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8 Review
CHAPTER SUMMARY
opportunities. The symptoms of stress can be physical, psy-
8-1 Define organizational change and compare chological, or behavioral. Stress can be caused by personal
and contrast views on the change process. factors and by job-related factors. To help employees deal
with stress, managers can address job-related factors by mak-
Organizational change is any alteration of an organization’s ing sure an employee’s abilities match the job requirements,
people, structure, or technology. The “calm waters” metaphor of improving organizational communications, using a perfor-
change suggests that change is an occasional disruption in the nor- mance planning program, or redesigning jobs. Addressing
mal flow of events and can be planned and managed as it happens, personal stress factors is trickier, but managers could offer
using Lewin’s three-step change process (unfreezing, changing, employee counseling, time management programs, and well-
and freezing). The “white-water rapids” view of change suggests ness programs.
that change is ongoing, and managing it is a continual process.
8-4 Discuss techniques for stimulating innovation.
8-2 Explain how to manage resistance to change.
Creativity is the ability to combine ideas in a unique way or to
People resist change because of uncertainty, habit, concern about make unusual associations between ideas. Innovation is turn-
personal loss, and the belief that a change is not in the organiza- ing the outcomes of the creative process into useful products or
tion’s best interests. Techniques for managing resistance to change work methods. An innovative environment encompasses struc-
include education and communication (educating employees tural, cultural, and human resource variables.
about and communicating to them the need for the change), partic- Important structural variables include an organic-
ipation (allowing employees to participate in the change process), type structure, abundant resources, frequent communica-
facilitation and support (giving employees the support they need tion between organizational units, minimal time pressure,
to implement the change), negotiation (exchanging something of and support. Important cultural variables include accept-
value to reduce resistance), manipulation and co-optation (using ing ambiguity, tolerating the impractical, keeping external
negative actions to influence), selecting people who are open to controls minimal, tolerating risk, tolerating conflict, focus-
and accept change, and coercion (using direct threats or force). ing on ends not means, using an open-system focus, and
providing positive feedback. Important human resource vari-
8-3 Describe what managers need to know ables include high commitment to training and development,
high job security, and encouraging individuals to be idea
about employee stress. champions.
Design thinking can also play a role in innovation.
Stress is the adverse reaction people have to excessive pressure It provides a process for coming up with products that
placed on them from extraordinary demands, constraints, or don’t exist.
DISCuSSIOn queStIOnS
8-1 Why is managing change an integral part of every look for that might suggest your organization has
manager’s job? exceeded its capacity to change?
8-2 Contrast the calm waters and white-water rapids meta- 8-6 Every manager deals with change. Provide an example
phors of change. Which of these would you use to de- to illustrate this point. In this context, how do middle
scribe your current life? Why is that one your choice? managers plan organizational development?
8-3 Describe Lewin’s three-step change process. How 8-7 What can influence innovation in organizations?
is it different from the change process needed in the 8-8 Research information on how to be a more creative
white-water rapids metaphor of change? person. Write down suggestions in a bulleted list format
8-4 How are opportunities, constraints, and demands related and be prepared to present your information in class.
to stress? Give an example of each. 8-9 How does an innovative culture make an organization
8-5 Organizations typically have limits to how much change more effective? Could an innovative culture ever make
they can absorb. As a manager, what signs would you an organization less effective? Why or why not?
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