Chapter 18

Organizational Change & Stress Management

Batch (5) Group (1)

Kyaw Thu
Dar Dar Wint Kyaw Thu
Hsu Wai
Wint Yee Khaing
Honey Ko
Chapter Learning Objectives
Contrast the forces for change and planned change
Describe ways to overcome resistance to change
Compare the four main approaches to managing organizational change
Demonstrate three ways of creating a culture for change
Identify the potential environmental, organizational and personal sources
of stress at work and the role of individual and cultural differences
Identify the physiological, psychological and behavioral symptoms of
stress at work
Describe individual and organizational approaches to managing stress at
work
 CHANGE
Organizational change is the
movement of an
organization from one state
of affairs to another.

It can takes many forms

such as company's
structure, strategy, policies,
procedures, technology, or
culture.
 Forces for Change
 Nature of the workforce
More cultural diversity, Aging population, Increased immigration and outsourcing
 Technology
Faster, cheaper, and more mobile computers and handheld devices
 Economic Shocks
Financial sector collapse, Global recession
 Competition
Global competitors, Mergers, Increased government regulation of commerce
 Social Trends
Increased environmental awareness, liberalization of attitudes toward gay, lesbian, and transgender
employees
 World Politics
Rising health care costs , Opening of new markets worldwide, Negative social attitudes toward
business and executives
 Planned Change
Change
Making things different
Planned Change
An intentional, goal-oriented activity
Goals of planned Change
- Improving the ability of the organization to adapt to change in its
environment
- Changing employee behavior
Change Agents
Person who act as catalysts and assume the responsibility for managing change activities
They see the future for the organization others have not identified
They are able to motivate, invent and implement this vision
They can be managers or non managers , current or new employees or outside consultant
 Resistance to Change
Unwillingness to adapt to
new circumstances or
ways of doing things.

Appears to be a natural
and positive reaction to
change
 Sources of Resistance to Change
Individual Sources Organizational Sources

• Habit • Structural inertia

• Security • Limited focus of change
• Economic Factors • Group inertia
• Fear of the unknown • Threat to expertise
• Selective information • Threat to established
processing power relationships
Overcoming Resistance to change
• Communication
• Participation
• Building support and commitment
• Develop positive relationships
• Implementing changes fairly
• Manipulation and Cooptation
• Selecting People who accept change
• Coercion
 The Politics of Change
• Impetus (The force or energy ) for change is likely to come from
external 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 term power holders tend to implement incremental but not
radical change
• This explains why BOD that recognizes the imperative for rapid and
radical change frequently turn to outside candidates for new
leardership
 Lewin's Three-Step Model of Change
• Unfreezing involves overcoming resistance and questioning the need for
change.
• Movement focuses on swift progress and smooth transition.
• Refreezing ensures the change becomes permanent and stable.
Kotter's Eight-Step Plan for Successful
Change Implementation
1. Create a sense of urgency
2. Form a coalition
3. Create a new vision
4. Communicate the vision
5. Empower others to act
6. Plan for short-term wins
7. Consolidate improvements
8. Reinforce the changes
Action Research: A Scientific Approach to Planned Change

1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
 Organizational Development (OD)
Techniques for Change
1. Sensitivity Training: Early method focused on behavior change through unstructured group
interaction, evolved into interventions like diversity training and team-building exercises.
2. Survey Feedback: Using questionnaires to assess member attitudes, identify discrepancies,
and address issues through discussion and problem-solving.
3. Process Consultation (PC): Outside consultant guides a client to analyze and improve
processes within their unit, emphasizing involvement and skill development.
4. Team Building: High-interaction group activities to enhance trust, openness, and
performance among team members, improving coordination and collaboration.
5. Intergroup Development: Addresses dysfunctional conflict among groups within an
organization by changing attitudes, stereotypes, and perceptions through training and
problem-solving.
6. Appreciative Inquiry (AI): Focuses on the positive aspects of an organization, identifying
strengths to improve performance. Involves discovery, dreaming, design, and destiny steps.
 Creating a Culture for Change

- A culture for change in organizational behavior

involves establishing values, beliefs, and practices
that support and promote change.
- This can be achieved through leadership
commitment, communication, employee
involvement, training and development, rewards and
recognition, continuous learning and improvement,
change champions, and regular evaluation and
feedback.
- By fostering a culture of adaptability and
responsiveness to the evolving business
environment, organizations can foster a culture of
change and foster a more open and adaptable
environment.
Paradox theory
 Stress at Work

- Workplace stress negatively impacts employee well-

being and organizational success.
- To address it, organizations should identify causes,
promote a healthy work environment, provide
resources and support, set realistic expectations,
encourage work-life balance, foster a supportive
culture, offer stress management resources,
encourage breaks, communicate openly, and
monitor stress proactively.
- By implementing these strategies, organizations can
create a healthier and less stressful work
environment, leading to improved employee well-
being and productivity.
 Summary of Stress and its Symptoms
Physiological Symptoms:
• Stress can lead to changes in metabolism, increased heart and breathing rates, high blood pressure,
headaches, and heart attacks.
• Long-term job strain is associated with higher levels of coronary heart disease.
• Psychological burnout at work is linked to higher levels of sickness absence and indicators of poor health.

Psychological Symptoms:

• Stress can result from job dissatisfaction, tension, anxiety, irritability, boredom, and procrastination.
• Multiple and conflicting job demands, lack of clarity in duties, authority, and responsibilities, and low job
control increase stress and dissatisfaction.
• Jobs with low variety, significance, autonomy, feedback, and identity create stress and reduce job satisfaction.
• Autonomy affects stress differently based on the individual's locus of control.
Behavioral Symptoms:
• Stress-related behavioral symptoms include reduced productivity, increased absences, turnover,
changes in eating habits, increased smoking or alcohol consumption, rapid speech, fidgeting, and
sleep disorders.
• The stress-performance relationship suggests that low to moderate stress can enhance
performance, while excessive stress lowers performance.
• The inverted-U model of stress and performance lacks strong empirical support, and positive
moderating factors like emotional intelligence may mitigate the impact of stress on performance.
Managing Stress
individual approaches

Individual strategies that have proven effective include

► - time-management techniques,
► - physical exercise,
► - relaxation techniques, and
► - social support networks.

► A few of the best-known time-management techniques are:

(1) maintaining to-do lists,
(2) scheduling activities based on priorities, not what you can accomplish,
(3) doing the hard tasks first, and
(4) blocking out distraction-free time to accomplish tasks.
► Physicians have recommended noncompetitive physical exercise, such as
aerobics, walking, jogging, swimming, and riding a bicycle, as a way to deal with
excessive stress levels.
These activities decrease the detrimental physiological responses to stress and
allow us to recover from stress more quickly.

► Individuals can teach themselves to reduce tension through relaxation

techniques such as meditation, hypnosis, and deep breathing.
The objective is to reach a state of deep physical relaxation, in which you focus
all your energy on the release of muscle tension.

► As we have noted, friends, family, or work colleagues can provide an outlet

when stress levels become excessive. Expanding your social support network
provides someone to hear your problems and offer a more objective
perspective on a stressful situation than your own.
Organizational approaches
Strategies to consider include improved employee ;

► Selection and job placement, training,

► Goal-setting,
► Redesign of jobs,
► Increased organizational communication,
► Employee involvement,
► Employee sabbaticals, and
► Corporate wellness programs.

► Selection and placement, and training:

We know individuals with little experience or an external locus of control tend to be

more prone to stress. Selection and placement decisions should take these facts into
consideration.
► Goal-Setting :
Goals can reduce stress as well as provide motivation. Employees who are highly
committed to their goals and see purpose in their jobs experience less stress because
they are more likely to perceive stressors as challenges rather than hindrances.

► Redesigning Jobs :
Redesigning jobs to give employees more responsibility, more meaningful work, more
autonomy, and increased feedback can reduce stress because these factors give
employees greater control over work activities and lessen dependence on others.

► Employee involvement :
Managers should consider increasing employee involvement in decision making
because evidence clearly shows that increases in employee empowerment reduce
psychological strain.
► Organizational Communication
Increasing formal organizational communication with employees reduces uncertainty
by lessening role ambiguity and role conflict. Given the importance that perceptions
play in moderating the stress–response relationship, management can also use
effective communications as a means to shape employee perceptions.

► Employee Sabbaticals
These sabbaticals—ranging in length from a few weeks to several months— allow
employees to travel, relax, or pursue personal projects that consume time beyond
normal vacations.

► Wellness programs
Our final suggestion is organizationally supported wellness programs. These typically
provide workshops to help people quit smoking, control alcohol use, lose weight, eat
better, and develop a regular exercise program.
Thank You