Organizational Change

and Stress Management

18–1
Managing
Managing Planned
Planned Change
Change

Change
Making things different. Goals
Goalsof
ofPlanned
Planned
Change:
Change:
Planned Change
Improving
Improvingthe
theability
abilityof
Activities that are of
the
theorganization
organizationto
to
intentional and goal adapt
adaptto
tochanges
changesininits
its
oriented. environment.
environment.
Changing
Changingthethebehavior
behavior
Change Agents
of
ofindividuals
individualsand
Persons who act as and
groups
groupsininthe
the
catalysts and assume the organization.
organization.
responsibility for managing
change activities.

18–2
Resistance
Resistance to
to Change
Change
Forms of Resistance to Change
 Unconcealed and immediate
 Voicing complaints, engaging in job actions
 Implicit and postponed
– Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism

18–3
Overcoming
Overcoming Resistance
Resistance to
to Change
Change

Tactics
Tacticsforfordealing
dealingwith
with
resistance
resistancetotochange:
change:
•• Education
Educationandandcommunication
communication
•• Participation
Participation
•• Facilitation
Facilitationand
andsupport
support
•• Negotiation
Negotiation
•• Manipulation
Manipulationand
andcooptation
cooptation
•• Coercion
Coercion

18–4
The
The Politics
Politics of
of Change
Change
 Impetus for change is likely to come from outside
change agents.
 Internal change agents are most threatened by
their loss of status in the organization.
 Long-time power holders tend to implement only
incremental change.
 The outcomes of power struggles in the
organization will determine the speed and quality
of change.

18–5
Lewin’s
Lewin’s Three-Step
Three-Step Change
Change Model
Model

Unfreezing
Change efforts to overcome
the pressures of both
individual resistance and
group conformity.
Refreezing
Stabilizing a change
intervention by balancing
driving and restraining forces.

Driving Forces Restraining Forces

Forces that direct behavior Forces that hinder movement
away from the status quo. from the existing equilibrium.

18–6
Action
Action Research
Research

Action Research
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicate.

Process
ProcessSteps:
Steps: Action
Actionresearch
researchbenefits:
benefits:
1.1. Diagnosis Problem-focused
Diagnosis Problem-focusedrather
rather
2.2. Analysis than
Analysis thansolution-centered.
solution-centered.
3.3. Feedback
Feedback Heavy
Heavyemployee
employee
4.4. Action involvement
Action involvementreduces
reduces
5.5. Evaluation resistance
Evaluation resistanceto
tochange.
change.

18–7
Organizational
Organizational Development
Development

Organizational Development (OD)

A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.

OD
ODValues:
Values:
1.1. Respect
Respectfor
forpeople
people
2.2. Trust
Trustand
andsupport
support
3.3. Power
Powerequalization
equalization
4.4. Confrontation
Confrontation
5.5. Participation
Participation

18–8
Organizational
Organizational Development
Development Techniques
Techniques

Sensitivity Training
Training groups (T-groups) that seek to change
behavior through unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening
skills, greater openess, and increased tolerance for
others.

18–9
Organizational
Organizational Development
Development Techniques
Techniques
(cont’d)
(cont’d)

Survey Feedback Approach

The use of questionnaires to identify
discrepancies among member perceptions;
discussion follows and remedies are suggested.

Process Consultation (PC)

A consultant gives a client insights into what is going
on around the client, within the client, and between the
client and other people; identifies processes that need
improvement.

18–10
Organizational
Organizational Development
Development Techniques
Techniques
(cont’d)
(cont’d)

Team Building
High interaction among team members to
increase trust and openness.

Team
TeamBuilding
BuildingActivities:
Activities:
• • Goal
Goaland
andpriority
prioritysetting.
setting.
• • Developing
Developinginterpersonal
interpersonalrelations.
relations.
• • Role
Roleanalysis
analysistotoeach
eachmember’s
member’srole
roleand
and
responsibilities.
responsibilities.
• • Team
Teamprocess
processanalysis.
analysis.
18–11
Organizational
Organizational Development
Development Techniques
Techniques
(cont’d)
(cont’d)

Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other.

Intergroup
IntergroupProblem
ProblemSolving:
Solving:
• • Groups
Groupsindependently
independentlydevelop
developlists
listsof
ofperceptions.
perceptions.
• • Share
Shareand
anddiscuss
discusslists.
lists.
• • Look
Lookfor
forcauses
causesof
ofmisperceptions.
misperceptions.
• • Work
Workto
todevelop
developintegrative
integrativesolutions.
solutions.

18–12
Organizational
Organizational Development
Development Techniques
Techniques
(cont’d)
(cont’d)

Appreciative Inquiry
Seeks to identify the unique qualities and special
strengths of an organization, which can then be built
on to improve performance.
Appreciative
AppreciativeInquiry
Inquiry(AI):
(AI):
• • Discovery:
Discovery:recalling
recallingthe
thestrengths
strengthsof
ofthe
theorganization.
organization.
• • Dreaming:
Dreaming:speculation
speculationon
onthe
thefuture
futureof
ofthe
the
organization.
organization.
• • Design:
Design:finding
findingaacommon
commonvision.
vision.
• • Destiny:
Destiny:deciding
decidinghow
howto
tofulfill
fulfillthe
thedream.
dream.
18–13
Contemporary
Contemporary Change
Change Issues
Issues For
For Today’s
Today’s
Managers
Managers
 How are changes in technology affecting the
work lives of employees?
 What can managers do to help their organizations
become more innovative?
 How do managers create organizations that
continually learn and adapt?
 Is managing change culture-bound?

18–14
Technology
Technology in
in the
the Workplace
Workplace
 Continuous Improvement Processes
– Good isn’t good enough.
– Focus is on constantly reducing the variability in the
organizational processes to produce more uniform
products and services.
• Lowers costs and raises quality.
• Increases customer satisfaction.

– Organizational impact
• Additional stress on employees to constantly excel.
• Requires constant change in organization.

18–15
Technology
Technology in
in the
the Workplace
Workplace
 Process Reengineering
– “Starting all over”
– Rethinking and redesigning organizational processes
to produce more uniform products and services.
• Identifying the organization’s distinctive competencies—
what it does best.
• Assessing core processes that add value to the
organization’s distinctive competencies.
• Reorganizing horizontally by process using cross-
functional and self-managed teams.

18–16
Contemporary
Contemporary Change
Change Issues
Issues for
for Today’s
Today’s
Managers:
Managers: Stimulating
Stimulating Innovation
Innovation

Innovation
Sources
Sourcesof ofInnovation:
Innovation:
A new idea
• • Structural
Structuralvariables
applied to initiating variables
or improving a • • Organic
Organicstructures
structures
product, process, • • Long-tenured
Long-tenuredmanagement
management
or service. • • Slack
Slackresources
resources
• • Interunit
Interunitcommunication
communication
• • Organization’s
Organization’sculture
culture
• • Human
Humanresources
resources

18–17
Contemporary
Contemporary Change
Change Issues
Issues for
for Today’s
Today’s
Managers:
Managers: Stimulating
Stimulating Innovation
Innovation (cont’d)
(cont’d)

Idea Champions

Individuals who take an innovation and actively and

enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is
implemented.

18–18
Creating
Creating aa Learning
Learning Organization
Organization
Single-Loop Learning
Errors are corrected using past routines and present
policies.

Double-Loop Learning
Errors are corrected by modifying the organization’s
objectives, policies, and standard routines.

18–19
Creating
Creating aa Learning
Learning Organization
Organization

Fundamental
FundamentalProblems
ProblemsininTraditional
Traditional
Organizations:
Organizations:
•• Fragmentation
Fragmentationbased
basedon
onspecialization.
specialization.
•• Overemphasis
Overemphasison
oncompetition.
competition.
•• Reactiveness
Reactivenessthat
thatmisdirects
misdirectsattention
attention
to
toproblem-solving
problem-solvingrather
ratherthan
thancreation.
creation.

18–20
Managing
Managing aa Learning
Learning Organization
Organization

Establish
Establish
aastrategy
strategy

Redesign
Redesignthe
the
Managing
Managing organization’s
organization’s
Learning
Learning structure
structure

Reshape
Reshapethe the
organization’s
organization’sculture
culture

18–21
Mastering
Mastering Change:
Change: It’s
It’s Culture-Bound
Culture-Bound

Questions
Questionsfor
forculture-bound
culture-boundorganizations:
organizations:
1.1. Do
Dopeople
peoplebelieve
believechange
changeisiseven
evenpossible?
possible?
2.2. How
Howlong
longwill
willitittake
taketo
tobring
bringabout
aboutchange
changeininthe
the
organization?
organization?
3.3. IsIsresistance
resistanceto
tochange
changegreater
greaterininthis
thisorganization
organizationdue
due
totothe
theculture
cultureof
ofthe
thesociety
societyininwhich
whichititoperates?
operates?
4.4. How
Howwill
willthe
thesocietal
societalculture
cultureaffect
affectefforts
effortsto
toimplement
implement
change?
change?
5.5. How
Howwill
willidea
ideachampions
championsininthis
thisorganization
organizationgo
goabout
about
gathering
gatheringsupport
supportfor
forinnovation
innovationefforts?
efforts?

18–22
Work
Work Stress
Stress and
and Its
Its Management
Management

Stress
Stress is an adaptive response to an external situation that results
in physical, psychological and behavioral deviations for
organizational participants.

A dynamic condition in which an individual is confronted with an

opportunity, constraint, or demand related to what he or she
desires and for which the outcome is perceived to be both
uncertain and important.

The physical or psychological demands from the environment

that cause stress are called stressors

18–23
Stress is not simply anxiety or nervous
tension
Stress need not always be damaging
Stress is not always due to overload
Stress cannot be avoided
Body has limited capacity to respond

18–24
 Types
Types of
of Stress
Stress

Challenge Stressors
Stress associated with workload, pressure
to complete tasks, and time urgency
Hindrance Stressors
Stress that keeps you from reaching your
goals, such as red tape
Cause greater harm than challenge stressors

18–25
 Demands-Resources
Demands-Resources Model
Model of
of Stress
Stress

•Demands
Responsibilities, pressures, obligations, and
uncertainties in the workplace
•Resources
Things within an individual’s control that can
be used to resolve demands
•Adequate resources help reduce the
stressful nature of demands
18–26
Model
Model of
of Stress
Stress

18–27
Potential
Potential Sources
Sources of
of Stress
Stress
 Environmental Factors
– Economic uncertainties of the business cycle
– Political uncertainties of political systems
– Technological uncertainties of technical innovations
– Terrorism in threats to physical safety and security

18–28
Potential
Potential Sources
Sources of
of Stress
Stress
 Organizational Factors
– Task demands related to the job
– Role demands of functioning in an organization
– Interpersonal demands created by other employees
– Organizational structure (rules and regulations)
– Organizational leadership (managerial style)
– Organization’s life stage (growth, stability, or decline)

18–29
Potential
Potential Sources
Sources of
of Stress
Stress (cont’d)
(cont’d)
 Individual Factors
– Family and personal relationships
– Economic problems from exceeding earning capacity
– Personality problems arising for basic disposition
 Individual Differences
– Perceptual variations of how reality will affect the
individual’s future.
– Greater job experience moderates stress effects.
– Social support buffers job stress.
– Internal locus of control lowers perceived job stress.
– Strong feelings of self-efficacy reduce reactions to job
stress.
18–30
Consequences
Consequences of
of Stress
Stress

High
High Levels
Levels
of
ofStress
Stress

Physiological
Physiological Psychological
Psychological Behavioral
Behavioral
Symptoms
Symptoms Symptoms
Symptoms Symptoms
Symptoms

18–31
 Consequences
Consequences of
of Stress
Stress
Stressors are additive: high levels of stress can lead to the
following symptoms
Physiological
Blood pressure, headaches, stroke
Psychological
Dissatisfaction, tension, anxiety, irritability, boredom,
and procrastination(less urgent task in preference)
Greatest when roles are unclear in the presence of
conflicting demands
Behavioral
Changes in job behaviors, increased smoking or
drinking, different eating habits, rapid speech, fidgeting,
sleep disorders

18–32
Not
Not All
All Stress
Stress Is
Is Bad
Bad
 Some level of stress can increase productivity
 Too little or too much stress will reduce performance
 This model is not empirically supported

18-33
BURNOUT
BURNOUT
 It is a state of mind resulting from prolonged exposure
to intense emotional stress.
 It manifests through emotional exhaustion and a
combination of negative attitudes.

19-34
19-35
19-36
Managing
Managing Stress
Stress
 Individual Approaches
– Implementing time management
– Increasing physical exercise
– Relaxation training
– Expanding social support network
 Organizational Approaches
– Improved personnel selection and job placement
– Training
– Use of realistic goal setting
– Redesigning of jobs
– Increased employee involvement
– Improved organizational communication
– Offering employee sabbaticals
– Establishment of corporate wellness programs

18-37
 Global
Global Implications
Implications
 Organizational Change
– Culture varies people’s belief in the possibility of change
– Time orientation will affect implementation of change
– Reliance on tradition can increase resistance to change
– Power distance can modify implementation methods
– Idea champions act differently in different cultures

 Stress
– Job conditions that cause stress vary across cultures
– Stress itself is bad for everyone
– Having friends and family can reduce stress

18-38
Summary
Summary and
and Managerial
Managerial Implications
Implications
 Organizations and the individuals within them must
undergo dynamic change

 Managers are change agents and modifiers of

organizational culture

 Stress can be good or bad for employees

 Despite possible improvements in job performance

caused by stress, such improvements come at the cost
of increased job dissatisfaction

18-39
How
How to
to Manage
Manage Stress
Stress

18–40