Organizational Change and Stress Management
Forces for Change
Force
Nature of the workforce
Examples
More cultural diversity Aging population Many new entrants with inadequate skills Faster, cheaper, and more mobile computers On-line music sharing Deciphering of the human genetic code Rise and fall of dot-com stocks 200002 stock market collapse Record low interest rates
Technology
Economic shocks
Competition
Global competitors Mergers and consolidations Growth of e-commerce
E X H I B I T 191
Forces for Change
Force
Social trends
Examples
Internet chat rooms Retirement of Baby Boomers Rise in discount and big box retailers IraqU.S. war Opening of markets in China War on terrorism following 9/11/01
World politics
E X H I B I T 191 (contd)
Managing Planned Change
Change
Making things different
Goals of Planned Change
Planned Change
Activities that are intentional and goal oriented
Improving the ability of the organization to adapt to changes in its environment Changing the behavior of individuals and groups in the organization
Change Agents
Persons who act as catalysts and assume the responsibility for managing change activities
Resistance to Change
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
Sources of Individual Resistance to Change
E X H I B I T 192
Sources of Organizational Resistance to Change
E X H I B I T 192 (contd)
Overcoming Resistance to Change
Tactics for dealing with resistance to change:
Education and communication Participation
Facilitation and support
Negotiation Manipulation and cooptation
Selecting people who accept change
Coercion
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.
Lewins Three-Step Change Model
Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces
Driving Forces
Forces that direct behavior away from the status quo
Restraining Forces
Forces that hinder movement from the existing equilibrium
Lewins Three-Step Change Model
E X H I B I T 193
Unfreezing the Status Quo
E X H I B I T 194
Kotters Eight-Step Plan for Implementing Change
1.
2. 3.
4. 5.
6. 7. 8.
Establish a sense of urgency by creating a compelling reason for why change is needed. Form a coalition with enough power to lead the change. Create a new vision to direct the change and strategies for achieving the vision. Communicate the vision throughout the organization. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. Plan for, create, and reward short-term wins that move the organization toward the new vision. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.
E X H I B I T 195
Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).
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
Action research benefits:
Problem-focused rather than solution-centered
3. Feedback
4. Action 5. Evaluation
Heavy employee involvement reduces resistance to change
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
1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation
Organizational Development Techniques
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
Organizational Development Techniques (contd)
Survey Feedback Approach
The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested
Organizational Development Techniques (contd)
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.
Organizational Development Techniques (contd)
Team Building
High interaction among team members to increase trust and openness
Team Building Activities
Goal and priority setting Developing interpersonal relations
Role analysis to each members role and responsibilities
Team process analysis
Organizational Development Techniques (contd)
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
Organizational Development Techniques (contd)
Appreciative Inquiry
Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance
Appreciative Inquiry (AI):
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
Contemporary Change Issues For Todays Managers
How are changes in technology affecting the work lives of employees? What can managers do to help their organizations become more innovative? How do managers create organizations that continually learn and adapt? Is managing change culture-bound?
Technology in the Workplace
Continuous Improvement Processes
Good isnt good enough
Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services
Lowers costs and raises quality Increases customer satisfaction
Organizational impact
Additional stress on employees to constantly excel Requires constant change in organization
Technology in the Workplace
Process Reengineering
Starting all over
Rethinking and redesigning organizational processes to produce more uniform products and services
Identifying the organizations distinctive competencies what it does best Assessing core processes that add value to the organizations distinctive competencies Reorganizing horizontally by process using crossfunctional and self-managed teams
Contemporary Change Issues for Todays Managers: Stimulating Innovation
Innovation
A new idea applied to initiating or improving a product, process, or service
Sources of Innovation:
Structural variables Organic structures Long-tenured management Slack resources Interunit communication Organizations culture Human resources
Contemporary Change Issues for Todays Managers: Stimulating Innovation (contd)
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
Creating a Learning Organization
Learning Organization
An organization that has developed the continuous capacity to adapt and change
Characteristics
1. Holds a shared vision 2. Discards old ways of thinking 3. Views organization as system of relationships 4. Communicates openly 5. Works together to achieve shared vision
E X H I B I T 196
Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).
Creating a Learning Organization
Single-Loop Learning
Errors are corrected using past routines and present policies.
Double-Loop Learning
Errors are corrected by modifying the organizations objectives, policies, and standard routines.
Creating a Learning Organization
Fundamental Problems in Traditional Organizations:
Fragmentation based on specialization
Overemphasis on competition
Reactiveness that misdirects attention to problemsolving rather than creation
Managing a Learning Organization
Establish a strategy
Managing Learning
Redesign the organizations structure
Reshape the organizations culture
Mastering Change: Its Culture-Bound
Questions for culture-bound organizations:
1. Do people believe change is even possible?
2. How long will it take to bring about change in the organization?
3. Is resistance to change greater in this organization due to the culture of the society in which it operates? 4. How will the societal culture affect efforts to implement change? 5. How will idea champions in this organization go about gathering support for innovation efforts?
Work Stress and Its Management
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
Work Stress and Its Management
Demands
The loss of something desired
Resources
Things within an individuals control that can be used to cope with demands
A Model of Stress
E X H I B I T 199
Potential Sources of Stress
Environmental Factors
Economic uncertainties of the business cycle
Political uncertainties of political systems
Technological uncertainties of technical innovations Terrorism in threats to physical safety and security
Potential Sources of Stress
Organizational Factors
Task demands related to the job
Role demands of functioning in an organization
Interpersonal demands created by other employees
Potential Sources of Stress (contd)
Individual Factors
Family and personal relationships
Economic problems from exceeding earning capacity
Personality problems arising from basic disposition
Individual Differences
Perceptual variations of how reality will affect the individuals 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
High Levels of Stress
Physiological Symptoms
Psychological Symptoms
Behavioral Symptoms
Managing Stress
Individual Approaches
Implementing time management Increasing physical exercise Relaxation training Expanding social support network
Managing Stress
Organizational Approaches
Improved personnel selection and job placement Training Use of realistic goal setting Redesigning of jobs Increased employee involvement Improved organizational communication Offering employee sabbaticals Establishment of corporate wellness programs
