Fundamentals of Management

Sixth Edition

Robbins and DeCenzo

with contributions from Henry Moon

C H AP T E R

Part III: Organizing

Managing Change, Stress,

and Innovation

2008 Prentice Hall, Inc.

All rights reserved.

PowerPoint Presentation by Charlie Cook

The University of West Alabama

What Is Change?
Change
Is an alteration of an organizations environment,

structure, technology, or people.

A constant force
An organizational reality
An opportunity or a threat

Change Agent
Is a person who initiates and assumes the

responsibility for managing a change in an

organization.

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Forces For Change

External Forces

Internal Forces

Marketplace

Strategy modifications

competition
Government laws and
regulations
New technologies
Labor market shifts
Cycles in the
economy
Social change

New equipment

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New processes
Workforce

composition
Restructured jobs
Compensation and
benefits
Labor surpluses and
shortages
Employee attitudes

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Two Views Of The Change Process

Calm Waters Metaphor
Describes traditional practices in and theories about

organizations that likens the organization to a large

ship making a predictable trip across a calm sea and
experiencing an occasional storm.

White-Water Rapids Metaphor

Describes the organization as a small raft navigating

a raging river.

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Change in Calm Waters

Kurt Lewins Three-Step Process
Unfreezing

The driving forces, which direct behavior away from the

status quo, can be increased.

The restraining forces, which hinder movement from the

existing equilibrium, can be decreased.

The two approaches can be combined.

Implementation of change
Refreezing

Establishing a new equilibrium state.

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Change In White-Water Rapids

Change is constant in a dynamic environment.
The only certainty is continuing uncertainty.
Competitive advantages do not last.
Managers must quickly and properly react to
unexpected events by:
Being alert to problems and opportunities.
Becoming change agents in stimulating,

implementing and supporting change in the

organization.

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Implementing Planned Changes

Organization Development (OD)
Is an activity (intervention) designed to facilitate

planned, long-term organization-wide change.

Focuses on the attitudes and values of organizational

members;

Is essentially an effort to change an organizations culture.

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Stress: The Aftermath Of Organizational

Change
Stress
Occurs when individuals confront a situation related

to their desires for which the outcome is perceived to

be both uncertain and important.

Positive stress: when the situation offers an opportunity for

one to gain something

Negative stress: when constraints or demands are placed

on individuals

Stressor
Is a factor that causes stress.

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Sources of Stress
Constraints
Are barriers that keep us from doing what we desire.
Inhibit individuals in ways that take the control of a

situation out of their hands

Demands
Cause persons to give up something they desire.
Can preoccupy your time and force you to shift

priorities.

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Organizational Stressors: Role Demands

Role Conflicts
Are work expectations that are hard to satisfy.

Role Overload
Is the result of having more work to accomplish than

time permits.

Role Ambiguity
Occurs when role expectations are not clearly

understood.

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Personal Factors: Personality Types

Type A Personality
People who have a

chronic sense of
urgency and an
excessive competitive
drive.

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Type B Personality
People who are

relaxed and
easygoing and accept
change easily.

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Symptoms Of Stress
Psychological
Symptoms

Behavior-related
Symptoms

Increased tension

Changes in eating

Anxiety

habits
Increased smoking
Substance
consumption
Rapid speech
Sleep disorders

Boredom
Procrastination

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Reducing Stress
Person-Job Fit Concerns
Match employees to their jobs, clarify expectations,

redesign jobs, and increase employee involvement

and participation.

Employee Assistance Programs (EAPs)

Help employees overcome personal and health-

related problems.

Wellness Programs
Help employees prevent health problems.

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Stimulating Innovation
Creativity
Is the ability to combine ideas in a unique way or to

make unusual connections.

Innovation
Is the process of taking a creative idea and turning it

into a useful product, service, or method of

operation.

Perception

Incubation

Inspiration

Innovation

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Structural Variables Affecting Innovation

Organic Structure
Positively influences innovation through less work

specialization, fewer rules and decentralization.

Easy Availability of Plentiful Resources

Allow management to purchase innovations, bear

the cost of instituting innovations, and absorb

failures.

Frequent Interunit Communication

Helps to break down barriers to innovation by

facilitating interaction across departmental lines.

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Characteristics of an Innovative Culture

Acceptance of ambiguity
Tolerance of the
impractical
Low external controls
Tolerance of risk
Tolerance of conflict
Focus on ends rather than
on means
Open systems focus

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HR Variables Affecting Innovation

HR Practices that Foster Innovation
Promoting of training and development so employee

knowledge remains current

Offering employees high job security to reduce fear

of making mistakes and taking risks

Encouraging employees to become champions of

change

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