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Kelli J. SchutteWilliam Jewell College
Robbins, Judge, and Vohra
Organizational Behavior14th Edition
Organizational Change and
Stress Management
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Chapter Learning 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.
Eplain glo!al differences in organizational change and
wor" stress.
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Forces for Change
!ature of the "or#force
#reater diversity
$echnology
$aster, cheaper, more mo!ile
computers and handheld devices
Econo%ic &hoc#s %ortgage meltdown
'o%petition
#lo!al mar"etplace
&ocial $rends
Environmental awareness and li!eralization
of attitudes towards gay, les!ian and transgender employees
"orld (olitics
&pening of mar"ets of China
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SEE E X H I B I T 17-1
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Planned Change
'hange %a"ing things different
(lanned 'hange
'n intentional, goal(oriented activity
#oals of planned change) Improving the a!ility of the organization to adapt to changes in
its environment
) Changing employee !ehavior
'hange Agents
) *ersons who act as catalysts and assume the responsi!ility for
managing change activities
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Resistance to Change
Resistance to change appears to be a natural and positivereaction to change)
*or%s of Resistance to 'hange
&vert and Immediate
) +oicing complaints, engaging in o! actions
Implicit and Deferred
) Loss of employee loyalty and motivation, increased errors or
mista"es, increased a!senteeism
) Deferred resistance clouds the lin" !etween source and
reaction
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Sources of Resistance to Change
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SEE E X H I B I T 17-2
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Tactics for Overcoming Resistance to
Change Education and 'o%%unication
-how those effected the logic !ehind the change
(articipation
*articipation in the decision process lessens resistance
Building &upport and 'o%%it%ent
Counseling, therapy, or new(s"ills training +%ple%enting 'hange *airly
e consistent and procedurally fair
anipulation and 'ooptation
/-pinning0 the message to gain cooperation
&electing people -ho accept change
1ire people who enoy change in the first place
'oercion
Direct threats and force
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The Politics of Change
Impetus for change is li"ely to come from eternalchange agents, new employees, or managers outside themain power structure.
Internal change agents are most threatened !y their lossof status in the organization.
Long(time power holders tend to implement incremental!ut not radical change.
2he outcomes of power struggles in the organization will
determine the speed and quality of change.
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Lewins ThreeStep Change !odel
.nfreezing Change efforts to overcome the pressures of !oth individual
resistance and group conformity !y increasing the driving
force and decreasing the restraining force
oving
%oving from the status quo to the desired end state
Refreezing
-ta!ilizing a change intervention !y !alancing driving and
restraining forces
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SEE E X H I B I T 17-3
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Lewin" #nfree$ing the Status %uo
/riving *orces $orces that direct !ehavior away from the status quo
Restraining *orces
$orces that hinder movement from the eisting equili!rium
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E X H I B I T 17-4
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&otters 'ightStep Plan
A detailed approach to i%ple%enting change that isbuilt on 0e-ins three2step %odel
$o i%ple%ent change
3. Esta!lish a sense of urgency4. $orm a coalition
5. Create a new vision
6. Communicate the vision
7. Empower others !y removing !arriers
8. Create and reward short(term /wins0
9. Consolidate, reassess, and adust
:. ;einforce the changes
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SEE E X H I B I T 17-
.nfreezing
ove%ent
Refreezing
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(ction Research
' change process !ased on systematic collection of dataand then selection of a change action !ased on what theanalyzed data indicates
(rocess steps
3. Diagnosis
4. 'nalysis5. $eed!ac"
6. 'ction
7. Evaluation
Action research benefits *ro!lem(focused rather than solution(centered
1eavy employee involvement reduces resistance to change
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Organi$ational )evelopment
Organizational /evelop%ent 3O/ ' collection of planned interventions, !uilt on humanistic(
democratic values, that see"s to improve organizational
effectiveness and employee well(!eing
O/ Values
;espect for people
2rust and support
*ower equalization
Confrontation
*articipation
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Si* O) Techni+ues
1) &ensitivity $raining
2raining groups a discussion follows and remedies are suggested
6) (rocess 'onsultation 3('
' consultant gives a client insights into what is going on around
the client, within the client, and !etween the client and other
people> identifies processes that need improvement.
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Si* O) Techni+ues ,Continued-
4) $ea% Building
1igh interaction among team mem!ers to increase trust andopenness
7) +ntergroup /evelop%ent
&D efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other7) Appreciative +n8uiry
Instead of loo"ing for pro!lems to fi, appreciative inquirysee"s to identify the unique qualities and special strengths ofan organization, which employees can then !uild on to
improve performance. 2his process comprises of four steps?) Discovery? ;ecalling the strengths of the organization
) Dreaming? -peculation on the future of the organization
) Design? $inding a common vision
) Destiny? Deciding how to fulfill the dream17-1Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthoried adaptation !ro" the #nited $tates edition o! Organizational
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Creating a Culture for Change"
.nnovation
1) &ti%ulating a 'ulture of +nnovation Innovation? a new idea applied to initiating or improvinga product, process, or service
-ources of Innovation?
) -tructural varia!les? organic structures
) Long managerial tenure
) -lac" resources
) 1igh degree of interunit communication
+dea 'ha%pions? Individuals who actively promote the
innovation
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Creating a Culture for Change" Learning
5) 0earning Organization 'n organization that has developed the continuouscapacity to adapt and change
Characteristics
) 1olds a shared vision
) Discards old ways of thin"ing
) +iews organization as a system of relationships
) Communicates openly
) @or"s together to achieve shared vision
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SEE E X H I B I T 17-!
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Creating a Learning Organi$ation
Overco%es traditional organization proble%s such
as
$ragmentation
Competition
;eactiveness
anage 0earning by
Esta!lishing a strategy
;edesigning the organizationAs structure) $latten structure and increase cross(functional activities
;eshaping the organizationAs culture
) ;eward ris"(ta"ing and intelligent mista"es
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/or0 Stress
&tress
' dynamic condition in which an individual is confrontedwith an opportunity, constraint, or demand related to what heor she desires and for which the outcome is perceived to !e
!oth uncertain and important
$ypes of &tress Challenge -tressors
) -tress associated with wor"load, pressure to complete tas"s,and time urgency
1indrance -tressors
) -tress that "eeps you from reaching your goals, such as redtape
) Cause greater harm than challenge stressors
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)emandsResources !odel of Stress
/e%ands
;esponsi!ilities, pressures, o!ligations, and uncertainties in
the wor"place
Resources
2hings within an individualAs control that can !e used to
resolve demands
Ade8uate resources help reduce the stressful nature of
de%ands
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( !odel of Stress
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E X H I B I T 17-7
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Potential Sources of Stress
Environ%ental *actors
Economic uncertainties due to changes in the !usiness cycle
Change in !usiness priorities due to changes in the political
scenario
2hreat to manpower requirement due to technological
changesBinnovation Organizational *actors
2as" demands related to the o!
;ole demands of functioning in an organization
Interpersonal demands created !y other employees
(ersonal *actors
$amily and personal relationships
Economic pro!lems from eceeding earning capacity
*ersonality pro!lems arising from !asic disposition
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Conse+uences of Stress
&tressors are additive high levels of stress can lead to
the follo-ing sy%pto%s
*hysiological
) 1igh !lood pressure, headaches, stro"e
*sychological
) Dissatisfaction, tension, aniety, irrita!ility, !oredom, and
procrastination
) #reatest when roles are unclear in the presence of conflicting
demands
ehavioral) Changes in o! !ehaviors, increased smo"ing or drin"ing,
different eating ha!its, rapid speech, fidgeting, sleep disorders
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1ot (ll Stress .s 2ad" The Proposed .nverted#
Relationship 2etween Stress and 3ob
Performance
ote? 2his model is not empirically supported
!ot all stress is bad so%e level of stress can increase
productivity
$oo little or too %uch stress -ill reduce perfor%ance
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E X H I B I T 17-"
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!anaging Stress
+ndividual Approaches
Implementing time management
Increasing physical eercise
;elaation training
Epanding social support networ"
Organizational Approaches Improved personnel selection and o! placement
2raining
se of realistic goal setting
;edesigning o!s
Increased employee involvement Improved organizational communication
&ffering employee sa!!aticals
Esta!lishment of corporate wellness programs
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4lobal .mplications
Organizational 'hange
Cultures vary in terms of !eliefs in their a!ility to implementchange
' cultureAs time orientation
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Summar5 and !anagerial .mplications
Organizations and the individuals -ithin the% %ust
undergo dyna%ic change
anagers are change agents and %odifiers of
organizational culture
&tress can be good or bad for e%ployees
/espite possible i%prove%ents in 9ob perfor%ance
caused by stress, such i%prove%ents co%e at the cost of
increased 9ob dissatisfaction
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