powerpoint presentation to accompany chapter 18 of management, 8/e john r. schermerhorn, jr....

PowerPoint Presentation to Accompany Chapter 18 of

Management, 8/eJohn R. Schermerhorn, Jr.

Prepared by: Michael K. McCuddy

Valparaiso University

Published by: John Wiley & Sons, Inc.

Management 8/e - Chapter 18 2

Planning Ahead — Chapter 18 Study Questions

What are the challenges of strategic leadership and innovation?

What is the nature of organizational change? How can planned organizational change be

managed? What is organization development? How can stress be managed in a change

environment?


Study Question 1: What are the challenges of strategic leadership and innovation?

Strategic leadership creates the capacity for ongoing strategic change.

Components of strategic leadership:– Determining the organization’s purpose or vision.– Exploiting and maintaining the organization’s core

competencies.– Developing the organization’s human capital.– Sustaining an effective organizational culture.– Emphasizing and displaying ethical practices.– Establishing balanced organizational controls.



Sustainable competitive advantage relies on creativity and innovation.

Creativity is the generation of a novel idea or unique approach to solving problems or crafting opportunities.

Innovation is the process of creating new ideas and putting them into practice.



Two forms of innovation:– Process.

• Results in better ways of doing things.– Product.

• Results in the creation of new or improved goods and services. Innovations require invention and application.

– Invention.• Act of discovery.• Development of new ideas.

– Application. • Act of use.• Implementation of new ideas.



Leadership responsibilities for the innovation process:– Imagining.

– Designing.

– Experimenting.

– Assessing.

– Scaling.



Four steps of the product innovation

process:

– Idea creation.

– Initial experimentation.

– Feasibility determination.

– Final application.



In highly innovative organizations …– Corporate strategy and culture should:

• Emphasize an entrepreneurial spirit.

• Expect innovation.

• Accept failure.

• Be willing to take risks.

– Organization structure should:• Be organic.

• Have lateral communications.

• Use cross-functional teams and task forces.



In highly innovative organizations …– Top management should:

• Understand the innovation process. • Be tolerant of criticism and differences of opinion.• Take all possible steps to keep goals clear.• Maintain the pressure to succeed.• Break down barriers to innovation.

– Staffing should fulfill five critical innovation roles:• Idea generators.• Information gatekeepers.• Product champions.• Project managers.• Innovation leaders.


Study Question 2: What is the nature of organizational change?

Change leader.– A change agent who takes leadership

responsibility for changing the existing pattern of behavior of another person or social system.

Change leadership.– Forward-looking.– Proactive.– Embraces new ideas.



Top-down change.– Strategic and comprehensive change that is

initiated with the goals of comprehensive impact on the organization and its performance capabilities.

– Driven by the organization’s top leadership.– Success depends on support of middle-level

and lower-level workers.



Bottom-up change.– The initiatives for change come from any and

all parts of the organization, not just top management.

– Crucial for organizational innovation.– Made possible by:

• Employee empowerment.• Employee involvement.• Employee participation.



Integrated change leadership.– Successful and enduring change combines advantages

of top-down and bottom-up approaches.

– Top-down:• Breaks up traditional patterns.

• Implements difficult economic adjustments.

– Bottom-up:• Builds capability for sustainable change.

• Builds capability for organizational learning.



Transformational and incremental change.– Unplanned change.

• Response to unanticipated events.• Good leaders act on opportunities for reactive change.

– Planned change• Aligning the organization with anticipated future challenges.• Activated by proactive leaders who are sensitive to

performance gaps.• Transformational change major and comprehensive

redirection.• Incremental change adjusting existing systems and

practices.



How to lead transformational change:– Establish a sense of urgency for change.– Form a powerful coalition to lead the change.– Create and communicate a change vision.– Empower others to move change forward.– Celebrate short-term “wins” and recognize those who

help.– Build on success; align people and systems with new

ways.– Stay with it; keep the message consistent; champion the

vision.



External forces for change:– Globalization.– Market competition.– Local economic conditions.– Government laws and regulations.– Technological developments.– Market trends.– Social forces and values.

Internal forces for change:– Arise when change in one part of the system creates the need for

change in another part of the system.– May be in response to one or more external forces.



Organizational targets for change:

– Tasks

– People

– Culture

– Technology

– Structure


Study Question 3: How can planned organizational change be managed?

Phases of planned change– Unfreezing

• The phase in which a situation is prepared for change and felt needs for change are developed.

– Changing• The phase in which something new takes place in

the system, and change is actually implemented.

– Refreezing• The phase of stabilizing the change and creating the

conditions for its long-term continuity.



Force-coercion strategy of change.

– Uses power bases of legitimacy, rewards and

punishments to induce change.

– Relies on belief that people are motivated by self-

interest.

– Direct forcing and political maneuvering.

– Produces limited and temporary results.

– Most useful in the unfreezing phase.



Rational persuasion strategy of change.– Bringing about change through persuasion backed by

special knowledge, empirical data, and rational argument.

– Relies on expert power.

– Relies on belief that reason guides people’s decisions and actions.

– Useful in the unfreezing and refreezing phases.

– Produces longer-lasting and internalized change.



Shared power strategy of change.– Engages people in a collaborative process of

identifying values, assumptions, and goals from which support for change will naturally emerge.

– Time consuming but likely to yield high commitment.– Involves others in examining sociocultural factors

related to the issue at hand.– Relies on referent power and strong interpersonal skills

in team situations.– Relies on belief that people respond to sociocultural

norms and expectations of others.



Reasons for people resisting change:– Fear of the unknown

– Disrupted habits

– Loss of confidence

– Loss of control

– Poor timing

– Work overload

– Loss of face

– Lack of purpose



Methods for dealing with resistance to change:– Education and communication– Participation and involvement– Facilitation and support– Facilitation and agreement– Manipulation and co-optation– Explicit and implicit coercion


Study Question 4: What is organization development?

Organization development (OD) is a

comprehensive approach to planned

organizational change that involves the

application of behavioral science in a

systematic and long-range effort to improve

organizational effectiveness.



Organization development goals:– Outcome goals focus on task accomplishments.

– Process goals focus on the way people work together.

– OD seeks to develop the organization members’ capacity for self-renewal.

– OD is committed to change through freedom of choice, shared power, and self-reliance.

– OD takes advantage of knowledge about human behavior in organizations.



The organization development process:

– Establish a working relationship.

– Diagnosis.

– Intervention.

– Evaluation.

– Achieve a terminal relationship.



Action research– The process of systematically collecting data on

an organization, feeding it back to the members for action planning, and evaluating results by collecting more data and repeating the process as necessary.

– Is initiated when someone senses a performance gap.



Steps in the action research process:– Problem sensing.

– Data gathering.

– Data analysis and feedback.

– Action planning.

– Action implementation.

– Evaluation and follow-up.



Individual OD interventions

– Sensitivity training (T-groups)

– Management training

– Role negotiation

– Job redesign

– Career planning



Team OD interventions

– Team building

– Process consultation

– Inter-group team building



Organization-wide OD interventions

– Survey feedback

– Confrontation meeting

– Structural redesign

– Management by objectives (MBO)


Study Question 5: How can stress be managed in a change environment?

Stress

– A state of tension experienced by individuals facing

extraordinary demands, constraints, or opportunities.

Stressors

– Things that cause stress

– Originate in work, personal, and nonwork situations.

– Have the potential to influence work attitudes,

behavior, job performance, and health.



Work factors as potential stressors:– Includes:

• Excessively high or low task demands.• Role conflicts or ambiguities.• Poor interpersonal relationships.• Too slow or too fast career progress.

– Work-related stress syndromes:• Set up to fail.• Mistaken identity.



Personal factors as potential stressors:– Includes needs, capabilities, and personality.

– Stressful behavior patterns of the Type A personality: • Always moving, walking, and eating rapidly.

• Acting impatient, hurrying others, disliking waiting.

• Doing, or trying to do, several things at once.

• Feeling guilty when relaxing.

• Trying to schedule more in less time.

• Using nervous gestures such as a clenched fist.

• Hurrying or interrupting the speech of others.



Nonwork factors as potential stressors:

– Includes:

• Family events.

• Economics.

• Personal affairs.

– “Spill-over” effect on the stress an individual

experiences at work.



Consequences of stress:– Constructive stress.

• Acts as a positive influence.• Can be energizing and performance enhancing.

– Destructive stress.• Acts as a negative influence.• Breaks down a person’s physical and mental

systems.• Can lead to job burnout and/or workplace rage.



Personal wellness:

– The pursuit of personal and mental potential

though a personal health-promotion program.

– A form of preventative stress management.

– Enables people to be better prepared to deal

with stress.

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Copyright 2004 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

powerpoint presentation to accompany chapter 18 of management, 8/e john r. schermerhorn, jr....

Documents

e chapter

forms of innovation

product innovation process

critical innovation

leadership responsibilities

e john

ongoing strategic change

study questions