Fundamentals of Management 4e.

Report
FS10321: Business Management
Week #5:
Midterm Exam Review
Chapter 7: Change, Stress, and Innovation
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Midterm Exam Review
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Chapter 7
Change, Stress, and Innovation
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In Search of Excellence
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Tom Peters and Robert Waterman
Studied “Excellent” companies
Found eight consistent attributes:
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A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity through People
Hands-on, Value-driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous loose-tight Properties.
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One Problem…
…Within a few years, some “excellent”
companies weren’t so excellent…
• What happened?
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What Is Change?
• Alteration of
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Environment
Structure
Technology
People
• A constant force
• An organizational reality
• An opportunity or a threat
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Forces For Change
• External forces
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Competition
Laws and regulations
New technologies
Labor market shifts
Cycles in the economy
Social change
• Internal forces
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Strategy modifications
New equipment
New processes
Workforce composition
Restructured jobs
Compensation and benefits
Labor surpluses and shortages
Employee attitudes
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Why People Resist Change
EXHIBIT 7.3
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Reducing Resistance to Change
TECHNIQUE
WHEN USED
Education and
communication
When resistance is due to misinformation
Participation
When resisters have the expertise to make
a contribution
Facilitation and
support
When resisters are fearful and anxiety-ridden
Negotiation
Necessary when resistance comes from
a powerful group
Manipulation
When a powerful group’s cooperation and
an endorsement is is needed
Coercion
When a powerful group’s endorsement is needed
EXHIBIT 7.4
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Stress: The Aftermath Of
Organizational Change
• Stress
– When you confront a situation…
– …related to your desires, for which …
– …outcome is perceived as both uncertain and important
• Positive stress
– Situation offers an opportunity to gain something
• Negative stress
– Constraints or demands are placed on individuals
• Stressors
– Factors that cause stress
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Sources of Stress
• Constraints
– Barriers that keep us from doing what we want
– Inhibit individuals
• Take control of situation out of their hands
• Demands
– Cause persons to give up something they desire.
– Demands preoccupy your time
• Force you to shift priorities.
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Stressors
• Personal
– Family issues
– Personal economic
problems
– Inherent personality
characteristics.
• Organizational
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Task demands
Role ambiguity
Role conflict
Role overload
Technological advancements
Work process engineering
Downsizing
Restructuring
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Organizat’l Stressors: Role Demands
• Role conflicts
– Work expectations that are hard to satisfy
• Role overload
– More work to accomplish than time permits
• Role ambiguity
– Role expectations are not clearly understood
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Personality Types
• Type A personality
– Chronic sense of urgency
– Excessive competitive
drive
• Type B personality
– Relaxed and easygoing
– Accept change easily
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Symptoms Of Stress
• Psychological
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Increased tension
Anxiety
Boredom
Procrastination
• Behavior-related
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Changes in eating habits
Increased smoking
Substance consumption
Rapid speech
Sleep disorders
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Reducing Stress
• Person-job fit concerns
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Match employees to their jobs
Clarify expectations
Redesign jobs
Increase employee involvement and participation
• Employee assistance programs (EAPs)
– Help overcome personal & health-related problems
• Wellness programs
– Programs that help employees prevent health problems
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Stimulating Innovation
• Creativity
– Ability to combine ideas in a unique way
– To make unusual connections
• Innovation
– Taking a creative idea,
– Turning it into a useful product, service, or method
• Perception
• Incubation
• Inspiration
• Innovation
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Structural Variables Affecting Innov.
• Organic structures
– Positive influence on innovation
– Less work specialization, fewer rules and
decentralization
• Easy availability of plentiful resources
– Management can purchase innovations
– Bears cost of instituting innovations
– Absorbs failures
• Frequent interunit communication
– Helps break down barriers to innovation
– Facilitates interaction across departmental lines.
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Characteristics of an Innov. Culture
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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
• Promote training and development
– Employees’ knowledge remains current
• Offer employees high job security
– Reduce fear of making mistakes, taking risks
• Encourage employees to become champions
of change
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