Chapter 08 organizational change and stress management

ORGANIZATIONAL CHANGE AND

STRESS MANAGEMENT

CHAPTER-8

AUTHORS:DR. K IRAN NERKARDR. VILAS CHOPDE

Refers to the organization-wide change as opposed to smaller changes, such as changing the organizational structure or method of production.

In an organization, the scope of change can be determined by using the following 3Cs parameters: Cost

The investment required to bring the change Complexity/Compositeness

The amount of diffi culty faced while implementing change Certainty

The predictability of the outcome

ORGANIZATIONAL CHANGE

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• The change at the personal level that is reflected in various developments.

Individual Level

• The change at the level of a group that occurs because most activities in organizations are managed on a group basis.

Group Level

• The major changes that influence the entire organization.

Organizational Level

LEVELS OF CHANGE


Planned Change • Refers to a conscious change that occurs as a result of logic.

Emergent Change• Refers to a spontaneous occurrence arising out of factors beyond the

reach of a change implementer.

Episodic Change • Refers to a change that does not occur on a daily basis.

Continuous Change• Refers to a change that occurs on a daily basis. It is often termed as

first order change.

Remedial Change• Refers to a change that calls for transformation in a particular situation,

task, procedure, or policy.

Developmental Change• Refers to a change that is taken up for the purpose of improvement and

is vague in nature.

Subsystem Change • Includes a transformation within a department, team, or group. Organization-wide

Change• Refers to a change that affects the entire organization.

Transactional Change• Refers to the first order change whose outcome is predictable and

execution is not difficult.

Transitional Change• Refers to a change in which old processes and work procedures are

replaced with new ones.

Transformational Change • Refers to a second order change. The outcome of such a change is not clearly distinguishable.

TYPES OF CHANGE


The employees who are enjoying powerful positions in the organization might have fear of losing those powers.

Such fears make the employees psychologically uncomfortable with change.

Two of the important sources of resistance are: Rational Resistance

Occurs when people do not have the proper knowledge or information to evaluate the change

Emotional Resistance Involves the psychological problems of fear, anxiety, suspicion,

and insecurity

RESISTANCE TO CHANGE


• Refers to the fear of unemployment among people as they feel that due to technological up-gradation they can be replaced by machines.

Fear of Technological Up-gradation

• Refers to the fear of getting less pay after change.

Fear of Salary Reduction

• Refers to the fear of people that their present skills would get obsolete and they would be not able to master the new skills.

Obsolesce of Skills

ECONOMIC REASONS FOR INDIVIDUAL RESISTANCE TO

CHANGE


• Indicates that some people just want to continue the way they are at present and any kind of change is not accepted by them.

Inherent Liking for Status Quo

• Refers to a reason for resistance in which a superior discard good ideas of subordinates because of his/her ego problem.

Ego-Defensiveness

• Indicates that employees might have the fear of losing their powerful position after the implementation of change.

Threatened Power

• Points towards the fear of an individual for the unforeseen future events.

Fear of the Unknown

PSYCHOLOGICAL REASONS FOR INDIVIDUAL RESISTANCE TO CHANGE


Change agent refers to a person or group that brings the change or helps in its implementation.

There are two types of change agents, which are as follows: External Change Agent

Refers to an outside consultant who is an expert in managing change

Internal Change Agent Refers to a manager who knows how to handle change.

The selection of a change agent totally depends on the situation.

CHANGE AGENT


• Refers to locating the places where change is required, or where the problem or opportunity lies.

Recognizing the Forces Demanding

Change• Refers to the step in which the problem is

identified. Diagnosing the

Problem

• Refers to the step in which an action plan is designed to manage the change.

Planning the Change

• Refers to the step where the change is implemented in the real-life scenario.

Implementing the Change

• Refers to the last stage in which the result of the change is derived. Following Up

PROCESS OF CHANGE MANAGEMENT


Fear of the Unknown Refers to the negative feeling in the mind of employees that

they will not be able to adapt to change or they will have to do more hard work that will disturb their comfort zone.

New Learning Refers to performing new tasks where individuals learn new

languages, technologies, and work culture. Friendship among Old Employees

Refers to the fear that social friendship of old employees can get disturbed due to change.

Distrust on Management Creates a fear of exploitation in the minds of employees.

Thus, they oppose change initiated by the management of the organization.

INDIVIDUAL CHALLENGES FACED DURING CHANGE MANAGEMENT


Threat to Power Acts as the greatest challenge for organizations that is

required to be solved at the initial stages of change implementation.

Organizational Structure Covers the organizational policies and procedures that are

designed to maintain the organizational stability.Resource

Constitutes the most important component of the organization.

Sunk Cost Refers to the costs that are invested in fixed assets by the

organization.

ORGANIZATIONAL CHALLENGES FACED DURING CHANGE

MANAGEMENT


Stress is an adaptive response, mediated by individual characteristics and/or psychological processes, which are a consequence of any external action, situation, or event that places special physical and / or psychological demands upon a person. --- Ivancevich and Matteson

The job stress is a condition arising from the interaction of people and their jobs and characterized by changes within people that force them to deviate from their normal functioning. --- Beehr and Newman

STRESS


External stressors

Physical Environment

Social Interaction

Organizational Factors

Major Life Events

Internal stressors

Personal Interests

Aesthetic Craving

Fastidious Nature

TYPES OF STRESSORS


• Refer to various internal and external environment factors, such as economic, political, and technological uncertainties.

Environmental Factors

• Refer to the factors that influence employees within the organization, such as time constraint, target pressure, organizational structure and reward system.

Organizational Factors

• Refer to the inherent factors of an individual, which leads to stress, such as family issues, economic problems and inherent personality characteristics.

Individual Factors

SOURCES OF STRESS


Physiological symptoms Refer to the effects of stress on the health of an individual,

such as high blood pressure, exhaustion, muscles cramps, stomach problems, headache, and back pain.

Psychological symptoms Refer to the effects of stress on the mental and emotional

condition of an individual, such as nervousness, irritability, tension, anger, and depression.

Behavioral symptoms Refer to the effects of stress on the behavior of an

individual, such as change in productivity, increase in absenteeism and employee turnover, rapid speech, and sleep disorders.

CONSEQUENCES OF STRESS


Time Management Techniques Refer to the methods that can be used to avoid stress caused

due to pressure of time limits. Increasing Physical Exercise

Indicates that the physical exercise not only makes an individual more fit but also helps in reducing stress.

Keeping a Stress Diary Refers to maintaining a diary that can be helpful in managing

stress. Relaxation Training

Refers to certain ways by which an individual can relax his/her body and mind. For example, yoga and meditation.

Expanding Social Support Network Includes the social circle that comprises our relatives, friends,

and colleagues.

STRESS BUSTER STRATEGIES AT INDIVIDUAL LEVEL


Improved Personnel Selection and Job PlacementRealistic Goal SettingRedesigning of Jobs Increased Employee Involvement Improved Organizational CommunicationEstablishment of Corporate Wellness ProgramsSupportive Organizational ClimateCareer Planning and CounselingStress Control Workshops and Employee Assistance

Programs

STRESS BUSTER STRATEGIES AT ORGANIZATIONAL LEVEL


Burnout refers to a feeling of physical and mention fatigue that can occur from working under diffi cult and demanding conditions.

The causes of burnout are: Extreme Work Load Lack of Recognition Ambiguity in Role Reduced Career Opportunities Conflict

BURNOUT AND ITS CAUSES


Developing precise and clear boundaries between professional and personal life

Nurturing and fulfi lling relationships professionally and personally

Inducing regular breaks in the routine workBecoming honest and giving your best in a jobBecoming aware of various dangers to your physical,

mental, emotional, and spiritual healthObtaining support from peer/family whenever

requiredEating, sleeping, and exercising properlyTaking periodic annual breaks to revitalize


STRATEGIES FOR HANDLING BURNOUT

Change is imperative for the growth and development of an organization in the long run.

However, bringing any type of change in an organization is an uphill task as change always evokes resistance from employees.

Employees resist change because of the risks associated with it. The risks tend to cause threat to a peaceful living and give rise to stress.

Thus, these two have become important issues that need to be taken care of in an organization.

When employees are receptive and open to change, the organization as a whole becomes more adaptive and flexible towards external environment.


RECAP

Chapter 08 organizational change and stress management

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Transcript of Chapter 08 organizational change and stress management