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MGT301PresentationPearson17eChapter18.pdf

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Organizational

Change and Stress Management

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.

18-3

Contrast the Forces for

Change and Planned Change

18-4

LO 1

Contrast the Forces for

Change and Planned Change

Change involves making something different.

When change is an intentional, goal-oriented

activity it is planned change.

 There are two goals of planned change:

Improve the ability of the organization to

adapt to changes in its environment.

Change employee behavior.

Change agents are those responsible for

managing change activities.

18-5

LO 1

Overcoming Resistance

To Change

18-6

LO 2

Overcoming Resistance

To Change

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 18-7

LO 2

Overcoming Resistance

To Change The Politics of Change

 Change threatens the status quo, making it

an inherently political activity.

 Politics suggests the impetus for change is

more likely to come from:

Outside change agents.

Employees new to the organization who

have less invested in the status quo.

Managers slightly removed from the main

power structure. 18-8

LO 2

Approaches to Managing

Organizational Change

Approaches to managing change:

 Lewin’s Three-Step Model (Exhibit 18-3)

 Kotter’s Eight-Step Plan for Implementing

Change (Exhibit 18-5)

 Action Research

 Organizational Development

18-9

LO 3

Approaches to Managing

Organizational Change

18-10

LO 3

Approaches to Managing

Organizational Change

18-11

LO 3

Approaches to Managing

Organizational Change

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LO 3

Approaches to Managing

Organizational Change Action research: a change process based

on the systematic collection of data and

selection of a change action based on what

the analyzed data indicate.

Five steps: Diagnosis, Analysis, Feedback,

Action, and Evaluation.

 Provides at least two specific benefits:

It is problem-focused.

It reduces resistance to change.

18-13

LO 3

Approaches to Managing

Organizational Change

Organizational development (OD): a collection

of change methods that try to improve

organizational effectiveness and employee well-

being.

 OD methods value human and organizational

growth, collaborative and participative

processes, and a spirit of inquiry.

 Focuses on how individuals make sense of

their work environment.

18-14

LO 3

Approaches to Managing

Organizational Change

The six interventions for change agents are:

 Sensitivity training

 Survey feedback

 Process consultation (PC)

 Team building

 Intergroup development

 Appreciative inquiry (AI)

18-15

LO 3

Creating a Culture for Change Managing a Paradox

There is no such thing as a separate discipline of “change management” because all management is dealing with constant change and adaptation.

Learning

Organizing

Performing

Belonging

Managers can learn a few lessons from paradox theory, which states the key paradox in management is that there is no final optimal status for an organization.

18-16

LO 4

Creating a Culture for Change

Stimulating a Culture of Innovation

 Innovation: a more specialized kind of

change, is a new idea applied to initiating or

improving a product, process, or services.

 Innovations can range from small incremental

improvements, such as netbook computers,

to radical breakthroughs, such as Nissan’s

electric Leaf car.

18-17

LO 4

Creating a Culture for Change

Sources of Innovation:

 Structural variables are the most studied

potential source of innovation.

Organic structures positively influence

innovation.

Long tenure in management is associated

with innovation.

Innovation is nurtured when there are slack

resources.

Inter-unit communication is high in

innovative organizations.

18-18

LO 4

Creating a Culture for Change

Innovative organizations tend to have similar

cultures:

 They encourage experimentation.

 They reward both successes and failures.

 They celebrate mistakes.

Managers in innovative organizations recognize

that failures are a natural by-product of

venturing into the unknown.

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LO 4

Creating a Culture for Change

Innovative organizations:

 Actively promote the training and development of their members so they keep current.

 Offer high job security so employees don’t fear getting fired for making mistakes.

 Encourage individuals to become champions of change.

Once a new idea is developed, idea champions actively and enthusiastically promote it, build support, overcome resistance, and ensure it’s implemented.

18-20

LO 4

Creating a Culture for Change

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LO 4

Creating a Culture for Change

What can managers do to make their firms

learning organizations?

 Establish a strategy.

 Redesign the organization’s structure.

 Reshape the organization’s culture.

18-22

LO 4

Creating a Culture for Change

Organizational Change and Stress

 Research shows that organizational changes

incorporating OB knowledge of how people

react to stressors may yield more effective

results than organizational changes that are

only objectively managed through goal-setting.

The role of leadership is critical.

 Changes are stressful because employees

perceive aspects to be threatening.

Employees need to see the changes as fair.

18-23

LO 4

Stress at Work

18-24

LO 5

Stress at Work

18-25

LO 5

Stress at Work

18-26

LO 5

Stress at Work

Cultural Differences

 Research suggests the job conditions that cause stress show some differences across cultures.

For example, U.S. employees are stressed by a lack of control, whereas Chinese employees are stressed by job evaluations and lack of training.

 Research also shows that stress is equally bad for employees of all cultures.

18-27

LO 5

Consequences of

Stress at Work Consequences of Stress  Physiological Symptoms: research supports

the link between job stress and poor health.  Psychological Symptoms: job

dissatisfaction is an obvious cause of stress.

 Behavioral Symptoms: reductions in productivity, absence, turnover, as well as changes in eating habits, increased smoking and/or consumption of alcohol, rapid speech, fidgeting, and sleep disorders.

18-28

LO 6

Consequences of

Stress at Work

18-29

LO 6

Managing Stress at Work

Managing Stress

 Because low to moderate levels of stress

can be functional and lead to higher

performance, management may not be

concerned when employees experience

stress at these levels.

 What management may consider to be “a

positive stimulus that keeps the adrenaline

running” is very likely to be seen as

“excessive pressure” by the employee.

18-30

LO 7

Managing Stress at Work

Individual Approaches

 An employee can take personal

responsibility for reducing stress levels.

 Individual strategies include:

Time-management techniques.

Increased physical exercise.

Relaxation training.

Expanded social support networks.

18-31

LO 7

Managing Stress at Work

Organizational Approaches

 Several organizational factors that cause

stress are controlled by management.

Task and role demands can be modified

or changed.

18-32

LO 7

Managing Stress at Work

 Strategies include:

Better selection and placement.

Goal-setting.

Redesigning jobs.

Employee involvement.

Organizational communication.

Employee sabbaticals.

Wellness programs.

18-33

LO 7

Managing Stress at Work

Selection and Placement

 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.

18-34

LO 7

Managing Stress at Work

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.

18-35

LO 7

Managing Stress at Work

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.

18-36

LO 7

Managing Stress at Work

Employee involvement

 Role stress is detrimental to a large extent

because employees feel uncertain about

goals, expectations, how they’ll be

evaluated, and the like.

Giving employees a voice in management

decisions can increase employee control

and reduce role stress.

Managers should consider increasing

employee involvement in decision making.

18-37

LO 7

Managing Stress at Work

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.

18-38

LO 7

Managing Stress at Work

Employee sabbaticals

 Some employees need an occasional

escape from the frenetic pace of their work.

 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.

18-39

LO 7

Managing Stress at Work

Corporate wellness programs

 Typically provide workshops to help people

quit smoking, control alcohol use, lose

weight, eat better, and develop a regular

exercise program.

 Focus on the employee’s total physical and

mental condition.

18-40

LO 7

Implications for Managers

 Consider that, as a manager, you are a change

agent in your organization. The decisions you

make and your role-modeling behaviors 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.

18-41

Implications for Managers

 Some stress is good. Low to moderate

amounts of stress enable many people to

perform their jobs better by increasing their

work intensity, alertness, and ability to react.

This is especially true if stress arises due to

challenges on the job rather than hindrances

that prevent employees from doing their jobs

effectively.

18-42

Implications for Managers

 You can help alleviate harmful workplace

stress for your employees by accurately

matching work-loads to employees, providing

employees with stress-coping resources, and

responding to their concerns.

 You can identify extreme stress in your

employees when performance declines,

turnover increases, health-related absenteeism

increases, and engagement declines. Stay

alert for early indicators and be proactive.

18-43