CHAPTER SUMMARY – CHAPTER 13

Forces for Change; Two Views of the Change Process

ü      Discuss the external and internal forces for change.

ü      Contrast the calm waters and the white-water rapids metaphors of change.

ü      Explain Lewin’s three-step model of the change process.

ü      Discuss the environment that managers face today.

            External forces for change include changes in the marketplace, governmental laws and regulations, technology, labor market fluctuations, and economic changes. Internal forces for change include changes in the organization’s strategy, workforce, equipment, or employee attitudes.

            The calm waters metaphor of change describes change as a brief disruption in a calm and predictable environment. The white-water rapids metaphor describes change as chaotic, unpredictable, natural, and expected.

            Lewin’s three-step model includes unfreezing the status quo, changing to a new state, and refreezing to make the change permanent.

            The environment that managers face today is more like the white-water rapids environment.

Managing Organizational Change

ü      Define organizational change.

ü      Contrast using internal and external change agents.

ü      Describe how managers might change structure, technology, and people.

ü      Explain why people resist change and how resistance might be managed.

            Organizational change is any alteration of people, structure, or technology. (See Exhibit 13-2.) Change agents are individuals who act as a catalyst for change and assume the responsibility for managing the change process. External change agents may have a limited understanding of the organization but are more likely to initiate drastic change. Internal change agents are familiar with the organization, but may be reluctant to try new approaches. 

            Changing structure involves changing organizational structural variables. Changing technology involves changing the way work is performed or the methods or equipment that are used. Changing people involves changing attitudes, expectations, perceptions, or behavior. (See Exhibit 13-3.)

            People resist change because of ambiguity or uncertainty, hard to change habits, concern over personal loss, and believing that the change is not in the organization’s best interests. To reduce resistance to change, managers can use education and communication, participation, facilitation and support, negotiation, manipulation and co-optation, or coercion. (See Exhibit 13-4.)

Contemporary Issues in Managing Change

ü      Explain why changing organizational culture is so difficult and how managers can do it.

ü      Describe employee stress and how managers can help employees deal with stress.

ü      Discuss what it takes to make change happen successfully.

            Changing culture is difficult because it’s made up of relatively stable and permanent characteristics making it resistant to change. Managers can do it by understanding the situational factors and by having a strategy for change. (See Exhibit 13-5.)

            Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Stress can be caused by personal factors or by job-related factors. (See Exhibit 13-6.) Stress symptoms include physical, psychological, and behavioral. (See Exhibit 13-7.) Managers can help employees deal with job-related stress by making sure employees’ abilities match job requirements, using realistic job previews during employee selection, improving organizational communications, planning performance, and maybe redesigning jobs.

            Making change happen successfully involves focusing on making the organization ready for change and the manager understandinghis or her own role in the process. (See Exhibit 13-8.)

Stimulating Innovation

ü      Explain why innovation isn’t just creativity.

ü      Explain the systems view of innovation.

ü      Describe the structural, cultural, and human resource variables that are necessary for innovation.

ü      Explain what idea champions are and why they’re important to innovation.

            Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas. Innovation is turning the results of the creative process into something useful – product or work methods.

            The systems view of innovation (see Exhibit 13-10) looks at the inputs (creative people, groups, or organizations), the transformation (the creative environment, process, or situation), and the outputs (innovative products or work methods).

            The structural variables that are necessary for innovation include organic structure, abundant resources,high inter-unit communication, minimal time pressures, and work and non-work support. The human cultural variables include acceptance of ambiguity, tolerance of impractical, low external controls, tolerance of risks, tolerance of conflict, focus on ends, open-system focus, and positive feedback. The human resource variables includehigh commitment to training and development,high job security, and creative people. (See Exhibit 13-11.)

            Idea champions are individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure than innovations are implemented.