Managing Change and Stress

Managing Change and Stress
With change going on all around us at an ever increasing pace, organizations need managers who can successfully implement organizational change and manage the stress associated with organizational change. Chapter 18, our final chapter in this course, addresses both topics. McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

Ch. 18 Learning Objectives
Discuss the external and internal forces that create the need for organizational change. Describe Lewin’s change model and the systems model of change. Discuss Kotter’s eight steps for leading organizational change. Define organizational development and explain the OD process. Explain the dynamic model of resistance to change. Objective 1 covers the forces that create the need for organizational change. Objectives 2, 3, and 4 identify models of planned change. Objectives 5, 6, and 7 identify issues related to resistance to change.

Ch. 18 Learning Objectives
Discuss the key recipient and change agent characteristics that cause resistance to change. Identify alternative strategies for overcoming resistance to change. Define the term stress, and describe the model of occupational stress. Discuss the stress moderators of social support, hardiness, and Type A behavior. Discuss employee assistance programs (EAPs) and a holistic approach toward stress reduction. Objectives 8, 9, and 10 examine ways managers can better manage the stress associated with organizational change.

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 Change comes about as a result of many internal and external factors and sometimes these factors work together to promote change. Let’s explore each of these external and internal forces in more detail.

Forces that Stimulate Change in Organizations
External forces that stimulate change: Demographic characteristics Technological advancements Shareholder, Customer, and Market changes Social and political pressures You may recall our discussion in Chapter 2 of the demographic changes occurring in the U.S. workforce--more diversity, higher education levels, aging workforce, and the like. The emphasis in that chapter is repeated here: it is critically important that organizations effectively manage diversity if they are to receive maximum contribution and commitment from employees. With organizations increasingly using technology to improve productivity and competitiveness, technological advances are probably one of the biggest forces for change. Market changes, whether it’s a recession or incredible growth, require companies to respond quickly. Capital One says “Change is constant”; Dell also uses the phrase “the speed of Dell” to characterize their fast-paced, rapidly changing environment. The emergence of a global economy is forcing companies to create cooperative partnerships with suppliers and unions. New opportunities emerging from the European Union and growth of the Chinese economy, for example, are examples of forces of change. Social and political pressures—world politics, wars, corporate scandals, 9/11—create the need for change because so many facets of our economy are interrelated and thus are affected. Examples include the airline industry, limited ability for acquiring foreign talent due to visa restrictions, and regulatory and justice department action such as the Sarbanes Oxley act as a result of the collapse of Enron. In addition to these forces that exist outside of the organization, there are several forces that come from within the organization that also cause change as we will see in the discussion that follows.

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 Human resource problems and managerial behavior and decisions often stimulate change in organizations. Human resource problems stem from workers’ perceptions about how they are being treated at work and the match between individual and organization needs and desires. Job dissatisfaction and unusual levels of absenteeism and turnover are symptoms of underlying problems that necessitate change. Managerial behavior, such as excessive interpersonal conflict between employees and managers and decisions such as those that create inequitable reward systems, can be a driving force behind high turnover, strikes, absenteeism, sabotage, communication and decision-making breakdowns, reorganizations, and unhealthy competitiveness within organizations. All of these are indicators that organizations need to make changes.

Types of Organizational Change
Radically Innovative Change Adaptive Change Innovative Change Once we know change is needed, we next need to determine what kind of change is needed. This generic list of the types of change is best to think of as falling along a continuum. Adaptive change is lowest in complexity, cost, and uncertainty. It involves reimplementation of a change in the same organizational unit at a later time or imitation of a similar change by a different unit. For example, public accounting firms are extremely busy from about mid-January until the end of March. The organization changes to adapt to these needs by working incredibly long extended hours. Many employees work 22 hours straight, go home to shower and then come back again. This is part of the organization’s culture and it is planned for every year. Innovative changes fall midway on the complexity, cost, and uncertainty continuum. Unfamiliarity, and thus greater uncertainty, make fear of change a problem with innovative changes. So with public accounting, an innovative change may be to hire contingent workers during this time period. These would be temporary professionally qualified people hired to enable the organization to meet its demands. This is a practice commonly done in other organizations but may be new to public accounting. At the far right where complexity, cost, and uncertainty are the highest are radically innovative changes. These are the most difficult to implement and are the most threatening. For example, from Wal-Mart had tremendous increases in sales, high profits, and lower prices. It accomplished this by implementing an operational innovation called cross-docking in which the goods trucked to a distribution center from suppliers are immediately transferred to trucks bound for stores without ever being placed into storage. This led to lower inventory levels and operating costs and therefore lower prices. Resistance to change increases as changes go from adaptive, to innovative, to radically innovative. Reintroducing a familiar practice Introducing a practice new to the organization Introducing a practice new to the industry Low High Degree of complexity, cost, and uncertainty Potential for resistance to change

Lewin’s Change Model Changing Refreezing Unfreezing
Creates the motivation to change Benchmarking Data Financial data, emerging trends Kurt Lewin developed a three-stage model of planned change which explained how to initiate, manage, and stabilize the change process. The aim of the unfreezing stage is to create the motivation to change. At this stage, individuals are encouraged to replace old behaviors and attitudes with the new desired behaviors and attitudes. The could be brought about, for example, by comparing your firm with a major competitor and finding out they are more efficient, more profitable, and more successful at retaining talented employees. The changing stage involves learning new information, models, or perspectives to help employees embrace new preferred concepts or points of view. Strategies used are to offer employee development seminars and other types of training or to hire different people to perform certain functions within the organization. Change is stabilized during refreezing by helping employees integrate the changed behavior or attitude into normal procedures. This is really the follow-up to training to make sure that employees are using what they’ve learned through seminars, training classes, and new people and perspectives. Five assumptions of Lewin’s Change Model are as follows: The change process involves learning something new, as well as discontinuing current attitudes, behaviors, and organizational practices. Change will not occur unless there is motivation to change. People are the hub of all organizational changes. Resistance to change is found even when the goals are highly desirable. Effective change requires reinforcing new behaviors, attitudes, and organizational practices. 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

A Systems Model of Change
Target Elements of Change Organizing Arrangements Inputs Outputs Internal Strengths Weaknesses External Opportunities Threats Internal Organizational level Department/ group level Individual level Social Factors Strategy Goals People The four main components of the systems model of change are inputs, strategic plans, target elements of change, and outputs. In addition to providing a framework for diagnosing what to change and how to evaluate the success of a change effort, the systems model of change is based on the notion that all change—no matter how large or small—has a ripple effect throughout the entire organizational system. Methods

Kotter’s Eight Steps for Leading Organizational Change
Table 18-1 Kotter’s Eight Steps for Leading Organizational Change Step Description Unfreeze the organization by creating a compelling reason for why change is needed Establish a sense of urgency Create a cross-functional, cross-level group of people with enough power to lead the change Create the guiding coalition Create a vision and strategic plan to guide the change process Develop a vision and strategy Create and implement a communication strategy that consistently communicates the new vision and strategic plan Communicate the change-vision John Kotter, an expert in leadership and change management, identified ineffective leadership of change efforts as being the main cause of failed change initiatives. Therefore, he proposed an eight-step process for leading change as outlined on this slide and the next.

Kotter’s Eight Steps for Leading Organizational Change
Table 18-1 Kotter’s Eight Steps for Leading Organizational Change Step Description Eliminate barriers to change, use target elements of change to transform the organization Empower broad-based action Plan for and create short-term “wins” or improvements Generate short-term wins 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 Consolidate gains and produce more change [No narration required.] Reinforce the changes by highlighting connections between new behaviors and processes and organizational success Anchor new approaches in the culture

Organizational Development
Organizational Development a set of techniques or tools that are used to implement organizational change Organization development provides a much broader perspective of change than any of the models we’ve discussed so far in that it consists of planned efforts to help individuals work and live together more effectively, over time, in their organizations. The goal is for an organization to improve itself as a humane and effective system. OD applies behavioral science principles, methods, and theories adapted from the fields of psychology, sociology, education, and management to help it achieve its goals.

How OD Works How organizational development works
Diagnosis: What is the problem and it’s causes – could you variety of data gathering techniques such as interviews, surveys, observation, etc. Intervention: What can be done to solve the problem? – determine the treatment that will actually address the cause of the problem Evaluation: Is the intervention working? – develop measures and metrics to monitor the impact of the change Feedback: What does the evaluation suggest about diagnosis and effectiveness of how the intervention was implemented?

Test Your Knowledge Which of the following would be considered an effective organization development approach? A manager decides to move everyone’s office around for “something different” An HR department decides to restructure the performance management process affecting every employee. They decide not to bother top management during the decision process. An experienced OD consultant reorganizes an American company with great success. He plans on executing the same plan in a Chinese company. Top management and OD consultants work together to create a more participative decision-making culture. Which of the following would be considered an effective organization development approach? A manager decides to move everyone’s office around for “something different” An HR department decides to restructure the performance management process affecting every employee. They decide not to bother top management during the decision process. An experienced OD consultant reorganizes an American company with great success. He plans on executing the same plan in a Chinese company. Top management and OD consultants work together to create a more participative decision-making culture. Answer: D A – short-term change, no measure of positive outcome B – any OD effort needs top and line management support, especially for a PM process where each manager needs to embrace the system. C – OD consultants need to be aware of cultural differences and not expect to be able to make the exact same types of process changes in different companies or cultures. D – Top management support, long-term change, focused on the culture.

Why People Resist Change in the Workplace
An individuals’ predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security The reasons employees resist change are listed on this and the next slide. We know that related to individual predisposition, some people are more prone to adapt to change than others. This characteristic of adaptability comes from past experiences with change and an overall optimism or cynicism that an individual may have. The individual’s frame of reference or specific situation will determine the extent to which he or she will embrace the change. Also, most of us would agree that we just prefer things that are familiar and that it’s hard to break a habit even if it would be good for us. With fear of the unknown, individuals are not sure the change will work to their advantage and that it will be good for them. A climate of mistrust can be caused by a lack of information. When people don’t understand the need or reason for the change, they will be less likely to embrace it. Also, if the change seems arbitrary, unreasonable, or for self-serving reasons, it may cause resentment towards the person who is initiating it. The concerns of the people whose lives are being changed is a major factor in getting it done well. The last reason listed on this slide addresses the basic human desire not to lose power that an organizational change might cause. In addition, the structure and norms of behaviors within and across functional areas may be upset causing a new set of relationships that need to be developed. If norms are very ingrained and the organizational change influences these norms, people will resist the change because predictable modes of behavior become unpredictable. In other words, people knew how to get things done and now that has changed. This is similar to when the tribes merge on the reality television show Survivor, all new alliances and power changes occur and relationships people have worked hard to build are threatened by new players.

Why People Resist Change in the Workplace
Peer pressure Disruption of cultural traditions and/or group relationships Personality conflicts Lack of tact and/or poor timing Nonreinforcing reward systems Past success Peer pressure occurs when people you work with are resistant to change, and it may be hard to behave differently without harming the relationship with them. If the personality of the change agent conflicts with the receiver of change, it can be an obstacle. Nonreinforcing reward systems relate to the fact that when the “what’s in it for me” is not made clear, people are more more likely to resist. Therefore, it’s important to identify how the change will have value to the organization and to individual employees. Finally, past success can breed complacency so people don’t feel the motivation to change.

Causes of Resistance to Change
Realize that acts from targets of change that appear to indicate resistance may really just be honest questions worth considering and responding to. These acts of “resistance” can be used to make the end state of the change even better.

Overcoming Resistance to Change
Approach Commonly Used in Situations Where: Advantages Drawbacks 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 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 Outlined on this and the next slide are six strategies for 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

Overcoming Resistance to Change
Table 18-3 Approach Commonly Used in Situations Where: Advantages Drawbacks 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 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 [No narration required.] 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

Your Experience I feel stress in my life.
For the following questions use this scale: 1=Strongly Disagree, 3= Neutral, 5=Strongly Agree I feel stress in my life. I feel stress from family obligations/relations. School is a source of stress in my life. My job is causes me to feel stressed. I feel stress from world events. As we shift our focus to the topic of managing stress, think about your responses to these five statements.

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 Stress is defined as a behavioral, physical, or psychological response to stressors; and stressors are environmental factors that produce stress. Many researchers have studied the impact of stress on individual and organizational health. Hans Selye noted that stress can be caused by both positive and negative events in one’s life and both types of events can have the same physical and psychological impact. For example, having a new baby, starting a new job, or buying a new house are positive events but can significantly increase one’s stress at the same levels as the loss of a loved one, difficulties at work, or financial problems. The stress that is good or produces a positive outcome is referred to as eustress.

Occupational Stress Potential Stressors Outcomes Individual Level
Psychological/ Attitudinal Group Level Behavioral Cognitive Appraisal Coping Strategies Moderators Organizational Level Cognitive The four major types of stressors are Individual, those directly associated with job duties, such as role ambiguity or overload, eye strain from computers, or freezing from being a snow plow operator in sub-zero temperatures. Group, which are caused by group dynamics or managerial behavior. Organizational, which are caused by factors associated with, for example, the organizational culture; and Extra-organizational, those factors outside the organization such as work/family balance issues or socioeconomic status. Stress is inevitable; therefore, the goal is to minimize the negative impact of stress on our physical and mental health. Developing coping strategies will be discussed on the next slide. Extraorganizational Level Physical Stress

Stressors Cognitive Appraisal of Stressors Coping Strategies
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 Cognitive appraisal of stressors reflect an individual’s overall perception or evaluation of a stressor. The control coping strategy directly confronts or solves problems. The escape strategy avoids or ignores stressors and problems. And symptom management focuses on reducing the symptoms of stress.

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? An awareness of moderators helps managers identify those who are more likely to experience stress and negative outcomes. Several strategies have been shown to decrease the impact of stress. They include eating well, exercising, not over committing yourself, and planning ahead so that you, for example, are not left at the end of the semester with several papers and assignments to do that you could have taken care of earlier.

Social Support Social Support amount of helpfulness derived from social relationships Hardiness personality characteristic that neutralizes stress Three important moderators are social support, hardiness, and Type A behavior. Four types of social support are Esteem support, showing that a person is accepted and respected despite any problems or inadequacies. Informational support, providing help in defining, understanding, and coping with problems. Social companionship, spending time with others in leisure and recreational activities. And instrumental support, providing financial aid, material resources, or needed services. Three personality dimensions contribute to hardiness. Commitment, having a sense of purpose and not giving up under pressure. Internal locus of control. When we believe that we influence the events that affect our lives, we tend to develop proactive coping strategies. And challenge, where change is perceived as an opportunity for growth and development, and not as a threat.

Type A Behavior Pattern
Type A Behavior Pattern aggressively involved in a chronic, determined struggle to accomplish more in less time Before proceeding, you may wish to complete the OB Exercise on p. 606 to learn where you fall on the Type A continuum.

Type A Characteristics
Table 18-3 Type A Characteristics Hurried speech; explosive accentuation of key words Tendency to walk, move, or eat rapidly Constant impatience with rate at which most events take place Strong preference for thinking of or doing two or more things at once Tendency to turn conversations around to personally meaningful subjects or themes Ten Type A characteristics are outlined on this and the following slide.

Table 18-3 Type A Characteristics Tendency to interrupt while others are speaking to maker your point or to complete their thought in your own words. Guilt feelings during periods of relaxation or leisure time. Tendency to be oblivious to surroundings during daily activities Greater concern for things worth having than with things worth being. Ten Type A characteristics are outlined on this and the following slide.

Table 18-3 Type A Characteristics Tendency to schedule more and more in less and less time; a chronic sense of time urgency Feelings of competition rather than compassion when faced with another Type A person Development of nervous tics or characteristic gestures A firm belief that success is due to the ability to get things done faster than the other guy A tendency to view and evaluate personal activities and the activities of other people in terms of “numbers” [No narration required.]

Stress-Reduction Techniques
Table 18-4 Stress-Reduction Techniques Technique Description Uses slow deep breathing and systematic muscle tension reduction. Muscle Relaxation A machine is used to train people to detect muscular tension; muscle relaxation is then used to alleviate this symptom of stress Biofeedback 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 Meditation Irrational or maladaptive thoughts are identified and replaced with those that are rational or logical. Cognitive Restructuring We conclude the chapter with stress-reduction techniques that can help anyone experiencing stress, including Type A people who need help pacing themselves more realistically and achieving better balance in their lives. Each approach has advantages and disadvantages. Muscle relaxation is inexpensive and easy to use but may require a trained professional to implement. Biofeedback is expensive due to costs of equipment; however, the equipment can be used to evaluate effectiveness of other stress-reduction programs. Meditation is the least expensive, is simple to implement, and can be practiced almost anywhere. Cognitive restructuring is expensive because it requires a trained psychologist or counselor. Holistic wellness requires inexpensive but often behaviorally difficult lifestyle changes. An interdisciplinary approach that goes beyond stress reduction by advocating that people strive for personal wellness in all aspects of their lives Holistic wellness

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? Biofeedback Muscle relaxation Meditation Cognitive restructuring 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? Biofeedback Muscle relaxation Meditation Cognitive restructuring Answer C: She can do it alone and it’s inexpensive. The other options typically require a professional to help implement.

Managing Change and Stress Supplemental Slides
The following set of slides has been developed in close collaboration with the authors of the text to provide instructors with additional material for class lectures. In most cases, the material is not discussed in the text, and includes updated sources and relevant examples to accompany text information.

Health Care Collapse US – 17.6% UK – 7.6%
% of GDP spent on health care US – 17.6% UK – 7.6% 19% of US employers are planning to drop their health care coverage 4% already have 38% question their ability to in the long term Over 50% do not support current system Need a viable alternative Source: Workforce Management, 4/20/2009 % of GDP spent on health care US – 17.6% UK – 7.6% US competitors spend significantly lower portion of GDP on health care and remain free to direct substantial resources to restoring economic growth. UK’s health care system covers all residents at higher standards of care than the US system. Hewitt reports that: 19% of US employers are planning to drop their health care coverage 4% already have 38% question their ability to in the long term Over 50% do not support current system Source: Workforce Management, 4/20/2009 18-33

advocate a new direction
Change Agents Have to have power to advocate a new direction hire promote reward Source: Welch, J. & Welch, S. What Change Agents are Made of, BusinessWeek, 10/20/08 Jack and Suzy Welch discuss the characteristics of change agents in organizational settings. They suggest that to be truly transformative, a change agent has to have power. Change has to be driven by managers who have a platform to advocate for a new direction and the ability to hire, promote, and reward those who embrace it. Source: Welch, J. & Welch, S. What Change Agents are Made of, BusinessWeek, 10/20/08 18-34

Change Agents They must be leaders but also must have:
But must be leaders who have a vision of future the courage to bet their careers a core set of fervent supports Source: Welch, J. & Welch, S. What Change Agents are Made of, BusinessWeek, 10/20/08 Jack and Suzy Welch discuss the characteristics of change agents in organizational settings. They must be leaders but also must have: A vision that is compelling and is a future no one else sees Courage enough to bet their careers – willingness to take bold action and accept the consequences They have to be able to motivate others along the path – they are not “lone rangers”. Have to have a core of supporters “True change agents have a track record of seeing around corners, and their visions of the future will not let them rest.” Jack and Suzy Welch The reward is either organizational survival or expansion and growth plus the intrinsic satisfaction of working to make a real change that impacts consumers and organizational members. Source: Welch, J. & Welch, S. What Change Agents are Made of, BusinessWeek, 10/20/08

Organizational Decline
Keep Building Invest in the future Communicate Intensively Have regular sessions to plan and discuss “what if” scenarios Evaluate Your Customers Identify your high-risk customers No Across the Board Cuts Align spending cuts with your strategy Source: Charan, R. Ram’s Rules, Fortune, February 18, 2008 This article discusses strategies for handling organizational decline due to a poor economy or other strategic blunder. Here are four tips for making it through the downturn stronger: Keep Building – it is tempting to cut “discretionary spending” in tough times but don’t put product development, innovation, and brand building in that category. Don’t sacrifice the future for a slightly more comfortable present because that will result in further decline when the economy does improve. For example, Merck Pharmaceuticals was suffering from a falling stock price and flat revenues because several of their medicines were no longer going to be patented. So he decided to increase investment in R&D from 12% to 20% in 2004. The CEO, Ray Gilmartin, stated that it’s important to stay true to your core values and research excellence was one of Merck’s. Communicate intensively – people want to know what is going on and can take the bad news if you are being honest. One strategy to ensure you are heading in the right direction is to meet regularly to discuss different scenarios and how the company would respond to each – this is analogous to disaster planning for hurricanes or earthquake. Figure out what you would do and you’ll end up putting people more at ease and able to cope if they do happen. Evaluate your customers – identify your higher-risk, cash-poor customers and decide what the risk is in continuing to serve them Just say no to across the board cuts – when it’s necessary to cut costs do it in a way that is aligned with your core strategy and has a purpose. May not be fair but is necessary at times to keep your organization strong and viable for the long term. Source: Charan, R. Ram’s Rules, Fortune, February 18, 2008

Personal Change Management
When facing change you may choose to: Embrace it as an opportunity to grow and improve Try to ignore it Fight it Become angry and upset Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 This article discusses strategies with handling change at an individual level. Change is inevitable and may be unanticipated but the more flexible, adaptable, and resilient you are the easier the change will be to manage. Even when the change is something you sought, there may still be a sense of loss that you feel. When facing change you may choose to: Embrace it as an opportunity to grow and improve Try to ignore it Fight it Become angry and upset Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 18-37

Phases of Change 1. Denial 2. Sadness 3. Resistance
trouble accepting the inevitable 2. Sadness realization of the things you’ll miss 3. Resistance sense of turmoil Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 Phases of Change In order to meet change head-on you need to understand what you are feeling and why. Then take steps to move forward. Common phases of change are: Denial – trouble accepting the inevitable Sadness – realization of the things you’ll miss Resistance – may have a sense of turmoil and think of the impact on you and your family Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 18-38

Phases of Change (con’t)
4. Exploration begin to research the new reality to make yourself more comfortable 5. Acceptance consider the positive aspects of the change Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 Phases of Change In order to meet change head-on you need to understand what you are feeling and why. Then take steps to move forward. Common phases of change are: Exploration – begin to consider and research the new reality to make yourself more comfortable Acceptance – consider the positive aspects of the change Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 18-39

Phases of Change (con’t)
Remain Objective Knowing these phases helps you keep perspective, talk to others if you feel yourself backsliding into earlier stages Stay Positive Focus on the impact on others and trying to help them Stay Accountable for Outcomes Focus on your work, prioritize, problem solve Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11 Remain Objective knowing these phases helps you keep perspective, talk to others if you feel yourself backsliding into earlier stages Stay Positive Focus on the impact on others and trying to help them Stay Accountable for Outcomes Focus on your work, prioritize, problem solve Consider how the change will affect everyone else and work to help them, this will help you stay objective. Focus on the future and that the pain from the change will be temporary. Stay positive and upbeat. 18-40 Source: Evenson, R. Prepare yourself: Like it or not, change is coming! Supervision, February, 2009, pg. 8-11

Money – Top Stressor Women were most likely to report feeling stress about finances (e.g., money, the economy, health problems, housing costs). 47% stay their stress has increased since last year and many reported stress-related physical and emotional symptoms. 48% admit overeating or eating unhealthy foods to manage stress; 18% report drinking and 16% report smoking. % who reported exercising or walking to manage stress was down from 50% last year to 47% this year. Source: Martin, S. Money is the top stressor for Americans, Monitor on Psychology, December 2008. This article describes a recent survey of Americans regarding what is causing them stress and how they are dealing with it. The data was collected in April, June and September, 2008. Women were most likely to report feeling stress about finances (e.g., money, the economy, health problems, housing costs). 47% stay their stress has increased since last year and many reported stress-related physical and emotional symptoms. 48% admit overeating or eating unhealthy foods to manage stress. 18% report drinking and 16% report smoking. % who reported exercising or walking to manage stress was down from 50% last year to 47% this year. Source: Martin, S. Money is the top stressor for Americans, Monitor on Psychology, December 2008. 18-41

Discussion Questions Discussion questions:
What strategies do you use to manage stress? Are some more effective than others? What are effective ways organizations can handle stress in an economic downturn? What are ineffective actions organizations might take? Discussion questions: What strategies do you use to manage stress? Are some more effective than others? What are effective ways organizations can handle stress in an economic downturn? What are ineffective actions organizations might take? You can make associations between the slides on organizational change and decline in this discussion. 18-42

Set aside 1 hour a day for administrivia
Time Saving Ideas Use Auto-reply tool to let people know when you will be returning s Set aside 1 hour a day for administrivia Come in an extra half-hour early before others arrive to get tasks done that require full attention Use your life and work purpose to be a beacon for what you do and how you spend your time Source: McGregor, J. Making Every Hour Count, BusinessWeek, September 2008 Readers of BusinessWeek offered their strategies for better time management Use Auto-reply tool to let people know when you will be returning s Set aside 1 hour a day for administrivia Come in an extra half-hour early before others arrive to get tasks done that require full attention Use your life and work purpose to be a beacon for what you do and how you spend your time 45% of those with BlackBerries or similar devices check their before they get dressed - poll of 721 office workers 8/2008 Source: McGregor, J. Making Every Hour Count, BusinessWeek, September 2008 18-43

Video Cases Louisville Slugger-Hillerich & Bradsby
Videos applicable to this chapter and available on the Organizational Behavior Video DVD, Volume One include: Louisville Slugger – Hillerich & Bradsby NOTE: Slides for the complete set of video cases on the Organizational Behavior Video DVD, Volume One can be found on the book’s website in the Instructor’s Resources. 18-44

Management in the Movies Gung Ho – “Not a good beginning”
It is the first day for the new Assan Motors employees. The employees are happy to be working again. Hunt Stevenson (Michael Keaton) has accepted the job of liaison between the Japanese management and the American workers. The plant manager, Kazihiro (Gedde Watanabe) is beginning the day with exercises and a speech about company loyalty. Questions Could Kazihiro have done anything differently to improve the transition? Are exercises and uniforms a necessary part of running a manufacturing facility? Was Stevenson effective in leading the workers to change? Relevant concepts Clan control Revolutionary change Overview This clip is a good example of resistance to change by employees. The new employees of Assan Motors are resistant to doing exercises, but are willing to accept the uniforms. Kazihiro (Gedde Watanabe) seems ill-prepared to manage American employees. He seems surprised that the new employees do not share his enthusiasm and willingness to do anything for Assan Motors. Students should discuss ways to better prepare employees for radical change. Discussion Questions Could Kazihiro have done anything differently to improve the transition? Kazihiro could have researched typical expectations of American employees and compared them to that of a typical Japanese employee. He should have communicated his expectations to the new employees as well as to the “employee liaison”, Hunt Stevenson (Michael Keaton) Are exercises and uniforms a necessary part of running a manufacturing facility? No, but they may be used for safety reasons and to build camaraderie. Was Stevenson effective in leading the workers to change? Certainly, in the short-term he convinced them to perform the exercises. It is unlikely they would be willing to buy in long term because he did not explain the benefits of exercise.

Tips for Exercising Regularly
Exercise early Stay close to home Combine work, family, and exercise time Mix exercise into your day Be committed Source: Doctor’s Orders: Ways to Work Exercise Into a Busy Day; Health Journal at Wall Street Journal, 1/9/07 The following are tips for increasing exercise in your daily life from doctors who are some of the busiest people around: Exercise early – in the morning you have more control over your time – less prone to emergencies or things that come up Stay close to home – try to use exercise videos or at-home equipment so time spent driving to a gym can be minimized Combine work, family, and exercise time – catch up on reading, brainstorm for a project, take bike rides with the family, walk during kid’s athletic events Mix exercise into your day – walk to a coworkers desk instead of asking a question via Be committed – the improvement of your health will be worth it Source: Doctor’s Orders: Ways to Work Exercise Into a Busy Day; Health Journal at Wall Street Journal, 1/9/07

The Process Audit To ensure long-term sustainability through effective business processes, organizations need: Process Enablers Enterprise Capabilities Source: The Process Audit, Hammer, M. (2007, April). Harvard Business Review When reengineering business processes companies should not limit their change effort to repackaging tasks, reassigning tasks, or focusing only on the workflow. Other key factors will impact whether or not the change effort is successful and those include the organizational culture, emphasis on teams and the customer, and developing reward systems that focus on the process as well as the outcomes. Author Michael Hammer describes a model for companies who want to ensure their processes are sustainable over time. There are two kinds of characteristics companies must develop: process enablers and enterprise capabilities Source: The Process Audit, Hammer, M. (2007, April). Harvard Business Review

The Process Audit Process Enablers Design Performers Owner
Infrastructure Metrics Enterprise Capabilities Leadership Culture Expertise Governance Source: The Process Audit, Hammer, M. (2007, April). Harvard Business Review There are two kinds of characteristics companies must develop: process enablers and enterprise capabilities “Process Enablers: Design: The comprehensiveness of the specification of how the process is to be executed Performers: The people who execute the process, particularly in terms of their skills and knowledge Owner: A senior executive who has responsibility for the process and its results Infrastructure: information and management systems that support the process Metrics: The measure the company uses to track the process's performance Enterprise Capabilities: Leadership: Senior executives who support the creation of processes Culture: The values of customer focus, teamwork, personal accountability, and a willingness to change Expertise: Skills in, and methodology for, process redesign Governance: Mechanisms for managing complex projects and change initiatives Companies can use their evaluations of the enablers and capabilities, in tandem, to plan and assess the progress of process-based transformations.” Source: The Process Audit, Hammer, M. (2007, April). Harvard Business Review

In Good Company Movie Clip
What factors are present in this scene that would prevent someone from presenting an alternative point of view? What risks did Dan Foreman take when he stood up to Teddy K? If your employee was the one to stand up, how would you respond? What do you think the impact of the dissention will be on Teddy K? the employees? Note: Instructors will have to obtain their own copy of “In Good Company” and show film clip; Scene 18 Teddy K is coming Set the scene…..Dan Foreman, Dennis Quaid, just got demoted after a long successful career as a sales manager. He works for Sports America Magazine. Topher Grace is his new boss (about half his age). Teddy K, billionaire who buys and sells companies regularly, is visiting the office with a “big announcement” forthcoming…… What factors are present in this scene that would prevent someone from presenting an alternative point of view? Strong pressure to nod in agreement with such a powerful person, celebrity status he is given as he walks in. What risks did Dennis Quaid take when he stood up to Teddy K? Risk being fired, humiliated in front of the whole group; being retaliated against If your employee was the one to stand up, how would you respond? Would you defend him, try to see both sides of the issue, disagree publicly? What would be at stake for you? What was the impact of the dissention on Teddy K? Teddy K stopped in the middle of his speech to reflect on Dan Foreman’s comments. He said the questions were good and left them to the employees to respond. He then walked off the stage. The employees? The employees looked shocked, but then thoughtful. If I had been there I believe they would have started chattering amongst themselves after Teddy K left the room. I think you would have seen a great deal of support from them….

Change Approaches Al “Chainsaw” Dunlap - Scott Paper, Sunbeam
Economic focus: Firms value financial return to stockholders using downsizing, layoffs, restructuring. Al “Chainsaw” Dunlap - Scott Paper, Sunbeam Focus on organizational capabilities: Firms value corporate culture, human capabilities, information feedback, measurements. Denny’s approach to achieving court-ordered change Some companies focus on change by making hard economic decisions to improve their profitability like downsizing, layoffs, restructuring – Like Chainsaw Al Dunlap at Scott Paper. His approach at Scott Paper was first and foremost consider your shareholders and do whatever you need to to drive the stock price up. He fired thousands of people, sold company assets; and the stock price exploded. He then sold the company to Kimberly-Clark at an inflated price. Within three months, Kimberly-Clark realized that the company wasn’t really worth what they purchased it for. It turned out that none of what Dunlap did was designed to build for the future, only sell off the present in the name of shareholder value. He then attempted to do the same thing at Sunbeam which turned out to be a big failure. This approach to change is likely to only have short-term benefits. Sunbeam had stacked retailers with more inventory than they could sell in a year, creating current sales to the detriment of future earnings. The highly efficient plants he closed in Mississippi, Tennessee, Texas, and Louisiana were replaced with plants in Mexico, where a less efficient labor force was willing to work for $1 per hour. And by the time the Sunbeam Board finally fired him, the stock had fallen to $12 a share. Today it is less than $5 a share. Others take more of an organizational approach to change that focuses on development of the corporate culture, human capabilities, information feedback, etc. (e.g., Denny’s). You’ll recall in our discussion of Denny’s that that change was effective because of the leadership from senior management, socially responsible reasons for change, a thorough and deliberate approach to change through diversity training and accountability. There are some situations where an economic focus is necessary but to do it successfully you have to focus on the organizational “soft” side also. For example, we were hired to facilitate an major change initiative for a collections call center which had economic purposes but instead of just going in and changing everything, we held organizational change sessions with the first-level and group managers to help them and their employees handle this change.

Reclaim Your Job Dealing with Multiple Demands Developing Resources
Establish your goals and priorities and stick to them Say “no” when you have to in order to stay on track Developing Resources Work within your limits but make your resources have big impact This will lay the foundation for acquiring future resources Exploiting Alternatives Don’t limit your choices Stay open to the variety of ways to pursue strategic objectives Taken from Harvard Business Review, March 2004, Reclaim Your Job, Sumantra Ghoshal and Heike Bruch, pg Many managers get caught up in responding to fires and saying yes to everyone and everything and begin to lose focus on what is really important, and how they can achieve their long-term goals. The authors provide tips for managers to “reclaim their jobs”. Dealing with Multiple Demands Establish your goals and priorities and stick to them Say “no” when you have to in order to stay on track Some managers thrive on having to be available and necessary for everyone else as though they are indispensable. When trying to please too many people, they end up failing and pleasing no one, not to mention becoming stressed out. The article suggests that you clarify your goals and ensure your efforts are moving towards those and say no to initiatives that will prevent you from achieving your goals. Saying no, is actually responded to well by managers and direct reports when it is clear that you need to stay on a critical path and not take on too much. Developing Resources Work within your limits but make your resources have big impact This will lay the foundation for acquiring future resources Many managers believe that they can’t do anything new, innovative, strategic because they don’t have the resources. Managers who take a “small wins” approach may find that they use their resources to make incremental impact it will result in much greater rewards and resources in the future. Exploiting Alternatives Don’t limit your choices Stay open to the variety of ways to pursue strategic objectives Managers need to seize opportunities and not become paralyzed by what may seem like insurmountable obstacles. Having Plan A, B, C and D is always a good idea so that if one plan fails there is another course of action to pursue that works toward achieving the strategic objective.

Smoking Affects Organizational Costs and Productivity
Smoking caused more than $157 billion in annual health-related losses, according to CDC The annual productivity cost is $1,760 per smoker in the US due to worker’s absence because of smoking-related illness or death. Smokers who work in smoke-free environment are more likely to quit smoking. Taken from HR Magazine, January 2005, pg. 34 Study: Smoking Ban Improved Air, Kathy Gurchiek Smoking caused more than $157 billion in annual health-related losses, according to CDC The annual productivity cost is $1,760 per smoker in the US due to worker’s absence because of smoking-related illness or death. Smokers who work in smoke-free environment are more likely to quit smoking.

Rational Approach to Change
Assumptions in a rational approach: Explanations and information should be carefully considered by recipients The benefits of change will be clear to them They should be easily persuaded to hold a positive attitude about change Changing the way employees think about change will change the way they feel about it Should have a domino effect on the person’s entire approach to change Notes: Topic: Organizational Change/emotional appeals to organizational change. Background: The process of using emotional appeals to promote significant changes is relevant to many organizations undergoing change. Organizations must continually cope with new situations in order to survive and prosper. The central challenge to managers then is coping with change. This requires moving through several stages and executing different tasks: Organizational diagnosis Planning Formulating a vision Communicating Persuading others Consolidating the change However, managers often fail at their greatest task: managing change effectively. One of the reasons employees might resist change is that managers rely to heavily on a rational approach and ignore the emotional aspect when managing change. (see slide above) In order to minimize or eliminate resistance—managers rely on the rational approach. Behind this approach lies the assumption that the employees’ reactions are guided solely by rational thought. Explanation and information should be carefully considered and processed by the recipients The benefits of the change plan should be clear to them Consequently they should be easily persuaded to hold a positive attitude toward the change Managers assume: Changing the way employees think will lead to changes in the way they feel about the change and the actions they will take toward the change Should have a domino effect on the person’s entire approach toward the change Although this view is valid on many occasions, there are many other situations where it does not work. In some cases, the cognitive, emotional and behavioral aspects of life are not harmonious. They may be independent of one another and in conflict. There are instances where employees heads will tell them one thing and their hearts another. Differing situations in which what employees think and feel may be in conflict---require an emotional approach to change (see next slide) Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Emotional Approach to Change
An emotional approach: Cognition and feelings are closely interrelated Sometimes cognition and feelings are in conflict When in conflict, affecting emotions will lead to cognitive facets to align with emotional ones Ignoring the emotional aspect of change and focusing only on rational will keep firm employees’ objection to the change Notes: Topic: Organizational Change/emotional appeals to organizational change. Emotional appeals can help: establish a sense of urgency for change deliver the vision to accomplish objectives form a powerful coalition of employees who embrace the change plan Emotional appeal is supported by an assumption that cognition and feelings are closely interrelated and sometimes in conflict. When there is a strong relation between cognitive and emotional facets, affecting the emotions will lead cognitive elements to align with them. However, when one’s emotions and cognitions are not in full congruence—ignoring the emotional aspect of change and focusing only on the rational one will keep firm employees’ emotional objection to the change. Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Communicating for Emotion
Use: Pictures Colors Music Taste Smell Atmosphere Pain Sensation Songs Emotional Processes Include: Happiness Anger Irritation Sadness Love Fear Relief Notes: Topic: Organizational Change/emotional appeals to organizational change. Feeling, thinking, and doing are sometimes are out of sync because they require very different forms of communication, creating communication barriers between them. The emotional facet understands and uses a fundamentally different means of communication including: Pictures Colors Voices Music Taste Smell Atmosphere Pain Sensation Aesthetic objects Songs It also includes identification with the individual and refers to the moral value of the change. Emotional processes include: Feelings of happiness Anger Irritation Sadness Love Fear Relief Emotions are very often not translated into semantic content. Instead, they are reflected in visceral or muscular activities. Emotions may rapidly mobilize and direct behavior. An emotional appeal might establish a connection between the change and the employee Emotional appeals can make a subject more familiar, are more easily memorized, and will consequently increase people’s involvement with the change. Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Methods for Affecting Emotions
Managers should consider: The key messages regarding change How the message is packaged Characteristics of change leaders Interaction of change leaders and employees Setting in which interaction takes place Notes: Topic: Organizational Change/emotional appeals to organizational change. To Tap the emotional aspect of human behavior, managers need to consider five factors: The core messages regarding the change how messages are packaged Characteristics of change leaders interaction of change leaders with their audience Setting in which the interaction with employees takes place Mangers should take into consideration the tension and anxiety the employees are experiencing about change. The emotions should be seen as tools used to connect with employees. At the same time a change program has to build excitement and anticipation. To achieve this, managers can deliver the message in a cheerful tone through trustworthy communicators in a pleasant environment of healthy day-to-day interaction. This might change resistance to support because managers will be engaging employees and listening to their needs. Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Key Messages Regarding Change
To appeal for change; use words with emotional connotation: Danger Loss Unpleasantness Risk To depict organization’s future; use words assoc. with optimism: Comfortable Convenient Success Progress Pleasure Relief Notes: Topic: Organizational Change/emotional appeals to organizational change. Messages should contain emotional arguments regarding change Emotional arguments: Address the positive and negative consequences employees might encounter Using words with emotional connotation such as: Danger, Loss, Unpleasantness, risk Depicts the future of the organization after the change has taken place Using words that contain positive connotation and encourage positive feelings: comfortable, convenient, success, progress, pleasure, relief, Portraying the organization after the change in vivid and rich detail Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Packaging the Message Messages should include: Pictures Slogans Music
Color Humor Notes: Topic: Organizational Change/emotional appeals to organizational change. Messages should include: Pictures Slogans Music Colors These are very effective as a means of catching attention and interest of people in organizations and creates a link between their emotions and change. Tunes and slogans might become part of the organizations culture Tools should be used cautiously and sensitively– these methods might not work in every organization’s culture. Humor The use of humor in communication will create a positive atmosphere and generate positive feelings within the organization. Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Characteristics of Change Leaders
Change Leaders Should Be: Moral and adhere to ethical standards Competent Knowledgeable Open Concerned Perceived as motivated by truth; not having vested interest in change Notes: Topic: Organizational Change/emotional appeals to organizational change. Messages should be given to employees from a credible likeable, and attractive source. Managers will be considered credible when their voiced messages are congruent with their actions Adhere to moral and ethical principles Competent Knowledgeable Open concerned Have to be seen as motivated to tell truth; not having interests in the change Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Interaction with Employees
Change Leaders Should: Treat their subordinates fairly and honestly Let them voice their concerns or objects Listen to their needs Sympathize with them Notes: Topic: Organizational Change/emotional appeals to organizational change. Change agents should treat their employees fairly and honestly letting them raise their objections and sympathizing with their needs If employees feel they are treated fairly, this might lower their resistance to change Source: S Fox and Y A Hamburger “The Power of Emotional Appeals in Promoting Organizational Change Programs,” Academy of Management Review, November 2001 pp

Employee Engagement & Organizational Change
Strategic Vision Business Success Model Values Strategic Vision Initiatives Business Success Model Stretch Goals Strategic Vision Individual Change Commitments Values Business Success Model Initiatives Values Stretch Goals Company Level Individual Change Commitments Initiatives Stretch Goals Notes: Topic Covered: Employee Engagement in Organizational Change According to the author, Robert Miles, a change is taking place between the organization and the employee. The old way of doing things was management as the predominant focus in business enterprise. This led to a long-line of corporate visionaries who simplified the organizational complexity inherited from past managerial generations; collapsed management layers and streamlined planning and decision processes. They cut out waste and enhanced productivity by embracing new technologies and reinventing business processes. However, the author also refers to this time as “the Age of Dilbert” – the age was full of a series of highly touted management programs that were not well-grounded, lacked staying power, fell miserably short on follow through to execution and alienated employees at all levels. This era was made infamous by cartoonist Scott Adams and his comic strip “Dilbert.” It depicted the life of employee as one constantly bombarded by a long-series of short lived management programs, many with dubious intentions. A change is taking place now—a shift from “The Age of Dilbert” to the “Age of the Employee.” The shift is leading to higher retention of a better defined set of employees with a potential for adding more value to the organization. If this retention is to be truly realized, the author suggests that at the core of the transformation for Age of Dilbert to Age of Employee is management’s ability to engage such employees, many who have been turned off by the Age of Dilbert and have become cynical and wary of management. Transforming from Age of Dilbert to Age of Employee Mangers launching corporate change must confront reality, develop a new strategic vision and business success model. The manager then has to translate that model into a few organization-wide initiatives (the author suggests only four to five) that are made up of business goals (performance outcomes) and cultural elements (organizational and people enablers). Management must also put forth a set of values or principles for those in the organization to aspire to, and guide decision making and behavior in the new changed organization. High Engagement Cascades Leaders make the launch of well-articulated plans easier when they engage all employees in high engagement cascades. The cascades create: understanding, dialogue, feedback and accountability. The cascades empower people to creatively align their jobs with the changes going on within the organization. What goes on in a high engagement cascade? The cascade stage is set by the executive leader Explains: the business realities Strategic vision Business success model Then members of the leadership team introduce all managers to each initiative using high-engagement principles: Teams of managers are created to enable them to learn about the vision, and stretch goals Spend time in dialogue translating these constructs into meaning and action for their own jobs Communicate with other teams to compare conclusions Teams draft a near-final set of team or job-level objectives to enable them to align their job behaviors with the initiatives The process is repeated for all four or five of the initiatives Then to complete the cascading process: Managers from each team meet with their individual direct reports Describe the objectives and demonstrate that they have a clear line back to the organization (slide above) Employees then complete the job level objectives The executive and business leaders have set a template with the organization’s goals—the cascade process then empowers managers and employees to creatively engage in the change process and take their own job risks in aligning their jobs and goals with those of the changing organization. Source: R Miles, “Beyond the Age of Dilbert: Accelerating Corporate Transformations by Rapidly Engaging all Employees,” Organizational Dynamics, Spring 2001, pp Manager Teams Level Individual Change Commitments Managers to Individuals Level 18-61

Personal accomplishment
A Model of Burnout Personal stressors Job & organizational stressors Emotional exhaustion Attitudinal & behavioral symptoms of burnout Depersonalization Notes: Topic Covered: Burnout The slide above represents a model of burnout. The fundamental idea underlying the model is that burnout develops in phases. The three key phases are emotional exhaustion, depersonalization, and feeling a lack of personal accomplishment As shown in the above slide, emotional exhaustion is due to a combination of personal stressors and job and organizational stressors. Personal Stressors High achievement expectations High organizational expectations Level of job involvement Job and Organizational Stressors Role overload Role conflict Duration, frequency, and intensity of interpersonal interactions Overtime, emotional exhaustion leads to depersonalization (a state of psychologically withdrawing from one’s job) this ultimately results in feeling unappreciated, ineffective, or inadequate. The added effect of these three phases leads to negative attitudinal and behavioral outcomes Attitudinal and Behavioral Symptoms of Burnout Negative attitudes Fatigue Frustration Helplessness Withdrawal from friends and socializing Source: Based in part on C L Cordes and T W Dougherty, “A Review and an Integration of Research on Job Burnout,” Academy of Management Review, October 1993, p by R Kreitner and A Kinicki Organizational Behavior 5th ed (Burr Ridge, IL: Irwin/McGraw-Hill, 2001) p. 597 Feeling a lack of Personal accomplishment

A Flow Model of Mechanisms of Social Support
Potential Stressful Event Support Perceived Perceived availability of support resources Support not perceived Purpose of support but not used and used Notes: Topic Covered: Dealing with Stress Social support is the amount of perceived helpfulness derived from social relationships. Social support is determined by both the amount quantity and quality of an individual’s social relationships. The above slide illustrates the mechanisms for social support. One’s support network must be perceived before it can be used. Support networks evolve from five sources: cultural norms, social institutions, companies, groups, or individuals. These groups provide the following types of support: Esteem support providing information that a person is accepted and respected despite any problems or inadequacies Informational support providing help in defining, understanding, and coping with problems Social companionship spending time with others in leisure and recreational activities Instrumental support providing financial aid, material resources, or needed services Perceived Ability of Support Resources Culture Social institutions Companies Groups Individuals If social support is perceived as available, an individual then decides whether to use it. Support is used for one or both of two purposes— Purpose of Support Global the total amount of social support available; very broad Functional Social Support sources that buffer stress in specific situations; when relied on in the wrong situation, functional support is not very helpful. After social support is engaged, its effectiveness can be determined. If consolation or relief is not experienced, it may be that the type of support was inappropriate. The feedback loop in the above slide from effect of social support back to perceived availability, reflects the need to fall back on other sources of support when necessary. Source: Portions adapted from S Cohen and T A Willis, “Stress, Social Support, and the Buffering Hypothesis,” Psychological Bulletin, September 1985, pp ; and J G Bruhn and B U Philips, “Measuring Social Support: A Synthesis of Current Approaches,” Journal of Behavioral Medicine, June, 1984, pp by R Kreitner and A Kinicki Organizational Behavior 5th ed (Burr Ridge, IL: Irwin/McGraw-Hill, 2001) pp Engage support Effect of social support on reducing stress and stress outcomes

A Model of the Coping Process
Situational factors Cognitive appraisal of stressor Coping Strategies Control Escape Symptom management Personal factors Harmful? Threatening? Challenging? Notes: Topic Covered: Stress Coping is the process of managing stress. The coping process has three major components: situational and personal factors, cognitive appraisals of the stressor, and coping strategies Both personal and situational factors influence the appraisal of the stressors, each appraisal directly influences the choice of coping strategies Situational Factors Environmental characteristics that affect how people interpret (appraise) stressors Personal Factors Personality traits and personal resources that affect the appraisal of stressors Cognitive Appraisal of Stressor Reflect an individual’s overall perception or evaluation of a situation or stressor. Result in a categorization of the situation as: Harmful Threatening Challenging Affect how people cope: Coping with harm usually means undoing something because damage is already done Threatening situations entail anticipatory coping—preparing for the harm to occur Challenge also activates anticipatory coping—however deals more with what can be gained rather than lost Coping Strategies Control- directly confronts or solves problems Escape- avoids or ignores stressors and problems Symptom management- focuses on reducing symptoms of stress Source: Portions adapted from S Cohen and T A Willis, “Stress, Social Support, and the Buffering Hypothesis,” Psychological Bulletin, September 1985, pp ; and J G Bruhn and B U Philips, “Measuring Social Support: A Synthesis of Current Approaches,” Journal of Behavioral Medicine, June, 1984, pp by R Kreitner and A Kinicki Organizational Behavior 5th ed (Burr Ridge, IL: Irwin/McGraw-Hill, 2001) pp

Mental Health Benefits
1 in 5 Americans will suffer from a mental disorder in the course of one year Approximately 18.8 million American adults suffer from depression Treatments costs run about $80 billion a year Mental illness causes more disability and loss of life than any other illness except heart disease Loss in productivity as a result is estimated at $80 billion a year Cost-effective treatments now exist for mental illness Notes: Topic: Stress According to the Surgeon General of the U.S. 1 in 5 Americans will suffer from a mental disorder in the course of a year. However, more than 80% of American employees and their families are facing tougher restrictions in terms of mental health benefits. Opponents to better mental health coverage are concerned with cost, however several studies suggest the costs could account for a less than 1% increase in health care costs. One of those studies was conducted by the RAND Corp. It was based on the study of 24 managed-care mental-health plans covering 140,000 people. The study concluded that the added cost of mental health coverage equal to other medical health coverage would be less than 1%. The demand for better mental health coverage is growing. Many companies have already opted to offer workers expanded mental health benefits. See above stats. Source: P Racburn “Mental Health: Better Benefits Won’t Break the Bank,” Businessweek, December 17, 2001 p. 110

Obese America Notes: Topic: Stress
International data shows Americans are fatter, do less strenuous exercise, and eat less healthful food than people from Australia, Britain, France and Japan. In the above slide the most recent figures are from either 1999 or 2000—a decade ago ranges from 1990 to The source: Organization for Economic Cooperation and Development Source: R Winslow and P Landers “Obesity: A World-Wide Woe” Wall Street Journal July 1, 2002 pp. B1 and B4

Conclusion Questions for discussion
You might consider the following questions for discussion: Which of the external forces for change do you believe will prompt the greatest change between now and the year 2015? Have you worked in an organization where internal forces created change? Describe the situation and the resulting change. How would you respond to a manager who made the following statement? “Unfreezing is not important, employees will follow my directives.” What are some useful methods that can be used to refreeze an organizational change? Have you ever observed the systems model of change in action? Explain what occurred. Have you ever resisted a change at work? Explain the circumstances and your thinking at the time. Which source of resistance to change do you think is the most common? Which is the most difficult for management to deal with? Describe the behavioral and physiological symptoms you have observed in others when they are under stress. How can someone increase their hardiness and reduce their Type A behavior? Have you used any of the stress-reduction techniques? Evaluate their effectiveness.

Managing Change and Stress

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