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CHAPTER 5
Managing Change and Innovation
LEARNING OBJECTIVES
1. Discuss the supervisor’s role in introducing change.
2. Explain why employees tend to resist change.
3. Present several things that the supervisor can do to foster employee acceptance of change.
4. List six different strategies that may be used to implement a change.
5. Discuss three factors that affect the time it takes to successfully implement a change.
6. Describe Lewin’s Force Field Analysis theory.
7. Briefly describe four essential principles that organizations must follow to manage
innovation.
8. Explain the concept of “Time Off to Innovate.”
9. Explain what a learning organization is.
SUGGESTIONS FOR PRESENTATION
Apply the concepts to student experiences
All students have gone through stressful changes in their life and probably on their job. Ask
them, individually or in groups, to think back and analyze why the change occurred, how it could
have been made less stressful, etc.
Have students develop a change proposal.
Key points in making a change acceptable:
1. It must be based on an identifiable, expressible NEED.
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LECTURE OUTLINE
Supervision Dilemma
John has just settled down from the reorganization of his department when he learns that a new
computer system is to be installed. He is concerned about the changes this will require.
I. Change and the Supervisor
• Change can greatly affect the supervisor’s job. There are also many situations which
warrant the supervisor to initiate change.
o Change as it applies to supervision can be classified in three major categories (Figure
5.1):
▪ Technological change—it includes new equipment, machinery, and processes.
▪ Environmental change—it includes all of the nontechnological changes that
occur external to the organization, such as government regulations, new social
trends, new political trends, and economic changes.
▪ Changes internal to the organization—it includes the result of decisions
made by the organization’s management; such as budget adjustments, methods
changes, policy changes, reorganizations, and the hiring of new employees.
II. Reactions to Change
• How employees perceive a change greatly affects how they react to it.
o If employees cannot foresee how the change will affect them, they will resist the
change or be neutral, at best.
o If employees clearly see that the change is not compatible with their needs and
aspirations, they will resist the change.
III. Resistance to Change
• Resistance to change is a natural reaction and may be explicit or very subtle. Some of the
most frequently encountered reasons, called barriers to change, for employees to resist
change are discussed below.
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A. Fear of the Unknown
• It is natural for people to fear the unknown. The problem with many changes is that
their outcome is not always foreseeable.
• Another related fear is the uncertainty that employees may feel about operating under
a change.
B. Threat to Job or Income
• Employees fear any change that they think threatens their job or income. The threat
may be real or only imagined, but in either case the result is employee resistance.
C. Fear That Skills and Expertise Will Lose Value
• Everyone likes to feel valued by others, so anything that has the potential of reducing
that value will be resisted.
D. Threats to Power
• Many people believe a change might diminish their power.
E. Inconvenience
• Many changes result in personal inconveniences to the affected employees.
F. Threats to Interpersonal Relations
• When a change, such as a transfer, threatens the relationships, the affected employees
often resist.
IV. Reducing Resistance to Change
• The environment created by the supervisor can greatly affect employees’ acceptance of
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A. Build Trust
• Employees that trust the supervisor are more likely to accept changes. Trust is built
over a period of time.
B. Discuss Upcoming Changes
• The more background and detail the supervisor can give, as to why the changes are
being made, the more likely it is that the employees will accept the changes.
• The supervisor should also outline the impact of the changes on each of the affected
employees and should answer employees’ questions to the fullest extent possible.
C. Involve the Employees
• A good approach is to solicit employee ideas and inputs as early as possible in the
change process.
D. Make Sure the Changes are Reasonable
E. Avoid Threats
• Threats are very damaging in the long run and have a negative impact on employee
morale and attitude.
F. Follow a Sensible Time Schedule
• The supervisor can provide valuable insight regarding the proper timing of changes.
G. Implement the Changes in the Most Logical Place
• Use the most adaptable and flexible employees to introduce any changes.
• Changes should be implemented in a way that minimizes their effect on interpersonal
relationships.
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H. The Five W’s and an H
• The supervisor should always begin the implementation of change by explaining the
five W’s and an H to the employees—What the change is, Why the change is
needed, Whom the change will affect, When the change will take place, Where the
change will occur, and How the change will take place.
V. Strategies for Overcoming Resistance to Change
o These strategies are not mutually exclusive, but rather a combination of strategies
may be used in a given situation.
VI. Minimizing the Time to Implement a Change
• At least three factors specifically affect the time required to successfully implement a
change.
o The first is communication in the form of information about the change from both an
organizational and personal perspective.
o The second factor is engagement or the opportunity for people to become involved in
the process and to have input into the decisions affecting the change.
o The third factor is the support provided to employees throughout the change process.
VII. Lewin’s Force Field Theory
• Lewin’s Force Field Analysis theory states that there are two natural sets of forces that
impact on any change—those forces that resist the change and those forces that encourage
the change.
• When managers and supervisors become familiar with Force Field Analysis, the question
that often comes up is “Which is the best approach: to increase the driving forces for
change or decrease the restraining forces?”
A. A Model for Change
• The entire process is affected by:
o The extent of information about change
o The extent of participation in the change decision
o The trust in initiator of the change
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o The past experience with change
VIII. Managing Innovation
• Innovation refers to doing new things, whereas creativity is the thinking process involved
in producing an idea or a concept that is new, original, useful, or satisfying to its creator or
to someone else.
• Robert Tucker suggests four essential principles for successful future innovation:
o An organization’s approach to innovation must be comprehensive. The innovation
must permeate the entire organization, and it must encompass all aspects of
organization.
o Innovation must include systematic, organized, and continual search for new
opportunities.
A. Time Off to Innovate
• In addition to the possibility of coming up with a profitable product or internal
improvement, “innovation time off” or ITO programs can improve morale, help
make individuals more productive in their day-to-day job, and help retain employees.
IX. The Learning Organization
• A learning organization is an organization skilled at creating, acquiring, and transferring
knowledge, and in modifying behavior to reflect the new knowledge.
• Peter Senge has identified five principles for creating a learning organization:
o Systems thinking. Managers and supervisors must learn to recognize the effects of
one level of learning on another.
o Personal mastery. Managers, supervisors, and employees must be empowered to
experiment, innovate, and explore.
o Mental models. Managers, supervisors, and employees should be encouraged to
develop mental models as ways of stretching their minds to find new and better ways
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Solution to the Supervision Dilemma
Implementing a change in the organization like in the case of John’s organization can be done by
planning the change systematically.
SUPERVISION ILLUSTRATIONS
5-1: Resistance to Change?
5-2: Eastman Kodak Files for Bankruptcy Protection
5-3: An Early Lewin Experiment
5-4: Examples of IPO Programs
REVIEW QUESTIONS
1. Name the three major categories of change that are of concern to supervision.
2. Describe the four basic reactions of employees to change.
The four basic reactions of employees to change:
• If they don’t know how the change will affect them, they will resist it, or—at best—
3. Name six common barriers to change (reasons for resistance to change).
There are many reasons why employees resist change. Some of the most frequently
4. Discuss several methods or approaches for reducing resistance to change.
The several methods or approaches offered for reducing resistance to change include:
• Build trust.
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• Discuss upcoming changes.
5. List three factors that specifically can affect the time it takes to successfully implement a
change.
At least three factors specifically affect the time required to successfully implement a
change.
• Communication in the form of information about the change from both an
6. Briefly outline six different strategies that can be used to implement change.
In addition to establishing a positive environment for change, there are certain strategies
7. Discuss Lewin’s Force Field Analysis theory.
8. Describe a model that summarizes the change process.
Figure 5.5 provides a simple model. Once a change is proposed or becomes known to an
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9. Define innovation and briefly discuss how organizations can successfully foster
innovation.
Robert Tucker, author of the international bestseller Managing the Future, believes that
organizations that successfully innovate in the future must embrace four essential
principles. These four principles are:
• An organization’s approach to innovation must be comprehensive.
10. What are some of the potential benefits of an Innovation Time Off program?
11. How is innovation viewed in a learning organization?
Learning organizations establish environments that foster innovation and change by
SKILL-BUILDING QUESTIONS
1. Suppose that as a supervisor you received an order to implement a change that you
personally opposed. What would you do?
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2. Because of a recent OSHA (Occupational Safety and Health Administration) visit, you
have been instructed to implement several changes relating to safety. You know that your
employees are going to regard some of these changes as ridiculous. What might you do to
get the employees to accept the changes?
3. Regarding Lewin’s Force Field Analysis theory, do you believe that when implementing a
change, most people tend to emphasize those forces that encourage a change or those
forces that resist the change? Give an example to support your position.
Student answers will vary. When managers and supervisors become familiar with Force
Field Analysis, the question that often comes up is “Which is the best approach: to increase
the driving forces for change or decrease the restraining forces?” Most managers and
supervisors attempt to increase the driving forces because they have more direct control
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4. Based on your personal experiences, do you think that most organizations do a good job of
encouraging innovation? Why or why not?
Student answers will vary. Many management experts today believe that innovation is an
5. In August 2012, Augusta National Golf Club, one of the most exclusive organizations in
the world, admitted women members for the first time in its 75 years of existence. Why do
you think that it took so long for the club to admit women members?
Students’ answers will vary. Clearly, this shows the organization’s resistance to change,
i.e. admitting women members in the club for the first time in its 75 years of existence,
which is a natural reaction. There could be many barriers to this change, such as:
• Fear of the unknown
• Threat to job or income
REFERENCES
ADDITIONAL READINGS
SKILL-BUILDING APPLICATIONS
Incident 5-1: A New Boss
This case illustrates some of the problems faced with a new manager comes in, and his
immediate implementation of major changes.
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1. Why do you think Jane is reluctant to accept Vincent’s changes? Do you think Jane’s
reaction is unusual?
2. How would you suggest that Vincent go about implementing the desired changes?
subordinates feel more involved in the changes that would happen.
Incident 5-2: A New Work Schedule
This case illustrates changes brought in by the top management without involving employees in
the decision making process. It emphasizes the role of a supervisor in such a situation.
1. Do you think John should voice the potential employee complaints to top management? If
not, why? If so, how should John go about it?
2. Suppose John does approach management and the response is that the decision is final. If
you were John, how would you attempt to implement the change?
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Exercise 5-1: Preparing for Resistance to Change
This exercise demonstrates the importance of preparation when dealing with situations involving
resistance to changes. An important issue here in the provided scenario is whether or not there is
really a need for training. It is very easy to jump to conclusions and get disappointing results.
1. Placing the matter on the agenda does not constitute effective advance planning strategy on
2. Talking to three or four supervisors will make you more knowledgeable about facts and
4. Gaining acceptance of a training program will require acceptance by both your supervisory
and employee groups. Making a unilateral decision is inappropriate. Score 0 points.
5. Appointing a team to study a problem is a good procedure where conflict seems likely, but
Exercise 5-2: Change in the Airline Industry
Exercise 5-3: Generational Changes
Exercise 5-4: Great Innovations
SUPERVISORY ANECDOTES
Nordstrom, a highly successful specialty department store founded 2 decades ago in Seattle,
provides a long running success story of an organization that practices constructive conflict.
Nordstrom demonstrates that quality and superb customer service are not monopolies of
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Japanese management. Its success shows that an entire motivated employee workforce is as
formidable a competitive weapon in the service sector as in manufacturing. Nordstrom maintains
its vitality through an ongoing breakthrough project. This process of constantly reinventing its
relationship with the customer is driven by its one omnipresent motto—respond to unreasonable
customer requests. With a reputation for extraordinary service and a sales force eager to go the
extra mile, there is a built-in tension at Nordstrom between service excellence and excess. As
management sees it, that is just the tension they want to sustain in a relentless high-performance
environment.
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5. Taking Charge of Change, CRM Films, 23 mins. (1993) This video looks at the
organizational change process as both a strategic and personal issue.