chapter 6: ‘managing change’...2018/03/05 · develop your skill in change management so you...
TRANSCRIPT
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Chapter 6: ‘Managing Change’
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Learning Objectives
After completing this chapter, students will be able to:
• Describe making the case for change.
• Compare and contrast views on the change process.
• Classify areas of organisational change.
• Explain how to manage change --- Know how to be change
ready by overcoming your resistance to change.
• Discuss contemporary issues in managing change ---
Develop your skill in change management so you can serve
as a catalyst for change.
• Describe techniques for stimulating innovation.
• Explain why managing disruptive innovation is important.
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The Case for Change
• Organisational change: any alteration of people,
structure, or technology in an organisation
• Change agent: someone who acts as a catalyst and
assumes the responsibility for managing the change
process
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External and Internal Forces for Change
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External Factors
• Changing consumer needs and wants
• New governmental laws
• Changing technology
• Economic changes
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Internal Factors
• New organisational strategy
• Change in composition of workforce
• New equipment
• Changing employee attitudes
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Calm Waters vs. White-Water Rapids Metaphors
Calm waters metaphor:
• Unfreezing the status quo
• Changing to a new state
• Refreezing to make the change permanent
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The Three-Step Change Process
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White-Water Rapids Metaphor
• White-water rapids metaphor: the lack of
environmental stability and predictability requires that
managers and organisations continually adapt and
manage change actively to survive
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Reactive vs. Proactive Change Processes
• Reactive: reacting to a situation that has occurred
• Proactive: acting in advance of a situation
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Four Types of Change
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Types of Change: Strategy
Failure to change strategy when circumstances dictate
could undermine a company’s success.
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Types of Change: Structure
• Changing structural components
• Changing structural design
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Types of Change: Technology
• New equipment, tools, or methods
• Automation
• Computerisation
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Types of Change: People
• Organisational development: change methods that
focus on people and the nature and quality of
interpersonal work relationships
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Popular “Organisational Development
Techniques”
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Why do people resist change?
• Uncertainty
• Habit
• Fear of loss
• Belief change is inconsistent with goals of organisation
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Techniques for reducing resistance to
change?
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and co-optation
• Coercion
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Techniques for reducing resistance to change
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Leading Change
Managers can make change happen successfully by:
• making organisation change capable
• understanding their own role in process
• giving employees a role in the change
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What does it take to be a “change-capable”
organisation?
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Creating a “Culture for Change”
• The fact that an organisation’s culture is made up of
relatively stable and permanent characteristics tends to
make it very resistant to change.
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Understanding the “Situational Factors”
Conditions that facilitate change:
• dramatic crisis occurs
• leadership changes hands
• culture is weak
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Changing Culture
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Employee Stress
• Stress: the adverse reaction people have to excessive
pressure placed on them from extraordinary demands,
constraints, or opportunities
• Stressors: factors that cause stress
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What causes stress?
• Task demands
• Role demands
▪ Role conflicts
▪ Role overload
▪ Role ambiguity
• Interpersonal demands
• Organisation structure
• Organisational leadership
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Personal Factors
• Type A personality: people who have a chronic sense
of urgency and an excessive competitive drive
• Type B personality: people who are relaxed and
easygoing and accept change easily
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Symptoms of Stress
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How can stress be reduced?
• Realistic job preview during selection process
• Performance planning programme, e.g. MBO
• Job redesign
• Addressing personal stress
▪ counselling
▪ time management programmes
▪ wellness programmes
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“Creativity” vs. “Innovation”
• Creativity: the ability to combine ideas in a unique way
or to make unusual associations between ideas
• Innovation: taking creative ideas and turning them into
useful products or work methods
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Stimulating and nurturing innovation
An environment that stimulates innovation includes three
variables:
• the organisation’s structure,
• culture, and
• human resource practices.
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Three variables in an environment that
stimulate innovation
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Structural variables
• Organic structures
• Abundant resources
• High interunit communication
• Minimal time pressure
• Work and non-work support
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Cultural variables
• Acceptance of ambiguity
• Tolerance of the impractical
• Low external controls
• Tolerance of risks
• Tolerance of conflict
• Focus on ends
• Open-system focus
• Positive feedback
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Human Resource variables
• Idea champion: individual who actively and
enthusiastically supports new ideas, builds support,
overcomes resistance, and ensures that innovations are
implemented
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Innovation and Design Thinking
• When a business approaches innovation with a design-
thinking mentality, the emphasis is on getting a deeper
understanding of what customers need and want.
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Disruptive Innovation Definition
• Disruptive innovation:
innovations in products,
services, or processes
that radically change an
industry’s rules of the
game
• Sustaining innovation:
small and incremental
changes in established
products rather than
dramatic breakthroughs
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Examples of “Past Disruptive Innovators”
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Why “Disruptive Innovation” is important
• Disruptive innovations are a threat to many established
businesses, and responding with sustaining innovations
is not enough.
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Who’s vulnerable?
• Large, established, and highly profitable organisations
are most vulnerable to disruptive innovations because
they have the most to lose and are most vested in their
current markets and technologies.
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Implications
• For entrepreneurs
• For corporate managers
▪ Skunk works: a small group within a large
organisation, given a high degree of autonomy and
unhampered by corporate bureaucracy, whose
mission is to develop a project primarily for the sake
of radical innovation
• For career planning
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Review Learning Objective 6.1
Describe making the case for change:
• Change agent
• External forces
• Internal forces
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Review Learning Objective 6.2
Compare and contrast views on the change process:
• Calm waters metaphor
• White water rapids metaphor
• Lewin’s three-step model
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Review Learning Objective 6.3
Classify areas of organisational change:
• Strategy
• Structure
• Technology
• People
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Review Learning Objective 6.4
Explain how to manage change:
• People resist change because of uncertainty, habit,
concern over personal loss, and the belief that the
change is not in the organisation’s best interest.
• Techniques for reducing resistance to change include:
education and communication, participation, facilitation,
negotiation, manipulation and co-optation, and coercion.
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Review Learning Objective 6.5
Discuss contemporary issues in managing change:
• Managers lead the change process by:
▪ Making organisation change capable
▪ Understanding own role
▪ Giving employees a role in change process
• Managers help employees deal with stress by:
▪ Ensuring employees’ abilities match job
▪ Improving organisational communication
▪ Using a performance planning programme
▪ Redesigning jobs
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Review Learning Objective 6.6
Describe techniques for stimulating innovation:
• Creativity
• Innovation
• Design thinking and innovation
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Review Learning Objective 6.7
Explain why managing disruptive technology is
important:
• Disruptive innovation exists when a smaller company
with fewer resources is able to successfully challenge
established incumbent businesses.
• Disruptive innovation presents an asset to organisations
that recognise the market potential of the technology.