Chapter # 17: Organizational Change and Stress Management

Forces for Change

1. Identify forces that act as stimulants to change, and contrast planned and unplanned
change.
A. Forces of Change
There are many things that force change in an organization such as:
I.
II.
III.
IV.
V.
VI.

The nature of the workforce

Technology
Economic forces
Competition
Social trends
World Politics

I.

The nature of the workforce

II.

More cultural diversity

Aging population
Many new entrants with inadequate skill (Increased immigration)
Outsourcing
Technology

III.

Faster, cheaper, and more mobile computers and handheld devices.

On-line music
Deciphering of the human genetic code
Emergence and growth of social network sites
Economic forces

Rise and fall of global housing market

Financial sector collapse
Global recession

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IV.

Competition
Global competitors
Mergers and consolidations
Increased government regulation of commerce

V.

Social trends

VI.

Increased environmental awareness

Liberalization of attitudes toward gay, lesbian, and transgender employees
More multitasking and connectivity
Internet chat rooms
Retirement of Baby Boomers
Rise in discount and big retailer
World Politics

Rising health care costs

Negative social attitudes toward business and executives
Opening of markets in China
IraqU.S. war
War on terrorism following 9/11/01

B. Managing Planned Change

Change
Making things different.
Planned Change
Activities that are intentional and goal oriented.
Change Agents
Persons who act as catalysts and assume the responsibility for managing change
activities.
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
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Resistance to Change
2. Describe the sources of resistance to change.
A. Forms of Resistance to Change
Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased errors or mistakes, increased
absenteeism.
Deferred resistance clouds the link between source and reaction
B. Sources of Individual Resistance to Change
Exam Q: What forces act as resistance to change? Explain (Two Times).
Exam Q: What do you understand by change management? And what forces can act
resistance change? Explain (Three Times)
Change Management:
Change management is the process, tools and techniques to manage the people-side of
change to achieve the required business outcome.
Change management incorporates the organizational tools that can be utilized to help
individuals make successful personal transitions resulting in the adoption and realization
of change.
Forces or Factors as Resistance to Changes
The factors or forces of resistance to change are grouped in two categories:
A. Individual Resistance to Change
B. Organizational Resistance to Change

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A. Individual Resistance to Change

Following are the sources or factors or forces of Individual Resistance to Change:
a)
b)
c)
d)
e)

Habit
Security
Economic Factors
Fear of the unknown
Selective Information Processing

a) Habit
To cope with lifes complexities, we rely on habits or programmed responses.
But when confronted with change, this tendency to respond becomes a source or force
or factor of resistance.
b) Security
People with a high need for security are likely to resist change because it threatens their
feelings of safety.
c) Economic Factors
Changes in job tasks or established work routines can arouse economic fears.
People are concerned that they wont be able to perform the new tasks or routines to
their previous standards, especially when pay is closely tied to productivity.
d) Fear of the unknown
The Change substitutes ambiguity and uncertainty for the unknown.
e) Selective Information Processing
Individuals are guilty of selectively processing information in order to keep their
perceptions intact.
They hear what they want to hear, and they ignore information that challenges the
world theyve created.

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B. Organizational Resistance to Change

Following are the sources or factors or forces of Organizational Resistance to Change:
a)
b)
c)
d)
e)

Structural inertia
Limited focus of change
Group inertia
Threat to expertise
Threat to established power relationships

a) Structural inertia
Organizations have built-in mechanisms such as their selection processes and formalized
regulations to produce stability.
When an organization is confronted with change, this structural inertia acts as a
counterbalance (offset) to sustain stability.
b) Limited focus of change
Organizations consist of a number of interdependent subsystems.
One cant be changed without affecting the others.
So limited changes in subsystems tend to be nullified by the larger system.
c) Group inertia
Even if individuals want to change their behavior, group norms may act as a constraint.
d) Threat to expertise
Changes in organizational patterns may threaten the expertise of specialized groups.
e) Threat to established power relationships
Any redistribution of decision-making authority can threaten long-established power
relationships within the organization.

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C. Overcoming Resistance to Change

Tactics for dealing with resistance to change:
i.
ii.
iii.
iv.
v.
vi.
vii.

Education and communication

Participation
Facilitation and support
Negotiation
Manipulation and cooptation
Selecting people who accept change
Coercion

D. The Politics of Change

Impetus for change is likely to come from outside change agents.

Internal change agents are most threatened by their loss of status in the organization.
Long-time power holders tend to implement only incremental change.
The outcomes of power struggles in the organization will determine the speed and
quality of change.

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Approaches to Managing Organizational Change

3. Compare the four main approaches to managing organizational change
A. Lewins Three-Step Change Model
Unfreezing
Change efforts to overcome the pressures of both individual resistance and group
conformity by increasing the driving force and decreasing the restraining force.
Moving
Moving from the status quo to the desired end state
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces
Lewins Three-Step Change Model is shown in the following figure:

Lewin: Unfreezing the Status Quo

Driving Forces
Forces that direct behavior away from the status quo
Restraining Forces
Forces that hinder movement from the existing equilibrium

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B. Kotters Eight-Step Plan for Implementing Change

A detailed approach to implementing change that is built on Lewins three-step model
To implement change:
Unfreezing
i.
ii.
iii.

Establish a sense of urgency by creating a compelling reason for why change is needed.
Form a coalition with enough power to lead the change.
Create a new vision to direct the change and strategies for achieving the vision.

Movement
iv.
v.
vi.

Communicate the vision throughout the organization.

Empower others to act on the vision by removing barriers to change and encouraging
risk taking and creative problem solving.
Plan for, create, and reward short-term wins that move the organization toward the
new vision.

Refreezing
vii.
viii.

Consolidate improvements, reassess changes, and make necessary adjustments in the

new programs.
Reinforce the changes by demonstrating the relationship between new behaviors and
organizational success.

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C. Action Research
Action Research is a change process based on systematic collection of data and then
selection of a change action based on what the analyzed data indicates.
Process Steps:
i.
ii.
iii.
iv.
v.

Diagnosis
Analysis
Feedback
Action
Evaluation

Action research benefits:

Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to change

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D. Organizational Development
A collection of planned interventions, built on humanistic-democratic values that seeks
to improve organizational effectiveness and employee well-being.
OD Values:
i.
ii.
iii.
iv.
v.

Respect for people

Trust and support
Power equalization
Confrontation
Participation

Organizational Development Techniques

I.

Sensitivity Training

Training groups (T-groups) that seek to change behavior through unstructured group
interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening skills, greater openness, and
increased tolerance for others.
II.

Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions;

discussion follows and remedies are suggested.
III.

Process Consultation (PC)

A consultant gives a client insight into what is going on around the client, within the
client, and between the client and other people; identifies processes that need
improvement.
IV.

Team Building
High interaction among team members to increase trust and openness.

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Team Building Activities:

V.

Goal and priority setting.

Developing interpersonal relations.
Role analysis to each members role and responsibilities.
Team process analysis.
Intergroup Development

OD efforts to change the attitudes, stereotypes, and perceptions that groups have of
each other.
Intergroup Problem Solving:

VI.

Groups independently develop lists of perceptions.

Share and discuss lists.
Look for causes of misperceptions.
Work to develop integrative solutions.
Appreciative Inquiry

Seeks to identify the unique qualities and special strengths of an organization, which can
then be built on to improve performance.
This process comprises of the following steps
i. Discovery: recalling the strengths of the organization.
ii. Dreaming: speculation on the future of the organization.
iii. Design: finding a common vision.
iv. Destiny: deciding how to fulfill the dream.

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Creating a Culture for Change: Innovation

4. Demonstrate two ways of creating a culture for change
Following are the Contemporary Change Issues for Todays Managers:
A. Stimulating a Culture of Innovation
B. Creating a Learning Organization
A. Stimulating a Culture of Innovation
Innovation
A new idea applied to initiating or improving a product, process, or service.
Sources of Innovation:

Structural variables
Organic structures
Long-tenured management
Slack resources
Inter-unit communication
Organizations culture
Human resources

Idea Champions
Individuals, who take an innovation and actively and enthusiastically promote the idea,
build support, overcome resistance, and ensure that the idea is implemented.

B. Creating a Learning Organization

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

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Characteristics of Learning Organization:

Holds a shared vision.

Discards old ways of thinking.
Views organization as system of relationships.
Communicates openly.
Works together to achieve shared vision.

Single-Loop Learning
Errors are corrected using past routines and present policies.
Double-Loop Learning
Errors are corrected by modifying the organizations objectives, policies, and standard
routines.
Overcomes traditional organization problems such as:
Fragmentation
Competition
Reactiveness
Manage Learning by:

Establishing a strategy
Redesigning the organizations structure
Flatten structure and increase cross-functional activities
Reshaping the organizations culture

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Work Stress and Its Management

Define stress and identify its potential sources.
Stress
A dynamic condition in which an individual is confronted with an opportunity,
constraint, or demand related to what he or she desires and for which the outcome is
perceived to be both uncertain and important.
Types of Stress
Challenge Stressors
Stress associated with workload, pressure to complete tasks, and time urgency
Hindrance Stressors
Stress that keeps you from reaching your goals, such as red tape
Cause greater harm than challenge stressors
Demands-Resources Model of Stress
Demands
The loss of something desired.
Resources
Things within an individuals control that can be used to cope with demands.
Adequate resources help reduce the stressful nature of demands

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A Model of Stress

Environmental Factors

Economic uncertainties due to changes in the business cycle

Political uncertainties of political systems
Technological uncertainties of technical innovations
Terrorism in threats to physical safety and security

Organizational Factors
Task demands related to the job
Role demands of functioning in an organization
Interpersonal demands created by other employees
Personal Factors
Family and personal relationships
Economic problems from exceeding earning capacity
Personality problems arising from basic disposition
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Individual Differences

Perceptual variations of how reality will affect the individuals future

Greater job experience moderates stress effects
Social support buffers job stress
Internal locus of control lowers perceived job stress
Strong feelings of self-efficacy reduce reactions to job stress

Consequences of Stress
Stressors are additive: high levels of stress can lead to the following symptoms
Physiological
High blood pressure, headaches, stroke
Psychological
Dissatisfaction, tension, anxiety, irritability, boredom, and procrastination
Greatest when roles are unclear in the presence of conflicting demands
Behavioral
Changes in job behaviors, increased smoking or drinking, different eating habits, rapid
speech, fidgeting, sleep disorders

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Not All Stress Is Bad: The Proposed Inverted-U Relationship Between Stress and Job
Performance

Note: This model is not empirically supported

Not all stress is bad: some level of stress can increase productivity
Too little or too much stress will reduce performance

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Managing Stress
Exam Q: Define Stress? Explain and contrast individual and organizational approaches to
manage stress. (Two Times)
Stress is a dynamic condition in which an individual is confronted with an opportunity,
constraint, or demand related to what he or she desires and for which the outcome is
perceived to be both uncertain and important.
OR
Stress is a state of mental tension and worry caused by problems in your life, work, etc
Managing Stress
Following two approaches are used to manage stress:
A. Individual Approaches
B. Organizational Approached
A. Individual Approaches
Individuals often manage stress through
i.
ii.
iii.
iv.

Implementing time management

Increasing physical exercise
Relaxation training
Expanding social support network

i.

Implementing time management

The well-organized employees use the following best-known time-management principles to

cope with stress created by job demands:
a)
b)
c)
d)
e)

Making daily lists of activities to be accomplished

Prioritizing activities by importance and urgency
Scheduling activities according to the priorities set
Knowing daily cycle and handling the most demanding parts of job
Avoiding electronic distractions like frequently checking e-mails which can limit
attention and reduce efficiency

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ii.

Increasing physical exercise

Physicians have recommended noncompetitive physical exercises such as aerobics,
walking, jogging, swimming, and riding a bicycle to deal with excessive stress levels.

iii.

Relaxation training
Individuals can also 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.

iv.

Expanding social support network

Expanding social support network provides someone to hear problems and offer a more
objective perspective on a stressful situation than your own.
B. Organizational Approaches
Organizations can also help employees manage stress by

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.

Improved personnel selection and job placement

Training
Use of realistic goal setting
Redesigning of jobs
Increased employee involvement
Improved organizational communication
Offering employee sabbaticals
Establishment of corporate wellness programs

i.

Improved personnel selection and job placement

Certain jobs are more stressful than others.

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.
ii.

Training

Training can increase an individuals self-efficacy and thus lessen job strain.
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iii.

Use of realistic goal setting

Individuals perform better when they have specific and challenging goals and receive
feedback on their progress toward these goals.
Specific goals perceived as attainable clarify performance expectations.
Goal feedback reduces uncertainties about actual job performance.
The result is less employee frustration, role ambiguity, and stress.
iv.

Redesigning of jobs

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

Increased employee involvement

Managers should consider increasing employee involvement in decision making, because

evidence clearly shows that increases in employee empowerment reduce psychological
strain.
vi.

Improved organizational communication

Increasing formal organizational communication with employees reduces uncertainty by

lessening role ambiguity and role conflict.
vii.

Offering employee sabbaticals (Vacations, time off)

Some employees need an occasional escape from the frenetic (hectic, mad, chaotic)
pace of their work.
Good Companies have begun to provide extended voluntary leaves.
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.

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viii.

Establishment of corporate wellness programs

The 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
They focus on the employees total physical and mental condition.
Most firms that have introduced wellness programs have found significant benefits.

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