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Chapter Learning ObjectivesAfter studying this chapter, you should be able to:Identify forces that act as stimulants to change, and contrast planned and unplanned change.List the forces for resistance to change.Compare the four main approaches to managing organizational change.Demonstrate two ways of creating a culture for change.Define stress and identify its potential sources.Identify the consequences of stress.Contrast the individual and organizational approaches to managing stress.Explain global differences in organizational change and work stress.17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

Forces for ChangeNature of the WorkforceMore cultural diversity,increased immigeration and outsourcing,TechnologyFaster, cheaper, more mobile computers and handheld devicesEconomic Shocksfinancial sector collapse,recessionCompetitionGlobal marketplace,mergers,Social TrendsEnvironmental awareness and liberalization of attitudes towards gay, lesbian and transgender employeesWorld Politics USSR,SOCIALIST

17-*SEE E X H I B I T 17-1Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Planned ChangeChangeMaking things differentPlanned ChangeAn intentional, goal-oriented activityGoals of planned changeImproving the ability of the organization to adapt to changes in its environmentChanging employee behaviorChange AgentsPersons who act as catalysts and assume the responsibility for managing change activities17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Resistance to ChangeResistance to change appears to be a natural and positive reaction to change.Forms of Resistance to Change:Overt(open) and ImmediateVoicing complaints, engaging in job actionsImplicit(not directly) and Deferred(postpone)Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeismDeferred resistance clouds the link between source and reaction17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Tactics for Overcoming Resistance to ChangeEducation and CommunicationShow those effected the logic behind the changeParticipationParticipation in the decision process lessens resistanceBuilding Support and CommitmentCounseling, therapy, or new-skills trainingImplementing Change FairlyBe consistent and procedurally fairManipulation and CooptationSpinning the message to gain cooperationSelecting people who accept changeHire people who enjoy change in the first placeCoercionDirect threats and force

17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


The Politics of ChangeImpetus(The force or energy) for change is likely to come from external change agents, new employees, or managers outside the main power structure.Internal change agents are most threatened by their loss of status in the organization.Long-time power holders tend to implement incremental but not radical change.The outcomes of power struggles in the organization will determine the speed and quality of change.



Lewins Three-Step Change ModelUnfreezingChange efforts to overcome the pressures of both individual resistance and group conformity by increasing the driving force and decreasing the restraining forceMovingMoving from the status quo to the desired end stateRefreezingStabilizing a change intervention by balancing driving and restraining forces17-*SEE E X H I B I T 17-3Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Lewin: Unfreezing the Status QuoDriving ForcesForces that direct behavior away from the status quoRestraining ForcesForces that hinder movement from the existing equilibrium17-*E X H I B I T 17-4Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Kotters Eight-Step PlanA detailed approach to implementing change that is built on Lewins three-step model

To implement change:Establish a sense of urgencyForm a coalition (of people)Create a new visionCommunicate the vision Empower(authority) others by removing barriersCreate and reward short-term winsConsolidate(The merger of two or more ), reassess, and adjustReinforce the changes

17-*SEE E X H I B I T 17-5UnfreezingMovement RefreezingCopyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Action ResearchA change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicatesProcess steps:DiagnosisAnalysisFeedbackActionEvaluationAction research benefits:Problem-focused rather than solution-centeredHeavy employee involvement reduces resistance to change17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Organizational DevelopmentOrganizational Development (OD)A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-beingOD ValuesRespect for peopleTrust and supportPower equalizationConfrontation Participation



Six OD TechniquesSensitivity TrainingTraining groups (T-groups) seek to change behavior through unstructured group interactionProvides increased awareness of others and selfIncreases empathy with others, listening skills, openness, and tolerance for othersSurvey Feedback ApproachThe use of questionnaires to identify discrepancies among member perceptions; a discussion follows and remedies are suggestedProcess Consultation (PC)A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.



Six OD Techniques (Continued)Team BuildingHigh interaction among team members to increase trust and opennessIntergroup DevelopmentOD efforts to change the attitudes, stereotypes, and perceptions that groups have of each otherAppreciative InquiryInstead of looking for problems to fix, appreciative inquiry seeks to identify the unique qualities and special strengths of an organization, which employees can then build on to improve performance. This process comprises of four steps:Discovery: Recalling the strengths of the organizationDreaming: Speculation on the future of the organizationDesign: Finding a common visionDestiny: Deciding how to fulfill the dream17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Creating a Culture for Change: InnovationStimulating a Culture of InnovationInnovation: a new idea applied to initiating or improving a product, process, or service

Sources of Innovation:Structural variables: organic structuresLong managerial tenureSlack resourcesHigh degree of interunit communication

Idea Champions: Individuals who actively promote the innovation



Creating a Culture for Change: LearningLearning OrganizationAn organization that has developed the continuous capacity to adapt and changeCharacteristics Holds a shared visionDiscards old ways of thinkingViews organization as a system of relationshipsCommunicates openlyWorks together to achieve shared vision

17-*SEE E X H I B I T 17-6Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Creating a Learning OrganizationOvercomes traditional organization problems such as:FragmentationCompetitionReactiveness

Manage Learning by:Establishing a strategyRedesigning the organizations structureFlatten structure and increase cross-functional activitiesReshaping the organizations cultureReward risk-taking and intelligent mistakes



Work StressStressA dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and importantTypes of StressChallenge StressorsStress associated with workload, pressure to complete tasks, and time urgencyHindrance StressorsStress that keeps you from reaching your goals, such as red tapeCause greater harm than challenge stressors17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Demands-Resources Model of StressDemandsResponsibilities, pressures, obligations, and uncertainties in the workplaceResourcesThings within an individuals control that can be used to resolve demandsAdequate resources help reduce the stressful nature of demands17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Potential Sources of Stress Environmental FactorsEconomic uncertainties due to changes in the business cycleChange in business priorities due to changes in the political scenarioThreat to manpower requirement due to technological changes/innovationOrganizational FactorsTask demands related to the jobRole demands of functioning in an organizationInterpersonal demands created by other employeesPersonal FactorsFamily and personal relationshipsEconomic problems from exceeding earning capacityPersonality problems arising from basic disposition17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Consequences of StressStressors are additive: high levels of stress can lead to the following symptomsPhysiologicalHigh blood pressure, headaches, strokePsychological Dissatisfaction, tension, anxiety, irritability, boredom, and procrastinationGreatest when roles are unclear in the presence of conflicting demandsBehavioralChanges in job behaviors, increased smoking or drinking, different eating habits, rapid speech, fidgeting, sleep disorders



Not All Stress Is Bad: The Proposed Inverted-U Relationship Between Stress and Job Performance

Note: This model is not empirically supportedNot all stress is bad: some level of stress can increase productivityToo little or too much stress will reduce performance17-*E X H I B I T 17-8Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Managing StressIndividual ApproachesImplementing time managementIncreasing physical exerciseRelaxation trainingExpanding social support networkOrganizational ApproachesImproved personnel selection and job placementTrainingUse of realistic goal settingRedesigning jobsIncreased employee involvementImproved organizational communicationOffering employee sabbaticalsEstablishment of corporate wellness programs



Global ImplicationsOrganizational ChangeCultures vary in terms of beliefs in their ability to implement changeA cultures time orientation (long-term/short term) will affect implementation of changeReliance on tradition can increase resistance to changePower distance can affect how change is implemented in a cultureIdea champions act differently in different cultures

StressJob conditions that cause stress vary across culturesEvidence suggests that stress is equally bad for employees of all culturesHaving friends and family can reduce stress17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


Summary and Managerial ImplicationsOrganizations and the individuals within them must undergo dynamic changeManagers are change agents and modifiers of organizational cultureStress can be good or bad for employeesDespite possible improvements in job performance caused by stress, such improvements come at the cost of increased job dissatisfaction17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall17-*Copyright 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e


There are many things that force change in an organization such as the nature of the workforce, technology, competition, economic forces, social trends, and world politics.(c) 2008 Prentice-Hall, All rights reserved.*Organizations often face change that is unexpected and sudden but it can also be a purposeful decision that organizations undertake. There are ways to foster an environment that is able to adapt and change with the demands of the marketplace. Planned change is engaging in activities that are proactive and purposeful to improve the ability of the organization to handle change and to change employee behavior. Through this process change agents, those acting as leaders in the change process, are essential for successfully achieving the desired change.(c) 2008 Prentice-Hall, All rights reserved.*Whenever change is present, there is resistance to change. Individuals and groups become comfortable with things that are familiar, and change threatens the status quo. There are different ways that change is resisted by employees. It can be overt and immediate where complaints are voiced and people will fail to engage in job actions or perform negative actions that hinder productivity. It can also be implicit and deferred when employees lose their loyalty and their motivation. As the resistance is deferred, it becomes more difficult to find the link between the source and the reaction.(c) 2008 Prentice-Hall, All rights reserved.*There are many sources of resistance to change, as seen in the visual in this slide. It can take the form of individual resistance, such as fear of the unknown or security issues or organizational resistance such as threat to expertise, structural inertia, or limited focus of change.(c) 2008 Prentice-Hall, All rights reserved.*When managers face resistance to change there are some useful tactics they can utilize to help people overcome it. These tactics include education and communication, getting people to participate in the process, and building support and commitment. It can also include being sure to implement the change fairly by applying a consistent and fair process, using manipulation and cooptation to spin the message to gain cooperation or selecting people from the beginning who are more willing to accept change. Finally, a manager can resort to coercion, using direct threats and force to make people change. This is not often a good option.(c) 2008 Prentice-Hall, All rights reserved.*Change includes many political factors as the impetus for change is likely to come from outside those who are responsible for making the change happen. This can threaten those change agents within the organization and force them to implement incremental but not radical change. Embedded in the change dynamics will be the issue of power. Power struggles will have results that determine the speed and quality of change.(c) 2008 Prentice-Hall, All rights reserved.*Lewin offers a three-step model to help facilitate the change process. He sets forth that change efforts need to unfreeze individual resistance and group conformity to help them move forward and then you need to refreeze the changes by balancing driving and restraining forces. This will help to move people through the change process and solidify the desired behaviors/outcomes moving forward.(c) 2008 Prentice-Hall, All rights reserved.*In the unfreezing stage Lewin identifies driving and restraining forces. Driving forces are those that direct behavior away from the status quo. Restraining forces are those that hinder movement from the existing equilibrium.(c) 2008 Prentice-Hall, All rights reserved.*Kotter also offers a model to look at change that builds on the initial ideas of Lewin. He sets forth the following eight steps:

Establish a sense of urgencyForm a coalitionCreate a new visionCommunicate the visionEmpower others by removing barriersCreate and reward short-term winsConsolidate, reassess, and adjustReinforce the changes (c) 2008 Prentice-Hall, All rights reserved.*Action research is another theory about change that says that the change process is based on a systematic collection of data and then selection of a change action based on what the data tells you. The process would be to diagnose the situation, analyze the data, obtain feedback from the data, take action, and then evaluate. The benefits of this approach is that it focuses on the problem instead of jumping to the solution and it also gets employees involved, thereby reducing their resistance to change.(c) 2008 Prentice-Hall, All rights reserved.*Organizational development is an area of study that is set up to determine what an organization needs to improve their effectiveness and employee well being. Some organizational development values include respect for people, trust and support, power equalization, confrontation, and participation.(c) 2008 Prentice-Hall, All rights reserved.*There are six commonly used organizational development techniques. The first is sensitivity training that sets up groups that seek to change behavior through unstructured group interaction by providing an environment of increased awareness of others and of themselves. This increases their empathy, listening skills, openness, and tolerance for others.

The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for improvement.

Process consultation is the third technique. In this technique there is a consultant involved who gives the clients some insights into what is happening in the organization and helps to identify a process for improvement.(c) 2008 Prentice-Hall, All rights reserved.*The fourth technique is engaging in team building tools to increase trust and openness through increased interactions.

Intergroup development is an organizational development tool that attempts to change the attitudes, stereotypes, and perceptions that groups may have of each other.

Finally, the sixth commonly used technique is appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization which they then use to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision), and destiny (deciding how to fulfill the dream). (c) 2008 Prentice-Hall, All rights reserved.*Many organizations attempt to create a culture for change through encouraging innovation. There are many sources of innovation or the process of coming up with a new idea that helps to improve a current process, product or service. Innovation can occur through structural variables, long-tenured management, limitation in resources, or increased communication between units. For innovation to occur, there needs to be an idea champion who actively promotes the innovation. (c) 2008 Prentice-Hall, All rights reserved.*Learning is another key component of creating a culture for change. A learning organization is one that has developed the continuous capacity to adapt and change. Learning organizations share some common characteristics such as sharing the same vision, getting rid of old ways of thinking, viewing the organization as a system of relationships, open communication, and working together to achieve a shared vision.(c) 2008 Prentice-Hall, All rights reserved.*To create a learning organization, managers must overcome some traditional organizational problems such as fragmentation, competition, and reactiveness. Learning can be managed by establishing a strategy that everybody understands and can buy into. Redesigning the organizations structure to increase communication and interactions and reshaping the organizations culture to reward risk-taking and good mistakes will help to increase the effectiveness of the learning initiatives.(c) 2008 Prentice-Hall, All rights reserved.*When change occurs stress is found throughout the organization. Stress is defined as a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. There are different types of stress. There is challenge stress which is stress associated with workload, pressure to get work done, and time constraints. Hindrance stressors are those things that keep you from reaching your goals such as uncooperative employees or red tape. This can cause more stress than challenge stress often does.(c) 2008 Prentice-Hall, All rights reserved.*There is a model that contrasts demands and resources. If there are high demands and the resources to meet those demands, stress is limited. However, if demands are high and the resources are not available to meet the demands, then stress is high. (c) 2008 Prentice-Hall, All rights reserved.*This graph shows the potential sources of stress, the individual differences that influence how we process stress, and the possible consequences.(c) 2008 Prentice-Hall, All rights reserved.*There are a number of sources of stress. There are environmental factors that include economic uncertainties of the business cycle as we have seen recently, political uncertainties and technological changes that cause uncertainties. There are also organizational factors that cause stress such as task demands, role demands, and interpersonal demands. Finally, there are personal factors that can cause stress such as personal relationships, economic problems, and personality issues.(c) 2008 Prentice-Hall, All rights reserved.*Stress also has consequences for the individual experiencing stress. These can include physiological factors such as blood pressure, headaches, and strokes. Psychological factors are also a result of stress including dissatisfaction, tension, and boredom. These outcomes are most prevalent when roles are unclear. Finally, there can also be behavioral consequences such as change in job behaviors, an increase in drinking and smoking, change in eating habits, and sleep disorders.(c) 2008 Prentice-Hall, All rights reserved.*However, not all stress is bad. It has been suggested that as stress rises to a healthy level, productivity can increase. There needs to be a healthy balance as too much or too little stress will reduce performance as seen in the graph above. (c) 2008 Prentice-Hall, All rights reserved.*Stress needs to be managed and maintained at a healthy level. Individuals often manage stress through time management techniques, physical exercise or expanding their social support network. Organizations can also help employees manage stress by providing training, realistic goal setting, solid designing of jobs, offering employee sabbaticals, and establishing a wellness program. (c) 2008 Prentice-Hall, All rights reserved.*Organizational change will vary in different cultures depending on the peoples view of the possibility of change and their time orientation . Also, some cultures have strong traditions and this will create a higher resistance to change. The concept of power distance will impact how change is implemented as well as who is the best idea champion for leading the change.

Stress also varies by cultures as different issues will cause stress in different cultures. However, stress is bad for everyone no matter which culture they belong to. Also, across cultures having a good support system of family and friends can reduce stress.(c) 2008 Prentice-Hall, All rights reserved.*In summary, all organizations will go through change and managers are best set up to be the change agents to modify culture. Stress is a natural result of change but it has both positive and negative implications for employees so it is important to find ways to help balance stress through both individual and organizational methods to maximize performance and minimize job dissatisfaction.(c) 2008 Prentice-Hall, All rights reserved.*

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