Ch16: ORGANIZATIONAL CHANGE & STRESS MGMT

FORCES FOR CHANGE

Changing nature of the workforce
o Need to adjust to:
Multicultural environment
Demo changes
Immigration
Outsourcing
Technology
Eco shocks
o Eco crisis
o Elimination, bankruptcy or acquisition of E
Competition
o Flexibility
o Need of responsive workforce
Social trends
World politics
RESISTANCE TO CHANGE
Sources
o Individual sources
Habit
Security
Eco factors
Fear of the unknown
Selective info processing
o Organizational sources
Structural inertia
Built-in mechanisms
o To produce stability
o Ex: selection processes, regulations
Limited focus of change
Interdependent sub-system
Group inertia
Group norms
Threat to expertise
Threat to established power relationships
Threat to established resources allocation
Overcoming Resistance to Change
o 8 Tactics
Edu & communication
Fights the effects of misinfo
Help sell the need for change
Participation
Building support & commitment

Develop positive relationships

Implementing changes fairly
Manipulation & cooptation
Manipulation: covert influence attempts
Cooptation: combination of participation &
manipulation
Selecting people who accept change
Coercion

APPROACHES TO MANAGING ORG CHANGE

Lewins 3 Step Models
o Unfreezing the status quo
Status quo = equilibrium state
Need to overcome individual resistance &
group conformity
Driving forces
o Behavior away from status quo
Restraining forces
o ++ Status quo
o Mvt to a desired end state
o Freezing the new change
To make it permanent

Kotters 8 Step Plan for Implementing Change

o Establish a sense of urgency
By creating a compelling reason for why change is
needed
o Form a coalition
With enough power to lead the change
o Create a new vision
To direct the change & strategies for achieving it
o Communicate the vision
o Empower others to act on the vision
By removing barriers to change
By encouraging risk taking & creative pb solving
o Plan for, create & reward short term wins
o Consolidate improvements, reassess changes
Necessary adjustments
o Reinforce the changes
By demonstrating the relation btw new behaviors
& org success

Organizational Dev (OD)

o Definition
Collection of change methods that try to improve
org effectiveness & employee well-being
o Underlying values

o 5 OD

Respect for ppl

Responsible
Conscientious
Caring
To be treated with dignity
Trust & support
Authenticity
Openness
Power equalization
De-emphasize hierarchy & control
Confrontation
Not swept under the rug
Participation
techniques
Survey feedback
Employee POV on range of topics
Process consultation
Outside consultant to assist a client to
perceive, understand and act upon process
event
Sensitivity training
Emphasizing involvement
Dealing with interpersonal pbs
Disadvantages
o Task oriented
o Only guidance
Team building
High interaction act
To increase trust & openness
++ Coordinative efforts
++ Team performance
Dev of interpersonal relations
Intergroup dev
To change groups attitudes, stereotypes &
perceptions
// diversity training
Steps
o Listing the perception of ourself & the
other
o Sharing the list
o Identify causes of
o Attempt to improve relations:
INTEGRATION
Appreciative inquiry
Accentuate on the positive
o Focus on successes

4 steps
o Discovery
Identify the Es strengths
o Dreaming
Use discovery info to speculate
on future
o Design
Common vision of the orgs
future
Agree on its unique qualities
o Destiny
Write action plans
Dev implementation strategies

CREATING A CULTURE FOR CHANGE

Stimulating a Culture of Innovation
o Definition
Specialized kind of change
A new idea applied to initiating or improving a
product, process or service
2 types
Small incremental improvements
Radical breakthroughs
o Sources
Structural variables
Organic structures
o Lower in vertical differentiation
o Lower in formalization & centralization
o ++ flex
Long tenure in mgmt
o Legitimacy
Abundance of resources
o Possibility to absorb failures
Inter-unit communication
Cultures
Encourage experimentation
Celebrate mistakes
Risk taking ++
Human resources
Training ++
Ideas champions
o NRJ, confidence, persistence, risk
taking
o Transformational leadership
WORK STRESS & ITS MGMT

What is Stress?
o Dynamic condition in which an individual is confronted
with an opportunity, demand or resource related to what
the individual desires and for which the outcome is
perceived to be important and uncertain
o Positive value
Deadlines as positive challenges
o Challenge stressors
With workload, pressure to complete tasks, time
urgency
o Hindrance stressors
That keeps you from reaching your goals
Ex: office politics, confusion over responsibilities
o Associated with demand & resources
Demand
Responsibilities
Pressures
Obligations
Uncertainties
Resources
Things within an individuals control to use
to resolve the demands
Reduce the stressful nature of demand
Csq of Stress
o Physiological symptoms
Changes in metabolism
Increase heart & breathing rates
Increased blood pressure
Headaches
Heart attacks
Increased susceptibility to:
Upper respiratory illnesses
Poor immune system
o Psychological symptoms
Job dissatisfaction
Irritability
Tension
Anxiety
Boredom
o Behavioral symptoms
Turnover
Absenteeism
Eating habits
Increased smoking or drinking alcohol
Rapid speech
Sleep disorders

Managing Stress
o Individual approaches
Time mgmt
Daily lists of activities to be accomplished
Prioritizing activities by importance &
urgency
Scheduling activities
Knowing daily cycle
Physical exercises
Non competitive
Ex: jogging, swimming, aerobics
Mental diversion from work pressures
Increased heart capacity
Relaxation techniques
Ex: hypnosis, meditation, biodfeedback
Detachment from immediate sensations
A sense of peacefulness
Social support networks
o Org approaches
Selection & placement
Training
Goal setting
Less employee frustration
Less role ambiguity
Less stress
Redesigning jobs
More responsibility
More meaningful work
More autonomy
Increased feedback
Increased employee involvement
Organizational communication
Reduce uncertainty
To shape employee POV
Wellness program

GLOBAL IMPLICATIONS
Organizational changes
o Do people believe change is possible?
US: proactive view of change
Iran: passive
Individuals subjugated to environment
o How long will it take?
Cf. Hofstede, time orientation

 Japan: long term patience

US: quick improvement
o Is resistance greater in some cultures?
Depends on societys reliance on trad
Italy: focus on past
US: focus on present
o Does culture influence how change efforts will be
implemented?
Power distance
Thailand: changes = autocratic
Denmark: democratic methods
o Do idea champions do things in cultures?
Cross functional support appeal

CLASS NOTES
The Firm (1993 film)
o // with Devil Wears Prada
Power: legitimacy, dynamics, coercion
Leadership