6 Managing Change and Innovation

A photo shows a person holding up a board with the words, There’s nothing managers can do to reduce the stress inherent in today’s jobs.

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Learning Outcomes

  1. 6-1 Define organizational change and compare and contrast views on the change process.

  2. 6-2 Explain how to manage resistance to change.

  3. 6-3 Describe what managers need to know about employee stress.

  4. 6-4 Discuss techniques for stimulating innovation.

  5. 6-5 Explain what disruptive innovation is and why managing it is important.

Management Myth

It’s an unusual employee today who isn’t dealing with stress. Cutbacks, increased workloads, open workspace designs, work/life conflicts, and 24/7 communication access are just a few of the things that have increased job stress. However, organizations are not ignoring this problem. Smart managers are redesigning jobs, realigning schedules, and introducing employee assistance programs to help employees cope with the increasing stresses in their work and in balancing their work and personal lives.

Stress can be an unfortunate consequence of change and anxiety, both at work and personally. However, change is a constant for organizations and thus for managers and for employees. Large companies, small businesses, entrepreneurial startups, universities, hospitals, and even the military are changing the way they do things. For instance, Japanese convenience stores, which are found everywhere in Japan, are experimenting with labor-saving technologies to offset rising labor costs. As owners and franchisees adapt to and implement the changes, consumers must adapt, as well.1 Although change has always been part of a manager’s job, it’s become even more so in recent years. And because change can’t be (and shouldn’t be) eliminated, managers must learn how to manage it successfully. In this chapter, we’re going to look at organizational change efforts and how to manage those, the ways that managers can deal with the stress that exists in organizations, and how managers can stimulate innovation in their organizations. Finally, we’ll look at the impact of disruptive innovation.

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