Copyright © 2013 Pearson Education Organizational Behavior 15th Global Edition Organizational Change and Stress Management 18-1 Robbins and Judge Chapter 18

Copyright © 2013 Pearson Education Chapter 18 Learning Objectives After studying this chapter you should be able to: Identify forces that act as stimulants to change and contrast planned and unplanned change Describe the sources of resistance to change Compare the four main approaches to managing organizational change Demonstrate two ways of creating a culture for change Define stress and identify its potential sources Identify the consequences of stress Contrast the individual and organizational approaches to managing stress. 18-2

Copyright © 2013 Pearson Education Identify forces that act as stimulants to change and contrast planned and unplanned change 18-3 LO 1 1

Copyright © 2013 Pearson Education Identify forces that act as stimulants to change and contrast planned and unplanned change 18-4 LO 1 Planned Change Some organizations treat all change as an accidental occurrence; however, change as an intentional, goal-oriented activity 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. 1

Copyright © 2013 Pearson Education Describe the sources of resistance to change 18-5 LO 2 1

Copyright © 2013 Pearson Education Describe the sources of resistance to change 18-6 LO 2 Overcome Resistance Education and Communication Participation Building Support and Commitment Develop Positive Relationships Manipulation and Cooptation Selecting People Who Accept Change Coercion 1

Copyright © 2013 Pearson Education Describe the sources of resistance to change 18-7 LO 2 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), or managers slightly removed from the main power structure. 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change 18-8 LO 3 Lewin’s Three-Step Model (Exhibit 18-3) Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5) Action Research Organizational Development 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change 18-9 LO 3 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 Action research is “a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.” The process consists of five steps: diagnosis, analysis, feedback, action, and evaluation. Action research provides at least two specific benefits for an organization: problem focused and resistance to change is reduced. 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well- being. The OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 The underlying values in most OD efforts: Respect for people Trust and support Power equalization Confrontation Participation 1

Copyright © 2013 Pearson Education Compare the four main approaches to managing organizational change LO 3 The six interventions for change agents are: Sensitivity training Survey feedback Process consultation Team building Intergroup development Appreciative inquiry 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 We’ve considered how organizations can adapt to change. But recently, some OB scholars have focused on a more proactive approach. How organizations can embrace change by transforming their cultures. Two such approaches: Stimulating an innovative culture and Creating a learning organization. 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 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. 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 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 where by slack resources. Inter-unit communication is high in innovative organizations. 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 Sources of Innovation: 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. 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 Within the human resources category, 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, and encourage individuals to become champions of change. Once a new idea is developed, idea championsactively and enthusiastically promote it, build support, overcome resistance, and ensure it’s implemented. 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 1

Copyright © 2013 Pearson Education Demonstrate two ways of creating a culture for change LO 4 What can managers do to make their firms learning organizations? Establish a strategy. Redesign the organization’s structure. Reshape the organization’s culture. 1

Copyright © 2013 Pearson Education Define stress and identify its potential sources LO 5 1

Copyright © 2013 Pearson Education Define stress and identify its potential sources LO 5 1

Copyright © 2013 Pearson Education Define stress and identify its potential sources LO 5 Cultural Differences Research suggests the job conditions that cause stress show some differences across cultures. Chinese compared to U.S. workers. World-wide Type A personalities. 20 individualistic countries. 1

Copyright © 2013 Pearson Education Identify the consequences of stress LO 6 Consequences of Stress-Physiological Symptoms Most early concern with stress was directed at physiological symptoms because most researchers were specialists in the health and medical sciences. Research has found profound effect of stress on physical aspects 1

Copyright © 2013 Pearson Education Identify the consequences of stress LO 6 Consequences of Stress-Psychological Symptoms Job-related stress and job-related dissatisfaction. Job dissatisfaction is “the simplest and most obvious psychological effect” of stress. Multiple and conflicting demands increase stress and dissatisfaction. The less control people have over the pace of their work, the greater the stress and dissatisfaction. 1

Copyright © 2013 Pearson Education Identify the consequences of stress LO 6 Consequences of Stress-Behavioral Symptoms Research on behavior and stress has been conducted across several countries and over time, and the relationships appear relatively consistent. Behavior-related stress symptoms include reductions in productivity, absence, and turnover, as well as changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep disorders. 1

Copyright © 2013 Pearson Education Identify the consequences of stress LO 6 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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 them. 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. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 Managing Stress- Individual Approaches An employee can take personal responsibility for reducing stress levels. Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 Managing Stress- Organizational Approaches Several organizational factors that cause stress are controlled by management. Strategies include improved employee selection and job placement, training, realistic goal-setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. By giving these employees a voice in the decisions management can increase employee control and reduce role stress. Managers should consider increasing employee involvement in decision making. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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. 1

Copyright © 2013 Pearson Education Contrast the individual and organizational approaches to managing stress LO 7 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 employee’s total physical and mental condition. 1

Copyright © 2013 Pearson Education Summary and Implications for Managers The need for change has been implied throughout this text. Managers are the primary change agents in most organizations. Cultures of Innovation Organizational Learning Work Stress 1

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