status, money,
authority, friendships, and personal convenienceauthority, friendships, and personal convenience
 The perception that change is incompatible with theThe perception that change is incompatible with the
goals and interest of the organizationgoals and interest of the organization

12. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–4Exhibit 13–4 Managerial Actions to Reduce Resistance to ChangeManagerial Actions to Reduce Resistance to Change
• Education and communicationEducation and communication
• ParticipationParticipation
• Facilitation and supportFacilitation and support
• Manipulation and co-optationManipulation and co-optation
• Selecting people who accept changeSelecting people who accept change
• CoercionCoercion

13. © 2007 Prentice Hall, Inc. All rights
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Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)
• Changing Organizational CulturesChanging Organizational Cultures
 Cultures are naturally resistant to change.Cultures are naturally resistant to change.
 Conditions that facilitate cultural change:Conditions that facilitate cultural change:
 The occurrence of a dramatic crisisThe occurrence of a dramatic crisis
 Leadership changing handsLeadership changing hands
 A young, flexible, and small organizationA young, flexible, and small organization
 A weak organizational cultureA weak organizational culture

14. © 2007 Prentice Hall, Inc. All rights
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Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)
• Handling Employee StressHandling Employee Stress
 StressStress
 The adverse reaction people have to excessive pressureThe adverse reaction people have to excessive pressure
placed on them from extraordinary demands, constraints, orplaced on them from extraordinary demands, constraints, or
opportunities.opportunities.
 Functional StressFunctional Stress
– Stress that has a positive effect on performance.Stress that has a positive effect on performance.
 How Potential Stress Becomes Actual StressHow Potential Stress Becomes Actual Stress
 When there is uncertainty over the outcome.When there is uncertainty over the outcome.
 When the outcome is important.When the outcome is important.

15. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–6Exhibit 13–6 Causes of StressCauses of Stress

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Exhibit 13–7Exhibit 13–7 Symptoms of StressSymptoms of Stress

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Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)
• Reducing StressReducing Stress
 Engage in proper employee selectionEngage in proper employee selection
 Use realistic job interviews for reduce ambiguityUse realistic job interviews for reduce ambiguity
 Improve organizational communicationsImprove organizational communications
 Develop a performance planning programDevelop a performance planning program
 Use job redesignUse job redesign
 Provide a counseling programProvide a counseling program
 Offer time planning management assistanceOffer time planning management assistance

18. © 2007 Prentice Hall, Inc. All rights
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Issues in Managing Change (cont’d)Issues in Managing Change (cont’d)
• Making Change Happen SuccessfullyMaking Change Happen Successfully
 Embrace changeEmbrace change—become a change-capable—become a change-capable
organization.organization.
 Create a simple, compelling message explaining whyCreate a simple, compelling message explaining why
change is necessary.change is necessary.
 Communicate constantly and honestly.Communicate constantly and honestly.
 Foster as much employee participation as possible—Foster as much employee participation as possible—
get all employees committed.get all employees committed.
 Encourage employees to be flexible.Encourage employees to be flexible.
 Remove those who resist and cannot be changed.Remove those who resist and cannot be changed.

19. © 2007 Prentice Hall, Inc. All rights
reserved. 13–19
Exhibit 13–8Exhibit 13–8 Characteristics of Change-Capable OrganizationsCharacteristics of Change-Capable Organizations
• Link the present andLink the present and
the future.the future.
• Make learning a wayMake learning a way
of life.of life.
• Actively support andActively support and
encourage day-to-dayencourage day-to-day
improvements andimprovements and
changes.changes.
• Ensure diverse teams.Ensure diverse teams.
• Encourage mavericks.Encourage mavericks.
• Shelter breakthroughsShelter breakthroughs
• Integrate technology.Integrate technology.
• Build and deepen trust.Build and deepen trust.

20. © 2007 Prentice Hall, Inc. All rights
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Stimulating InnovationStimulating Innovation
• CreativityCreativity
 The ability to combine ideas in a unique way or toThe ability to combine ideas in a unique way or to
make an unusual association.make an unusual association.
• InnovationInnovation
 Turning the outcomes of the creative process intoTurning the outcomes of the creative process into
useful products, services, or work methods.useful products, services, or work methods.
• Idea ChampionIdea Champion
 Dynamic self-confident leaders who actively andDynamic self-confident leaders who actively and
enthusiastically inspire support for new ideas, buildenthusiastically inspire support for new ideas, build
support, overcome resistance, and ensure thatsupport, overcome resistance, and ensure that
innovations are implemented.innovations are implemented.

21. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–9Exhibit 13–9 Innovative Companies Around the WorldInnovative Companies Around the World
Data: Boston Consulting Group * We broke ties by comparing 10-year annualized total shareholder
returns. In ties between a public and a private company, the public company was favored.
Source: “A Global Pulse of Innovation,” BusinessWeek, April 24, 2006, p. 74.

22. © 2007 Prentice Hall, Inc. All rights
reserved. 13–22
Exhibit 13–10Exhibit 13–10 Systems View of InnovationSystems 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.

23. © 2007 Prentice Hall, Inc. All rights
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Exhibit 13–11Exhibit 13–11
InnovationInnovation
VariablesVariables

24. © 2007 Prentice Hall, Inc. All rights
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Terms to KnowTerms to Know
• organizational changeorganizational change
• change agentchange agent
• organizationalorganizational
development (OD)development (OD)
• stressstress
• creativitycreativity
• innovationinnovation
• idea championidea champion