中国经济管理大学 罗宾斯《管理学原理》教师手册CHAPTER 7 - MANAGING CHANGE, STR...
内容提要：中国经济管理大学|中国经济管理大学培训罗宾斯《管理学原理》
CHAPTER 7 - MANAGING CHANGE, STRESS, AND INNOVATION
LEARNING OUTCOMES
After reading this chapter students should be able to:
1. Describe what change variables are within a manager’s control.
2. Identify external and internal forces for change.
3. Explain how managers can serve as change agents.
4. Contrast the calm waters and white-water rapids metaphors for change.
5. Explain why people are likely to resist change.
6. Describe techniques for reducing resistance to change.
7. Identify what is meant by the term “organization development” (OD) and specify four popular OD techniques.
8. Explain the causes and symptoms of stress.
9. Differentiate between creativity and innovation.
10. Explain how organizations can stimulate innovation.
Opening Vignette
SUMMARY
Miguel Caballero’s in Bogota, Columbia, manufacturers and retailers of upscale clothing that happens to also be bulletproof. Makers of bullet-proof materials have been trying to come up with bulletproof clothing for years to meet the demand of police agencies, bodyguards, and political dignitaries.Body armor was either painfully obvious or burdensomely heavy to the wearer.Weaving together a special blend of nylon and polyester, Caballero has been able to produce a bullet-proof wardrobe that will stop bullets–even those fired at point-blank range.What his invention did was to create a safety garment that was not only fashionable, but also easy to wear.When initially produced in 1965, a Kevlar (produced by DuPont) vest, for instance, weighed a whooping 11 pounds.While a bit lighter today, the Kevlar vest is an add-on layer of protection.
Now, a vest is not needed; after 13 years of research and development, Caballero has designed trench coats, suede jackets, business suits, denim jackets, and shirts that will stop a bullet.He even has clothing that will assist motorcycle riders in the event of an accident.And the clothing is fashionable and lightweight–the suede jacket weighs in at just over 2.5 pounds; not much more than the weight of a regular suede jacket sold in retail stores.
In 2005, Caballero had revenues in excess of $7 million.And 2006 looks even more promising–with a new market segment of artists and musicians being explored.After a fashion show display in January 2006, Caballero’s sold more products in 4 weeks than it had planned for the entire year.Clearly the events of today’s society have sadly triggered such a concern.But Miguel Caballero is filling a market niche with products that are both effective and stylish.As several writers have indicated, Caballero’s products “fit like Armani, but deflect point-blank gunfire.”
The challenges faced by Caballero’s organizational members are not unique. Large companies, small businesses, entrepreneurial start-ups, universities, state and city governments, hospitals, and even the military are being forced to significantly change the way they do things. Although change has always been a part of the manager’s job, it has become more so in recent years.
Teaching notes
1. Ask students to determine what characteristics are unique to Miguel Caballero’s .What is it about the organization that has allowed it to thrive and grow, regardless of the changes in the marketplace?
2. What are some of Caballero’s core survival skills and how have they played a critical part in the success enjoyed by this company?
3. What role has discipline played in innovation at Caballero’s ?Do you believe this has been a key factor in the organization’s success?Why or why not?
I. WHAT IS CHANGE?
A. Introduction
1. Change is an alteration of an organization’s environment, structure, technology, or people.(PPT 7-2)
2. If it weren’t for change, the manager’s job would be easy.
a) Planning would be simplified.
b) The issue of organization design would be solved.
c) Decision making would be dramatically simplified.
3. Change is an organizational reality.
a) Handling change is an integral part of every manager’s job.
4. A manager can change three things.
a) Structure.
b) Technology.
c) People.
d) See Exhibit 7-1.
II. FORCES FOR CHANGE (PPT 7-3)
A. Introduction
1. There are both external and internal forces that constrain managers.
2. These same forces also bring about the need for change.
B. What External Forces Create a Need for Change?
1. They come from various sources.
a) New competition.
b) Government laws and regulations.
c) Technology.
d) Economics.
C. What Internal Forces Create a Need for Change?
1. Internal forces tend to originate primarily from the internal operations of the organization or from the impact of external changes.
2. When management redefines or modifies its strategy, it often introduces a host of changes.
a) Employees may have their jobs redesigned, need to undergo training to operate the new equipment, or be required to establish new interaction patterns within their formal group.
b) An organization’s work force is rarely static; its composition changes.
c) The compensation and benefits systems might also need to be reworked to reflect the needs of a diverse work force and market forces in which certain skills are in short supply.
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D. How Can a Manager Serve as a Change Agent?
1. Changes within an organization need a catalyst.
2. People who act as catalysts and assume the responsibility for managing the change process are called change agents.
a) Any manager can be a change agent.
b) A nonmanager can also be a change agent.
3. For major systemwide changes, internal management will often hire outside consultants to provide advice and assistance.
a) Outside consultants can offer an objective perspective.
b) But they may have an inadequate understanding of the organization’s history, culture, operating procedures, and personnel.
c) They are also prone to initiate more drastic changes than insiders.
4. Internal managers who act as change agents may be more thoughtful and possibly more cautious.
Developing Your Change Management Skill
About the Skill
Managers play an important role in organizational change.That is, they often serve as a catalyst for the change—a change agent.However, managers may find that change is resisted by employees.After all, change represents ambiguity and uncertainty, or it threatens the status quo.How can this resistance to change be effectively managed?Here are some suggestions.
Steps in Practicing the Skill
1. Assess the climate for change.Here are some guiding questions:
---Is the sponsor of the change high enough in the organization to have power to effectively deal with resistance?
---Is senior management supportive of the change and committed to it?
---Is there a strong sense of urgency from senior managers about the need for change and is this feeling shared by others in the organization?
---Do managers have a clear vision of how the future will look after the change?
---Are there objective measures in place to evaluate the change effort and have reward systems been explicitly designed to reinforce them?
---Is the specific change effort consistent with other changes going on in the organization?
---Are managers willing to sacrifice their personal self-interests for the good of the organization as a whole?
---Do managers pride themselves on closely monitoring changes and actions by competitors?
---Are managers and employees rewarded for taking risks, being innovative, and looking for new and better solutions?
---Is the organizational structure flexible?
---Does communication flow both down and up in the organization?
---Has the organization successfully implemented changes in the past?
---Are employees satisfied with, and trust in, management?
---Is there a high degree of interaction and cooperation between organizational work units?
---Are decisions made quickly and do decisions take into account a wide variety of suggestions?
2.Choose an appropriate approach for managing the resistance to change. Review 7-4 for the advantages and disadvantages of each approach and when to use them.
3.During the time the change is being implemented and after the change is completed, communicate with employees regarding what support you may be able to provide.
Practicing the Skill
Read through the following scenario.Write down some notes about how you would handle the situation described.Be sure to refer to the three suggestions for managing resistance to change.
The Situation
As the nursing supervisor at a community hospital, you are interested in moving to cross-training for the emergency room teams and the floor nurse teams.You believe this would vary their responsibilities, improve patient care, and lower costs. Sue, the team leader of the emergency room nurses, says they’re needed in the emergency room where they fill the most vital role in the hospital.She says the nurses there
---Work special hours when needed,
---Do whatever tasks are needed, and
---Often work in difficult and stressful circumstances.
---Scott, the team leader of the floor nurse team, says the floor nurses have special training and extra experience unique to their teams, and that they
---Heaviest responsibilities,
---Do the most exacting work, and
---Have ongoing contact with patients and their families.
---Neither team wants to train to learn and/or share the work of the other team.
Questions to ask the students:
Identify the forces necessitating the change and the forces of resistance to the change.
Identify at least one strategy for dealing with the forces resisting the change.(See Steps in Practicing the Skill listed above and review the seven techniques for reducing resistance to organizational change, Exhibit 7-4).
After reviewing all of the information available to you relating to this situation and change management, would you implement this change?Why or why not?
Teaching Tips:
1. Divide into groups of five to seven and take the role of the nursing supervisor.
2. Develop responses to items 1 – 3 above.
3. Ask teams to record key points of their responses on the board.
III.TWO VIEWS OF THE CHANGE PROCESS (PPT 7-4)
A. Introduction
1. The “calm waters” metaphor envisions the organization as a large ship crossing a calm sea.
a) Change surfaces as the occasional storm, a brief distraction in an otherwise calm and predictable trip.
2. The “white-water rapids” metaphor, the organization is seen as a small raft navigating a raging river with uninterrupted white-water rapids.
a) Change is a natural state and managing change is a continual process.
B. What Is the “Calm Waters” Metaphor? (PPT 7-5)
1. The calm waters metaphor dominated the thinking of practicing managers and academics.
a) The prevailing model for handling change in calm waters is illustrated in Lewin’s three-step model.(See Exhibit 7-2.) (PPT 7-5)
2. According to Lewin, successful change requires unfreezing the status quo, changing to a new state, and refreezing the new change to make it permanent.
a) The status quo can be considered an equilibrium state.
3. Unfreezing is necessary to move from this equilibrium.
a) The driving forces can be increased (direct behavior away from the status quo).
b) The restraining forces can be decreased (hinder movement from the existing equilibrium).
c) The two approaches can be combined.
4. Once unfreezing has been accomplished, the change itself can be implemented.
5. The new situation needs to be refrozen so that it can be sustained over time.
a) Unless this is done, there is a strong chance that the change will be short-lived.
b) The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces.
6. Lewin’s three-step process treats change as a break in the organization’s equilibrium state.
C. How Does the “White-Water Rapids” Metaphor of Change Function? (PPT 7-6)
1. The white-water metaphor takes into consideration that environments are both uncertain and dynamic.
a) Example, variable college curriculum.
2. Currently, the stability and predictability of the calm waters do not exist.
a) Many of today’s managers face constant change, bordering on chaos.
3. Is the white-water rapids metaphor merely an overstatement?
a) No! Example, General Motors.
D. Does Every Manager Face a World of Constant and Chaotic Change?
1. Not every manager faces a world of constant and chaotic change.
2. But the number of managers who don’t is dwindling rapidly.
3. Few organizations today can treat change as the occasional disturbance in an otherwise peaceful world.
a) Most competitive advantages last less than eighteen months.
b) People’s Express was described as the model new-look firm; it went bankrupt.
c) Southwest Airlines uses this no-frills model and is successful.
E. How Do Entrepreneurs Handle Change?
1. Entrepreneurs need to be alert to problems and opportunities that may create the need to change.
2. Often it is the entrepreneur who first recognizes the need for change and acts as the catalyst, coach and cheerleader, and chief change consultant.
3. Even if a person is comfortable with taking risks, as entrepreneurs usually are, change can be hard.
4. The entrepreneur must assume the role of explaining the change and encouraging change efforts by supporting, explaining, getting employees excited about the change, building employees up, and motivating employees to put forth their best efforts.
5. The entrepreneur may have to guide the actual change process as changes in strategy, technology, products, structure, or people are being implemented.
a) Answers questions, makes suggestions, gets needed resources, facilitates conflict,
does whatever else is necessary to get the change(s) implemented.
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IV. ORGANIZATIONAL CHANGE AND MEMBER RESISTANCE
A. Introduction
1. Managers should be motivated to initiate change because they are concerned with improving their organization’s effectiveness.
2. Change can be a threat to managers and to nonmanagerial personnel as well.
DETAILS on A Management Classic
Coch and French: Resistance to Change
SUMMARY
One of the most famous studies on organizational change, the Harwood Manufacturing Company. The plant had a long history of disruptions every time changes were made.Although the changes were typically minor, the employees resisted.
The usual way that Harwood’s management made these changes was autocratically. The changes would be implemented immediately. The employees would rebel. So Harwood’s executives brought in a consultant as a change agent to help with their problem. As an experiment, the consultant arranged for the next change to be conducted in three groups, using three different methods.
The change agent gathered data over a forty-day period. What he found strongly supported the value of participation. In the control group, resistance occurred as before. In the representative and full-participation groups, there were no resignations, only one grievance, and no absenteeism, and participation was positively related to productivity.
The conclusion of the Coch and French study:for permanent change to occur without extensive resistance, employees must be involved.
Teaching notes
1. Discuss the following scenario with your students.
Your college/university is going to revise its general education requirements to better reflect employers’ requirements in terms of problem solving, oral communication and presentation skills, basic use of technology for information management, and a broad knowledge of national and international current affairs. This change will result in more highly structured majors, fewer elective choices for students, a more rigorous program of study, and the creation of a professional portfolio of work from various classes.
2. Ask students to consider the following questions:
Should the college/university involve students, faculty, etc., in discussions and the design of this change? What would be the advantages, the drawbacks of such inclusion?
If they are going to include others, who should be included in these discussions?
What kind of resistance is likely to arise and from what stakeholder groups?
What strategy(ies) might the college/university take in order to minimize resistance from stakeholders?
3. Discuss as a class or break into small teams, have the teams discuss in class and then prepare, outside of class, a 10-minute oral presentation of their answers.
B. Why Do People Resist Change?
1. An individual is likely to resist change for three reasons: uncertainty, concern over personal loss, and the belief that the change is not in the organization’s best interest.(See Exhibit 7-3.)
2. Changes substitute ambiguity and uncertainty for the known.
a) Employees in organizations often hold a dislike for uncertainty.
3. The second cause of resistance is the fear of losing what one already possesses.
a) Change threatens the investment in the status quo.
b) The more people have invested in the current system, the more they resist change.
c) They fear the loss of their position, money, authority, friendships, personal convenience, or other benefits that they value.
4. A final cause of resistance is a person’s belief that the change is incompatible with the goals and best interests of the organization.
a) If expressed positively, this form of resistance can be beneficial to the organization.
C. What Are Some Techniques for Reducing Resistance to Organizational Change?
1. Dysfunctional resistance to change can be addressed with several strategies.
(See Exhibit 7-4.)
2. Education and communication help employees see the logic of the change effort.
a) Assumes that much of the resistance lies in misinformation or poor communication.
3. Participation involves bringing those individuals directly affected by the proposed change into the decision-making process.
a) Allows expression of feelings, increases the quality of the process, and increases employee commitment to the final decision.
4. Facilitation and support involve helping employees deal with the fear and anxiety associated with the change effort.
a) May include employee counseling, therapy, new skills training, or a short paid leave of
absence.
5. Negotiation involves a bargain:exchanging something of value for an agreement to lessen the resistance to the change effort.
a) This technique may be quite useful when the resistance comes from a powerful source.
6. Manipulation and cooptation refers to covert attempts to influence others about the change.
a) May involve twisting or distorting facts to make the change appear more attractive.
7. Coercion involves the use of direct threats or force against the resisters.
8. Self Assessment #51, Am I Burned Out? ; #3, Am I a Type A?; #5, How Creative Am I?; #49 How Do I Respond to Turbulent Change? #50, How Stressful is My Life?
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V. MAKING CHANGES IN THE ORGANIZATION
A. Introduction
1. What can a manager change?
2. Changing structure includes any alteration in any authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables.
a) These structural components give employees the authority and means to implement process improvements.
3. Changing technology encompasses modification in the way work is processed or the methods and equipment used.
a) The primary focus on technological change in continuous improvement initiatives is directed at developing flexible processes to support better quality operations.
b) Employees are constantly looking for things to fix.
c) Work processes must be adaptable to continual change and fine tuning.
d) This adaptability requires an extensive commitment to educating and training workers.
4. Changes in people refers to changes in employee attitudes, expectations, perceptions, or behaviors.
a) Requires a work force committed to the organization’s objectives of quality and continuous improvement.
b) Again, necessitates proper education and training.
c) It also demands a performance evaluation and reward system that supports continuous improvements.
B. How Do Organizations Implement Planned Changes?
1. Most change in an organization does not happen by chance.
2. The effort to assist organizational members with a planned change is referred to as organization development.
C. What Is Organization Development? (PPT 7-7)
1. Organization development (OD) facilitates long-term organization-wide changes.
2. Its focus is to constructively change the attitudes and values of organization members so that they can more readily adapt to and be more effective in achieving the new directions of the organization.
3. Organization leaders are, in essence, attempting to change the organization’s culture.
4. Fundamental to organization development is its reliance on employee participation.
D. Are There Typical OD Techniques?
1. Any organizational activity that assists with implementing planned change can be viewed as an OD technique.(See Ethical Dilemma in Management.)
2. The more popular OD efforts rely heavily on group interactions and cooperation.
3. Survey feedback efforts are designed to assess employee attitudes about and perceptions of the change they are encountering.
a) Employees are generally asked to respond to a set of specific questions regarding how they view such organizational aspects as decision making, leadership, communication effectiveness; and satisfaction with their jobs, coworkers, and management.
b) The data the change agent obtains are used to clarify problems.
4. In process consultation, outside consultants help managers to perceive, understand, and act upon process events with which they must deal.
a) These might include workflow, informal relationships among unit members, and formal communications channels.
b) Consultants are not there to solve these problems. Rather, they act as coaches to help managers diagnose which interpersonal processes need improvement.
5. Team building is generally an activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member.
a) The primary focus of team-building is to increase each group’s trust and openness toward one another.
6. Intergroup development attempts to achieve the same results among different work groups.
a) Attempts to change attitudes, stereotypes, and perceptions that one group may have
toward another group to achieve better coordination among the various groups.
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Ethical Dilemma in Management
The OD Intervention
SUMMARY
Organization development interventions often produce change results that are viewed as positive. However, any change agent involved in an OD effort imposes his/her value system on those involved in the intervention, especially when the cause for the intervention is coworker mistrust. Sometimes they walk a very thin line because for personal problems to be resolved in the workplace, participants must disclose private, and often sensitive information. Refusal to divulge such information may carry negative ramifications. On the other hand, active participation can lead to employees speaking their minds. But that, too, carries some risks. Saying what one believes can result in having that information used against one at a later time. Even though the intent was to help overcome coworker mistrust, the end result may be more back stabbing, more hurt feelings, and more mistrust among participants (see Exhibit 7-5).
Questions
1. Do you think that coworkers can be too open and honest under this type of OD intervention?
2. What do you think a change agent can do to ensure that employees’ rights will be protected?
Teaching notes
1. Discuss with the class.
2. Have students discuss in the context of a focus group on teaching within the business department.
Under what circumstances would students feel comfortable about speaking their minds?
What negative and positive consequences might there be to keeping silent or speaking up?
How realistic are their positive expectations, their fears?
3. Have 2-3 students help record the class’s ideas on the board.
4. At the end of the discussion, ask the class what their comments tell them about the atmosphere for change and feedback in your department/college?
VI. STRESS: THE AFTERMATH OF ORGANIZATIONAL CHANGE
A. What Is Stress?(PPT 7-8)
1. Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires, and for which the outcome is perceived to be both uncertain and important.
2. It is a complex issue.
3. Stress can manifest itself in both a positive and a negative way.
a) It is positive when the situation offers an opportunity for one to gain something.
b) It is when constraints or demands are placed on us that stress can become negative.(PPT 7-9)
4. Constraints are barriers that keep us from doing what we desire.
a) They inhibit you in ways that take control of a situation out of your hands.
5. Demands may cause you to give up something you desire.
a) Demands preoccupy your time and force you to shift priorities.
6. When coupled with uncertainty about the outcome and importance of the outcome, constraints and demands can lead to potential stress.
7. When constraints or demands have an effect on an important event and the outcome is unknown, pressure is added—pressure resulting in stress.
8. It is important to recognize that both good and bad personal factors may cause stress.
a) Stress-related problems cost U.S. corporations nearly $300 billion in terms of lost productivity, increased worker compensation claims, turnover, and healthcare costs.
9. And stress on the job knows no boundaries.
a) In Japan, there is a concept called karoshi, which means death from overworking—employees who die after working more than 3000 hours the previous year—18 plus hours each day with nearly every minute scheduled out in specific detail.
1) Upwards of 10,000 individuals die each year from heart attack or stroke.
2) One in six Japanese employees works more than 3,100 hours annually.
10. Employees in Australia, Germany, and Britain, too, have suffered the ill effects of stress.
B. Are There Common Causes of Stress?
1. Factors that create stress can be grouped into two major categories—organizational and personal.(See Exhibit 7-6.) (PPT 7-10, PPT 7-11)
2. The discussion that follows organizes stress factors into five categories: task, role, and interpersonal demands; organization structure; and organizational leadership.
3. Task demands are factors related to an employee’s job.
a) Design of the person’s job, working conditions, and the physical work layout.
b) Work quotas can put pressure on employees.
c) The more interdependence between an employee’s tasks and the tasks of others, the more potential stress there is.
d) Autonomy tends to lessen stress.
4. Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization.
a) Role conflicts create expectations that may be hard to reconcile or satisfy.
b) Role overload is when the employee is expected to do more than time permits.
c) Role ambiguity is created when role expectations are not clearly understood.
5. Interpersonal demands are pressures created by other employees.
a) Lack of social support from colleagues and poor interpersonal relationships can cause
considerable stress.
6. Organization structure can increase stress.
a) Excessive rules and an employee’s lack of opportunity to participate in decisions.
7. Organizational leadership represents the supervisory style of the organization’s company officials.
a) Some managers create a culture characterized by tension, fear, and anxiety.
1) Unrealistic pressures to perform in the short run, excessively tight controls, and firing employees who don’t measure up.
8. Personal factors that can create stress include family issues, personal economic problems, and inherent personality characteristics.(PPT 7-11)
a) Some employees bring their personal problems to work with them.
b) Employee personality can have an effect on how susceptible he/she is to stress. (PPT 7-11)
c) Type A personality is characterized by feelings of a chronic sense of time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time.
1) Only the hostility and anger associated with Type A behavior is actually associated
with the negative effects of stress.
d) Type Bs never suffer from time urgency or impatience.
1) Type Bs are just as susceptible to the same anxiety-producing elements.
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C. What Are the Symptoms of Stress?(PPT 7-12)
1. There are three general ways that stress reveals itself:physiological, psychological, and behavioral symptoms.
2. Most of the early discussions of stress focused heavily on physiological concerns (health-related).
a) High stress levels result in changes in metabolism, increased heart and breathing rates, increased blood pressure, headaches, and increased risk of heart attacks.
b) Detecting these requires the skills of trained medical personnel; therefore their relevance to HRM is negligible.
3. Of greater importance to managers are psychological and behavioral symptoms of stress.
4. The psychological symptoms can be seen as increased tension and anxiety, boredom, and procrastination—which can all lead to productivity decreases.
5. So too, can the behavior-related symptoms—changes in eating habits, increased smoking or substance consumption, rapid speech, or sleep disorders.
D. How Can Stress Be Reduced?(PPT 7-13)
1. Some stress in organizations is absolutely necessary. Without it, people have no energy.
2. Make sure that employees are properly matched to their jobs and that they understand the extent of their “authority.”
3. Letting employees know precisely what is expected of them, role conflict, and ambiguity can be reduced.
4. Redesigning jobs can also help ease work overload-related stressors.
5. Regardless of what is done, some employees will still be “stressed out.”
a) To help deal with this issue, many companies have started employee assistance and wellness programs.
6. Employee assistance programs (EAPs) as they exist today are extensions of programs that had their birth in U.S. companies in the 1940s.
a) It is estimated that U.S. companies spend almost $1 billion each year on EAP programs and they save $5 to $16 for every EAP dollar spent.
7.A wellness program is any type of program that is designed to keep employees healthy.
a) These programs may include such things as smoking cessation, weight control, stress management, physical fitness, nutrition education, high blood-pressure control, violence protection, work team problem intervention, etc.
b) Wellness programs are designed to help cut employer health costs, and to lower absenteeism and turnover by preventing health-related problems.
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VII. STIMULATING INNOVATION (PPT 7-14)
A. Introduction
1. Innovate or die!Increasingly becoming the rallying cry of today’s managers.
2. The standard of innovation to which many organizations strive is that achieved by such companies as 3M, DuPont, Sharp, Motorola, and Whirlpool.
3. Management at Black and Decker learned a valuable lesson about innovation.
a) Brought their “Snake Light” to market in mid-1990s.
b) Underprojected first year sales by 400,000 units.
c) Backlogged orders for nearly 28 months.
d) Failure to inject useful, useable, and desirable changes into the product led to loss of market share to competing product.
4. What’s the secret to success for innovative companies?We’ll discuss the factors behind innovation.
B. How Are Creativity and Innovation Related? (PPT 7-14)
1. Creativity means the ability to combine ideas in a unique way or to make unusual associations between ideas.
a) Example, Mattel.
2. Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation.
a) 3M Company has taken novel ideas and turned them into cellophane tape, Scotch Guard protective coatings, Post-it notepads, and diapers with elastic waistbands.
b) Intel—leads all chip manufacturers in miniaturization; 75 percent share of microprocessor market for IBM-compatible PCs.
C. What Is Involved in Innovation?
1. Some people believe that creativity is inborn; others believe that with training anyone can be creative.
2. Creativity can be viewed as a fourfold process consisting of perception, incubation, inspiration, and innovation.
3. Perception involves the way you see things. Being creative means seeing things from a unique perspective.
4. Ideas go though a process of incubation.
a) During this incubation period, employees should collect massive amounts of data that are stored, retrieved, studied, reshaped, and finally molded into something new.
b) During this period, it is common for years to pass.
5. Inspiration in the creative process is the moment when all your efforts successfully come together.
6. Creative work requires an innovative effort.
a) Innovation involves taking that inspiration and turning it into a useful product, service, or way of doing things.
b) Thomas Edison is often credited with saying, “Creativity is 1 percent inspiration and 99 percent perspiration.”
c) That 99 percent, or the innovation, involves testing, evaluating, and retesting what the inspiration found.
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D. How Can a Manager Foster Innovation?
1. There are three sets of variables that have been found to stimulate innovation.
a) They pertain to the organization’s structure, culture, and human resource practices.
2. How do structural variables affect innovation? (PPT 7-15)
a) First, organic structures positively influence innovation.
1) They have less work specialization and fewer rules and are more decentralized than mechanistic structures; they facilitate the flexibility, adaptation, and cross-fertilization that make the adoption of innovations easier.
b) Second, easy availability of plentiful resources is a key building block for
innovation.
1) An abundance of resources allows management to purchase innovations, bear the cost of instituting innovations, and absorb failures.
c)Frequent inter-unit communication helps to break down possible barriers to innovation
by facilitating interaction across departmental lines.
3. How does an organization’s culture affect innovation?
a) Innovative organizations tend to have similar cultures.
b) They encourage experimentation.
c) They reward both successes and failures.
1) They celebrate mistakes.
d) An innovative culture is likely to have the following seven characteristics: (PPT 7-16)
1) Acceptance of ambiguity.
2) Tolerance of the impractical.
3) Low external controls.
4) Tolerance of risk.
(a)Mistakes are treated as learning opportunities.
5) Tolerance of conflict.
6) Focus on ends rather than on means.
7) Open systems focus.
4. What human resource variables affect innovation? (PPT 7-17)
a) Innovative organizations actively promote the training and development of their members so that their knowledge remains current, offer their employees high job security to reduce the fear of getting fired for making mistakes, and encourage individuals to become champions of change.
b) Once a new idea is developed, champions of change actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the innovation is implemented.
c)Research finds that champions have common personality characteristics: extremely high self-confidence, persistence, energy, and a tendency to take risks.
d)Champions also display characteristics associated with dynamic leadership.
1) They inspire and energize others.
2) They are also good at gaining the commitment of others to support their mission.
3) Champions have jobs that provide considerable decision-making discretion.
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E. Why Do Entrepreneurs Value Innovation?
1. Innovation is a key characteristic of entrepreneurial ventures.
2. An innovation-supportive culture is crucial.
a) Employees perceive that supervisory support and organizational reward systems are consistent with a commitment to innovation.
b) Employees do not perceive that their work load pressures are excessive or unreasonable.
c) Firms tend to be smaller, have fewer formalized human resource practices, and less abundant resources.
3. At Monarch Marking Systems, Inc., in Miamisburg, Ohio, employees know how to turn ideas into action.
a) An employee team reduced the amount of time to change over the production line from 60 minutes to four minutes—and the innovative solutions made the employees’ jobs easier.
Review, Comprehension, Application
Chapter Summary
1. Managers can change the organization’s structure; they can change the organization’s technology; or
they can change people by altering attitudes, expectations, perceptions, or behavior.
2. External forces for change include the marketplace, government laws and regulations, technology,
labor markets, and economic changes.Internal forces of change include organizational strategy,
equipment, the work force, and employee attitudes.
3. Managers can serve as change agents by becoming the catalyst for change in their units and by
managing the change process.
4. The “calm waters” metaphor views change as a break in the organization’s equilibrium state.The
“white-water rapids” metaphor views change as continual and unpredictable.
5. People resist change because of uncertainty, personal loss, and the belief that it might not be in the
organization’s best interest.
6. Six strategies have been proposed for reducing the resistance to change:education and
communication, participation, facilitation and support, negotiation, manipulation and cooptation, and
coercion.
7. Organization development is an organizational activity designed to facilitate long-term organization-wide changes.The more popular OD efforts in organizations rely heavily on group interactions and cooperation and include survey feedback, process consultation, team building, and intergroup development.
8. Stress is the tension individuals feel when they face opportunities, constraints, or demands that they perceive to be uncertain and important.It can be caused by organizational factors or personal factors.
9. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas.Innovation is the process of taking creative ideas and turning them into a useful product, service, or method of operation.
10. Organizations can stimulate innovation with flexible structures, easy access to resources, and fluid communication.
Companion Website
We invite you to visit the Robbins/DeCenzo Companion Website at www.prenhall.com/robbins for the chapter quiz and student PowerPoints.
Diversity Perspectives: Communication and Interpersonal Skills, by Carol Harvey and June Allard
1. Would you characterize the change coming with the new computer-based technology as calm waters orwhite-water rapids?
Arguments for the calm waters characterization are that nothing has been said to imply that the company is in a constant state of change and given today’s technology orientation, pressures to computerize the technology have been mounting until such change is inevitable.
Arguments for the white-water rapids characterization might be made on the grounds that this change is large, affecting all sectors of the company and will inevitably spawn continuing change in the future as technology changes.
Students might make either argument. More astute students might see it beginning as calm waters and turning into white-water rapids.
2.What techniques might the OD team use to change perceptions and reduce resistance to change?
Support in the form of education is one technique.Training should be provided for everyone affected and to the extent possible, the change could be phased in gradually.Participation is important and could be combined with the training, i.e., a few members of each group could be trained and then used to help train the others in the group.Informational meetings about the changes would not only serve to educate, but also to allow the workers to openly communicate their concerns.Students might also mention other techniques such as negotiation, manipulation, co-option and coercion
Reading for Comprehension
1.Why is handling change an integral part of every manager’s job?
Answer – Change is an organizational reality. Handling change is an integral part of every manager’s job. Change is an alteration of an organization’s environment, structure, technology, or people. If it weren’t for change, the manager’s job would be relatively easy.
2. Describe Lewin’s three-step change process. How is it different from the change process needed in the
white-water rapids metaphor of change?
Answer – The prevailing model for handling change in calm waters is Lewin’s three-step model. See Exhibit 7-2. According to Lewin, successful change requires unfreezing the status quo, changing to a new state, and refreezing the new change to make it permanent. The status quo can be considered an equilibrium state.
Unfreezing is necessary to move from this equilibrium.
The driving forces can be increased.
The restraining forces can be decreased.
The two approaches can be combined.
Once unfreezing has been accomplished, the change itself can be implemented.
The new situation needs to be refrozen so that it can be sustained over time. Unless this is done, there is a strong chance that the change will be short-lived.
The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces.
Answer – The calm waters metaphor dominated the thinking of practicing managers and academics. The prevailing model for handling change in calm waters is Lewin’s three-step model. Lewin’s three-step process treats change as a break in the organization’s equilibrium state.
The white water metaphor takes into consideration that environments are both uncertain and dynamic. The stability and predictability of the calm waters do not exist. Many of today’s managers face constant change, bordering on chaos. Few organizations today can treat change as the occasional disturbance. Most competitive advantages last less than eighteen months.
3. How do work overload, role conflict, and role ambiguity contribute to employee stress?
Answer – Task demands are factors related to an employee’s job: design of the person’s job, working conditions, and the physical work layout. The more interdependence between an employee’s tasks and the tasks of others, the more potential stress there is. Work overload is when the employee is expected to do more than time permits. Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role ambiguity is created when role expectations are not clearly understood.
4. How do creativity and innovation differ? Give an example of each.
Answer – Creativity means the ability to combine ideas in a unique way or to make unusual associations between ideas. An organization that stimulates creativity is one that develops novel approaches to things or unique solutions to problems.
Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation. Custom Foot, a Connecticut-based shoe manufacturer, has combined mass production with customized customer desires. Another example, Novo Nordisk, a biotechnology company in Denmark.
5. How does an innovative culture make an organization more effective? Do you think such an
innovative culture could make an organization less effective? Why or why not?
Answer – The innovative organization is characterized by the ability to channel its creative juices into useful outcomes. The 3M Company is aptly described as innovative because it has taken novel ideas and turned them into profitable products. So, too, is the highly successful microchip manufacturer Intel.
Linking Concepts to Practice
1. Who are change agents? Do you think that a low-level employee could act as a change agent? Explain.
Answer – Changes within an organization need a catalyst. People who act as catalysts and assume the responsibility for managing the change process are called change agents. Any manager can be a change agent. A nonmanager can also be a change agent. Does the individual exercise influence, are they credible, do they control resources, etc.? If they meet these conditions they can be a change agent.
2. Why is organization development planned change? Explain how planned changed is important for organizations in today’s dynamic environment.
Answer – Most change in an organization does not happen by chance. The effort to assist organizational members with a planned change is referred to as organization development. Organization development (OD) is an activity designed to facilitate long-term organization-wide changes. Its focus is to constructively change the attitudes and values of organizational members so that they can more readily adapt to, and be more effective in achieving, the new directions of the organization. Organization leaders are, in essence, attempting to change the organization’s culture. Fundamental to organization development is its reliance on employee participation.
3. Which organization—Daimler-Chrysler or Apple—do you believe would have more difficulty changing its culture? Explain your position.
Answer – Student answers will vary.Try to get the students to focus specifically on what they think
will affect changing culture.Students should address culture, structure, technology, people, need for participation in the change, etc.Students should also address what is similar and/or different between the two companies that might affect change.
4. “Managers have a responsibility to their employees who are suffering serious ill effects of work-related stress.” Do you agree or disagree with this statement? Support your position.
Answer – Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires, and for which the outcome is perceived to be both uncertain and important. Stress can manifest itself in both a positive and a negative way. It is important to recognize that both good and bad personal factors may cause stress. Factors that create stress can be grouped into two major categories: organizational and personal. See Exhibit 7-6.
Managers have responsibility to the degree that their management of employees creates conditions that lead to stress. Task demands are factors related to an employee’s job—the more interdependence between an employee’s tasks and the tasks of others, the more potential stress there is. Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Interpersonal demands are pressures created by other employees. Organization structure can increase stress. Excessive rules and an employee’s lack of opportunity to participate in decision making can also increase stress. Organizational leadership represents the supervisory style of the organization’s managers. Personal factors that can create stress include family issues, personal economic problems, and inherent personality characteristics.
5. Do you think changes can occur in an organization without a champion to foster new and innovative ways of doing things? Explain.
Answer – It would be difficult because who would fulfill the functions of a champion? Once a new idea is developed, champions of change actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the innovation is implemented. Research finds that champions have common personality characteristics: extremely high self-confidence, persistence, energy, and a tendency to take risks. Champions also display characteristics associated with dynamic leadership. They inspire and energize others with their vision of the potential of an innovation and through their strong personal conviction in their mission. They are also good at gaining the commitment of others to support their mission. In addition, champions have jobs that provide considerable decision-making discretion. This autonomy helps them introduce and implement innovations.
Integrative Chapter Skills
Crisis at a sales organization
Purpose: The purpose of this case is to introduce the students to the issues a manager often faces when trying to motivate individuals. Specifically, the case brings to fore the need to accurately assess what the actual deficiencies are in trying to motivate someone and an accurate assessment of the proper remedies.
This case is based on a large sales organization of with a nation-wide sales network. Regional Sales Offices report to corporate headquarters. The region of focus in this analysis consists of 100 sales offices. A single sales office includes a team of 20-30 people.Each region is headed by a Regional Manager and is measured on specific sales-related goals. A young female zone manager has come into your office with a list of complaints.As you listen to her complaints you sense her frustration. The following is her basic grievance based on your conversation.
The Zone Mangers (ZMs) are the liaison between the regional sales office and the sales offices. Zone Managers have the extremely important and challenging responsibility of selling the corporate product to the sales offices. Historically the zone managers have been male but recently more female zone managers have joined the group. All of the Zone Managers are below 28 years old, and for the majority of them, this is their first job. Overall, Zone Managers are well paid and receive great benefits, significant bonuses and perks such as company cars.
The corporation has created an environment intense competition to support the company’s goals. Several contests are held throughout the year with enviable prizes such as Super Bowl trips and much sought-after visibility that encourage Regional Managers to compete with one another. The competitive environment trickles down through all levels of the organization. The Zone Managers are responsible for meeting certain goals in support of the regional objectives. The most important and stressful responsibility is to sell to the sales offices. Every two weeks, they must visit their assigned sales offices and convince them to order the number of products to meet projections: the corporation’s allocation formula. The ZM is under a lot of pressure to meet his/her total wholesale objective. In cases where Zone Managers do not meet their objectives, it goes on their performance review, and all other ZMs are forced to pick up the slack by selling the extra-unsold product among their respective sales offices. Even those ZMs who aren’t competitive by nature are drawn into this competition by frequent e-mails that publicly rank ZMs on each task.
Although both parties receive enviable rewards, upper management is focused on certain goals while the ZMs are focused on others. Furthermore, every month the District Managers meet with the Regional Manager and Operations Managers to rank the ZMs from first to eighth in terms of overall performance. ZMs are not aware of where they rank after each meeting. ZMs that consistently do well are eligible candidates for promotions, which are extremely desirable because a promotion will take them out of the field. These meetings can also lead to stress for ZMs because they cause uncertainty. These meetings are very private, and no ZM knows what is being said about him/her.
Being in the field creates a huge disconnect between management and the ZMs. ZMs often wonder if they are forgotten or if their accomplishments are being overlooked. They wonder if they can trust their District Manager (DM) to fairly represent them, or if the DM will play favorites with other ZMs in the market area team.ZMs are not sure if their performance review is their only measure of performance. They wonder if there are other cultural or personality factors that will affect their success or failure. The private meetings cause anxiety among the ZMs and breed mistrust between the ZMs and upper management.
The ZMs perception that certain tasks are menial, and that the training program is not aligned with the current job responsibilities have all contributed low motivation. One factor is the Operations Manager (OM) himself. For example, the OM, who has a very confident and commanding presence, will often try to jest and be friendly towards the ZMs—but at the end of the day, it is all business. Several ZMs have even expressed a disliking towards him. Some ZMs also feel that the OM exhibits favoritism. Often, the OM will publicly praise one ZM and belittle another in a joking manner. For example, he went easy on one ZM who was late for a very important meeting with the VP of the division and on other, less important occasions, has strongly berated another ZM for being late. There are several examples of this type of behavior from the OM.
One task that is particularly annoying to the ZMs is calling in sales numbers at the end of every month. “Calling in sales numbers” entails calling each sales office to find out how many sales they are going to report that day. Although technically simple, it is a very time-consuming task and management puts a lot of pressure on ZMs for accurate numbers. Corporate headquarters needs an estimate on what will be reported to gauge how they will stack up against other manufacturers at the end of the month. Often the numbers do not look good enough to management, so ZMs are forced to do it again. The sales offices get irritated with the constant calls and interruptions to their business. Part of the problem is that ZMs do not understand why they report these numbers so frequently and why they are so important to management. They also feel that they have to do all the “grunt” work for the region.They feel that their intelligence is insulted by such menial tasks, and that their earned college degrees were meant for better things.
Teaching tips: Group task
All of the above information was provided by the frustrated Zone manager.
First students are asked to, as a group, create a list of the drivers of this individual’s stress level. What are the key factors that are giving this particular person stress? Consider the list of major stressors found in the chapter, which ones seem to best capture the current frustration of the zone manager?
Answer:Stress comes from constraints or barriers that keep us from doing what we desire, coupled with uncertainty about the outcome and importance of the outcome.In this case, task demands (the job design) and work quotas are playing key roles.Also, role overload and role ambiguity are present.Organizational structure is also playing a role, as the employee does not have the opportunity to participate in decisions that affect her.The organizational leadership is also causing stress through tension, fear and anxiety.
Next, students are asked: If you were a general manager of this organization, how would you approach the problems she is posing? What would you focus on to increase her motivation and decrease her frustration? Create a document that captures the major issues and the proposed resolutions. Finally, consider the context in which she is working? How does this contribute to her frustration, what are you able to do in light of the type of organization this is?
Answer:Student answers will vary, but should focus specifically on the stressors identified above. Since task demands seem to be primary drivers of this woman’s stress, answers should focus on re-designing the organization and the reward system to alleviate many of the issues described above.Reporting relationships could be clarified, and the ZM’s could be included in generation of the two-week target numbers.Finally, leadership development courses could be offered for all of the organizational leaders.In terms of the context, better leadership and perhaps increased diversity may help get alignment intact between reward systems and preferences potentially based on gender differences.
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