Management and Organizational Behavior Report

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Chapter17.pptx

Essentials of Organizational Behavior

Fourteenth Edition

Chapter 17

Organizational Change and Stress Management

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.

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After studying this chapter you should be able to: (1 of 2)

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.

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After studying this chapter you should be able to: (2 of 2)

Identify the potential environmental, organizational, and personal sources of stress at work as well as 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.

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Forces for Change

Nature of the workforce

Technology

Economic shocks

Competition

Social trends

World politics

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There are many forces that stimulate change, including the nature of the workforce, technology, economic shocks, competition, social trends, and world politics. All these things can create change in a workplace.

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Reactionary versus Planned Change

Change:

Making things different

Planned change:

Change activities that are intentional and goal oriented

Change agents:

People who act as catalysts and assume the responsibility for managing change activities

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In this chapter, we address change as an intentional, goal-oriented activity.

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Resistance to Change

People tend to resist change, even in the face of evidence of its benefits

Can be positive if it leads to open discussion and debate

Remember, not all change is good

Change agents need to carefully think through the implications

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Whenever change is present, there is resistance to change. Individuals and groups become comfortable with things that are familiar, and change threatens the status quo. There are different ways that change is resisted by employees.

It is important to note that not all change is good. Speed can lead to bad decisions; sometimes those initiating change fail to realize the full magnitude of the effects or their true costs.

Change can be good, but change agents need to carefully think through its implications.

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Sources of Resistance

Individual

Habit

Security

Economic factors

Fear of the unknown

Selective information processing

Organizational

Structural inertia

Limited focus of change

Group inertia

Threat to expertise

Threat to established power relationships and resource allocations

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There are many sources of resistance to change, as seen in this slide. It can take the form of individual resistance, such as fear of the unknown or security issues, or organizational resistance, such as threat to expertise, structural inertia, or limited focus of change.

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Overcoming Resistance to Change

Communication

Participation

Building support and commitment

Developing positive relationships

Implementing changes fairly

Manipulation and cooptation

Selecting people who accept change

Coercion

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When managers face resistance to change, there are some useful tactics they can utilize to help people overcome it. These tactics include communication, getting people to participate in the process, and building support and commitment. It can also include developing positive relationships and being sure to implement the change fairly by applying a consistent and fair process, using manipulation and co-optation to spin the message in order to gain cooperation, or selecting people from the beginning who are more willing to accept change. Finally, a manager can resort to coercion, using direct threats and force to make people change. This is rarely a good option.

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Approaches to Managing Organizational Change

Lewin’s Three-Step Model of Change

Kotter’s Eight-Step Model of the Change Process

Action Research

Organizational Development

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There are four main approaches to managing organizational change. They are Lewin’s three-step model of change, Kotter’s eight-step model of the change process, action research, and organizational development.

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Lewin’s Three-Step Model

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Lewin offers a three-step model to help facilitate the change process. He sets forth that change efforts need to “unfreeze” individual resistance and group conformity to help them move forward, and then you need to refreeze the changes by balancing driving and restraining forces. This will help to move people through the change process and solidify the desired behaviors/outcomes moving forward.

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Unfreezing the Status Quo

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In the unfreezing stage, Lewin identifies driving and restraining forces. Driving forces are those that direct behavior away from the status quo. Restraining forces are those that hinder movement from the existing equilibrium.

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Kotter’s Eight-Step Plan

Create urgency

Form coalition

Create new vision

Communicate the vision

Empower others

Reward “wins”

Consolidate improvements

Reinforce the change

Unfreezing

Movement

Refreezing

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Kotter also offers a model to look at change that builds on the initial ideas of Lewin. He sets forth the following eight steps:

Establish a sense of urgency.

Form a coalition.

Create a new vision.

Communicate the vision.

Empower others by removing barriers.

Create and reward short-term “wins.”

Consolidate, reassess, and adjust.

Reinforce the changes.

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Action Research

Action research: Change process based on the systematic collection of data and the selection of a change action based on what the analyzed data indicate

Five steps:

Diagnosis

Analysis

Feedback

Action

Evaluation

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Action research provides at least two specific benefits. First, it’s problem-focused. The change agent objectively looks for problems, and the type of problem determines the type of change action.

A second benefit of action research is the lowering of resistance. Because action research engages employees so thoroughly in the process, it reduces resistance to change.

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Organizational Development

Organizational development:

A collection of change methods that try to improve organizational effectiveness and employee well-being

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Organizational development is an area of study that is set up to determine what an organization needs to improve its effectiveness and employee well-being. Some organizational development values include respect for people, trust and support, power equalization, confrontation, and participation.

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OD Interventions

Sensitivity Training

Change behavior through unstructured group interaction

Survey Feedback

Gathering data and acting on it

Process Consultation

Using outside consultants

Team Building

Increase trust and openness

Intergroup Development

Change attitudes, stereotypes, and perceptions

Appreciative Inquiry

Discovering what the organization does right

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There are six commonly used organizational development techniques.

Sensitivity training tried to change behavior through unstructured group interaction.

The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for improvement.

Process consultation is the third technique. This method involves a consultant who gives clients some insight into what is happening in the organization and helps to identify a process for improvement.

The fourth technique is engaging in team-building tools to increase trust and openness through increased interactions.

Intergroup development is an organizational development tool that attempts to change the attitudes, stereotypes, and perceptions that groups may have of each other.

Finally, the appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization, which are used to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision), and destiny (deciding how to fulfill the dream).

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Creating a Culture for Change

Paradox theory:

The key paradox in management is that there is no final optimal status for an organization

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There is some evidence that managers who think holistically and recognize the importance of balancing paradoxical factors are more effective, especially in generating adaptive and creative behaviors in those they are managing.

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Stimulating a Culture of Innovation

Innovation: A new idea applied to initiating or improving a product, process, or service

Sources of innovation:

Organic structure

Long tenure in management

Slack resources

High interunit communication

Context and innovation

Idea champions and innovation

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Innovation is a new idea applied to the beginning or improvement of a product, process, or service. Innovations can range from small incremental improvements to radical breakthroughs. Organizations can seek innovation through changing structure, creating a culture of creativity, or hiring an innovative workforce.

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Idea Champions

Idea champions: Managers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is implemented

Have high self-confidence, persistence, energy, and acceptance of risk

Use inspiration and vision to gain commitment

Have decision-making discretion

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For innovation to occur there needs to be an idea champion who actively promotes the innovation.

An idea champion is someone who actively and enthusiastically promotes an idea, builds support, overcomes resistance, and ensures that innovation is implemented. A manager must have high energy and be willing to accept risk. They must use inspiration and vision to gain commitment and have the authority to make decisions.

Effective managers alter their organization’s championing strategies to reflect cultural values. In a collectivist culture, a cross-functional approach might be more effective, for example. Similarly, in high power-distance cultures, idea champions might work closely with superiors to get approval for innovative activity before work begins.

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Creating a Learning Organization

Learning organization:

An organization that has developed the continuous capacity to adapt and change

Managing learning:

Establish a strategy

Redesign the organization’s structure

Reshape the organization’s culture

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A learning organization has developed the continuous capacity to adapt and change.

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Characteristics of a Learning Organization

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A learning organization has five basic characteristics.

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Work Stress

Stress: A dynamic condition in which an individual is confronted with an opportunity, demand, or resource related to what is desired and for which the outcome is perceived to be both uncertain and important

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When change occurs, stress is found throughout the organization. Stress is defined as a dynamic condition in which an individual is confronted with an opportunity, demand, or resource related to what he or she desires and for which the outcome is perceived to be both uncertain and important.

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Types of Work Stress

Challenge Stress: associated with workload, pressure to complete tasks, and time urgency

Can be positive

Hindrance Stress: comes from obstacles to achieving goals

Mostly negative

Usually stress is associated with demands and resources

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There are different types of stress. Challenge stress is stress associated with workload, pressure to get work done, and time constraints. Hindrance stressors are those things that keep you from reaching your goals, such as uncooperative employees or red tape. This can cause more stress than challenge stress often does.

Stress is typically associated with demands (responsibilities, pressures, obligations, and uncertainties individuals face in the workplace) and resources (things within an individual’s control that he can use to resolve the demands).

While early research tended to emphasize such a homeostatic, or balanced equilibrium, perspective, it has now become clear that no single ideal state exists. Instead, it’s more accurate to talk about allostatic models, in which demands shift, resources shift, and systems of addressing imbalances shift. Through allostasis, we work to find stability by changing our behaviors and attitudes.

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A Model of Stress

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What causes stress? A meta-analysis of responses from more than 35,000 individuals showed role ambiguity, role conflict, role overload, job insecurity, environmental uncertainty, and situational constraints were all consistently negatively related to job performance.

Stress shows itself in a number of ways, such as high blood pressure, ulcers, irritability, difficulty making routine decisions, changes in appetite, accident proneness, and the like. These symptoms fall under three general categories: physiological, psychological, and behavioral symptoms.

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Managing Stress

Organizational

Selection and placement

Goal-setting programs

Job redesign

Employee involvement

Employee sabbaticals

Organizational communication

Wellness programs

Individual

Time management

Physical activity

Relaxation techniques

Social support network

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Stress needs to be managed and maintained at a healthy level. Individuals often manage stress through time management techniques, physical exercise, or expanding their social support network. Organizations can also help employees manage stress by providing training, realistic goal setting, solid designing of jobs, offering employee sabbaticals, and establishing a wellness program.

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Implications for Managers

You are a change agent for your organization. The decisions that you make and your role-modeling will help shape the organization’s change culture.

Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors.

Some stress is good.

You can help alleviate harmful workplace stress for you and any employees you supervise by accurately matching workloads to employees, providing employees with stress-coping resources, and responding to their concerns.

You can identify extreme stress when performance declines, turnover increases, health-related absenteeism increases, and engagement declines. Stay alert for early indicators and be proactive.

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Change is inevitable, especially in today’s market, so it is critical for managers to have the skill set to deal with it, as it impacts every aspect of organizational behavior.

If an organization is to remain competitive, it must learn to operate in a changing environment. Managers must take on the role of change agents and be the champions for innovation.

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Copyright

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