1. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-1 13

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-2 Fundamentals of Changing an Organization Changing an Organization (Organizational Change): is the process of modifying an existing organization to increase organizational effectiveness( the extent to which organization accomplishes its objectives). What is affected by change in an organization? These modification can involve virtually any organizational segment, but effect the lines of organizational authority, the levels of responsibility held by various organizational members, and the established lines of organizational communication.

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-3 Fundamentals of Changing an Organization What are the drives of change in an organization? Change is driven by new technology, expanding global opportunities, and organizational streamlining. The Importance of Change: Organization must change continually in response to significant developments in the environment, such as changing customers needs, technological changes, and new government regulations. (these are also drives of change) Change is a fundamental (basic) part of organizational existence.

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-4 Fundamentals of Changing an Organization Managers who can determine appropriate changes and then implement such changes successfully enable their organizations to be more flexible and innovative, leading to organizational success. Many mangers encourage employee to continually search for areas in which beneficial changes can be made. (For example, GM provides employees with a ‘think list’ to encourage them to develop ideas for organizational change and to remind them that change is vital to the continued success of GM. (see page 337) )

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-5 Fundamentals of Changing an Organization Change Versus Stability: ( see figure 14.1) In addition to organizational change, some degree of stability is a prerequisite (needed) for long term organizational success. Change and stability are important to organizational survival.  The organizational survival and growth are most probable when both stability and adaptation are high within the organization (number 3 on the model).  The organization without enough stability to complement change is at a definite disadvantage.  Change after change without regard for the essential role of stability typically results in confusion and employee stress.

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-6 Fundamentals of Changing an Organization Adaptation ~ Change

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-7 Factors to Consider When Changing an Organization This figure is for your own information only

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-8 Change and Stress Stress: The bodily strain that an individual experiences as a result of coping with some environmental factor Stress: constitutes the factors affecting wear and tear on the body. Any change may be creating stress. Very high level of stress, make organizations less effective The Importance of Studying Stress: (read the book P:346) Damaging psychological and physiological effects… Major cause of employee absenteeism and turnover… Can affect the safety of other workers or even the public… A very significant cost to organizations…

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-9 Change and Stress - Managing Stress in Organizations Managing Stress in Organizations (3 steps): 1. Understanding How Stress Influences Worker Performance The manager must understand the relationship between the amount of stress felt by a worker and the worker’s performance. Extremely high and extremely low levels of stress tend to have negative effects on production (decrease production/performance of workers) In sum, a certain amount of stress among employee is generally considered to be advantageous for organization because it tends to increase production

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-10 Change and Stress - Managing Stress in Organizations 2. Identifying Unhealthy Stress in Organizations Observable symptoms of undesirably high stress levels: Constant fatigue Low energy Moodiness Increased aggression Excessive use of alcohol Temper outbursts Compulsive eating High levels of anxiety Chronic worrying High blood pressure Pounding heart Gastrointestinal disorder

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-11 Change and Stress

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-12 Change and Stress - Managing Stress in Organizations 3. Helping Employees Handle Stress A Stressor: is an environmental demand that causes people to feel stress When do they face stressors? when their usual behaviors are inappropriate or insufficient and where negative consequences are associated with their actions Strategies to Prevent Initial Development of Unwanted Stressors: 1. Create an organizational climate that is supportive of individuals 2. Implement stress management courses 3. Make jobs interesting 4. Design and operate career counseling programs