Managing Change and Stress

Chapter Eighteen

McGraw-Hill/Irwin 2013 The McGraw-Hill Companies, Inc. All rights reserved.

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
LO.1 Discuss the external and internal forces that create the need for organizational change. LO.2 Describe Lewins change model and the systems model of change. LO.3 Discuss Kotters eight steps for leading organizational change. LO.4 Define organization development (OD), and explain the OD process. LO.5 Explain the dynamic model of resistance to change.
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Learning Objectives (cont.)

LO.6 Discuss the key recipient and change agent characteristics that cause resistance to change. LO.7 Identify alternative strategies for overcoming resistance to change. LO.8 Define the term stress, and describe the model of occupational stress. LO.9 Discuss the stress moderators of social support, hardiness, and Type A behavior. LO.10 Review the four key stress-reduction techniques and the components of a holistic approach toward stress reduction.
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Forces of Change
External forces for change
originate outside the organization

Internal forces for change

originate inside the organization.

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The External and Internal Forces for Change

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External Forces
Demographic characteristics Technological advancements Shareholder, customer and market changes Social and political pressures

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Internal Forces
Low job satisfaction

Low productivity

Conflict

Strikes

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Question?
ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48%. This was primarily attributed to job dissatisfaction by employees. This represents a(n) ______ for ABC.

A.External force for change B.Social and political pressure C.Technological advancements D.Internal force for change
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A Generic Typology of Organizational Change

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Lewins Change Model

Unfreezing
Focus is to create the motivation to change Begin by disconfirming the usefulness or appropriateness of employees present behaviors or attitudes

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Lewins Change Model

Benchmarking
the overall process by which a company compares its performance with that of other companies, then learns how the strongestperforming companies achieve their results

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Question?
Fredfirst, a securities trading company, regularly compares its performance with that of high performing organizations in the industry, such as Merrill Lynch. This process is described as

A.Change. B.Refreezing. C.Benchmarking. D.A strategic plan

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Lewins Change Model

Changing
providing employees with new information, new behavioral models, new processes or procedures, new equipment, new technology, or new ways of getting the job done change can be aimed at improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity

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Lewins Change Model

Refreezing
Change is supported by helping employees integrate the changed behavior or attitude into their normal way of doing things Giving employees the chance to exhibit new behaviors, which are then reinforced

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A Systems Model of Change

Systems Approach
Based on the notion that any change, no matter how large or small, has a cascading effect throughout an organization Takes a big picture perspective of organizational change

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A Systems Model of Change

Mission statement represents the Vision
a long-term goal that describes what an organization wants to become

reason an organization exists

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A Systems Model of Change

Strategic plan
outlines an organizations long-term direction and the actions necessary to achieve planned results based on results from a SWOT analysis

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Target Elements of Change

Target elements of change
the components of an organization that may be changed.

Organizational arrangements

Social factors
Methods

People
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A Systems Model of Change

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Applying the Systems Model of Change

Two ways to apply the systems model: Aid during the strategic planning process Using the model as a diagnostic framework to determine the causes of an organizational problem and to propose solutions

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Steps to Leading Organizational Change

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Question?
Dale needs to change the manufacturing processes of his firm. This will cause many changes to his labor force. He shares a compelling reason to his employees. Which step is this in leading change?

A.Generate short term wins B.Develop a vision and strategy C.Establish a sense of urgency D.Create a guiding coalition
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Creating Change Through Organization Development

Organization Development
consists of planned efforts to help persons work and live together more effectively, over time, in their organizations

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The OD Process

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OD Research and Practical Implications

1. 2.
Planned organizational change works Change programs are more successful when they are geared toward meeting both short-term and long-term results Organizational change is more likely to succeed when top management is truly committed to the change process Effectiveness of OD interventions is affected by cross-cultural considerations

3.
4.

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A Dynamic Model of Resistance to Change

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Causes of Resistance to Change

Resistance to change
An emotional or behavioral response to real or imagined threats to an established work routine

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Why People Resist Change in the Workplace

1. An individuals predisposition toward
change 2. Surprise and fear of the unknown 3. Fear of failure 4. Loss of status and/or job security 5. Peer pressure 6. Past success

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Question?
Jamie is not directly affected by the change introduced in her company, but she is actively resisting it to protect the interests of her friends. This describes which reason for resistance to change? A.Surprise and fear of the unknown B.Personality conflicts C.Peer pressure D.Lack of tact
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Overcoming Resistance to Change

Resilience to change
represents a composite characteristic reflecting high self-esteem, optimism, and an internal locus of control, was positively associated with recipients willingness to accommodate or accept a specific organizational change

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Change Agent Characteristics

1. Decisions that disrupt cultural traditions or
group relationships 2. Personality conflicts 3. Lack of tact or poor timing 4. Leadership style 5. Failing to legitimize change

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Overcoming Resistance to Change

1. Provide as much information as possible to 2.
employees about the change Inform employees about the rationale for the change Conduct meetings to address employees concerns Provide employees the opportunity to discuss how the proposed change might affect them

3.
4.

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Six Strategies for Overcoming Resistance to Change

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Defining Stress
Stress
an adaptive response, mediated by individual characteristics and/or psychological processes, that is a consequence of any external action, situation, or event that places special physical and/or psychological demands upon a person

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Defining Stress
Stress is not merely nervous tension. Stress can have positive consequences. Stress is not something to be avoided. The complete absence of stress is death

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Defining Stress
Eustress
Stress that is good or produces a positive outcome

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A Model of Occupational Stress

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Moderators of Occupational Stress

Social support
the amount of perceived helpfulness derived from social relationships.

Esteem

Informational

Social

Instrumental

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Stress Reduction Techniques

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Video Case: Louisville Slugger Hillerich & Bradsby

What role do information systems play at H&B? What were the internal and external trade-offs between reconfiguring the old information system and designing a new one? Why was the transition to the new system difficult? How could Kotters eight steps be used to facilitate such a transition? Why did some people resist change and experience stress? What strategies could H&B have used to overcome resistance to change?
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