© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 18 18

Managing Change and Stress

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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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.

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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.

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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

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Forces that Stimulate Change in Organizations

External forces that stimulate change:

•Demographic characteristics

•Technological advancements

•Shareholder, Customer, and Market changes

•Social and political pressures

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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

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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

Low High

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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

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A Systems Model of Change

Organizing Arrangement

s

PeopleGoalsSocial

Factors

Methods

Target Elements of Change

Internal Strengths

WeaknessesExternal

Opportunities

Threats

Inputs

Internal Organizational

level

Department/

group level

Individual level

Outputs

Strategy

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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

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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

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Organizational Development

Organizational Development a set of techniques or tools that are used to implement organizational change

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How OD Works

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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.

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Why People Resist Change in the Workplace

1) An individuals’ predisposition toward change

2) Surprise and fear of the unknown

3) Climate of mistrust4) Fear of failure5) Loss of status

and/or job security

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Why People Resist Change in the Workplace

6) Peer pressure7) Disruption of cultural

traditions and/or group relationships

8) Personality conflicts9) Lack of tact and/or

poor timing10)Nonreinforcing reward

systems11)Past success

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Causes of Resistance to Change

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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

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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 andCo-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

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Your ExperienceFor 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.

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StressStress 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

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Occupational Stress

Potential Stressors Outcomes

Individual Level

Group Level

Organizational Level

Extraorganizational Level

Psychological/Attitudinal

Behavioral

Cognitive

Physical Stress

Cognitive Appraisal

Coping Strategies

Moderators

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StressorsCognitive 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

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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?

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Social Support

Social Support amount of helpfulness derived from social relationships

Hardiness personality characteristic that neutralizes stress

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Type A Behavior Pattern

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

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Type A Characteristics

1) Hurried speech; explosive accentuation of key words

2) Tendency to walk, move, or eat rapidly3) Constant impatience with rate at which most

events take place4) Strong preference for thinking of or doing two

or more things at once5) Tendency to turn conversations around to

personally meaningful subjects or themes

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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.

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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

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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

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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