Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

Organizational Behavior: Chapter 19 COPYRIGHT Copyright 2003 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Organizational Behavior: Chapter 19

Chapter 19 Change, Innovation, and Stress Study questions. What is organizational change? What change strategies are used in organizations? What can be done about resistance to change? How do organizations innovate? How does stress affect people at work? Organizational Behavior: Chapter 19

What is organizational change? Forms of change. Radical change. Also known as frame-breaking change. Change that results in a major overhaul of the organization or its component systems. Incremental change. Also known as frame-bending change. Change that is part of the organization’s natural evolution. Organizational Behavior: Chapter 19

What is organizational change? Change agents. Individuals and groups who take responsibility for changing the existing behavior patterns of another person or social system. Sometimes hired as outside consultants. Managers and leaders in contemporary organizations are expected to be change agents. Organizational Behavior: Chapter 19

What is organizational change? Unplanned change. Occurs spontaneously or randomly. May be disruptive or beneficial. The appropriate goal is to act quickly to minimize any negative consequences and maximize any possible benefits. Organizational Behavior: Chapter 19

What is organizational change? Planned change. The result of specific efforts by a change agent. A performance gap is a direct response to a perceived performance gap. A discrepancy between the actual and desired state of affairs. May reflect problems or opportunities. Organizational Behavior: Chapter 19

What is organizational change? Organizational forces for change. Organization-environment relationships. Organizational life cycle. Political nature of organizations. Organizational Behavior: Chapter 19

What is organizational change? Organizational targets for change. Purpose. Objectives. Strategy. Culture People. Tasks. Structure Technology. Organizational Behavior: Chapter 19

What is organizational change? Phases of planned change. Unfreezing. Preparing a situation for change by disconfirming existing attitudes and behaviors. Susceptibility to “boiled frog phenomenon.” Changing. Taking action to modify a situation by altering the targets of change. Refreezing. Maintaining and eventually institutionalizing the change. Organizational Behavior: Chapter 19

What change strategies are used in organizations? Force-coercion strategy. Draws on reward power, coercive power, and legitimate power as primary inducements to change. Change agent acts unilaterally to command change. Usually results in temporary compliance. Organizational Behavior: Chapter 19

What change strategies are used in organizations? Rational persuasion strategy. Also known as an empirical-rational strategy. Draws on expert power as primary inducement to change. Change agent uses special knowledge, empirical support, or rational arguments. Usually results in long-term internalization. Organizational Behavior: Chapter 19

What change strategies are used in organizations? Shared power strategy. Also known as a normative-reeducative approach. Draws on referent power as primary inducement to change. Change agent empowers people affected by the change and involves them in decision making related to the change. Usually results in long-term internalization. Organizational Behavior: Chapter 19

What can be done about resistance to change? Any attitude or behavior that indicates unwillingness to make or support a desired change. Alternative views of resistance. Something that must be overcome for change to be successful. Feedback that can be used to facilitate achieving change objectives. Organizational Behavior: Chapter 19

What can be done about resistance to change? Why people resist change. Fear of the unknown. Lack of good information. Fear for loss of security. No reason to change. Fear for loss of power. Lack of resources. Bad timing. Habit. Organizational Behavior: Chapter 19

What can be done about resistance to change? Ways in which resistance is experienced. Resistance to the change itself. Resistance to the change strategy. Resistance to the change agent. Organizational Behavior: Chapter 19

What can be done about resistance to change? How to deal with resistance. Education and communication. Participation and involvement. Facilitation and support. Negotiation and agreement. Manipulation and cooptation. Explicit and implicit coercion. Organizational Behavior: Chapter 19

What can be done about resistance to change? Education and communication. Educates people about change prior to implementation and helps them understand the logic of change. Use when people lack information or have inaccurate information. Advantage — creates willingness to help with the change. Disadvantage — can be very time consuming. Organizational Behavior: Chapter 19

What can be done about resistance to change? Participation and involvement. Allows people to help design and implement the changes. Use when other people have important information and/or power to resist. Advantages — adds information to change planning; builds commitment to change. Disadvantage — can be very time consuming. Organizational Behavior: Chapter 19

What can be done about resistance to change? Facilitation and support. Provides emotional and material assistance for people experiencing the hardships of change. Use when resistance traces to resource or adjustment problems. Advantage — directly satisfies specific resource or adjustment needs. Disadvantages — can be time consuming; can be expensive. Organizational Behavior: Chapter 19

What can be done about resistance to change? Negotiation and agreement. Offers incentives to actual or potential change resistors. Use when a person or group will lose something because of the change. Advantage — helps avoid major resistance. Disadvantages — can be expensive; can cause others to seek similar deals. Organizational Behavior: Chapter 19

What can be done about resistance to change? Manipulation and cooptation. Use covert attempts to influence others by selectively providing information and consciously structuring events. Use when other methods don’t work or are too expensive. Advantages — can be quick and inexpensive. Disadvantage — can create future problems if people sense manipulation. Organizational Behavior: Chapter 19

What can be done about resistance to change? Explicit and implicit coercion. Employ the force of authority to implement change. Use when speed is important and the change agent has power. Advantages — quick; overpowers resistance. Disadvantage — risky if people get mad. Organizational Behavior: Chapter 19

How do organizations innovate? Innovation. The process of creating new ideas and putting them into practice. Product innovations. The introduction of new or improved goods or services to better meet customer needs. Process innovations. The introduction of new and better work methods and operations. Organizational Behavior: Chapter 19

How do organizations innovate? The innovation process. Idea creation. Initial experimentation. Feasibility determination. Final application. Organizational Behavior: Chapter 19

How do organizations innovate? Features of innovative organizations. Strategies and cultures that are built around a commitment to innovation. Structures that support innovation. Staffing with a clear commitment to innovation. Top management support for innovation. Organizational Behavior: Chapter 19

How does stress affect people at work? A state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities. Organizational Behavior: Chapter 19

How does stress affect people at work? Source of stress. Stressors. The wide variety of things that cause stress for individuals. Types of stressors. Work-related stressors. Nonwork and personal stressors. Organizational Behavior: Chapter 19

How does stress affect people at work? Work-related stressors. Task demands. Role ambiguities. Role conflicts. Ethical dilemmas. Interpersonal problems. Career developments. Physical setting. Organizational Behavior: Chapter 19

How does stress affect people at work? Nonwork and personal stressors. Family events. Economic difficulties. Personal affairs. Individual’s needs. Individual’s capabilities. Individual’s personality. Organizational Behavior: Chapter 19

How does stress affect people at work? Stress and performance. Constructive stress. Also known as eustress. Moderate levels of stress act in a positive way for both individuals and organization. Destructive stress. Also known as distress. Low and especially high levels of stress act in a negative way for both individuals and organization. Organizational Behavior: Chapter 19

How does stress affect people at work? Stress can harm people’s physical and psychological health. Health problem associated with stress. Heart attack. Stroke. Hypertension. Migraine headache. Ulcers. Substance abuse. Overeating. Depression. Muscle aches. Organizational Behavior: Chapter 19

How does stress affect people at work? Key symptoms of excessive stress. Changes from: Regular attendance to absenteeism. Punctuality to tardiness. Diligent work to careless work. A positive attitude to a negative attitude. Openness to change to resistance to change. Cooperation to hostility. Organizational Behavior: Chapter 19

How does stress affect people at work? Stress prevention. The best first-line strategy in battling stress. Involves taking action to keep stress from reaching a destructive level. Need to monitor personal and nonwork stressors and to be proactive in preventing their adverse impact. Organizational Behavior: Chapter 19

How does stress affect people at work? Stress management. Used once stress has reached a destructive point. Begins with the recognition of stress symptoms and continues with actions to maintain a positive performance edge. Organizational Behavior: Chapter 19

How does stress affect people at work? Wellness. Personal wellness involves the pursuit of one’s physical and mental potential through a personal health promotion program. Recognizes individual responsibility for maintaining and enhancing one’s physical and mental health. Organizational Behavior: Chapter 19