Kelli J.

Schutte
William Jewell College
Robbins & Judge
Organizational Behavior
14th Edition

Organizational Change and Stress
Management
18-0
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Learning Objectives
After studying this chapter, you should be able to:
Identify forces that act as stimulants to change, and contrast
planned and unplanned change.
List the forces for resistance to change.
Compare the four main approaches to managing
organizational change.
Demonstrate two ways of creating a culture for change.
Define stress and identify its potential sources.
Identify the consequences of stress.
Contrast the individual and organizational approaches to
managing stress.
Explain global differences in organizational change and
work stress.
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18-1
Forces for Change
Nature of the Workforce
Greater diversity
Technology
Faster, cheaper, more mobile
Economic Shocks
Mortgage meltdown
Competition
Global marketplace
Social Trends
Baby boom retirements
World Politics
Iraq War and the opening of China
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18-2
E X H I B I T 18-1
Planned Change
Change
Making things different
Planned Change
Activities that are proactive and purposeful: an intentional,
goal-oriented activity
Goals of planned change
Improving the ability of the organization to adapt to changes in
its environment
Changing employee behavior
Change Agents
Persons who act as catalysts and assume the responsibility
for managing change activities
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18-3
Resistance to Change
Resistance to change appears to be a natural and
positive state
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
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18-4
Sources of Resistance to Change
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18-5
E X H I B I T 18-2
Tactics for Overcoming Resistance to Change
Education and Communication
Show those effected the logic behind the change
Participation
Participation in the decision process lessens resistance
Building Support and Commitment
Counseling, therapy, or new-skills training
Implementing Change Fairly
Be consistent and procedurally fair
Manipulation and Cooptation
Spinning the message to gain cooperation
Selecting people who accept change
Hire people who enjoy change in the first place
Coercion
Direct threats and force

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18-6
The Politics of Change
Impetus for change is likely to come
from outside change agents, new
employees, or managers outside the
main power structure.
Internal change agents are most
threatened by their loss of status in
the organization.
Long-time power holders tend to
implement incremental but not radical
change.
The outcomes of power struggles in
the organization will determine the
speed and quality of change.

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18-7
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
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18-8
Unfreeze Move Refreeze
E X H I B I T 18-3
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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18-9
E X H I B I T 18-4
Kotters Eight-Step Plan
Builds from Lewins Model

To implement change:
1. Establish a sense of urgency
2. Form a coalition
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term wins
7. Consolidate, reassess, and adjust
8. Reinforce the changes

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18-10
E X H I B I T 18-5
Unfreezing
Movement
Refreezing
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
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather than solution-centered
Heavy employee involvement reduces resistance to change
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18-11
Organizational Development
Organizational Development (OD)
A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
OD Values
Respect for people
Trust and support
Power equalization
Confrontation
Participation

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18-12
Six OD Techniques
1. 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, listening skills, openness, and
tolerance for others
2. Survey Feedback Approach
The use of questionnaires to identify discrepancies among member
perceptions; discussion follows and remedies are suggested
3. 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.

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18-13
Six OD Techniques (Continued)
4. Team Building
High interaction among team members to increase trust and
openness
5. Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
6. Appreciative Inquiry
Seeks to identify the unique qualities and special strengths of
an organization, which can then be built on to improve
performance
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
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18-14
Creating a Culture for Change: Innovation
1. Stimulating a Culture of 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

Idea Champions: Individuals who actively promote the
innovation



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18-15
Creating a Culture for Change: Learning
2. Learning Organization
An organization that has developed the continuous
capacity to adapt and change
Characteristics
Holds a shared vision
Discards old ways of thinking
Views organization as system of relationships
Communicates openly
Works together to achieve shared vision

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18-16
E X H I B I T 18-6
Creating a Learning Organization
Overcomes traditional organization problems:
Fragmentation
Competition
Reactiveness

Manage Learning by:
Establishing a strategy
Redesigning the organizations structure
Flatten structure and increase cross-functional activities
Reshaping the organizations culture
Reward risk-taking and intelligent mistakes

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18-17
Work Stress
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
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
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18-18
E X H I B I T 18-7
Demands-Resources Model of Stress
Demands
Responsibilities, pressures, obligations, and uncertainties in
the workplace
Resources
Things within an individuals control that can be used to
resolve demands
Adequate resources help reduce the stressful nature of
demands
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18-19
A Model of Stress
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18-20
E X H I B I T 18-8
Potential Sources of Stress
Environmental Factors
Economic uncertainties of the business cycle
Political uncertainties of political systems
Technological uncertainties of technical innovations
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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Consequences of Stress
Stressors are additive: high levels of stress can lead to
the following symptoms
Physiological
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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18-22
Not All Stress Is Bad
Some level of stress can increase productivity
Too little or too much stress will reduce performance
This model is not empirically supported
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18-23
E X H I B I T 18-9
Managing Stress
Individual Approaches
Implementing time management
Increasing physical exercise
Relaxation training
Expanding social support network
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

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18-24
Global Implications
Organizational Change
Culture varies peoples belief in the possibility of change
Time orientation will affect implementation of change
Reliance on tradition can increase resistance to change
Power distance can modify implementation methods
Idea champions act differently in different cultures

Stress
Job conditions that cause stress vary across cultures
Stress itself is bad for everyone
Having friends and family can reduce stress
18-25
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Summary and Managerial Implications
Organizations and the individuals within them must
undergo dynamic change
Managers are change agents and modifiers of
organizational culture
Stress can be good or bad for employees
Despite possible improvements in job performance
caused by stress, such improvements come at the cost
of increased job dissatisfaction
18-26
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
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Copyright 2011 Pearson Education,
Inc. Publishing as Prentice Hall
18-27
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall