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Organizational Change and Stress Management
This chapter discusses organizational change and stress management. It identifies common forces that drive organizational change, such as changes in technology, competition, and social/political trends. The chapter outlines different approaches to managing change, including Lewin's three-step model of unfreezing, moving, and refreezing. It also discusses sources of resistance to change and tactics for overcoming resistance, such as participation and communication. Additionally, the chapter defines stress and its potential sources, and examines individual and organizational approaches for managing stress.
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Organizational Change and Stress Management
- 1. Robbins, Judge, andVohra Organizational Behavior 14th Edition Organizational Change and Stress Organizational Change and Stress Management Management Kelli J. Schutte William Jewell College Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-1
- 2. Chapter Learning Objectives ChapterLearning Objectives After studying this chapter, you should be able to: – Identify forces that act as stimulants to change, and contrast planned and unplanned change. – List the forces for resistance to change. – Compare the four main approaches to managing organizational change. – Demonstrate two ways of creating a culture for change. – Define stress and identify its potential sources. – Identify the consequences of stress. – Contrast the individual and organizational approaches to managing stress. – Explain global differences in organizational change and work stress. Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-2
- 3. Forces for Change Forcesfor Change Nature of the Workforce – More cultural diversity,increased immigeration and outsourcing, Technology – Faster, cheaper, more mobile computers and handheld devices Economic Shocks – financial sector collapse,recession Competition – Global marketplace,mergers, Social Trends – Environmental awareness and liberalization of attitudes towards gay, lesbian and transgender employees World Politics – USSR,SOCIALIST SEE E X H I B I T 17-1 SEE E X H I B I T 17-1 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-3
- 4. Planned Change Planned Change Change –Making things different Planned Change – An intentional, goal-oriented activity – Goals of planned change • Improving the ability of the organization to adapt to changes in its environment • Changing employee behavior – Change Agents • Persons who act as catalysts and assume the responsibility for managing change activities Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-4
- 5. Resistance to Change Resistanceto Change Resistance to change appears to be a natural and positive reaction to change. Forms of Resistance to Change: – Overt(open) and Immediate • Voicing complaints, engaging in job actions – Implicit(not directly) and Deferred(postpone) • Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism • Deferred resistance clouds the link between source and reaction Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-5
- 6. Sources of Resistanceto Change Sources of Resistance to Change SEE E X H I B I T 17-2 SEE E X H I B I T 17-2 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-6
- 7. Tactics for OvercomingResistance to Change Tactics for Overcoming Resistance to Change Education and Communication – Show those effected the logic behind the change Participation – Participation in the decision process lessens resistance Building Support and Commitment – Counseling, therapy, or new-skills training Implementing Change Fairly – Be consistent and procedurally fair Manipulation and Cooptation – “Spinning” the message to gain cooperation Selecting people who accept change – Hire people who enjoy change in the first place Coercion – Direct threats and force Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-7
- 8. The Politics ofChange The Politics of Change Impetus(The force or energy) for change is likely to come from external change agents, new employees, or managers outside the main power structure. Internal change agents are most threatened by their loss of status in the organization. Long-time power holders tend to implement incremental but not radical change. The outcomes of power struggles in the organization will determine the speed and quality of change. Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-8
- 9. Lewin’s Three-Step ChangeModel Lewin’s Three-Step Change Model Unfreezing – Change efforts to overcome the pressures of both individual resistance and group conformity by increasing the driving force and decreasing the restraining force Moving – Moving from the status quo to the desired end state Refreezing – Stabilizing a change intervention by balancing driving and restraining forces SEE E X H I B I T 17-3 SEE E X H I B I T 17-3 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-9
- 10. Lewin: Unfreezing theStatus Quo Lewin: Unfreezing the Status Quo Driving Forces – Forces that direct behavior away from the status quo Restraining Forces – Forces that hinder movement from the existing equilibrium E X H I B I T 17-4 E X H I B I T 17-4 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-10
- 11. Kotter’s Eight-Step Plan Kotter’sEight-Step Plan A detailed approach to implementing change that is built on Lewin’s three-step model To implement change: 1. 2. 3. 4. 5. 6. 7. 8. Establish a sense of urgency Unfreezing Form a coalition (of people) Create a new vision Communicate the vision Movement Empower(authority) others by removing barriers Create and reward short-term “wins” Consolidate(The merger of two or more ), reassess, and adjust Refreezing Reinforce the changes SEE E X H I B I T 17-5 SEE E X H I B I T 17-5 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-11
- 12. Action 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 indicates Process steps: 1. Diagnosis 2. Analysis 3. Feedback 4. Action 5. Evaluation Action research benefits: – Problem-focused rather than solution-centered – Heavy employee involvement reduces resistance to change Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-12
- 13. Organizational Development Organizational Development Organizational Development (OD) – A collection of planned interventions, built on humanisticdemocratic values, that seeks to improve organizational effectiveness and employee well-being OD Values – – – – – Respect for people Trust and support Power equalization Confrontation Participation Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-13
- 14. Six OD Techniques SixOD Techniques 1. Sensitivity Training – Training groups (T-groups) seek to change behavior through unstructured group interaction – Provides increased awareness of others and self – Increases empathy with others, listening skills, openness, and tolerance for others 1. Survey Feedback Approach – The use of questionnaires to identify discrepancies among member perceptions; a discussion follows and remedies are suggested 1. 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. Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-14
- 15. Six OD Techniques(Continued) Six OD Techniques (Continued) 4. Team Building – High interaction among team members to increase trust and openness 5. Intergroup Development – OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other 5. Appreciative Inquiry – Instead of looking for problems to fix, appreciative inquiry seeks to identify the unique qualities and special strengths of an organization, which employees can then build on to improve performance. This process comprises of four steps: • Discovery: Recalling the strengths of the organization • Dreaming: Speculation on the future of the organization • Design: Finding a common vision • Destiny: Deciding how to fulfill the dream Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-15
- 16. Creating a Culturefor Change: Innovation Creating a Culture for Change: Innovation 1. Stimulating a Culture of Innovation – Innovation: a new idea applied to initiating or improving a product, process, or service – Sources of Innovation: • • • • Structural variables: organic structures Long managerial tenure Slack resources High degree of interunit communication – Idea Champions: Individuals who actively promote the innovation Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-16
- 17. Creating a Culturefor Change: Learning Creating a Culture for Change: Learning 2. Learning Organization – An organization that has developed the continuous capacity to adapt and change – Characteristics • • • • • Holds a shared vision Discards old ways of thinking Views organization as a system of relationships Communicates openly Works together to achieve shared vision SEE E X H I B I T 17-6 SEE E X H I B I T 17-6 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-17
- 18. Creating a LearningOrganization Creating a Learning Organization Overcomes traditional organization problems such as: – Fragmentation – Competition – Reactiveness Manage Learning by: – Establishing a strategy – Redesigning the organization’s structure • Flatten structure and increase cross-functional activities – Reshaping the organization’s culture • Reward risk-taking and intelligent mistakes Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-18
- 19. Work Stress Work Stress Stress –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 Types of 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 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-19
- 20. Demands-Resources Model ofStress Demands-Resources Model of 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 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-20
- 21. A Model ofStress A Model of Stress E X H I B I T 17-7 E X H I B I T 17-7 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-21
- 22. Potential Sources ofStress Potential Sources of Stress Environmental Factors – Economic uncertainties due to changes in the business cycle – Change in business priorities due to changes in the political scenario – Threat to manpower requirement due to technological changes/innovation Organizational Factors – Task demands related to the job – Role demands of functioning in an organization – Interpersonal demands created by other employees Personal Factors – Family and personal relationships – Economic problems from exceeding earning capacity – Personality problems arising from basic disposition Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-22
- 23. Consequences of Stress Consequencesof Stress Stressors are additive: high levels of stress can lead to the following symptoms – Physiological • High blood pressure, headaches, stroke – Psychological • Dissatisfaction, tension, anxiety, irritability, boredom, and procrastination • 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 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-23
- 24. Not All StressIs Bad: The Proposed Inverted-U Not All Stress Is Bad: The Proposed Inverted-U Relationship Between Stress and Job Performance Relationship Between Stress and Job Performance Note: This model is not empirically supported Not all stress is bad: some level of stress can increase productivity Too little or too much stress will reduce performance E X H I B I T 17-8 E X H I B I T 17-8 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-24
- 25. Managing Stress Managing 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 jobs Increased employee involvement Improved organizational communication Offering employee sabbaticals Establishment of corporate wellness programs Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-25
- 26. Global Implications Global Implications Organizational Change – Cultures vary in terms of beliefs in their ability to implement change – A culture’s time orientation (long-term/short term) will affect implementation of change – Reliance on tradition can increase resistance to change – Power distance can affect how change is implemented in a culture – Idea champions act differently in different cultures Stress – Job conditions that cause stress vary across cultures – Evidence suggests that stress is equally bad for employees of all cultures – Having friends and family can reduce stress Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-26
- 27. Summary and ManagerialImplications Summary and Managerial 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 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-27
- 28. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e 17-28
Editor's Notes
- #4 There are many things that force change in an organization such as the nature of the workforce, technology, competition, economic forces, social trends, and world politics.
- #5 Organizations often face change that is unexpected and sudden but it can also be a purposeful decision that organizations undertake. There are ways to foster an environment that is able to adapt and change with the demands of the marketplace. Planned change is engaging in activities that are proactive and purposeful to improve the ability of the organization to handle change and to change employee behavior. Through this process change agents, those acting as leaders in the change process, are essential for successfully achieving the desired change.
- #6 Whenever change is present, there is resistance to change. Individuals and groups become comfortable with things that are familiar, and change threatens the status quo. There are different ways that change is resisted by employees. It can be overt and immediate where complaints are voiced and people will fail to engage in job actions or perform negative actions that hinder productivity. It can also be implicit and deferred when employees lose their loyalty and their motivation. As the resistance is deferred, it becomes more difficult to find the link between the source and the reaction.
- #7 There are many sources of resistance to change, as seen in the visual in this slide. It can take the form of individual resistance, such as fear of the unknown or security issues or organizational resistance such as threat to expertise, structural inertia, or limited focus of change.
- #8 When managers face resistance to change there are some useful tactics they can utilize to help people overcome it. These tactics include education and communication, getting people to participate in the process, and building support and commitment. It can also include being sure to implement the change fairly by applying a consistent and fair process, using manipulation and cooptation to spin the message to gain cooperation or selecting people from the beginning who are more willing to accept change. Finally, a manager can resort to coercion, using direct threats and force to make people change. This is not often a good option.
- #9 Change includes many political factors as the impetus for change is likely to come from outside those who are responsible for making the change happen. This can threaten those change agents within the organization and force them to implement incremental but not radical change. Embedded in the change dynamics will be the issue of power. Power struggles will have results that determine the speed and quality of change.
- #10 Lewin offers a three-step model to help facilitate the change process. He sets forth that change efforts need to “unfreeze” individual resistance and group conformity to help them move forward and then you need to refreeze the changes by balancing driving and restraining forces. This will help to move people through the change process and solidify the desired behaviors/outcomes moving forward.
- #11 In the unfreezing stage Lewin identifies driving and restraining forces. Driving forces are those that direct behavior away from the status quo. Restraining forces are those that hinder movement from the existing equilibrium.
- #12 Kotter also offers a model to look at change that builds on the initial ideas of Lewin. He sets forth the following eight steps: Establish a sense of urgency Form a coalition Create a new vision Communicate the vision Empower others by removing barriers Create and reward short-term “wins” Consolidate, reassess, and adjust Reinforce the changes
- #13 Action research is another theory about change that says that the change process is based on a systematic collection of data and then selection of a change action based on what the data tells you. The process would be to diagnose the situation, analyze the data, obtain feedback from the data, take action, and then evaluate. The benefits of this approach is that it focuses on the problem instead of jumping to the solution and it also gets employees involved, thereby reducing their resistance to change.
- #14 Organizational development is an area of study that is set up to determine what an organization needs to improve their effectiveness and employee well being. Some organizational development values include respect for people, trust and support, power equalization, confrontation, and participation.
- #15 There are six commonly used organizational development techniques. The first is sensitivity training that sets up groups that seek to change behavior through unstructured group interaction by providing an environment of increased awareness of others and of themselves. This increases their empathy, listening skills, openness, and tolerance for others. The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for improvement. Process consultation is the third technique. In this technique there is a consultant involved who gives the clients some insights into what is happening in the organization and helps to identify a process for improvement.
- #16 The fourth technique is engaging in team building tools to increase trust and openness through increased interactions. Intergroup development is an organizational development tool that attempts to change the attitudes, stereotypes, and perceptions that groups may have of each other. Finally, the sixth commonly used technique is appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization which they then use to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision), and destiny (deciding how to fulfill the dream).
- #17 Many organizations attempt to create a culture for change through encouraging innovation. There are many sources of innovation or the process of coming up with a new idea that helps to improve a current process, product or service. Innovation can occur through structural variables, long-tenured management, limitation in resources, or increased communication between units. For innovation to occur, there needs to be an idea champion who actively promotes the innovation.
- #18 Learning is another key component of creating a culture for change. A learning organization is one that has developed the continuous capacity to adapt and change. Learning organizations share some common characteristics such as sharing the same vision, getting rid of old ways of thinking, viewing the organization as a system of relationships, open communication, and working together to achieve a shared vision.
- #19 To create a learning organization, managers must overcome some traditional organizational problems such as fragmentation, competition, and reactiveness. Learning can be managed by establishing a strategy that everybody understands and can buy into. Redesigning the organization’s structure to increase communication and interactions and reshaping the organization’s culture to reward risk-taking and good mistakes will help to increase the effectiveness of the learning initiatives.
- #20 When change occurs stress is found throughout the organization. Stress is defined as 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. There are different types of stress. There is challenge stress which is stress associated with workload, pressure to get work done, and time constraints. Hindrance stressors are those things that keep you from reaching your goals such as uncooperative employees or red tape. This can cause more stress than challenge stress often does.
- #21 There is a model that contrasts demands and resources. If there are high demands and the resources to meet those demands, stress is limited. However, if demands are high and the resources are not available to meet the demands, then stress is high.
- #22 This graph shows the potential sources of stress, the individual differences that influence how we process stress, and the possible consequences.
- #23 There are a number of sources of stress. There are environmental factors that include economic uncertainties of the business cycle as we have seen recently, political uncertainties and technological changes that cause uncertainties. There are also organizational factors that cause stress such as task demands, role demands, and interpersonal demands. Finally, there are personal factors that can cause stress such as personal relationships, economic problems, and personality issues.
- #24 Stress also has consequences for the individual experiencing stress. These can include physiological factors such as blood pressure, headaches, and strokes. Psychological factors are also a result of stress including dissatisfaction, tension, and boredom. These outcomes are most prevalent when roles are unclear. Finally, there can also be behavioral consequences such as change in job behaviors, an increase in drinking and smoking, change in eating habits, and sleep disorders.
- #25 However, not all stress is bad. It has been suggested that as stress rises to a healthy level, productivity can increase. There needs to be a healthy balance as too much or too little stress will reduce performance as seen in the graph above.
- #26 Stress needs to be managed and maintained at a healthy level. Individuals often manage stress through time management techniques, physical exercise or expanding their social support network. Organizations can also help employees manage stress by providing training, realistic goal setting, solid designing of jobs, offering employee sabbaticals, and establishing a wellness program.
- #27 Organizational change will vary in different cultures depending on the people’s view of the possibility of change and their time orientation . Also, some cultures have strong traditions and this will create a higher resistance to change. The concept of power distance will impact how change is implemented as well as who is the best idea champion for leading the change. Stress also varies by cultures as different issues will cause stress in different cultures. However, stress is bad for everyone no matter which culture they belong to. Also, across cultures having a good support system of family and friends can reduce stress.
- #28 In summary, all organizations will go through change and managers are best set up to be the change agents to modify culture. Stress is a natural result of change but it has both positive and negative implications for employees so it is important to find ways to help balance stress through both individual and organizational methods to maximize performance and minimize job dissatisfaction.