Chapter 5:

Managing organisational change

and individual stress
.

 Change – any alteration in people, structure and technology in

an organisation.
Chapter 5: Managing organisational
change and individual stress
Internal forces
• Change in strategy
• Poor performance
• Pressure to grow
• Workforce problems
• Implementation of new
technology
• Changes in top management
• Power and politics
• Lack of innovation
• Environmental crises
External forces
• Market environment
• Consumers
• Competitors
• Suppliers
• Intermediaries
• Macro-environment
• Technological environment
• Economic environment
• Social environment
• Political environment
• Ecological and political
environments
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 SLIDE 5
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 SLIDE 6
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7-8
 The dimensions of change

1. Planned change versus reactive change

2. Revolutionary change versus incremental change

3. Punctuated change versus continuous change

Chapter 5: Managing organisational
change and individual stress
Dimensions of change
 Resistance to change

Organisational barriers to change

Organisation inertia (inactivity)- Organisations resist change because the forces for and
against change are equally strong and therefore the organisation remains in the same
position.

internal political constraints, organizational culture, strategic commitments and capabilities,

and external institutional constraints.
 Resistance to change
Individual barriers
 Perceived threat to individual or group interest

 Misunderstanding and lack of trust

 Low tolerance for change

 Ethical convictions
 Overcoming resistance to change

Methods to deal with resistance to change

 Education and communication

 Participation and involvement

 Facilitation and support

 Negotiation and agreement

 Manipulation and co-potation

 Explicit and implicit coercin

Situational factors for strategic choices

 The anticipated strength of resistance

 The power position of the initiator

 How much the change initiator needs information and commitment from others

 Anticipated impact of the implementation of change on short-term risks to performance

Approaches to managing change

Lewin’s change model

Step 1: Step2: Step3:

Unfreezing Change Freezing
 Chapter 5: Managing organisational
change and individual stress

Kotter’s eight step change model

Step 1:
Create a Step 2:
Step 3:
sense of Form a Step 4: Step 5: Step 6: Step 7: Step 8:
Create a
urgency by guiding team Communicate Empower Produce short Consolidate Create a new
change vision
stressing the to lead the vision others to act term wins improvements culture
and strategy
need for change
change
Chapter 5: Managing organisational
change and individual stress
Change in
Strategic organisational
change structure and
design

Change in Changing
technology people
 Chapter 5: Managing organisational
change and individual stress

The nature of stress

The adverse reaction people have to excessive pressure placed on

them from extraordinary demands, constraints, or opportunities.
 Chapter 5: Managing organisational
change and individual stress

• Emotional stressors – words, tone of voice,

facial expressions – fear, anger, anxiety
• Eustress – (positive stress) versus distress and
performance
• Stress and health – stroke, hypertention, heart
attack
Chapter 5: Managing organisational
change and individual stress

Job overload Role conflict Job fit

Organisational
Lack of job
Relationships structure and
security
culture

Organisational Change in
change personal lives
 Chapter 5: Managing organisational
change and individual stress
Standards to address mental health in the workplace:
• a plan for mental health at work
• mental health awareness among employees
• open conversations about mental health
• information about available support for struggling employees
• good working conditions
• effective human capital management
• routine monitoring of employee mental health and wellbeing