chap 1 organizational change and stress management

8/18/2019 Chap 1 Organizational Change and Stress Management

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Chapter # 17 Organizational Change and Stress Management

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Chapter #17: Organizational Change and Stress Management

Forces for Change

1. Identify forces that act as stimulants to change, and contrast planned and unplanned

change.

A. Forces of Change

• There are many things that force change in an organization such as:

I. The nature of the workforce

II. Technology

III. Economic forces

IV. Competition

V. Social trends

VI. World Politics

I. The nature of the workforce

• More cultural diversity

• Aging population

• Many new entrants with inadequate skill (Increased immigration)

• Outsourcing

II. Technology

• Faster, cheaper, and more mobile computers and handheld devices.

• On-line music

• Deciphering of the human genetic code

• Emergence and growth of social network sites

III. Economic forces

• Rise and fall of global housing market

• Financial sector collapse

• Global recession


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IV. Competition

• Global competitors

• Mergers and consolidations

• Increased government regulation of commerce

V. Social trends

• Increased environmental awareness

• Liberalization of attitudes toward gay, lesbian, and transgender employees

• More multitasking and connectivity

• Internet chat rooms

• Retirement of Baby Boomers

• Rise in discount and big retailer

VI. World Politics

• Rising health care costs

• Negative social attitudes toward business and executives

• Opening of markets in China

• Iraq–U.S. war

• War on terrorism following 9/11/01

B. Managing Planned Change

Change

• Making things different.

Planned Change

• Activities that are intentional and goal oriented.

Change Agents

•

Persons who act as catalysts and assume the responsibility for managing change

activities.

Goals of Planned Change:

• Improving the ability of the organization to adapt to changes in its environment.

• Changing the behavior of individuals and groups in the organization.


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Resistance to Change

2. Describe the sources of resistance to change.

A. Forms of Resistance to Change

Overt and immediate• Voicing complaints, engaging in job actions

Implicit and deferred

• Loss of employee loyalty and motivation, increased errors or mistakes, increased

absenteeism.

• Deferred resistance clouds the link between source and reaction

B. Sources of Individual Resistance to Change

Exam Q: What forces act as resistance to change? Explain (Two Times).Exam Q: What do you understand by change management? And what forces can act

resistance change? Explain (Three Times)

Change Management:

• Change management is the process, tools and techniques to manage the people-side of

change to achieve the required business outcome.

• Change management incorporates the organizational tools that can be utilized to help

individuals make successful personal transitions resulting in the adoption and realization

of change.

Forces or Factors as Resistance to Changes

The factors or forces of resistance to change are grouped in two categories:

A. Individual Resistance to Change

B. Organizational Resistance to Change


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A. Individual Resistance to Change

• Following are the sources or factors or forces of Individual Resistance to Change:

a) Habit

b) Security

c) Economic Factorsd) Fear of the unknown

e) Selective Information Processing

a) Habit

• To cope with life’s complexities, we rely on habits or programmed responses.

• But when confronted with change, this tendency to respond becomes a source or force

or factor of resistance.

b) Security

• People with a high need for security are likely to resist change because it threatens their

feelings of safety.

c) Economic Factors

• Changes in job tasks or established work routines can arouse economic fears.

• People are concerned that they won’t be able to perform the new tasks or routines totheir previous standards, especially when pay is closely tied to productivity.

d) Fear of the unknown

• The Change substitutes ambiguity and uncertainty for the unknown.

e) Selective Information Processing

• Individuals are guilty of selectively processing information in order to keep theirperceptions intact.

• They hear what they want to hear, and they ignore information that challenges the

world they’ve created.


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B. Organizational Resistance to Change

• Following are the sources or factors or forces of Organizational Resistance to Change:

a) Structural inertia

b) Limited focus of change

c) Group inertiad) Threat to expertise

e) Threat to established power relationships

a) Structural inertia

• Organizations have built-in mechanisms such as their selection processes and formalized

regulations to produce stability.

• When an organization is confronted with change, this structural inertia acts as a

counterbalance (offset) to sustain stability.

b) Limited focus of change

• Organizations consist of a number of interdependent subsystems.

• One can’t be changed without affecting the others.

• So limited changes in subsystems tend to be nullified by the larger system.

c) Group inertia

• Even if individuals want to change their behavior, group norms may act as a constraint.

d) Threat to expertise

• Changes in organizational patterns may threaten the expertise of specialized groups.

e) Threat to established power relationships

• Any redistribution of decision-making authority can threaten long-established powerrelationships within the organization.


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C. Overcoming Resistance to Change

• Tactics for dealing with resistance to change:

i. Education and communication

ii. Participation

iii. Facilitation and supportiv. Negotiation

v. Manipulation and cooptation

vi. Selecting people who accept change

vii. Coercion

D. The Politics of 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.


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Approaches to Managing Organizational Change

3. Compare the four main approaches to managing organizational change

A. 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

• Lewin’s Three-Step Change Model is shown in the following figure:

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


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B. Kotter’s Eight-Step Plan for Implementing Change

• A detailed approach to implementing change that is built on Lewin’s three-step model

• To implement change:

Unfreezing

i. Establish a sense of urgency by creating a compelling reason for why change is needed.

ii. Form a coalition with enough power to lead the change.

iii. Create a new vision to direct the change and strategies for achieving the vision.

Movement

iv. Communicate the vision throughout the organization.

v. Empower others to act on the vision by removing barriers to change and encouraging

risk taking and creative problem solving.

vi. Plan for, create, and reward short-term “wins” that move the organization toward the

new vision.

Refreezing

vii. Consolidate improvements, reassess changes, and make necessary adjustments in the

new programs.

viii. Reinforce the changes by demonstrating the relationship between new behaviors and

organizational success.


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C. Action Research

• Action Research is 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:

i. Diagnosis

ii. Analysis

iii. Feedback

iv. Action

v. Evaluation

Action research benefits:

• Problem-focused rather than solution-centered.• Heavy employee involvement reduces resistance to change


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D. Organizational Development

• A collection of planned interventions, built on humanistic-democratic values that seeks

to improve organizational effectiveness and employee well-being.

OD Values:

i. Respect for people

ii. Trust and support

iii. Power equalization

iv. Confrontation

v. Participation

Organizational Development Techniques

I. 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 openness, and

increased tolerance for others.

II. Survey Feedback Approach

• The use of questionnaires to identify discrepancies among member perceptions;

discussion follows and remedies are suggested.

III. Process Consultation (PC)

• A consultant gives a client insight into what is going on around the client, within the

client, and between the client and other people; identifies processes that need

improvement.

IV. Team Building

• High interaction among team members to increase trust and openness.


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Team Building Activities:

• Goal and priority setting.

• Developing interpersonal relations.

• Role analysis to each member’s role and responsibilities.

• Team process analysis.

V. Intergroup Development

• OD efforts to change the attitudes, stereotypes, and perceptions that groups have of

each other.

Intergroup Problem Solving:

• Groups independently develop lists of perceptions.

• Share and discuss lists.• Look for causes of misperceptions.

• Work to develop integrative solutions.

VI. Appreciative Inquiry

• Seeks to identify the unique qualities and special strengths of an organization, which can

then be built on to improve performance.

• This process comprises of the following steps

i. Discovery: recalling the strengths of the organization.

ii. Dreaming: speculation on the future of the organization.

iii. Design: finding a common vision.

iv. Destiny:deciding how to fulfill the dream.


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Creating a Culture for Change: Innovation

4. Demonstrate two ways of creating a culture for change

• Following are the Contemporary Change Issues for Today’s Managers:

A. Stimulating a Culture of Innovation

B. Creating a Learning Organization

A. Stimulating a Culture of Innovation

Innovation

• A new idea applied to initiating or improving a product, process, or service.

Sources of Innovation:

• Structural variables

Ø Organic structures

Ø Long-tenured management

Ø Slack resources

Ø Inter-unit communication

• Organization’s culture

• Human resources

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.

B. Creating a Learning Organization

Learning Organization

• An organization that has developed the continuous capacity to adapt and change.


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Characteristics of Learning Organization:

• Holds a shared vision.

• Discards old ways of thinking.

• Views organization as system of relationships.

• Communicates openly.

• Works together to achieve shared vision.

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 standardroutines.

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


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Work Stress and Its Management

Definestressand identify its potential sources.

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 isperceived 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

Demands-Resources Model of Stress

Demands

• The loss of something desired.

Resources

• Things within an individual’s control that can be used to cope with demands.

Ø Adequate resources help reduce the stressful nature of demands


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A Model of Stress

Environmental Factors

• Economic uncertainties due to changes in the business cycle

• Political uncertainties of political systems• Technological uncertainties of technical innovations

• Terrorism in threats to physical safety and security

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


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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

Consequences of 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


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Not All Stress Is Bad: The Proposed Inverted-U Relationship Between Stress and Job

Performance

Note: This model is not empirically supported

Ø Not all stress is bad: some level of stress can increase productivity

Ø Too little or too much stress will reduce performance


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Managing Stress

Exam Q: Define Stress? Explain and contrast individual and organizational approaches to

manage stress. (Two Times)

• Stress is 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.OR

• Stress is a state of mental tension and worry caused by problems in your life, work, etc

Managing Stress

Following two approaches are used to manage stress:

A. Individual Approaches

B. Organizational Approached

A. Individual Approaches

• Individuals often manage stress through

i. Implementing time management

ii. Increasing physical exercise

iii. Relaxation training

iv. Expanding social support network

i. Implementing time management

The well-organized employees use the following best-known time-management principles to

cope with stress created by job demands:

a) Making daily lists of activities to be accomplished

b) Prioritizing activities by importance and urgency

c) Scheduling activities according to the priorities setd) Knowing daily cycle and handling the most demanding parts of job

e) Avoiding electronic distractions like frequently checking e-mails which can limit

attention and reduce efficiency


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ii. Increasing physical exercise

• Physicians have recommended noncompetitive physical exercises such as aerobics,

walking, jogging, swimming, and riding a bicycle to deal with excessive stress levels.

iii. Relaxation training

• Individuals can also teach themselves to reduce tension through relaxation techniques

such as meditation, hypnosis, and deep breathing.

• The objective is to reach a state of deep physical relaxation.

iv. Expanding social support network

• Expanding social support network provides someone to hear problems and offer a more

objective perspective on a stressful situation than your own.

B. Organizational Approaches

• Organizations can also help employees manage stress by

i. Improved personnel selection and job placement

ii. Training

iii. Use of realistic goal setting

iv. Redesigning of jobs

v. Increased employee involvementvi. Improved organizational communication

vii. Offering employee sabbaticals

viii. Establishment of corporate wellness programs

i. Improved personnel selection and job placement

• Certain jobs are more stressful than others.

• Individuals with little experience or an external locus of control tend to be more prone

to stress.• Selection and placement decisions should take these facts into consideration.

ii. Training

• Training can increase an individual’s self-efficacy and thus lessen job strain.


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iii. Use of realistic goal setting

• Individuals perform better when they have specific and challenging goals and receive

feedback on their progress toward these goals.

• Specific goals perceived as attainable clarify performance expectations.

• Goal feedback reduces uncertainties about actual job performance.

• The result is less employee frustration, role ambiguity, and stress.

iv. Redesigning of jobs

• Redesigning jobs give employees more responsibility, more meaningful work, more

autonomy, and increased feedback.

• Redesigning jobs can reduce stress because these factors give employees greater

control over work activities and lessen dependence on others.

v. Increased employee involvement

• Managers should consider increasing employee involvement in decision making, because

evidence clearly shows that increases in employee empowerment reduce psychologica

strain.

vi. Improved organizational communication

• Increasing formal organizational communication with employees reduces uncertainty by

lessening role ambiguity and role conflict.

vii. Offering employee sabbaticals (Vacations, time off)

• Some employees need an occasional escape from the frenetic (hectic, mad, chaotic)

pace of their work.

• Good Companies have begun to provide extended voluntary leaves.

• These sabbaticals ranging in length from a few weeks to several months allow

employees to travel, relax, or pursue personal projects that consume time beyond

normal vacations.


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viii. Establishment of corporate wellness programs

• The final suggestion is organizationally supported wellness programs.

• These typically provide workshops to help people quit smoking, control alcohol use, lose

weight, eat better, and develop a regular exercise program

• They focus on the employee’s total physical and mental condition.

• Most firms that have introduced wellness programs have found significant benefits.

chap 1 organizational change and stress management

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