Fundamentals of Management 10th Edition Robbins Solutions Manual

Fundamentals of Management 10th
Edition Robbins Solutions Manual

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Chapter 8 – Managing Change and Innovation
CHAPTER MANAGING
8 CHANGE AND
INNOVATION
LEARNING OUTCOMES
After reading this chapter, students should be able to:

8-1. Define organizational change and compare and contrast views on the change process.
8-2. Explain how to manage resistance to change.
8-3. Describe what managers need to know about employee stress.
8-4. Discuss techniques for stimulating innovation.
Management Myth
Myth: There’s nothing managers can do to reduce the stress inherent in today’s jobs.
Truth: Astute managers are redesigning jobs, realigning schedules, and introducing employee
assistance programs to help employees cope.
Teaching Tips:
In this chapter, students will explore the concept of stress and how it can be both a positive and
negative force for individuals. As an introduction, it may be useful to ask students the following:
1. Have they ever experienced a lot of work related stress? Did they feel it negatively affected
their behavior away from work? Or even their health?
2. Are there cases where stress can be positive, pushing people to meet important deadlines or
to attain a difficult goal?
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Copyright ©2017 Pearson Education, Inc.
I. WHAT IS CHANGE AND HOW DO MANAGERS DEAL WITH IT?

A. Introduction
1. The chapter opens with the example of Eli Lilly’s CEO John Lechleiter:
a) By the end of 2016, Eli Lilly was losing $10 billion on other drugs no longer
under patent protection.
b) Eli Lilly will face a daunting task of making changes in the company.
2. Organizational change is an alteration of an organization’s environment, structure,
technology, or people.
3. If it weren’t for change, the manager’s job would be easy.
a) Planning would be simplified.
b) The issue of organization design would be solved.
c) Decision making would be dramatically simplified.
4. Change is an organizational reality.
a) Handling change is an integral part of every manager’s job.
b) A manager can change three things. (See Exhibit 8-1.)
(1) Changing structure includes any alteration in any authority relationships,
coordination mechanisms, degree of centralization, job design, or similar
organization structure variables.
(2) Changing technology encompasses modification in the way work is processed
or the methods and equipment used.
(3) Changes in people refer to changes in employee attitudes, expectations,
perceptions, or behaviors.
B. Why do Organizations Need to Change?
1. What External Forces Create a Need for Change?
a) They come from various sources.
(1) The marketplace.
(2) Government laws and regulations.
(3) Technology.
(4) Labor markets.
(5) Economics.
2. What Internal Forces Create a Need for Change?
a) Internal forces tend to originate primarily from the internal operations of the
organization or from the impact of external changes.
b) When management redefines or modifies its strategy, it often introduces a host
of changes.
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c) Another internal force for change is that the composition of an organization’s

workforce changes in terms of age, education, gender, nationality, and so forth.
d) An organization’s work force is rarely static; its composition changes.
e) The compensation and benefits systems might also need to be reworked to
reflect the needs of a diverse work force and market forces in which certain
skills are in short supply.
f) Employee attitudes, such as increased job dissatisfaction, may lead to increased
absenteeism, resignations, and even strikes.
C. Who initiates Organizational Change?
1. Changes within an organization need a catalyst.
2. People who act as catalysts and assume the responsibility for managing the change
process are called change agents.
a) Any manager can be a change agent.
b) A nonmanager can also be a change agent.
3. For major systemwide changes, internal management will often hire outside
consultants to provide advice and assistance.
a) Outside consultants can offer an objective perspective.
b) But they may have an inadequate understanding of the organization’s history,
culture, operating procedures, and personnel.
c) They are also prone to initiate more drastic changes than insiders.
4. Internal managers who act as change agents may be more thoughtful and possibly
more cautious.
D. How Does Organizational Change Happen?

1. Two metaphors represent different approaches to understanding and responding to
change.
a) The “calm waters” metaphor envisions the organization as a large ship
crossing a calm sea.
(1) Change surfaces as the occasional storm, a brief distraction in an otherwise
calm and predictable trip.
b) In the “white-water rapids” metaphor, the organization is seen as a small raft
navigating a raging river with uninterrupted white-water rapids.
(1) Change is a natural state and managing change is a continual process.
2. What Is the “Calm Waters” Metaphor?
a) The calm waters metaphor dominated the thinking of practicing managers and
academics.
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(1) The prevailing model for handling change in calm waters is illustrated in
Lewin’s three-step model. (See Exhibit 8-2.)
(2) According to Lewin, successful change requires unfreezing the status quo,
changing to a new state, and refreezing the new change to make it permanent.
(3) The status quo can be considered an equilibrium state.
(4) Unfreezing is necessary to move from this equilibrium. It can be achieved in
one of three ways:
(a) The driving forces can be increased (direct behavior away from the
status quo).
(b) The restraining forces can be decreased (hinder movement from the
existing equilibrium).
(c) The two approaches can be combined.
b) Once unfreezing has been accomplished, the change itself can be implemented.
c) The new situation needs to be refrozen so that it can be sustained over time.
(1) Unless this is done, there is a strong chance that the change will be short-lived.
(2) The objective of refreezing is to stabilize the new situation by balancing the
driving and restraining forces.
d) Lewin’s three-step process treats change as a break in the organization’s
equilibrium state.
3. What is the “White-Water Rapids” Metaphor?
a) The white-water metaphor takes into consideration that environments are both
uncertain and dynamic.
(1) For example, variable college curriculum.
b) In the white water rapids metaphor, change is the status quo and managing
change is a continual process.
4. Does Every Manager Face a World of Constant and Chaotic Change?
a) Not every manager faces a world of constant and chaotic change.
b) But the number of managers who don’t is dwindling rapidly.
c) Few organizations today can treat change as the occasional disturbance in an
otherwise peaceful world.
5. How Do Organizations Implement Planned Changes?
a) Most change in an organization does not happen by chance.
b) The effort to assist organizational members with a planned change is referred to
as organization development.
c) Organization development (OD) facilitates long-term organization-wide
changes.
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(1) Its focus is to constructively change the attitudes and values of organization
members so that they can more readily adapt to and be more effective in
achieving the new directions of the organization.
(2) The organization’s leaders are, in essence, attempting to change the
organization’s culture.
(3) Reliance on employee participation is fundamental to organizational
development.
d) Any organizational activity that assists with implementing planned change can
be viewed as an OD technique.
e) The more popular OD efforts rely heavily on group interactions and
cooperation.
f) Survey feedback efforts are designed to assess employee attitudes about and
perceptions of the change they are encountering.
(1) Employees are generally asked to respond to a set of specific questions
regarding how they view such organizational aspects as decision making,
leadership, communication effectiveness; and satisfaction with their jobs,
coworkers, and management.
(2) The data the change agent obtains are used to clarify problems.
g) In process consultation, outside consultants help managers to perceive,
understand, and act upon process events with which they must deal.
(1) These might include workflow, informal relationships among unit members,
and formal communications channels.
(2) Consultants are not there to solve these problems. Rather, they act as coaches
to help managers diagnose which interpersonal processes need improvement.
h) Team-building is generally an activity that helps work groups set goals,
develop positive interpersonal relationships, and clarify the roles and
responsibilities of each team member.
(1) The primary focus of team-building is to increase each group’s trust and
openness toward one another.
i) Intergroup development attempts to achieve the same results among different
work groups.
(1) Attempts to change attitudes, stereotypes, and perceptions that one group may
have toward another group to achieve better coordination among the various
groups.
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From the Past to the Present

“If you want truly to understand something, try to change it.” Kurt Lewin, who’s often called the
father of modern social psychology (a discipline that uses scientific methods to “understand and
explain how the thought, feeling, and behavior of individuals are influenced by the actual,
imagined, or implied presence of other human beings”) made his name in management circles
through his studies of group dynamics. His approach was based on the belief that “group
behavior is an intricate set of symbolic interactions and forces that not only affect group structure
but also modify individual behavior.”
One of his research studies found that “changes were more easily introduced through group
decision making than through lectures and individual appeals.” His findings suggested that
changes would be more readily accepted when people felt they had an opportunity to be involved
in the change rather than when they were simply asked or told to change. Another of Lewin’s
major contributions was the idea of force field analysis, a framework for looking at the factors
(forces) that influenced a situation.
Discuss This:
 Explain force field analysis and how it can be used in organizational change.
 What advice do you see in this information about Lewin’s ideas that managers might use?
II. HOW DO MANAGERS MANAGE RESISTANCE TO CHANGE?

A. Introduction
1. Managers should be motivated to initiate change because they are concerned with
improving their organization’s effectiveness.
2. Change can be a threat to managers and to nonmanagerial personnel as well.
B. Why Do People Resist Organizational Change?
1. An individual is likely to resist change for four reasons: uncertainty, habit, concern
over personal loss, and the belief that the change is not in the organization’s best
interest.
a) Changes substitute ambiguity and uncertainty for the known.
(1) Employees in organizations often hold a dislike for uncertainty.
b) To reduce stress, we often rely on habit or programmed decisions.
c) We fear losing something already possessed.
(1) Change threatens the investment in the status quo.
(2) The more people have invested in the current system, the more they resist
change.
(a) They fear the loss of status, money, authority, friendships, personal
convenience, or other benefits that they value.
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d) A final cause of resistance is a person’s belief that the change is incompatible

with the goals and best interests of the organization.
e) If expressed positively, this form of resistance can be beneficial to the
organization.
C. What Are Some Techniques for Reducing Resistance to Organizational Change?
1. Dysfunctional resistance to change can be addressed with several strategies.
a) See Exhibit 8-4.
2. Education and communication help employees see the logic of the change effort.
a) Assumes that much of the resistance lies in misinformation or poor
communication.
3. Participation involves bringing those individuals directly affected by the proposed
change into the decision-making process.
a) Allows expression of feelings, increases the quality of the process, and
increases employee commitment to the final decision.
4. Facilitation and support involve helping employees deal with the fear and anxiety
associated with the change effort.
a) May include employee counseling, therapy, new skills training, or a short paid
leave of absence.
5. Negotiation involves a bargain: exchanging something of value for an agreement to
lessen the resistance to the change effort.
a) This technique may be quite useful when the resistance comes from a powerful
source.
6. Manipulation and co-optation refers to covert attempts to influence others about the
change.
a) May involve twisting or distorting facts to make the change appear more
attractive.
7. Coercion involves the use of direct threats or force against the resisters.
III. WHAT REACTION DO EMPLOYEES HAVE TO ORGANIZATIONAL CHANGE?
A. What Is Stress?
1. Stress is the response to anxiety over intense demands, constraints, or
opportunities.
a) It is positive when the situation offers an opportunity for one to gain something.
2. Functional stress allows a person to perform at his or her highest level at critical
times.
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a) It is when constraints or demands are placed on us that stress can become

negative.
3. Constraints are barriers that keep us from doing what we desire.
4. Demands may cause you to give up something you desire.
5. Opportunities are the possibility of something new or something never done
before.
B. What Are the Symptoms of Stress?
1. There are three general ways that stress reveals itself: physical, psychological, and
behavioral symptoms. (See Exhibit 8-3.)
2. In Japan, there’s a stress phenomenon called karoshi (pronounced kah-roe-she),
which is translated literally as “death from overwork.”
C. What Causes Stress?
1. Job related factors.
2. The discussion that follows organizes stress factors into five categories: task, role,
and interpersonal demands, organization structure, and organizational leadership.
3. Task demands are factors related to an employee’s job, design of the person’s job,
working conditions, and the physical work layout.
a) Autonomy tends to lessen stress.
4. Role demands relate to stress as a function of the employee’s particular role in the
organization.
a) Role conflicts create expectation that may be hard to reconcile or satisfy.
b) Role overload is created when the employee is expected to do more than time
permits.
c) Role ambiguity is created when role expectations are not clearly understood.
5. Interpersonal demands are pressures created by other employees.
a) Lack of social support from colleagues and poor interpersonal relationships can
cause considerable stress.
b) Organization structure can increase stress due to excessive rules and an
employee’s lack of opportunity to participate in decisions.
6. Organizational leadership represents stress due to the supervisory style of the
organization’s company officials.
a) Some managers create a culture characterized by tension, fear, and anxiety.
(1) Unrealistic pressures to perform in the short run, excessively tight controls, and
firing employees who don’t measure up.
7. Personal factors that can create stress include family issues, personal economic
problems, and inherent personality characteristics.
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a) Some employees bring their personal problems to work with them.

b) Employee personality can have an effect on how susceptible he/she is to stress.
c) Type A personality is characterized by feelings of a chronic sense of time
urgency, an excessive competitive drive, and difficulty accepting and enjoying
leisure time.
(1) Only the hostility and anger associated with Type A behavior is actually
associated with the negative effects of stress.
d) Type B personalities never suffer from time urgency or impatience.
(1) Type Bs are just as susceptible to the same anxiety-producing elements.
D. How Can Stress Be Reduced?
1. General guidelines:
a) Not all stress is dysfunctional.
b) Stress can never be totally eliminated.
c) Reduce dysfunctional stress by controlling job-related factors and offering help
for personal stress.
2. Job-related factors
a) Employee selection: provide a realistic job preview and make sure an
employee’s abilities match the job requirement.
b) On-the-job: improve organizational communications to minimize ambiguity;
use a performance planning program such as MBO to clarify job
responsibilities, provide clear performance goals, and reduce ambiguity through
feedback; redesign job if possible, especially if stress can be traced to boredom
or to work overload; allow employees to participate in decisions and to gain
social support.
3. Personal factors
a) Not easy for manager to control directly.
b) Ethical considerations.
c) If the manager believes it’s ethical and the employee is receptive, consider:
d) Employee assistance and wellness programs
(1) Employee assistance programs (EAPs) assist employees in dealing with
difficult issues in order to get the employee back to work as soon as possible.
(2) A wellness program is any type of program that is designed to keep
employees healthy.
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A Question of Ethics
One in five companies offers some form of stress management program. Although such
programs are available, many employees may choose not to participate. They may be reluctant to
ask for help, especially if a major source of that stress is job insecurity. After all, there’s still a
stigma associated with stress. Employees don’t want to be perceived as being unable to handle
the demands of their job. Although they may need stress management now more than ever, few
employees want to admit that they’re stressed.
Discuss This:
 What can be done about this paradox?
 Do organizations even have an ethical responsibility to help employees deal with stress?
IV. HOW CAN MANAGERS ENCOURAGE INNOVATION IN AN ORGANIZATION?

A. Introduction
1. The way organizations thrive today is through innovation or they will die.
2. The standard of innovation to which many organizations strive is that achieved by
such companies as Apple, Facebook, and Nissan (with their all electric Leaf).
B. How Are Creativity and Innovation Related?
1. Creativity means the ability to combine ideas in a unique way or to make unusual
associations between ideas.
a) For example, Mattel.
2. Innovation is the process of taking a creative idea and turning it into a useful
product, service, or method of operation.
C. What Is Involved in Innovation?
1. Some people believe that creativity is inborn; others believe that with training,
anyone can be creative.
2. Creativity can be viewed as a fourfold process consisting of perception, incubation,
inspiration, and innovation.
3. Perception involves the way you see things. Being creative means seeing things
from a unique perspective.
4. Ideas go through a process of incubation.
a) During this incubation period, employees should collect massive amounts of
data that are stored, retrieved, studied, reshaped, and finally molded into
something new.
b) During this period, it is common for years to pass.
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5. Inspiration in the creative process is the moment when all your efforts successfully
come together.
a) Creative work requires an innovative effort.
b) Innovation involves taking that inspiration and turning it into a useful product,
service, or way of doing things.
c) Thomas Edison is often credited with saying, “Creativity is 1 percent inspiration
and 99 percent perspiration.”
d) That 99 percent, or the innovation, involves testing, evaluating, and retesting
what the inspiration found.
D. How Can a Manager Foster Innovation?
1. There are three sets of variables that have been found to stimulate innovation.
a) They pertain to the organization’s structure, culture, and human resource
practices.
b) See Exhibit 8-5.
2. How do structural variables affect innovation?
a) First, organic structures positively influence innovation.
(1) They have less work specialization and fewer rules and are more decentralized
than mechanistic structures; they facilitate the flexibility, adaptation, and cross-
fertilization that make the adoption of innovations easier.
b) Second, easy availability of plentiful resources is a key building block for
innovation.
(1) An abundance of resources allows management to purchase innovations, bear
the cost of instituting innovations, and absorb failures.
c) Frequent inter-unit communication helps to break down possible barriers to
innovation by facilitating interaction across departmental lines.
d) Extreme time pressures on creative activities are minimized despite the
demands of white-water-rapids-type environments.
e) When an organization’s structure explicitly supports creativity, employees’
creative performance can be enhanced.
3. How does an organization’s culture affect innovation?
a) Innovative organizations tend to have similar cultures: they encourage
experimentation; they reward both successes and failures and they celebrate
mistakes.
b) An innovative culture is likely to have the following characteristics:
(1) Acceptance of ambiguity.
(2) Tolerance of the impractical.
(3) Low external controls.
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(4) Tolerance of risk.

(5) Tolerance of conflict.
(6) Focus on ends rather than on means.
(7) Open systems focus.
(8) Provide positive feedback.
4. What human resource variables affect innovation?
a) Innovative organizations actively promote the training and development of their
members so that their knowledge remains current, offer their employees high
job security to reduce the fear of getting fired for making mistakes, and
encourage individuals to become champions of change.
b) Once a new idea is developed, an idea champion actively and enthusiastically
promotes the idea, builds support, overcomes resistance, and ensures that the
innovation is implemented.
c) Research finds that champions have common personality characteristics:
extremely high self-confidence, persistence, energy, and a tendency to take
risks.
d) Champions also display characteristics associated with dynamic leadership.
(1) They inspire and energize others.
(2) They are also good at gaining the commitment of others to support their
mission.
(3) Champions have jobs that provide considerable decision-making discretion.
E. How Does Design Thinking Influence Innovation?
1. Design thinking was introduced in previous chapter.
2. Emphasis is on a deeper understanding of what customers need and want, not just
seeing them as a sales target.
3. Intuit example.
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Technology and the Managers Job

Helping Innovation Flourish
When employees are busy doing their regular job tasks, how can innovation ever
flourish? When job performance is evaluated by what you get done, how you get it done,
and when you get it done, how can innovation ever happen? This has been a real
challenge facing organizations wanting to be more innovative. One solution has been to
give employees mandated time to experiment with their own ideas on company-related
projects. For instance, Google has its
“20% Time” initiative which encourages employees to spend 20 percent of their time at
work on projects not related to their job descriptions. Other companies—Facebook,
Apple, LinkedIn, 3M, Hewlett-Packard, among others—have similar initiatives. Hmmm .
. . so having essentially one day a week to work on company-related ideas you have
almost seems too good to be true. But, more importantly, does it really spark innovation?
Well, it can. At Google, it led to the autocomplete system, Google News, Gmail, and
Adsense. However, such “company” initiatives do face tremendous obstacles, despite
how good they sound on paper. These challenges include:
• Strict employee monitoring in terms of time and resources leading to a reluctance

to use this time since most employees have enough to do just keeping up with
their regular tasks.
• When bonuses/incentives are based on goals achieved, employees soon figure out
what to spend their time on.
• What happens to the ideas that employees do have?
• Unsupportive managers and coworkers who may view this as a “goof-around-for-
free-day.”
• Obstacles in the corporate bureaucracy.
So, how can companies make it work? Suggestions include: top managers need to support
the initiatives/projects and make that support known; managers need to support
employees who have
that personal passion and drive, that creative spark—clear a path for them to pursue their
ideas; perhaps allow employees more of an incentive to innovate (rights to design, etc.);
and last, but not least, don’t institutionalize it. Creativity and innovation, by their very
nature, involve risk and reward. Give creative individuals the space to try and to fail and
to try and to fail as needed.
If your professor has assigned this, go to the Assignments section of

mymanagementlab.com to complete these discussion questions.
Teaching Tips:
 What benefits do you see with such mandated experiment time for (a)
organizations? (b) individuals?
 What obstacles do these initiatives face and how can managers overcome those
obstacles?
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REVIEW AND APPLICATIONS

CHAPTER SUMMARY
8-1 Define organizational change and compare and contrast views on the change process.
Organizational change is any alteration of an organization’s people, structure, or
technology. The “calm waters” metaphor of change suggests that change is an occasional
disruption in the normal flow of events and can be planned and managed as it happens
using Lewin’s three-step change process (unfreezing, changing, and freezing). The
“whitewater rapids” view of change suggests that change is ongoing, and managing it is a
continual process.
8-2 Explain how to manage resistance to change. People resist change because of
uncertainty, habit, concern about personal loss, and the belief that a change is not in the
organization’s best interests. Techniques for managing resistance to change include
education and communication (educating employees about and communicating to them
the need for the change), participation (allowing employees to participate in the change
process), facilitation and support (giving employees the support they need to implement
the change), negotiation (exchanging something of value to reduce resistance),
manipulation and co-optation (using negative actions to influence), selecting people who
are open to and accept change, and coercion (using direct threats or force).
8-3 Describe what managers need to know about employee stress. Stress is the adverse
reaction people have to excessive pressure placed on them from extraordinary demands,
constraints, or opportunities. The symptoms of stress can be physical, psychological, or
behavioral. Stress can be caused by personal factors and by job-related factors. To help
employees deal with stress, managers can address job-related factors by making sure an
employee’s abilities match the job requirements, improve organizational communications,
use a performance planning program, or redesign jobs. Addressing personal stress factors
is trickier, but managers could offer employee counseling, time management programs,
and wellness programs.
8-4 Discuss techniques for stimulating innovation. Creativity is the ability to combine ideas
in a unique way or to make unusual associations between ideas. Innovation is turning the
outcomes of the creative process into useful products or work methods. An innovative
environment encompasses structural, cultural, and human resource variables. Important
structural variables include an organic-type structure, abundant resources, and frequent
communication between organizational units, minimal time pressure, and support.
Important cultural variables include accepting ambiguity, tolerating the impractical,
keeping external controls minimal, tolerating risk, and tolerating conflict, focusing on
ends not means, using an open-system focus, and providing positive feedback. Important
human resource variables include high commitment to training and development, high job
security, and encouraging individuals to be idea champions. Design thinking can also play
a role in innovation. It provides a process for coming up with products that don’t exist.
DISCUSSION QUESTIONS
8-1 Why is managing change an integral part of every manager’s job?
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Answer: This item can be assigned as a Discussion Question in MyManagementLab.

Student responses will vary.
8-2 Contrast the calm waters and white-water rapids metaphors of change. Which of these
would you use to describe your current life? Why is that one your choice?
Answer: As you can imagine, most students will choose the white-water metaphor to
describe their own circumstances. To dig deeper, you may ask students if they think this will
change when they graduate or if their parents feel like they are in ‘calmer waters.’ In our
society, it may very well be that the white-water rapid feeling is fast becoming the norm.
8-3 Describe Lewin’s three-step change process. How is it different from the change
process needed in the white-water rapids metaphor of change?
Answer: The prevailing model for handling change in calm waters is Lewin’s three-step
model. See Exhibit 8-2. According to Lewin, successful change requires unfreezing the status
quo, changing to a new state, and refreezing the new change to make it permanent. The status
quo can be considered an equilibrium state.
 Unfreezing is necessary to move from this equilibrium.
 The driving forces can be increased.
 The restraining forces can be decreased.
 The two approaches can be combined.
Once unfreezing has been accomplished, the change itself can be implemented.
The new situation needs to be refrozen so that it can be sustained over time. Unless this is
done, there is a strong chance that the change will be short-lived.
The objective of refreezing is to stabilize the new situation by balancing the driving and
restraining forces.
The calm waters metaphor dominated the thinking of practicing managers and academics. The
prevailing model for handling change in calm waters is Lewin’s three-step model. Lewin’s
three-step process treats change as a break in the organization’s equilibrium state.
The white water metaphor takes into consideration that environments are both uncertain and
dynamic. The stability and predictability of the calm waters do not exist. Many of today’s
managers face constant change, bordering on chaos. Few organizations today can treat change
as the occasional disturbance. Most competitive advantages last less than eighteen months.
8-4 How are opportunities, constraints, and demands related to stress? Give an example of
each.
Answer: Managers may create conditions that lead to stress. Task demands are factors related
to an employee’s job—the more interdependence between an employee’s tasks and the tasks
of others, the more potential stress there is. Role demands relate to pressures placed on an
employee as a function of the particular role he or she plays in the organization. Interpersonal
demands are pressures created by other employees. Organizational structure can increase
stress. Excessive rules and an employee’s lack of opportunity to participate in decision
making can also increase stress.
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Examples of each will vary based on the students' responses.
8-5 Organizations typically have limits to how much change they can absorb. As a manager,
what signs would you look for that might suggest your organization has exceeded its
capacity to change?
Answer: There are a number of symptoms to indicate too much change; employee stress,
fatigue, turnover, absenteeism, etc. All of the indications of stress like physical,
psychological, and behavioral changes in employees could be manifested from organizational
change.
Organizational leadership is needed when change is happening. Training should be provided
for everyone affected and to the extent possible, the change could be phased in gradually.
8-6 Why is organizational development planned change? Explain how planned change is
important for organizations in today’s dynamic environment.
Answer: Most change in an organization does not happen by chance. The effort to assist
organizational members with a planned change is referred to as organization development.
Organization development (OD) is an activity designed to facilitate long-term organization-
wide changes. Its focus is to constructively change the attitudes and values of organizational
members so that they can more readily adapt to, and be more effective in achieving, the new
directions of the organization. Organization leaders are, in essence, attempting to change the
organization’s culture. Fundamental to organization development is its reliance on employee
participation.
8-7 How do creativity and innovation differ?

Answer: This item can be assigned as a Discussion Question in MyManagementLab.
Student responses will vary.
8-8 Research information on how to be a more creative person. Write down suggestions in
a bulleted list format and be prepared to present your information in class.
Answer: Students’ answers will vary. Students can challenge themselves to spend more
time brainstorming or reflecting on ideas that may be 'out-of-the-box' thinking.
8-9 How does an innovative culture make an organization more effective? Could an
innovative culture ever make an organization less effective? Why or why not?
Answer: The innovative organization is characterized by the ability to channel its creative
juices into useful outcomes. The 3M Company is aptly described as innovative because it
has taken novel ideas and turned them into profitable products. So too are the highly
successful microchip manufacturers Intel and Sony electronics.
8-10 When you find yourself experiencing dysfunctional stress, write down what’s causing
the stress, what stress symptoms you’re exhibiting, and how you’re dealing with the
stress. Keep this information in a journal and evaluate how well your stress reducers
are working and how you could handle stress better. Your goal is to get to a point
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where you recognize that you’re stressed and can take positive actions to deal with the
stress.
Answer: Student responses will vary depending on symptoms. This type of journal will
help you throughout life to manage your personal and professional stressors better.
MyManagementLab
Students can find the following assisted-graded writing questions at

mymanagementlab.com. Answers to these questions are graded against rubrics in the
MyLab.
8-11 Planned change is often thought to be the best approach to take in organizations. Can
unplanned change ever be effective? Explain.
8-12 Describe the structural, cultural, and human resources variables that are necessary for
innovation.
Management Skill Builder: Stress Management

Ask any employee and they will tell you that they are stressed out. Heavier workloads, longer
hours, continual reorganizations, technology that breaks down traditional barriers between work
and personal life, and reduced job security are among factors that have increased employee stress.
In this section, students will see some of the causes of stress and what companies can do to help
employees deal with its adverse effects.
Personal Inventory Assessment: Controlling Workplace Stress

As our debunked Management Myth pointed out, workplace stress is a reality and managers can
do something about it. In this PIA, you’ll assess how you control workplace stress.
Skill Basics
For reducing stress, the following individual interventions have been suggested:
 Implement time-management techniques.
 Create personal goals.
 Use physical exercise.
 Practice relaxation training.
 Expand your social support network.
Practicing the Skill

Four months in, Dana is dissatisfied with her job at Dancer Advertising. Dana, a wife and
mother of two young children, is working almost 80 hours a week at Dancer. The time
pressure has resulted in lack of sleep, little time for her family, weight loss, and she has
broken out in stress-induced hives. In her previous job, Dana worked a basic 8-to-5 day as
director of marketing. Dana has asked her old employer if she could come back, but the
only position open is a lower-level job with one-third the pay.
Students are asked, ‘What would you do?’

8-164
Experiential Exercise
Performance Pros
To: Tina Sanchez, HR Director

From: Aaron Scott, President
Subject: Employee stress management program
Performance Pros has made it through the initial phases of their restructuring efforts. To help
minimize the pressures on our software developers and sales staff, the president of the company
wants Tina to develop an employee stress management program that could be implemented
immediately.
Teaching Tip: Students can refer to the skill basics mentioned above. Stress management
and counseling can also be an important aid for employees. Some companies use EAP
programs that provide employee assistance while keeping employees’ names and
conditions of treatment confidential.
Case Application 1: The Next Big Thing
Discussion Questions
8-14 What do you think of UA’s approach to innovation? Would you expect to see this type of
innovation in an athletic wear company? Explain.
This item can be assigned as a Discussion Question in MyManagementLab. Student

responses will vary.
8-15 What do you think UA’s culture might be like in regards to innovation? (Hint: Refer to the
list on page 254)

8-16 How might design thinking help UA improve its innovation efforts?

8-17 What’s your interpretation of the company’s philosophy posted prominently over the door
of its design studio? What does it say about innovation? What could other companies
learn from the way UA innovates?
The philosophy says that the company is still striving for the next thing and always
forward-focused. The saying shows that the company is always looking for the next big
idea. This provides a great example for other companies. Demonstrating how to be
looking ahead and using innovation to succeed.
8-165
Case Application 2: Making Over Avon
8-18 What external forces for change do you see described in this case? Would you describe
Avon’s environment as more “calm waters” or “white-water rapids?” Explain.

8-19 Why would it be more important for the CEO to look at those external forces when
planning organizational change?

8-20 Why might it be difficult to change a company that’s over 130 years old?

8-21 Avon is truly a global company. How might this affect the CEO’s efforts to implement
organizational change?

Case Application 3: Stress Kills
8-22 What is your reaction to the situation described in this case? What factors, both inside the
company and externally, appear to have contributed to this situation?

8-23 What appeared to be happening in the France Télécom’s workplace? What stress
symptoms might managers have looked for to be alerted to a problem?

8-166
8-24 Should managers be free to make decisions that are in the best interests of the company
without worrying about employee reactions? Discuss. What are the implications for
managing change?

8-25 What are France Télécom’s executives doing to address the situation? Do you think it’s
enough? Are there other actions they might take? If so, describe those actions. If not, why
not?
According to the case, Télécom is working to rebuild the morale of staff and they have
halted the workplace practices identified as being particularly disruptive. The CEO has
also changed company policy on transfers and began encouraging more supportive
practices, including working from home. Other programs that Télécom could implement
involve stress reduction techniques, such as providing yoga classes, wellness programs,
and providing employees with counseling (i.e. an employee assistance program or EAP).
8-26 What could other companies and managers learn from this situation?
What happened at Télécom is a sobering reminder about the negative effects of stress. In
addition, these behaviors are not limited to one company or country. Suicides and
homicide by employees are common occurrences in the United States. Companies should
be prepared for and have policies in place to deal with employees who exhibit out of the
ordinary behavior. Counseling and stress reduction programs should be in place for
organizations where employees are exposed to high levels of stress.
8-167

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After reading this chapter, students should be able to:

I. WHAT IS CHANGE AND HOW DO MANAGERS DEAL WITH IT?

c) Another internal force for change is that the composition of an organization’s

D. How Does Organizational Change Happen?

From the Past to the Present

II. HOW DO MANAGERS MANAGE RESISTANCE TO CHANGE?

d) A final cause of resistance is a person’s belief that the change is incompatible

III. WHAT REACTION DO EMPLOYEES HAVE TO ORGANIZATIONAL CHANGE?

a) It is when constraints or demands are placed on us that stress can become

a) Some employees bring their personal problems to work with them.

IV. HOW CAN MANAGERS ENCOURAGE INNOVATION IN AN ORGANIZATION?

(4) Tolerance of risk.

Technology and the Managers Job

• Strict employee monitoring in terms of time and resources leading to a reluctance

If your professor has assigned this, go to the Assignments section of

REVIEW AND APPLICATIONS

Answer: This item can be assigned as a Discussion Question in MyManagementLab.

Examples of each will vary based on the students' responses.

8-7 How do creativity and innovation differ?

Students can find the following assisted-graded writing questions at

Management Skill Builder: Stress Management

Personal Inventory Assessment: Controlling Workplace Stress

Practicing the Skill

Students are asked, ‘What would you do?’

To: Tina Sanchez, HR Director

Case Application 1: The Next Big Thing

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

Case Application 2: Making Over Avon

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

Case Application 3: Stress Kills

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

This item can be assigned as a Discussion Question in MyManagementLab. Student

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