Chapter 18: Organizational Change and Stress Management

Chapter 18: Organizational
Change and Stress

Management
18-1
Copyright 2015 Pearson Education Ltd.
LO 1
Contrast
Planned
and Unplanned Change
18-2
LO 1
Contrast
Planned
and Unplanned Change
Planned Change
Change involves making something different.
When change is an intentional, goal-oriented
activity it is planned change.
There are two goals of planned change:
Improve the ability of the organization to
adapt to changes in its environment.
Change employee behavior.
Change agents are those responsible for
managing change activities.
18-3
LO 2
Describe
the Sources
of Resistance to Change
18-4
LO 2
Describe
the Sources
of Resistance to Change
Overcoming Resistance to Change

1. Education and communication
2. Participation
3. Building support and commitment
4. Develop positive relationships
5. Implementing changes fairly
6. Manipulation and cooptation
7. Selecting people who accept change
8. Coercion
18-5
Compare the Four Main

LO 3Approaches
to Managing Organizational
Change
Approaches to managing change:

1. Lewins Three-Step Model (Exhibit 183)
2. Kotters Eight-Step Plan for
Implementing Change (Exhibit 18-5)
3. Action Research
4. Organizational Development
18-6

LO 3Approaches
Change
18-7

LO 3Approaches
Change
18-8

LO 3Approaches
Change
18-9

LO 3Approaches
Action
Research
Change
Action research is a change process based on the

systematic collection of data and selection of a change
action based on what the analyzed data indicate.
The process consists of five steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research provides at least two specific benefits:
It is problem focused.
It reduces resistance to change.
18-10

LO 3Approaches
Change Development
Organizational
Organizational development (OD) is a
collection of change methods that try to
improve organizational effectiveness and
employee well-being.
OD methods value human and organizational
growth, collaborative and participative
processes, and a spirit of inquiry.
Focuses on how individuals make sense of
their work environment.
18-11

LO 3Approaches
Change
The
underlying values in most OD efforts
are:
Respect for people.
Trust and support.
Power equalization.
Confrontation.
Participation.
18-12
Demonstrate Two Ways of

Creating a Culture for Change
LO 4
Stimulating a Culture of Innovation

Innovation, a more specialized kind of
change, is a new idea applied to
initiating or improving a product,
process, or services.
Innovations can range from small
incremental improvements, such as
netbook computers, to radical
breakthroughs, such as Nissans electric
Leaf car.
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LO 4
Innovative organizations:
Actively promote the training and development
of their members so they keep current.
Offer high job security so employees dont fear
getting fired for making mistakes.
Encourage individuals to become champions of
change.
Once a new idea is developed, idea champions
actively and enthusiastically promote it, build
support, overcome resistance, and ensure its
implemented.
18-14

LO 4
18-15

LO 4
What can managers do to make their firms

learning organizations?
Establish a strategy.
Redesign the organizations structure.
Reshape the organizations culture.
18-16

LO 4
Organizational Change and Stress

Research shows that organizational changes
incorporating OB knowledge of how people
react to stressors may yield more effective
results than organizational changes that are
only objectively managed through goalsetting.
The role of leadership is critical.
Changes are stressful because employees
perceive aspects to be threatening.
Employees need to see the changes as fair.
18-17
Identify Potential Sources of

Stress
LO 5
18-18

Stress
LO 5
18-19

Stress
LO 5
Cultural Differences
Research suggests the job conditions
that cause stress show some
differences across cultures.
For example, U.S. employees are
stressed by a lack of control, whereas
Chinese employees are stressed by
job evaluations and lack of training.
Research also shows that stress is
equally bad for employees of all
cultures. Copyright 2015 Pearson Education Ltd.
18-20
Identify the Consequences of

Stress
LO 6
Consequences of Stress
Physiological Symptoms
Research supports the link between job stress
and poor health.
Psychological Symptoms
Job dissatisfaction is an obvious cause of stress.
Behavioral Symptoms
Reductions in productivity, absence, turnover,
as well as changes in eating habits, increased
smoking and/or consumption of alcohol, rapid
speech, fidgeting, and sleep disorders.
18-21
Identify the Consequences of

Stress
LO 6
18-22
Contrast the Individual

and Organizational Approaches
to Managing Stress
LO 7
Managing Stress
Because low to moderate levels of stress
can be functional and lead to higher
performance, management may not be
concerned when employees experience
stress at these levels.
What management may consider to be
a positive stimulus that keeps the
adrenaline running is very likely to be
seen as excessive pressure by the
employee. Copyright 2015 Pearson Education Ltd.
18-23

to Managing Stress
LO 7
Individual Approaches
An employee can take personal
responsibility for reducing stress levels.
Individual strategies include:
Time-management techniques.
Increased physical exercise.
Relaxation training.
Expanded social support networks.
18-24

to Managing Stress
LO 7
Organizational Approaches
Several organizational factors that
cause stress are controlled by
management.
Task and role demands can be
modified or changed.
18-25

to Managing Stress
LO 7
Strategies include:
Better employee selection and job
placement.
Training.
Realistic goal-setting.
Redesign of jobs.
Increased employee involvement.
Improved organizational
communication.
Copyright
2015 Pearson Education Ltd.
Employee
sabbaticals.
18-26
Implications for Managers

Consider that, as a manager, you are a
change agent in your organization. The
decisions you make and your rolemodeling behaviors will help shape the
organizations change culture.
Your management policies and practices
will determine the degree to which the
organization learns and adapts to
changing environmental factors.
18-27
Implications for Managers

Some stress is good. Low to moderate amounts of
stress enable many people to perform their jobs better
by increasing their work intensity, alertness, and ability
to react. This is especially true if stress arises due to
challenges on the job rather than hindrances that
prevent employees from doing their jobs effectively.
You can help alleviate harmful workplace stress for your
employees by accurately matching work-loads to
employees, providing employees with stress-coping
resources, and responding to their concerns.
You can identify extreme stress in your employees
when performance declines, turnover increases, healthrelated absenteeism increases, and engagement
18-28
declines. Stay alert for early indicators and be
proactive.

Chapter 18: Organizational Change and Stress Management

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Chapter 18: Organizational

Change and Stress

Overcoming Resistance to Change

Compare the Four Main

Approaches to managing change:

Compare the Four Main

Compare the Four Main

Compare the Four Main

Compare the Four Main

Action research is a change process based on the

Compare the Four Main

Compare the Four Main

Demonstrate Two Ways of

Stimulating a Culture of Innovation

Demonstrate Two Ways of

Demonstrate Two Ways of

Demonstrate Two Ways of

What can managers do to make their firms

Demonstrate Two Ways of

Organizational Change and Stress

Identify Potential Sources of

Identify Potential Sources of

Identify Potential Sources of

Identify the Consequences of

Identify the Consequences of

Contrast the Individual

Contrast the Individual

Contrast the Individual

Contrast the Individual

Implications for Managers

Implications for Managers

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