1. © 2008The McGraw-Hill Companies, Inc. All rights reserved. Managing Change and Stress Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. 18-2 Ch. 18 Learning Objectives 1.Discuss the external and internal forces that create the need for organizational change. 2.Describe Lewin’s change model and the systems model of change. 3.Discuss Kotter’s eight steps for leading organizational change. 4.Define organizational development and explain the OD process. 5.Explain the dynamic model of resistance to change.

3. 18-3 Ch. 18 Learning Objectives 6.Discuss the key recipient and change agent characteristics that cause resistance to change. 7.Identify alternative strategies for overcoming resistance to change. 8.Define the term stress, and describe the model of occupational stress. 9.Discuss the stress moderators of social support, hardiness, and Type A behavior. 10.Discuss employee assistance programs (EAPs) and a holistic approach toward stress reduction.

4. 18-4 Forces of Change External Demographic Characteristics Technological Advancements Shareholder, Customer, and Market Changes Social and Political Pressures The Need for Change Internal Human Resource Problem/Prospects Managerial Behavior/Decisions

5. 18-5 Forces that Stimulate Change in Organizations External forces that stimulate change: Demographic characteristics Technological advancements Shareholder, Customer, and Market changes Social and political pressures

6. 18-6 Forces that Stimulate Change in Organizations Internal forces that stimulate change: Human resource problems High turnover Perceptions of unfair treatment Managerial Behavior/Decisions Excessive interpersonal conflict Inadequate direction or support

7. 18-7 Types of Organizational Change Adaptive Change Innovative Change Radically Innovative Change Reintroducing a familiar practice Introducing a practice new to the organization Introducing a practice new to the industry  Degree of complexity, cost, and uncertainty  Potential for resistance to change LowHigh

8. 18-8 Lewin’s Change Model  Changing –Provides new information, new behavioral models, or new ways of looking at things  Refreezing –Helps employees integrate the changed behavior or attitude into their normal way of doing things Unfreezing Creates the motivation to change Benchmarking Data Financial data, emerging trends

9. 18-9 A Systems Model of Change Organizing Arrangements People Goals Social Factors Methods Target Elements of Change Internal  Strengths  Weaknesses External  Opportunities  Threats Inputs Internal  Organizational level  Department/ group level  Individual level Outputs Strategy

10. 18-10 Kotter’s Eight Steps for Leading Organizational Change Create and implement a communication strategy that consistently communicates the new vision and strategic plan 4)Communicate the change-vision Create a vision and strategic plan to guide the change process 3)Develop a vision and strategy Create a cross-functional, cross-level group of people with enough power to lead the change 2)Create the guiding coalition Unfreeze the organization by creating a compelling reason for why change is needed 1)Establish a sense of urgency DescriptionStep

11. 18-11 Kotter’s Eight Steps for Leading Organizational Change Reinforce the changes by highlighting connections between new behaviors and processes and organizational success 8)Anchor new approaches in the culture The guiding coalition uses credibility from short- terms wins to create change. Additional people are brought into the change process as change cascades throughout the organization 7)Consolidate gains and produce more change Plan for and create short-term “wins” or improvements 6)Generate short-term wins Eliminate barriers to change, use target elements of change to transform the organization 5)Empower broad-based action DescriptionStep

12. 18-12 Organizational Development Organizational Development a set of techniques or tools that are used to implement organizational change

13. 18-13 How OD Works

14. 18-14 Test Your Knowledge Which of the following would be considered an effective organization development approach? a.A manager decides to move everyone’s office around for “something different” b.An HR department decides to restructure the performance management process affecting every employee. They decide not to bother top management during the decision process. c.An experienced OD consultant reorganizes an American company with great success. He plans on executing the same plan in a Chinese company. d.Top management and OD consultants work together to create a more participative decision-making culture.

15. 18-15 Why People Resist Change in the Workplace 1)An individuals’ predisposition toward change 2)Surprise and fear of the unknown 3)Climate of mistrust 4)Fear of failure 5)Loss of status and/or job security

16. 18-16 Why People Resist Change in the Workplace 6)Peer pressure 7)Disruption of cultural traditions and/or group relationships 8)Personality conflicts 9)Lack of tact and/or poor timing 10)Nonreinforcing reward systems 11)Past success

17. 18-17 Causes of Resistance to Change

18. 18-18 Overcoming Resistance to Change Can be very time consuming, expensive and still fail No other approach works as well with adjustment problems People are resisting because of adjustment problems Facilitation and Support Can be very time consuming if participators design an inappropriate change People who participate will be committed to the implementation of change The initiators do not have all the information they need to design the change & others have considerable power to resist Participation and Involvement Can be very time consuming if lots of people are involved Once persuaded, people will often help with implementation of change There is a lack of information or inaccurate information & analysis Education and Communication DrawbacksAdvantagesCommonly Used in Situations Where: Approach

19. 18-19 Overcoming Resistance to Change Can be very risky ad leave people mad at the initiators It is speedy and can overcome any kind of resistance Speed is essential and where the change initiators possess considerable power Explicit and Implicit Coercion Can lead to future problems if people feel manipulated It can be relatively quick and inexpensive Other tactics will not work or are too expensive Manipulation and Co-optation Can be too expensive in may cases if it alerts other to negotiate for compliance Sometimes it is a relatively easy way to avoid major change Someone or some group will clearly lose out in a change and where that group has considerable power to resist Negotiation and Agreement DrawbacksAdvantagesCommonly Used in Situations Where: Approach

20. 18-20 Your Experience For the following questions use this scale: 1=Strongly Disagree, 3= Neutral, 5=Strongly Agree 1.I feel stress in my life. 2.I feel stress from family obligations/relations. 3.School is a source of stress in my life. 4.My job is causes me to feel stressed. 5.I feel stress from world events.

21. 18-21 Stress Stress behavioral, physical, or psychological response to stressors Stress is not merely nervous tension Stress can have positive consequences Stress is not something to be avoided The complete absence of stress is death Stress is inevitable

22. 18-22 Occupational Stress Potential StressorsOutcomes Individual Level Group Level Organizational Level Extraorganizational Level Psychological/ Attitudinal Behavioral Cognitive Physical Stress Cognitive Appraisal Coping Strategies Moderators

23. 18-23 Stressors Cognitive Appraisal of Stressors Primary Appraisal determining whether a stressor is irrelevant, positive, or stressful Secondary Appraisal assessing what might and can be done to reduce stress Coping Strategies Control Escape Symptom management

24. 18-24 Moderators of Occupational Stress Moderators variables that cause the relationships between stressors, perceived stress and outcomes to be weaker for some and stronger for others What kinds of things may moderate or affect the impact of stress?

25. 18-25 Social Support Social Support amount of helpfulness derived from social relationships Hardiness personality characteristic that neutralizes stress

26. 18-26 Type A Behavior Pattern Type A Behavior Pattern aggressively involved in a chronic, determined struggle to accomplish more in less time

27. 18-27 Type A Characteristics 1)Hurried speech; explosive accentuation of key words 2)Tendency to walk, move, or eat rapidly 3)Constant impatience with rate at which most events take place 4)Strong preference for thinking of or doing two or more things at once 5)Tendency to turn conversations around to personally meaningful subjects or themes

28. 18-28 Type A Characteristics 6)Tendency to interrupt while others are speaking to maker your point or to complete their thought in your own words. 7)Guilt feelings during periods of relaxation or leisure time. 8)Tendency to be oblivious to surroundings during daily activities 9)Greater concern for things worth having than with things worth being.

29. 18-29 10)Tendency to schedule more and more in less and less time; a chronic sense of time urgency 11)Feelings of competition rather than compassion when faced with another Type A person 12)Development of nervous tics or characteristic gestures 13)A firm belief that success is due to the ability to get things done faster than the other guy 14)A tendency to view and evaluate personal activities and the activities of other people in terms of “numbers” Type A Characteristics

30. 18-30 Stress-Reduction Techniques Irrational or maladaptive thoughts are identified and replaced with those that are rational or logical. 4)Cognitive Restructuring The relaxation response is activated by redirecting one’s thoughts away from oneself; a four-step procedure is used to attain passive stress-free state of mind 3)Meditation A machine is used to train people to detect muscular tension; muscle relaxation is then used to alleviate this symptom of stress 2)Biofeedback Uses slow deep breathing and systematic muscle tension reduction. 1)Muscle Relaxation DescriptionTechnique An interdisciplinary approach that goes beyond stress reduction by advocating that people strive for personal wellness in all aspects of their lives 5)Holistic wellness

31. 18-31 Test Your Knowledge Lynn feels anxiety and stress everyday before going to work in anticipation of her daily tasks. She wants to find a way to reduce her stress that she can do alone and that is inexpensive. Which stress reduction technique would be best for Lynn? a.Biofeedback b.Muscle relaxation c.Meditation d.Cognitive restructuring