FS10321: Business Management

Week #5: Midterm Exam Review Chapter 7: Change, Stress, and Innovation 1

Midterm Exam Review

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Chapter 7

Change, Stress, and Innovation 3

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In Search of Excellence

Tom Peters and Robert Waterman Studied “Excellent” companies 1.

Found eight consistent attributes: A Bias for Action 2.

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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 – Environment – Structure – Technology – People • A constant force • An organizational reality • An opportunity or a threat 6

Forces For Change

• External forces – Competition – Laws and regulations – New technologies – Labor market shifts – Cycles in the economy – Social change • Internal forces – Strategy modifications – New equipment – New processes – Workforce composition – Restructured jobs – Compensation and benefits – Labor surpluses and shortages – Employee attitudes 7

Why People Resist Change EXHIBIT 7.3

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Reducing Resistance to Change TECHNIQUE Education and communication Participation Facilitation and support Negotiation WHEN USED

When resistance is due to misinformation When resisters have the expertise to make a contribution When resisters are fearful and anxiety-ridden

Manipulation Coercion

Necessary when resistance comes from a powerful group When a powerful group’s cooperation and an endorsement is is needed 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 10

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 – Task demands – Role ambiguity – Role conflict – Role overload – Technological advancements – Work process engineering – Downsizing – Restructuring 12

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 13

Personality Types

• Type A personality – Chronic sense of urgency – Excessive competitive drive • Type B personality – Relaxed and easygoing – Accept change easily 14

Symptoms Of Stress

• Psychological – Increased tension – Anxiety – Boredom – Procrastination • Behavior-related – Changes in eating habits – Increased smoking – Substance consumption – Rapid speech – Sleep disorders 15

Reducing Stress

• Person-job fit concerns – 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 16

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 17

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

• 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 19

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 20