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    Kelli J. SchutteWilliam Jewell College

    Robbins, Judge, and Vohra

    Organizational Behavior14th Edition

    Organizational Change and

    Stress Management

    17-1Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthoried adaptation !ro" the #nited $tates edition o! Organizational

    Behavior, 14e

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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.

    17-2Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthoried adaptation !ro" the #nited $tates edition o! Organizational

    Behavior, 14e

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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

    17-3

    SEE E X H I B I T 17-1

    Copyright 2012 Dorling Kindersley (India) Pvt. Ltd

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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

    17-4Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthoried adaptation !ro" the #nited $tates edition o! Organizational

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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

    17-Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthoried adaptation !ro" the #nited $tates edition o! Organizational

    Behavior, 14e

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    Sources of Resistance to Change

    17-!

    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

    17-#

    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

    17-1$

    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

    17-11

    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

    17-17

    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

    17-21

    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

    17-24

    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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    All rights reserved) !o part of this publication %ay be reproduced,stored in a retrieval syste%, or trans%itted, in any for% or by any

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    .nited &tates of A%erica)

    'opyright :5;11 (earson Education, +nc)(ublishing as (rentice