ORGANIZATIONAL

CHANGE, STRESS
MANAGEMENT AND
HOW NOT TO GO
INSANE
 Learning Objectives
• Describe the forces that stimulate change
• Study first-order and second-order change
• Learn how individuals and organizations resist
change
• Examine innovative organizations
• Characterize a learning organization
• Describe potential sources of stress
• Learn how individual variables moderate the
stress-outcome relationship
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 The Downsizing Job Market
Question Responses
Have you or someone in your household Reduced hours = 15%
been forced to work fewer hours or take a Cut in pay = 19%
cut in pay? Both = 7%

Have you or someone in your household
been required to work more hours than
usual?
Has the fear of losing your job caused you
to cut back your spending?
What changes would you be willing to
make to keep
your present job?
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Yes = 54%
Cut back severely = 20%
Cut back moderately = 45%
Get more education or
training = 93%
Work longer hours = 82%
Take fewer vacation days = 71%
Accept smaller benefits = 53%
Accept a lower wage = 44%

.
 Workforce
World
Technology
Politics
Forces For
Change
Social Economic
Trends Shocks
Competition

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Planned and Unplanned Organizational
Changes

Organizational
Change

planned Changes Unplanned Changes

• Changes in products and • Changing employee
services demographics
• Changes in administrative • Performance gaps
systems • Governmental regulations
• Changes in organizational • Economic competition in the
size or structure global arena
• Introduction of new
technologies
• Advances in information
processing and
communication
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 Managing Planned Change

First-Order Second-Order
Change Change

Linear Multilevel

Continuous Discontinuous

Incremental Radical
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Structure, Technology, and People as
Targets of Organizational Change

Structure

Technology
Organizational
Change

People

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 What Can Change Agents Change?

Structure Technology

Physical
People
Setting
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 Resistance to Change

Selective Force of
Information Habit
Processing

Individual

Fear of Need for

the Unknown Security
Economic
Factors
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 Resistance to Change
Group Inertia

Threat to Structural
Existing Inertia
Relationships

Organizational

Threat to Limited
Existing Focus
Allocations Threat of Change
to Expertise
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 Overcoming
Resistance to Change
Education and
Participation
Communication

Facilitation
Negotiation
and Support

Manipulation
Coercion
and Cooptation
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 Organizational Change

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

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 Unfreezing the Status Quo

Desired
State
Restraining
Forces

Status
Quo
Driving
Forces

Time
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Action Research Process

One: Three:
Diagnosis Feedback
Five:
Evaluation

Two: Four:
Analysis Action

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 Organizational Development

• Respect for people

• Trust and support

• Power equalization

• Confrontation

• Participation

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 Five OD Interventions

• Intergroup development

• Process consultation

• Sensitivity training

• Survey feedback

• Team building

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 Survey Feedback: An Overview

Data Collection Feedback Develop Action Plans

Employees Through group
Feelings about the
complete discussions,
organization are
surveys to provide specific plans for
summarized and
information about overcoming problems
shared with all
problems in their are identified
employees
organization and developed

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.
 Sources of Innovation

Human Resources

Structural Variables

Organizational Culture
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 What Is a Learning
Organization?

 Definitions

 Advantages

 Characteristics

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 Establishing
Strategy

Managing Redesigning
Learning Structure

Reshaping
Culture
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 Managing Change: It’s
Culture Bound!
• Is change possible?

• How long will it take?

• Does culture influence resistance?

• Does culture influence implementation?

• Does culture influence idea champions?

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Constraints Demands

What Is Stress?

Uncertainty Importance
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 A Model of Stress
Potential Sources Consequences

Environmental Individual Psychological

Factors Differences Symptoms

Organizational Experienced Physiological

Factors Stress Symptoms

Individual Behavioral
Factors Symptoms
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 Time Physical
Management Exercise

Individual Stress
Management

Relaxation Social
Training Support
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 Organizational Stress Management

Goal Setting

Wellness Job
Programs Redesigning

Organizational Employee
Communication Involvement
Selection
and Placement

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 Follow Up Session
• Constructive Criticism Issues