CHAPTER-8

ORGANIZATIONAL
CHANGE AND STRESS
MANAGEMENT
AUTHORS:
DR. KIRAN NERKAR
DR. VILAS CHOPDE
 ORGANIZATIONAL CHANGE

 Refers to the organization-wide change as opposed to smaller

changes, such as changing the organizational structure or
method of production.
 In an organization, the scope of change can be determined by
using the following 3Cs parameters:
 Cost
 The investment required to bring the change
 Complexity/Compositeness
 The amount of difficulty faced while implementing change
 Certainty
 The predictability of the outcome

© 2011, Dreamtech Press :: Chapter 8 2

 LEVELS OF CHANGE

Individual Level

• The change at the personal level that is reflected in various

developments.

Group Level

• The change at the level of a group that occurs because most

activities in organizations are managed on a group basis.

Organizational Level

• The major changes that influence the entire organization.

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 T YPES OF CHANGE

Planned Change •Refers to a conscious change that occurs as a result of logic.

•Refers to a spontaneous occurrence arising out of factors beyond the reach of a
Emergent Change
change implementer.
Episodic Change •Refers to a change that does not occur on a daily basis.
•Refers to a change that occurs on a daily basis. It is often termed as first order
Continuous Change
change.
•Refers to a change that calls for transformation in a particular situation, task,
Remedial Change
procedure, or policy.
•Refers to a change that is taken up for the purpose of improvement and is vague in
Developmental Change
nature.
Subsystem Change •Includes a transformation within a department, team, or group.
Organization-wide Change •Refers to a change that affects the entire organization.
•Refers to the first order change whose outcome is predictable and execution is not
Transactional Change
difficult.
•Refers to a change in which old processes and work procedures are replaced with
Transitional Change
new ones.
Transformational Change •Refers to a second order change. The outcome of such a change is not clearly
distinguishable.

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 RESISTANCE TO CHANGE

 The employees who are enjoying powerful positions in the

organization might have fear of losing those powers.
 Such fears make the employees psychologically
uncomfortable with change.
 Two of the important sources of resistance are:
 Rational Resistance
 Occurs when people do not have the proper knowledge or information to
evaluate the change
 Emotional Resistance
 Involves the psychological problems of fear, anxiety, suspicion, and
insecurity

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ECONOMIC REASONS FOR INDIVIDUAL
RESISTANCE TO CHANGE

Fear of Technological Up-gradation

• Refers to the fear of unemployment among people as they feel

that due to technological up-gradation they can be replaced by
machines.

Fear of Salary Reduction

• Refers to the fear of getting less pay after change.

Obsolesce of Skills

• Refers to the fear of people that their present skills would get
obsolete and they would be not able to master the new skills.

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PSYCHOLOGICAL REASONS FOR INDIVIDUAL
RESISTANCE TO CHANGE

Inherent Liking for Status Quo

•Indicates that some people just want to continue the way they are at present and any
kind of change is not accepted by them.

Ego-Defensiveness

•Refers to a reason for resistance in which a superior discard good ideas of

subordinates because of his/her ego problem.

Threatened Power

•Indicates that employees might have the fear of losing their powerful position after
the implementation of change.

Fear of the Unknown

•Points towards the fear of an individual for the unforeseen future events.

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 CHANGE AGENT

 Change agent refers to a person or group that brings the

change or helps in its implementation.
 There are two types of change agents, which are as follows:
 External Change Agent
 Refers to an outside consultant who is an expert in managing change
 Internal Change Agent
 Refers to a manager who knows how to handle change.
 The selection of a change agent totally depends on the
situation.

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 PROCESS OF CHANGE MANAGEMENT

Recognizing the Forces • Refers to locating the places where change is

required, or where the problem or opportunity lies.
Demanding Change
Diagnosing the • Refers to the step in which the problem is identified.
Problem
• Refers to the step in which an action plan is
Planning the Change designed to manage the change.

Implementing the • Refers to the step where the change is

implemented in the real-life scenario.
Change
• Refers to the last stage in which the result of the
Following Up change is derived.

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INDIVIDUAL CHALLENGES FACED DURING
CHANGE MANAGEMENT
 Fear of the Unknown
 Refers to the negative feeling in the mind of employees that they will
not be able to adapt to change or they will have to do more hard work
that will disturb their comfort zone.
 New Learning
 Refers to performing new tasks where individuals learn new
languages, technologies, and work culture.
 Friendship among Old Employees
 Refers to the fear that social friendship of old employees can get
disturbed due to change.
 Distrust on Management
 Creates a fear of exploitation in the minds of employees. Thus, they
oppose change initiated by the management of the organization.

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 ORGANIZATIONAL CHALLENGES FACED
DURING CHANGE MANAGEMENT
 Threat to Power
 Acts as the greatest challenge for organizations that is required to be
solved at the initial stages of change implementation.
 Organizational Structure
 Covers the organizational policies and procedures that are designed
to maintain the organizational stability.
 Resource
 Constitutes the most important component of the organization.
 Sunk Cost
 Refers to the costs that are invested in fixed assets by the
organization.

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 STRESS

 Stress is an adaptive response, mediated by individual

characteristics and/or psychological processes, which are a
consequence of any external action, situation, or event that
places special physical and / or psychological demands upon
a person. --- Ivancevich and Matteson

 The job stress is a condition arising from the interaction of

people and their jobs and characterized by changes within
people that force them to deviate from their normal
functioning. --- Beehr and Newman

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 T YPES OF STRESSORS

External
Internal stressors
stressors
Physical Environment Personal Interests
Social Interaction
Aesthetic Craving
Organizational Factors

Major Life Events Fastidious Nature

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 SOURCES OF STRESS

Environmental Factors

• Refer to various internal and external environment factors, such as

economic, political, and technological uncertainties.

Organizational Factors

• Refer to the factors that influence employees within the organization, such
as time constraint, target pressure, organizational structure and reward
system.

Individual Factors

• Refer to the inherent factors of an individual, which leads to stress, such as

family issues, economic problems and inherent personality characteristics.

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 CONSEQUENCES OF STRESS

 Physiological symptoms
 Refer to the effects of stress on the health of an individual, such as
high blood pressure, exhaustion, muscles cramps, stomach problems,
headache, and back pain.
 Psychological symptoms
 Refer to the effects of stress on the mental and emotional condition
of an individual, such as nervousness, irritability, tension, anger, and
depression.
 Behavioral symptoms
 Refer to the effects of stress on the behavior of an individual, such as
change in productivity, increase in absenteeism and employee
turnover, rapid speech, and sleep disorders.

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 STRESS BUSTER STRATEGIES AT
INDIVIDUAL LEVEL
 Time Management Techniques
 Refer to the methods that can be used to avoid stress caused due to
pressure of time limits.
 Increasing Physical Exercise
 Indicates that the physical exercise not only makes an individual
more fit but also helps in reducing stress.
 Keeping a Stress Diary
 Refers to maintaining a diary that can be helpful in managing stress.
 Relaxation Training
 Refers to certain ways by which an individual can relax his/her body
and mind. For example, yoga and meditation.
 Expanding Social Support Network
 Includes the social circle that comprises our relatives, friends, and
colleagues.

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 STRESS BUSTER STRATEGIES AT
ORGANIZATIONAL LEVEL

 Improved Personnel Selection and Job Placement

 Realistic Goal Setting
 Redesigning of Jobs
 Increased Employee Involvement
 Improved Organizational Communication
 Establishment of Corporate Wellness Programs
 Supportive Organizational Climate
 Career Planning and Counseling
 Stress Control Workshops and Employee Assistance Programs

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 BURNOUT AND ITS CAUSES

 Burnout refers to a feeling of physical and mention fatigue

that can occur from working under dif ficult and demanding
conditions.
 The causes of burnout are:
 Extreme Work Load
 Lack of Recognition
 Ambiguity in Role
 Reduced Career Opportunities
 Conflict

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 STRATEGIES FOR HANDLING BURNOUT

 Developing precise and clear boundaries between professional

and personal life
 Nurturing and fulfilling relationships professionally and
personally
 Inducing regular breaks in the routine work
 Becoming honest and giving your best in a job
 Becoming aware of various dangers to your physical, mental,
emotional, and spiritual health
 Obtaining support from peer/family whenever required
 Eating, sleeping, and exercising properly
 Taking periodic annual breaks to revitalize

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 RECAP

 Change is imperative for the growth and development of an

organization in the long run.
 However, bringing any type of change in an organization is an
uphill task as change always evokes resistance from
employees.
 Employees resist change because of the risks associated with
it. The risks tend to cause threat to a peaceful living and give
rise to stress.
 Thus, these two have become important issues that need to
be taken care of in an organization.
 When employees are receptive and open to change, the
organization as a whole becomes more adaptive and flexible
towards external environment.

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