PART FIVE – ORGANIZATIONAL DYNAMICS

ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT

In this chapter: We describe environmental forces that are requiring managers to implement comprehensive change programs. We also consider why people and organizations often resist change and how this resistance can be overcome. We review various processes for managing organizational change. We also discuss contemporary change issues fortoday’s managers. Then we move to the topic of stress. We elaborate on the sources and consequences of stress. Finally, we conclude this chapter with a discussion of what individuals and organizations can do to better manage stress levels.

Forces for Change

“Change or die!” is the rallying cry among today’s managers worldwide. Exhibit 17-1 summarizes six specific forces that are acting as stimulants for change.

changing nature of the work force. almost every organization is having to adjust to a multicultural environment.Human resource policies and practices have to change in order to attract and keep this more diverse work force. And many companies are having to spend large amounts of money on training to upgrade reading, math, computer, and other skills of employees.

Exhibit 17-1 Forces for Change

Force Examples

Nature of the work force • More cultural diversity• Increase in professionals• Many new entrants with inadequate skills

Technology • More computers and automation• TQM programs• Reengineering programs

Economic shocks • Security market crashes• Interest rate fluctuations• Foreign currency fluctuations

Competition • Global competitors• Mergers and consolidations• Growth of specialty retailers

Social trends • Increase in college attendance• Delayed marriages by young people• Increase in divorce rate

World politics • Collapse of Soviet Union• U.S. embargo of Libya• Black rule of South Africa

technology is changing jobs and organizations.The substitution of computer control for direct supervision,is resulting in wider spans of control for managers andflatter organizations.

economic shocks have continued to impose

changes on organizations. In recent years, interestrates have become more volatile and the economies of individualcountries have become more interdependent.

Competition is changing. The global economy means that competitorsare as likely to come from across the ocean as from acrosstown. Successful organizations will be the ones that can change in response to the competition.They will require an equally flexible and responsive work force that can adapt torapidly and even radically changing conditions.

social trends during the past generation.They suggestchanges that organizations have to adjust for. For instance,there has been a clear trend in marriage and divorce during the pasttwo decades. Young people are delaying marriage, and half of allmarriages are ending in divorce. One obvious result of this socialtrend is an increasing number of single households and demand forhousing by singles. If you’re in the house-building business, this isan important factor in determining the size and design of homes.

While business schools have been preaching a global perspectivesince the early 1980s, no one—not even the strongest proponentsof globalization—could have imagined how world politicswould change in recent years. A few examples make the point: thefall of the Berlin Wall, the reunification of Germany, Iraq’s invasionof Kuwait, and the breakup of the Soviet Union. Almost every majorU.S. defense contractor, for instance, has had to rethink its businessand make serious changes in response to the demise of the SovietUnion and a shrinking Pentagon budget.

Managing Planned Change

Chapter End Chapter Start Contents * * Quit Video Web Site 1337changeMaking things different.planned changeChange activities that are intentional and goal oriented.

Many changes in organizations are like the one that occurred inthe retail clothing store—they just happen. Some organizations treatall change as an accidental occurrence. However, we’re concernedwith change activities that are proactive and purposeful. In this chapter,we address change as an intentional, goal-oriented activity.What are the goals of planned change? Essentially there aretwo. First, it seeks to improve the ability of the organization toadapt to changes in its environment. Second, it seeks to changeemployee behavior.If an organization is to survive, it must respond to changes inits environment. When competitors introduce new products or services,government agencies enact new laws, important sources ofsupply go out of business, or similar environmental changes takeplace, the organization needs to adapt. Efforts to stimulate innovation,empower employees, and introduce work teams are examplesof planned-change activities directed at responding to changes inthe environment.Since an organization’s success or failure is essentially due tothe things that its employees do or fail to do, planned change alsois concerned with changing the behavior of individuals andgroups within the organization. In this chapter, we review a numberof techniques that organizations can use to get people tobehave differently in the tasks they perform and in their interactionswith others.

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First-order change is linear and continuous. Itimplies no fundamental shifts in the assumptions that organizationalmembers hold about the world or how the organization canimprove its functioning. second-order change is amultidimensional, multilevel, discontinuous, radical change involvingreframing of assumptions about the organization and the worldin which it operates.

Who in organizations are responsible for managing changeactivities? The answer is change agents. Change agents can bemanagers or nonmanagers, employees of the organization or outsideconsultants.

first-order changeLinear and continuous.

second-order changeChange that is multidimensional,multilevel, discontinuous,and radical.change agentsPersons who act as catalystsand assume the responsibilityfor managing changeactivities.

What Can Change Agents Change?The options essentially fall intofour categories: structure, technology, physical setting, and people.(See Exhibit 17-2.) Changing structure involves making an alteration inauthority relations, coordination mechanisms, job redesign, or similarstructural variables. Changing technology encompasses modificationsin the way work is processed and in the methods and equipment used.Changing the physical setting covers altering the space and layoutarrangements in the workplace. Changing people refers to changes inemployee attitudes, skills, expectations, perceptions, and/or behavior.

Changing Structure

organizational structures are not set in concrete, changing conditionsdemand structural changes.

the change agent might need to modify the organization’s structure.

An organization’s structure is defined by how tasks are formallydivided, grouped, and coordinated.

Change agents can also introduce major modifications in theactual structural design which include a shift from a simplestructure to a team-based structure

another option is to modify theorganization’s compensation system. Motivation could be increasedby introducing performance bonuses or profit sharing.

Changing TechnologyMost of the early studies in management and organizational behaviordealt with efforts aimed at technological change.

major technological changes usually involve the introduction of new equipment, tools, or methods; automation; or computerization.

Competitive factors or innovations within an industry oftenrequire change agents to introduce new equipment, tools, or operatingmethods.

Automation is a technological change that replaces people withmachines. It began in the industrial revolution and continues as achange option today.

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Changing the Physical Setting

management should considers work demands and social needs when making decisionsabout space configurations, interior design, and equipment placement,

by eliminating walls and partitions, and openingup an office design, it becomes easier for employees to communicatewith each other.

management can change the level of heat or cold, the levels and typesof noise, and the cleanliness of the work area, as well as interiordesign

Changing PeopleThe final area in which change agents operate is in helping individualsand groups within the organization to work more effectivelytogether.

This involves changing the attitudes and behaviors of organizational members through processesof communication, decision making, and problem solving.

the concept of organizational developmenthas come to encompass an array of interventions designed tochange people and the nature and quality of their work relationships.

Resistance to ChangeOne of the most well-documented findings from studies of individualand organizational behavior is that organizations and their membersresist change. In a sense, this is positive. It provides a degree of stabilityand predictability to behavior. If there weren’t some resistance,organizational behavior would take on characteristics of chaotic randomness.

Resistance to change can also be a source of functional conflict.

For example, resistance to a reorganization plan or a change in aproduct line can stimulate a healthy debate over the merits of the ideaand result in a better decision. But there is a definite downsideto resistance to change.

Resistance to change hinders adaptation and progress.Resistance can be overt, implicit, immediate,or deferred.

It is easiest for management to deal with resistancewhen it is overt and immediate. For instance, achange is proposed and employees quickly respond by voicingcomplaints, engaging in a work slowdown, threateningto go on strike, or the like.

The greater challenge is managingresistance that is implicit or deferred. Implicit resistance effortsare more subtle—loss of loyalty to the organization, loss of motivationto work, increased errors or mistakes, increased absenteeismdue to “sickness”—and hence more difficult to recognize.

A change may produce what appears to beonly a minimal reaction at the time it is initiated, but then resistancesurfaces weeks, months, or even years later.

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Individual ResistanceIndividual sources of resistance to change reside in basic humancharacteristics such as perceptions, personalities, and needs. Thefollowing summarizes five reasons why individuals may resistchange. (See Exhibit 17-3.)Chapter End Chapt

HABIT - As human beings, we’re creatures of habit, this tendency to respond in our accustomed ways becomes a source of resistance.

SECURITY People with a high need for security are likely toresist change because it threatens their feelings of safety

ECONOMIC FACTORS concerned that changes will lower one’s income. Changes in job taskscan arouse economic fears, especially when pay is closely tied to productivity

FEAR OF THE UNKNOWN Changes substitute ambiguity anduncertainty for the known.

Employees in organizations hold the same dislike for uncertainty.

SELECTIVE INFORMATION PROCESSING individuals shape their world through their perceptions. Oncethey have created this world, it resists change. So individuals areguilty of selectively processing information in order to keep theirperceptions intact. They hear what they want to hear. They ignoreChapter End Chapter Start Contents * * Quit Video Web information that challenges the world they’ve created.

Organizational ResistanceOrganizations, by their very nature, are conservative.7 They activelyresist change. You don’t have to look far to see evidence of this phenomenon.Government agencies want to continue doing what theyhave been doing for years, whether the need for their servicechanges or remains the same. Organized religions are deeplyentrenched in their history. Attempts to change church doctrinerequire great persistence and patience. Educational institutions,which exist to open minds and challenge established doctrine, arethemselves extremely resistant to change. Most school systems areusing essentially the same teaching technologies today as they were50 years ago. The majority of business firms, too, appear highlyresistant to change.Six major sources of organizational resistance have been identified.8 They are shown in Exhibit 17-5.Chapter End Chapter Start Contents * * Quit Video Web Site 1350

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STRUCTURAL INERTIA The people who are hired into an organization are chosen forfit; they are then shaped and directed to behave in certain ways.When an organization is confronted with change, this structuralinertia acts as a counterbalance to sustain stability.

LIMITED FOCUS OF CHANGE Organizations are made up of anumber of interdependent subsystems. You can’t change one withoutaffecting the others.

GROUP INERTIA Even if individuals want to change their behavior,group norms may act as a constraint. An individual unionmember, for instance, may be willing to accept changes in his jobsuggested by management. But if union norms dictate resisting anyunilateral change made by management, he’s likely to resist.

THREAT TO EXPERTISE Changes in organizational patterns maythreaten the expertise of specialized groups. The introduction ofdecentralized personal computers, which allow managers to gainaccess to information directly from a company’s mainframe, is anexample of a change that was strongly resisted by many information systems departments

THREAT TO ESTABLISHED POWER RELATIONSHIPS

Any redistributionof decision-making authority can threaten long-establishedpower relationships within the organization. The introduction ofparticipative decision making or self-managed work teams is thekind of change that is often seen as threatening by supervisors andmiddle managers.THREAT TO ESTABLISHED RESOURCE ALLOCATIONS Those groupsin the organization that control sizable resources often see changeas a threat. They tend to be content with the way things are.

Overcoming Resistance to ChangeSix tactics have been suggested for use by change agents in dealingwith resistance to change.9 Let’s review them briefly.Chapter End Chapter Start Contents * * Quit Video Web Site 13531. EDUCATION AND COMMUNICATIONResistance can be reduced through communicating with employees to help them see the logic of a change. If employees receive the full facts and get any misunderstandingscleared up, resistance will subside. Communication can be achievedthrough one-on-one discussions, memos, group presentations, or reports.

2. PARTICIPATION It’s difficult for individuals to resist achange decision in which they participated. Assuming that the participants have the expertiseto make a meaningful contribution, their involvement canreduce resistance, obtain commitment, and increase thequality of the change decision

3. FACILITATION AND SUPPORT Change agents can offer a range of supportive effortsto reduce resistance. When employee fear and er End Chapter Start Contents * * Quit Video anxiety are high, employee counseling and therapy, new-skillstraining, or a short paid leave of absence may facilitate adjustment.

4. NEGOTIATION Another way for the change agent to deal withpotential resistance to change is to exchange something of value fora lessening of the resistance. Negotiation as a tactic may be necessary when resistance comes from a powerful source.

5. MANIPULATION AND COOPTATION Manipulation refers to covert influence attempts. Twisting and distorting facts to make themappear more attractive, withholding undesirable information, and

creating false rumors to get employees to accept a change are allexamples of manipulation. Cooptation, on the other hand, is a form of both manipulation and participation. Itseeks to “buy off” the leaders of a resistance group by giving them akey role in the change decision.

6. COERCION The application of direct threats or force upon the resisters. examples of coercion are threats of transfer, loss of promotions, negative performance evaluations, and a poor letter of recommendation.

The Politics of ChangeNo discussion of resistance to change would be complete without abrief mention of the politics of change. Because change invariablythreatens the status quo, it inherently implies political activity.10Internal change agents typically are individuals high in theorganization who have a lot to lose from change. They have, in fact,risen to their positions of authority by developing skills and behavioralpatterns that are favored by the organization. Change is athreat to those skills and patterns. What if they are no longer theones the organization values? This creates the potential for othersin the organization to gain power at their expense.Chapter End Chapter Start Contents * * Quit Video Web Site 1357Approaches to ManagingOrganizational ChangeNow we turn to several popular approaches to managing change.Specifically, we discuss Lewin’s classic three-step model of thechange process and present the action research model.Lewin’s Three-Step ModelKurt Lewin argued that successful change in organizations shouldfollow three steps: unfreezing the status quo, movement to a newstate, and refreezing the new change to make it permanent.12 (SeeExhibit 17-6.) The value of this model can be seen in the followingexample when the management of a large oil company decided toreorganize its marketing function in the western United States.The oil company had three divisional offices in the West,located in Seattle, San Francisco, and Los Angeles. The decision wasChapter End Chapter Start Contents * * Quit Video Web Site 1359unfreezingChange efforts to overcomethe pressures of both individualresistance and groupconformity.refreezing

Stabilizing a change interventionby balancing drivingand restraining forces.Unfreezing Movement RefreezingExhibit 17-6Lewin’s Three-Step Change Model

Chapter End Chapter Start Contents * * Quit Video Web Site 1361made to consolidate the divisions into a single regional office to belocated in San Francisco. The reorganization meant transferringover 150 employees, eliminating some duplicate managerial positions,and instituting a new hierarchy of command. As you mightguess, a move of this magnitude was difficult to keep secret. Therumor of its occurrence preceded the announcement by severalmonths. The decision itself was made unilaterally. It came from theto Change

executive offices in New York. Those people affected had no saywhatsoever in the choice. For those in Seattle or Los Angeles, whomay have disliked the decision and its consequences—the problemsinherent in transferring to another city, pulling youngsters outof school, making new friends, having new co-workers, undergoingthe reassignment of responsibilities—their only recourse was toquit. In actuality, less than 10 percent did.The status quo can be considered to be an equilibrium state. Tomove from this equilibrium—to overcome the pressures of both

individual resistance and group conformity—unfreezing is necessary.It can be achieved in one of three ways. (See Exhibit 17-7.) Thedriving forces, which direct behavior away from the status quo,can be increased. The restraining forces, which hinder movementfrom the existing equilibrium, can be decreased. A third alternativeis to combine the first two approaches.The oil company’s management could expect employee resistanceto the consolidation. To deal with that resistance, managementcould use positive incentives to encourage employees toaccept the change. For instance, increases in pay can be offered tothose who accept the transfer. Very liberal moving expenses can bepaid by the company. Management might offer low-cost mortgagefunds to allow employees to buy new homes in San Francisco. Ofcourse, management might also consider unfreezing acceptance ofthe status quo by removing restraining forces. Employees could beChapter End Chapter Start Contents * * Quit Video Web Site 1362driving forcesForces that direct behavioraway from the status quo.restraining forcesForces that hinder movementaway from the status quo.

Once the consolidation change has been implemented, if it isto be successful, the new situation needs to be refrozen so that itcan be sustained over time. Unless this last step is taken, there is avery high chance that the change will be short-lived and thatemployees will attempt to revert to the previous equilibrium state.The objective of refreezing, then, is to stabilize the new situation bybalancing the driving and restraining forces.How could the oil company’s management refreeze its consolidationchange? By systematically replacing temporary forces withpermanent ones. For instance, management might impose a permanentupward adjustment of salaries or permanently remove timeclocks to reinforce a climate of trust and confidence in employees.The formal rules and regulations governing behavior of thoseaffected by the change should also be revised to reinforce the newsituation. Over time, of course, the work group’s own norms willevolve to sustain the new equilibrium. But until that point isreached, management will have to rely on more formal mechanisms.Action ResearchAction research refers to a change process based on the systematiccollection of data and then selection of a change action basedon what the analyzed data indicate.14 Their importance lies in providinga scientific methodology for managing planned change.Chapter End Chapter Start Contents * * Quit Video Web Site 1364

action researchA change process based onsystematic collection of dataand then selection of achange action based on whatthe analyzed data indicate.

The process of action research consists of five steps: diagnosis,analysis, feedback, action, and evaluation. You’ll note that thesesteps closely parallel the scientific method.DIAGNOSIS The change agent, often an outside consultant inaction research, begins by gathering information about problems,concerns, and needed changes from members of the organization.This diagnosis is analogous to the physician’s search to find whatspecifically ails a patient. In action research, the change agent asksquestions, interviews employees, reviews records, and listens to theconcerns of employees.ANALYSIS The information gathered during the diagnosticstage is then analyzed. What problems do people key in on? Whatpatterns do these problems seem to take? The change agent synthesizesthis information into primary concerns, problem areas, andpossible actions.FEEDBACK Action research includes extensive involvement ofthe change targets. That is, the people who will be involved in anychange program must be actively involved in determining what theproblem is and participating in creating the solution. So the thirdstep is sharing with employees what has been found from steps oneand two. The employees, with the help of the change agent,develop action plans for bringing about any needed change.Chapter End Chapter Start Contents * * Quit Video Web Site 1365ACTION Now the “action” part of action research is set inmotion. The employees and the change agent carry out the specificactions to correct the problems that have been identified.EVALUATION Finally, consistent with the scientific underpinningsof action research, the change agent evaluates the effectivenessof the action plans. Using the initial data gathered as a benchmark,any subsequent changes can be compared and evaluated.Action research provides at least two specific benefits for anorganization. First, it’s problem focused. The change agent objectivelylooks for problems and the type of problem determines thetype of change action. While this may seem intuitively obvious, alot of change activities aren’t done this way. Rather, they’re solutioncentered. The change agent has a favorite solution—for example,implementing flextime, teams, or a management by objectives program—and then seeks out problems that his or her solution fits.Second, because action research so heavily involves employees in

the process, resistance to change is reduced. In fact, once employeeshave actively participated in the feedback stage, the changeprocess typically takes on a momentum of its own. The employeesand groups that have been involved become an internal source ofsustained pressure to bring about the change.Chapter End Chapter Start Contents * * Quit Video Web Site 1366Organizational DevelopmentNo discussion of managing change would be complete withoutincluding organizational development. Organizational development(OD) is not an easily defined single concept. Rather, it’s aterm used to encompass a collection of planned-change interventionsbuilt on humanistic-democratic values that seek to improveorganizational effectiveness and employee well-being.15The OD paradigm values human and organizational growth,collaborative and participative processes, and a spirit of inquiry.16The change agent may be directive in OD; however, there is a strongemphasis on collaboration. Concepts such as power, authority, control,conflict, and coercion are held in relatively low esteem amongOD change agents. The following briefly identifies the underlyingvalues in most OD efforts.1. Respect for people. Individuals are perceived as being responsible,conscientious, and caring. They should be treated with dignityand respect.2. Trust and support. The effective and healthy organization is characterizedby trust, authenticity, openness, and a supportive climate.3. Power equalization. Effective organizations deemphasize hierarchicalauthority and control.4. Confrontation. Problems shouldn’t be swept under the rug. Theyshould be openly confronted.Chapter End Chapter Start Contents * * Quit Video Web Site 1367organizationaldevelopment (OD)A collection of plannedchangeinterventions, builton humanistic-democraticvalues, that seeks to improveorganizational effectivenessand employee well-being.

5. Participation. The more that people who will be affected by achange are involved in the decisions surrounding that change, themore they will be committed to implementing those decisions.What are some of the OD techniques or interventions for bringingabout change? In the following pages, we present five interventionsthat change agents might consider using.SENSITIVITY TRAINING It can go by a variety of names—laboratory

training, sensitivity training, encounter groups, or T-groups(training groups)—but all refer to a method of changing behaviorthrough unstructured group interaction. Members are broughttogether in a free and open environment in which participants discussthemselves and their interactive processes, loosely directed by aprofessional behavioral scientist. The group is process oriented,which means that individuals learn through observing and participatingrather than being told. The professional creates the opportunityfor participants to express their ideas, beliefs, and attitudes. Heor she does not accept—in fact, overtly rejects—any leadership role.The objectives of the T-groups are to provide the subjects withincreased awareness of their own behavior and how others perceivethem, greater sensitivity to the behavior of others, and increasedunderstanding of group processes. Specific results sought includeincreased ability to empathize with others, improved listeningChapter End Chapter Start Contents * * Quit Video Web Site 1368sensitivity trainingTraining groups that seek tochange behavior throughunstructured group interaction.

skills, greater openness, increased tolerance of individual differences,and improved conflict resolution skills.If individuals lack awareness of how others perceive them, thenthe successful T-group can affect more realistic self-perceptions,greater group cohesiveness, and a reduction in dysfunctional interpersonalconflicts. Furthermore, it will ideally result in a better integrationbetween the individual and the organization.SURVEY FEEDBACK One tool for assessing attitudes held by organizationalmembers, identifying discrepancies among member perceptions,and solving these differences is the survey feedbackapproach.Everyone in an organization can participate in survey feedback,but of key importance is the organizational family—the manager ofany given unit and those employees who report directly to him orher. A questionnaire is usually completed by all members in theorganization or unit. Organization members may be asked to suggestquestions or may be interviewed to determine what issues arerelevant. The questionnaire typically asks members for their perceptionsand attitudes on a broad range of topics, including decision-making practices; communication effectiveness; coordinationbetween units; and satisfaction with the organization, job, peers,and their immediate supervisor.Chapter End Chapter Start Contents * * Quit Video Web Site 1369survey feedbackThe use of questionnaires to

identify discrepancies amongmember perceptions; discussionfollows and remediesare suggested.

The data from this questionnaire are tabulated with data pertainingto an individual’s specific “family” and to the entire organizationand distributed to employees. These data then become thespringboard for identifying problems and clarifying issues that maybe creating difficulties for people. In some cases, the manager maybe counseled by an external change agent about the meaning of theresponses to the questionnaire and may even be given suggestedguidelines for leading the organizational family in group discussionof the results. Particular attention is given to the importance ofencouraging discussion and ensuring that discussions focus onissues and ideas and not on attacking individuals.Finally, group discussion in the survey feedback approachshould result in members identifying possible implications of thequestionnaire’s findings. Are people listening? Are new ideas beinggenerated? Can decision making, interpersonal relations, or jobassignments be improved? Answers to questions like these, it ishoped, will result in the group agreeing upon commitments to variousactions that will remedy the problems that are identified.PROCESS CONSULTATION No organization operates perfectly.Managers often sense that their unit’s performance can be improved,but they are unable to identify what can be improved and how it canbe improved. The purpose of process consultation is for an outsideconsultant to assist a client, usually a manager, “to perceive,Chapter End Chapter Start Contents * * Quit Video Web Site 1370process consultationConsultant gives a clientinsights into what is goingon around the client, withinthe client, and between theclient and other people;identifies processes thatneed improvement.

side the client’s and consultant’s expertise, the consultant helps theclient to locate such an expert and then instructs the client in howto get the most out of this expert resource.TEAM BUILDING As we’ve noted in numerous places throughoutthis book, organizations are increasingly relying on teams to accomplishwork tasks. Team building utilizes high-interaction groupactivities to increase trust and openness among team members.19Team building can be applied within groups or at the intergroup

level where activities are interdependent. For our discussion,we emphasize the intragroup level and leave intergroup developmentto the next section. As a result, our interest concerns applicationsto organizational families (command groups), as well as tocommittees, project teams, self-managed teams, and task groups.Not all group activity has interdependence of functions. Toillustrate, consider a football team and a track team:Although members on both teams are concerned with the team’stotal output they function differently. The football team’s outputdepends synergistically on how well each player does his particularjob in concert with his teammates. The quarterback’s performancedepends on the performance of his linemen and receivers, and endson how well the quarterback throws the ball, and so on. On theother hand, a track team’s performance is determined largely by themere addition of the performances of the individual members.20Chapter End Chapter Start Contents * * Quit Video Web Site 1372team buildingHigh interaction among teammembers to increase trustand openness.

perception of itself, the other group, and how it believes the othergroup perceives it. The groups then share their lists, after whichsimilarities and differences are discussed. Differences are clearlyarticulated, and the groups look for the causes of the disparities.Are the groups’ goals at odds? Were perceptions distorted? Onwhat basis were stereotypes formulated? Have some differencesbeen caused by misunderstandings of intentions? Have words andconcepts been defined differently by each group? Answers to questionslike these clarify the exact nature of the conflict. Once thecauses of the difficulty have been identified, the groups can moveto the integration phase—working to develop solutions that willimprove relations between the groups.Subgroups, with members from each of the conflicting groups,can now be created for further diagnosis and to begin to formulatepossible alternative actions that will improve relations.Contemporary Change Issuesfor Today’s ManagersTalk to managers. Read the popular business periodicals. What you’llfind is that two issues have risen above the rest as current change topics.They are stimulating organizational innovation and creating a learning

organization. In the following pages, we take a look at these topics.Then we address the question: Is managing change culture bound?Chapter End Chapter Start Contents * * Quit Video Web Site 1375InnovationThe relevant question is: How can an organization become moreinnovative? The standard toward which many organizations strive isthat achieved by the 3M Co.23 It has developed a reputation forbeing able to stimulate innovation over a long period of time. 3Mhas a stated objective that 30 percent of its sales are to come fromproducts less than four years old. In 1995, the figure was 32 percent.In one recent year alone, 3M launched more than 200 new products.What’s the secret of 3M’s success? What can other organizationsdo to clone 3M’s track record for innovation? While there is noguaranteed formula, certain characteristics surface again and againwhen researchers study innovative organizations. We’ve groupedthem into structural, cultural, and human resource categories. Ourmessage to change agents is that they should consider introducingthese characteristics into their organization if they want to createan innovative climate. Before we look at these characteristics, however,let’s clarify what we mean by innovation.DEFINITION We said change refers to making things different.Innovation is a more specialized kind of change. Innovation is a newidea applied to initiating or improving a product, process, or service.24So all innovations involve change, but not all changes necessarilyinvolve new ideas or lead to significant improvements. Innovations inorganizations can range from small incremental improvements, suchChapter End Chapter Start Contents * * Quit Video Web Site 1376innovationA new idea applied to initiatingor improving a product,process, or service.

Redesign the organization’s structure. The formal structure can bea serious impediment to learning. By flattening the structure, eliminatingor combining departments, and increasing the use of crossfunctionalteams, interdependence is reinforced and boundariesbetween people are reduced.Reshape the organization’s culture. As noted earlier, learning organizationsare characterized by risk taking, openness, and growth.Management sets the tone for the organization’s culture both bywhat it says (strategy) and what it does (behavior). Managers needto demonstrate by their actions that taking risks and admitting failuresare desirable traits. That means rewarding people who takechances and make mistakes. And management needs to encouragefunctional conflict. “The key to unlocking real openness at work,”says one expert on learning organizations, “is to teach people to

give up having to be in agreement. We think agreement is so important.Who cares? You have to bring paradoxes, conflicts, and dilemmasout in the open, so collectively we can be more intelligent thanwe can be individually.”36Managing Change: It’s Culture Bound!A number of change issues we’ve discussed are culture bound. Toillustrate, let’s briefly look at five questions: (1) Do people believechange is possible? (2) If it is possible, how long will it take to bringChapter End Chapter Start Contents * * Quit Video Web Site 1385it about? (3) Is resistance to change greater in some cultures than inothers? (4) Does culture influence how change efforts will be implemented?(5) Do successful idea champions do things differently indifferent cultures?Do people believe change is possible? Remember that culturesvary in terms of beliefs about their ability to control their environment.In cultures where people believe that they can dominatetheir environment, individuals will take a proactive view of change.This would describe the United States and Canada. In other countries,such as Iran and Saudi Arabia, people see themselves as subjugatedto their environment and thus will tend to take a passiveapproach toward change.If change is possible, how long will it take to bring it about? Aculture’s time orientation can help us answer this question.Societies that focus on the long term, such as Japan, will demonstrateconsiderable patience while waiting for positive outcomesfrom change efforts. In societies with a short-term focus, such as theUnited States and Canada, people expect quick improvements andwill seek change programs that promise fast results.Is resistance to change greater in some cultures than in others?Resistance to change will be influenced by a society’s reliance on tradition.Italians, as an example, focus on the past, while Americansemphasize the present. Italians, therefore, should generally be moreresistant to change efforts than their American counterparts.Chapter End Chapter Start Contents * * Quit Video Web Site 1386

Work Stress and Its ManagementMost of us are aware that employee stress is an increasing problem inorganizations. We hear about postal workers killing co-workers andsupervisors and then we learn job-related tensions were a majorcause. Friends tells us they’re stressed out from greater workloads andhaving to work longer hours because of downsizing at their company.We read surveys where employees complain about the stress createdin trying to balance work and family responsibilities. In this sectionwe’ll look at the causes and consequences of stress, and then considerwhat individuals and organizations can do to reduce it. (See Exhibit17-9 for a ranking of jobs based on stress scores).What Is Stress?Stress is a dynamic condition in which an individual is confronted with anopportunity, constraint, or demand related to what he or she desires and forwhich the outcome is perceived to be both uncertain and important.38 Thisis a complicated definition. Let’s look at its components more closely.Stress is not necessarily bad in and of itself. While stress is typicallydiscussed in a negative context, it also has a positive value. Itis an opportunity when it offers potential gain. Consider, for example,the superior performance that an athlete or stage performergives in “clutch” situations. Such individuals often use stress positivelyto rise to the occasion and perform at or near their maximum.Chapter End Chapter Start Contents * * Quit Video Web Site 1390stressA dynamic condition in whichan individual is confrontedwith an opportunity, constraint,or demand related towhat he or she desires and forwhich the outcome is perceivedto be both uncertainand important.

Chapter End Chapter Start Contents * * Quit Video Web Site 1391How do jobs rate in terms of stress? The following shows how selected occupationsranked in an evaluation of 250 jobs. Among the criteria used in the rankings were:overtime, quotas, deadlines, competitiveness, physical demands, environmental conditions,hazards encountered, initiative required, stamina required, win-lose situations,and working in the public eye.Rank Score Stress Score Rank Score Stress Score1. U.S. president 176.6 47. Auto salesperson 56.32. Firefighter 110.9 50. College professor 54.23. Senior executive 108.6 60. School principal 51.76. Surgeon 99.5 103. Market research10. Air traffic controller 83.1 analyst 42.112. Public relations executive 78.5 104.Personnel recruiter 41.816. Advertising account executive 74.6113. Hospital administrator 39.6119. Economist 38.717. Real estate agent 73.1 122. Mechanical engineer 38.320. Stockbroker 71.7 124. Chiropractor 37.922. Pilot 68.7 132. Technical writer 36.525. Architect 66.9 149. Retail salesperson 34.931. Lawyer 64.3 173. Accountant 31.133. General physician 64.0 193. Purchasing agent 28.9Exhibit 17-9 The Most Stressful Jobs

More typically, stress is associated with constraints anddemands. The former prevent you from doing what you desire.The latter refers to the loss of something desired. So when you takea test at school or you undergo your annual performance review atwork, you feel stress because you confront opportunities, constraints,and demands. A good performance review may lead to apromotion, greater responsibilities, and a higher salary. But a poorreview may prevent you from getting the promotion. An extremelypoor review might even result in your being fired.Two conditions are necessary for potential stress to becomeactual stress.39 There must be uncertainty over the outcome and theoutcome must be important. Regardless of the conditions, it is onlywhen there is doubt or uncertainty regarding whether the opportunitywill be seized, the constraint removed, or the loss avoided thatthere is stress. That is, stress is highest for those individuals who perceivethat they are uncertain as to whether they will win or lose andChapter End Chapter Start Contents * * Quit Video Web Site 139235. Insurance agent 63.3 229. Broadcast technician 24.242. Advertising 59.9 245. Actuary 20.2salespersonSource: National Business Employment Weekly Jobs Rated Almanac as reported in the Wall Street Journal,February 26, 1996, p. R4.

constraintsForces that prevent individualsfrom doing whatthey desire.demandsThe loss of somethingdesired.

lowest for those individuals who think that winning or losing is acertainty. But importance is also critical. If winning or losing is anunimportant outcome, there is no stress. If keeping your job or earninga promotion doesn’t hold any importance to you, you have noreason to feel stress over having to undergo a performance review.Understanding Stress and Its ConsequencesWhat causes stress? What are its consequences for individualemployees? Why is it that the same set of conditions that createsstress for one person seems to have little or no effect on anotherperson? Exhibit 17-11 provides a model that can help to answerquestions such as these.40The model identifies three sets of factors—environmental,organizational, and individual—that act as potential sources ofstress. Whether they become actual stress depends on individualdifferences such as job experience and personality. When stress isexperienced by an individual, its symptoms can surface as physiological,psychological, and behavioral outcomes.Potential Sources of StressAs the model in Exhibit 17-11 shows, there are three categories ofpotential stressors: environmental, organizational, and individual.Let’s take a look at each.41Chapter End Chapter Start Contents * * Quit Video Web Site 1393

ENVIRONMENTAL FACTORS Just as environmental uncertaintyinfluences the design of an organization’s structure, it also influencesstress levels among employees in that organization. Changesin the business cycle create economic uncertainties. When the economyis contracting, for example, people become increasingly anxiousabout their security. Political uncertainties don’t tend to createstress among North Americans as they do for employees in countrieslike Haiti or Iraq. The obvious reason is that the United Statesand Canada have stable political systems where change is typicallyimplemented in an orderly manner. Yet political threats andchanges, even in countries like the United States and Canada, canbe stress inducing. For instance, threats by Quebec to separate fromCanada and become a distinct, French-speaking country increasestress among many Canadians, especially among Quebecers withlittle or no skills in the French language. Technological uncertainty isa third type of environmental factor that can cause stress. Becausenew innovations can make an employee’s skills and experienceobsolete in a very short period of time, computers, robotics,automation, and similar forms of technological innovation are athreat to many people and cause them stress.ORGANIZATIONAL FACTORS There is no shortages of factorswithin the organization that can cause stress. Pressures to avoiderrors or complete tasks in a limited time period, work overload, aChapter End Chapter Start Contents * * Quit Video Web Site 1395demanding and insensitive boss, and unpleasant co-workers are afew examples. (See Exhibit 17-12.) We’ve categorized these factors

around task, role, and interpersonal demands; organizational structure;organizational leadership; and the organization’s life stage.42Task demands are factors related to a person’s job. They includethe design of the individual’s job (autonomy, task variety, degreeof automation), working conditions, and the physical work layout.Assembly lines can put pressure on people when their speedis perceived as excessive. The more interdependence between aperson’s tasks and the tasks of others, the more potential stressChapter End Chapter Start Contents * * Quit Video Web Site 1396What factors cause the most stress on the job? A Wall Street Journal survey reported:Factor Percentage Response*Not doing the kind of work I want to 34Coping with current job 30Working too hard 28Colleagues at work 21A difficult boss 18*Percentages exceed 100 as a result of some multiple responses.Source: “Worries at Work,” The Wall Street Journal, April 7, 1988, p. 27. Reprinted by permission of WallStreet Journal, © 1988 Dow Jones & Company, Inc. All rights reserved worldwide.Exhibit 17-12 Primary Causes of Stress at Work

there is. Autonomy, on the other hand, tends to lessen stress. Jobswhere temperatures, noise, or other working conditions are dangerousor undesirable can increase anxiety. So, too, can working inan overcrowded room or in a visible location where interruptions

are constant.Role demands relate to pressures placed on a person as a functionof the particular role he or she plays in the organization. Role conflictscreate expectations that may be hard to reconcile or satisfy.Role overload is experienced when the employee is expected to domore than time permits. Role ambiguity is created when role expectationsare not clearly understood and the employee is not surewhat he or she is to do.Interpersonal demands are pressures created by other employees.Lack of social support from colleagues and poor interpersonal relationshipscan cause considerable stress, especially among employeeswith a high social need.Organizational structure defines the level of differentiation in theorganization, the degree of rules and regulations, and where decisionsare made. Excessive rules and lack of participation in decisionsthat affect an employee are examples of structural variables thatmight be potential sources of stress.Organizational leadership represents the managerial style of theorganization’s senior executives. Some chief executive officers createa culture characterized by tension, fear, and anxiety. They estab-Chapter End Chapter Start Contents * * Quit Video Web Site 1397lish unrealistic pressures to perform in the short run, impose excessivelytight controls, and routinely fire employees who don’t “measureup.”Organizations go through a cycle. They’re established, theygrow, become mature, and eventually decline. An organization’s lifestage—that is, where it is in this four-stage cycle—creates differentproblems and pressures for employees. The establishment anddecline stages are particularly stressful. The former is characterizedby a great deal of excitement and uncertainty, while the latter typicallyrequires cutbacks, layoffs, and a different set of uncertainties.Stress tends to be least in maturity where uncertainties are at theirlowest ebb.INDIVIDUAL FACTORS The typical individual only works about 40to 50 hours a week. The experiences and problems that peopleencounter in those other 120-plus nonwork hours each week can spillover to the job. Our final category, then, encompasses factors in theemployee’s personal life. Primarily, these factors are family issues, personaleconomic problems, and inherent personality characteristics.National surveys consistently show that people hold family andpersonal relationships dear. Marital difficulties, the breaking off ofa relationship, and discipline troubles with children are examples ofrelationship problems that create stress for employees that aren’tleft at the front door when they arrive at work.Chapter End Chapter Start Contents * * Quit Video Web Site 1398Economic problems created by individuals overextending their

financial resources is another set of personal troubles that can createstress for employees and distract their attention from their work.Regardless of income level—people who make $80,000 a year seemto have as much trouble handling their finances as those who earn$18,000—some people are poor money managers or have wantsthat always seem to exceed their earning capacity.Studies in three diverse organizations found that stress symptomsreported prior to beginning a job accounted for most of thevariance in stress symptoms reported nine months later.43 This ledthe researchers to conclude that some people may have an inherenttendency to accentuate negative aspects of the world in general. Iftrue, then a significant individual factor influencing stress is a person’sbasic dispositional nature. That is, stress symptoms expressedon the job may actually originate in the person’s personality.STRESSORS ARE ADDITIVE A fact that tends to be overlookedwhen stressors are reviewed individually is that stress is an additivephenomenon.44 Stress builds up. Each new and persistent stressoradds to an individual’s stress level. A single stressor may seem relativelyunimportant in and of itself, but if it is added to an alreadyhigh level of stress, it can be “the straw that breaks the camel’sback.” If we want to appraise the total amount of stress an individ-Chapter End Chapter Start Contents * * Quit Video Web Site 1399ual is under, we have to sum up his or her opportunity stresses, constraintstresses, and demand stresses.Individual DifferencesSome people thrive on stressful situations, while others are overwhelmedby them. What is it that differentiates people in terms oftheir ability to handle stress? What individual difference variablesmoderate the relationship between potential stressors and experiencedstress? At least five variables—perception, job experience,social support, belief in locus of control, and hostility—have beenfound to be relevant moderators.PERCEPTION In Chapter 3, we demonstrated that employeesreact in response to their perception of reality rather than to realityitself. Perception, therefore, will moderate the relationship betweena potential stress condition and an employee’s reaction to it. Oneperson’s fear that he’ll lose his job because his company is laying offpersonnel may be perceived by another as an opportunity to get alarge severance allowance and start his own business. Similarly,what one employee perceives as a challenging job may be viewed asthreatening and demanding by others.45 So the stress potential inenvironmental, organizational, and individual factors doesn’t lie inChapter End Chapter Start Contents * * Quit Video Web Site 1400their objective condition. Rather, it lies in an employee’s interpretationof those factors.JOB EXPERIENCE Experience is said to be a great teacher. It can

also be a great stress reducer. Think back to your first date or yourfirst few days in college. For most of us, the uncertainty and newnessof these situations created stress. But as we gained experience,that stress disappeared or at least significantly decreased. The samephenomenon seems to apply to work situations. That is, experienceon the job tends to be negatively related to work stress. Two explanationshave been offered.46 First is the idea of selective withdrawal.Voluntary turnover is more probable among people who experiencemore stress. Therefore, people who remain with the organizationlonger are those with more stress-resistant traits, or those who aremore resistant to the stress characteristics of their organization.Second, people eventually develop coping mechanisms to deal withstress. Because this takes time, senior members of the organizationare more likely to be fully adapted and should experience less stress.SOCIAL SUPPORT There is increasing evidence that social support—that is, collegial relationships with co-workers or supervisors—can buffer the impact of stress.47 The logic underlying thismoderating variable is that social support acts as a palliative, mitigatingthe negative effects of even high-strain jobs.Chapter End Chapter Start Contents * * Quit Video Web Site 1401For individuals whose work associates are unhelpful or evenactively hostile, social support may be found outside the job.Involvement with family, friends, and community can provide thesupport—especially for those with a high social need—that is missingat work and this can make job stressors more tolerable.BELIEF IN LOCUS OF CONTROL Locus of control was introducedin Chapter 2 as a personality attribute. Those with an internal locusof control believe they control their own destiny. Those with anexternal locus believe their lives are controlled by outside forces.Evidence indicates that internals perceive their jobs to be less stressfulthan do externals.48When internals and externals confront a similar stressful situation,the internals are likely to believe that they can have a significanteffect on the results. They, therefore, act to take control ofevents. Externals are more likely to be passive and defensive. Ratherthan do something to reduce the stress, they acquiesce. So externals,who are more likely to feel helpless in stressful situations, arealso more likely to experience stress.HOSTILITY For much of the 1970s and 1980s, a great deal ofattention was directed at the Type A personality.49 In fact, throughoutthe 1980s, it was undoubtedly the most frequently used moderatingvariable related to stress.Chapter End Chapter Start Contents * * Quit Video Web Site 1402As noted in Chapter 2, the Type A personality is characterizedby feeling a chronic sense of time urgency and by an excessive competitivedrive. The Type A individual is “aggressively involved in a

chronic, incessant struggle to achieve more and more in less and lesstime, and if required to do so, against the opposing efforts of otherthings or other persons.”50Until recently, researchers believed that Type A’s were morelikely to experience stress on and off the job. More specifically, TypeA’s were widely believed to be at higher risk for heart disease. Acloser analysis of the evidence, however, has produced new conclusions.51 By looking at various components of Type A behavior, it’sbeen found that only the hostility and anger associated with TypeA behavior are actually related to heart disease. The chronicallyangry, suspicious, and mistrustful person is the one at risk.So just because a person is a workaholic, rushes around a lot,and is impatient or competitive does not mean that he or she isunduly susceptible to heart disease or the other negative effects ofstress. Rather, it’s the quickness to anger, the persistently hostileoutlook, and the cynical mistrust of others that are harmful.Consequences of StressStress shows itself in a number of ways. For instance, an individualwho is experiencing a high level of stress may develop high bloodpressure, ulcers, irritability, difficulty in making routine decisions,Chapter End Chapter Start Contents * * Quit Video Web Site 1403loss of appetite, accident proneness, and the like. These can be subsumedunder three general categories: physiological, psychological,and behavioral symptoms.52PHYSIOLOGICAL SYMPTOMS Most of the early concern withstress was directed at physiological symptoms. This was predominatelydue to the fact that the topic was researched by specialists inthe health and medical sciences. This research led to the conclusionthat stress could create changes in metabolism, increase heart andbreathing rates, increase blood pressure, bring on headaches, andinduce heart attacks.The link between stress and particular physiological symptomsis not clear. There are few, if any, consistent relationships.53 This isattributed to the complexity of the symptoms and the difficulty ofobjectively measuring them. But of greater relevance is the fact thatphysiological symptoms have the least direct relevance to studentsof OB. Our concern is with behaviors and attitudes. Therefore, thetwo other categories of symptoms are more important to us.PSYCHOLOGICAL SYMPTOMS Stress can cause dissatisfaction. Jobrelatedstress can cause job-related dissatisfaction. Job dissatisfaction,in fact, is “the simplest and most obvious psychological effect” ofstress.54 But stress shows itself in other psychological states—forinstance, tension, anxiety, irritability, boredom, and procrastination.Chapter End Chapter Start Contents * * Quit Video Web Site 1404The evidence indicates that when people are placed injobs that make multiple and conflicting demands or in

which there is a lack of clarity as to the incumbent’s duties,authority, and responsibilities, both stress and dissatisfactionare increased.55 Similarly, the less control people haveover the pace of their work, the greater the stress and dissatisfaction.While more research is needed to clarify therelationship, the evidence suggests that jobs that provide a lowlevel of variety, significance, autonomy, feedback, and identity toincumbents create stress and reduce satisfaction and involvementin the job.56BEHAVIORAL SYMPTOMS Behaviorally related stress symptomsinclude changes in productivity, absence, and turnover, as well aschanges in eating habits, increased smoking or consumption ofalcohol, rapid speech, fidgeting, and sleep disorders.There has been a significant amount of research investigatingthe stress – performance relationship. The most widely studied patternin the stress – performance literature is the inverted-U relationship.57 This is shown in Exhibit 17-13.The logic underlying the inverted U is that low to moderate levelsof stress stimulate the body and increase its ability to react.Individuals then often perform their tasks better, more intensely, ormore rapidly. But too much stress places unattainable demands orChapter End Chapter Start Contents * * Quit Video Web Site 1405u Job dissatisfaction is “thesimplest and most obviouspsychological effect” ofstress.

Managing StressFrom the organization’s standpoint, management may not be concernedwhen employees experience low to moderate levels of stress.The reason, as we showed earlier, is that such levels of stress may befunctional and lead to higher employee performance. But high lev-Chapter End Chapter Start Contents * * Quit Video Web Site 1407els of stress, or even low levels sustained over long periods of time,can lead to reduced employee performance and, thus, requireaction by management.While a limited amount of stress may benefit an employee’sperformance, don’t expect employees to see it that way. From theindividual’s standpoint, even low levels of stress are likely to be perceivedas undesirable. It’s not unlikely, therefore, for employees andmanagement to have different notions of what constitutes anacceptable level of stress on the job. What management may consideras “a positive stimulus that keeps the adrenalin running” isvery likely to be seen as “excessive pressure” by the employee. Keepthis in mind as we discuss individual and organizational approachestoward managing stress.59

INDIVIDUAL APPROACHES An employee can take personalresponsibility for reducing his or her stress level. Individual strategiesthat have proven effective include implementing time managementtechniques, increasing physical exercise, relaxation training,and expanding the social support network.Many people manage their time poorly. The things they have toaccomplish in any given day or week are not necessarily beyondcompletion if they manage their time properly. The well-organizedemployee, like the well-organized student, can often accomplishtwice as much as the person who is poorly organized. So an under-Chapter End Chapter Start Contents * * Quit Video Web Site 1408As we noted earlier in this chapter, having friends, family, orwork colleagues to talk to provides an outlet when stress levelsbecome excessive. Expanding your social support network, therefore,can be a means for tension reduction. It provides you withsomeone to hear your problems and to offer a more objective perspectiveon the situation. Research also demonstrates that socialsupport moderates the stress – burnout relationship.64 That is,high support reduces the likelihood that heavy work stress willresult in job burnout.ORGANIZATIONAL APPROACHES Several of the factors that causestress—particularly task and role demands, and organizationalstructure—are controlled by management. As such, they can bemodified or changed. Strategies that management might want toconsider include improved personnel selection and job placement,use of realistic goal setting, redesigning of jobs, increased employeeinvolvement, improved organizational communication, and establishmentof corporate wellness programs.While certain jobs are more stressful than others, we learned earlierin this chapter that individuals differ in their response to stresssituations. We know, for example, that individuals with little experienceor an external locus of control tend to be more prone to stress.Selection and placement decisions should take these facts into consideration.Obviously, while management shouldn’t restrict hiring toChapter End Chapter Start Contents * * Quit Video Web Site 1410directly affect their job performances, management can increaseemployee control and reduce this role stress. So managers shouldconsider increasing employee involvement in decision making.65Increasing formal organizational communication with employeesreduces uncertainty by lessening role ambiguity and role conflict.Given the importance that perceptions play in moderating thestress– response relationship, management can also use effective communicationsas a means to shape employee perceptions. Rememberthat what employees categorize as demands, threats, or opportunitiesare merely an interpretation, and that interpretation can be affectedby the symbols and actions communicated by management.

Our final suggestion is to offer organizationally supported wellnessprograms. These programs focus on the employee’s total physicaland mental condition.66 For example, they typically provide workshopsto help people quit smoking, control alcohol use, lose weight, eatbetter, and develop a regular exercise program (see Exhibit 17-14). Theassumption underlying most wellness programs is that employees needto take personal responsibility for their physical and mental health.The organization is merely a vehicle to facilitate this end.Organizations, of course, aren’t altruistic. They expect a payofffrom their investment in wellness programs. And most of those firmsthat have introduced wellness programs have found significant benefits.For instance, Johnson & Johnson calculated the followingannual savings in insurance premiums when an employee exchangesChapter End Chapter Start Contents * * Quit Video Web Site 1412wellness programsOrganizationally supportedprograms that focus on theemployee’s total physicaland mental condition.

bad habits for healthy ones: quitting smoking ($1,110); starting toexercise ($260); lowering cholesterol from 240 to 190 milligrams($1,200); and slimming down from obese to normal weight ($177).67Summary and Implications for ManagersThe need for change has been implied throughout this text. “Acasual reflection on change should indicate that it encompassesalmost all our concepts in the organizational behavior literature.Think about leadership, motivation, organizational environment,and roles. It is impossible to think about these and other conceptswithout inquiring about change.”68If environments were perfectly static, if employees’ skills andabilities were always up-to-date and incapable of deteriorating, and iftomorrow was always exactly the same as today, organizationalchange would have little or no relevance to managers. But the realworld is turbulent, requiring organizations and their members toundergo dynamic change if they are to perform at competitive levels.Managers are the primary change agents in most organizations.By the decisions they make and their role-modeling behaviors, theyshape the organization’s change culture. For instance, managementdecisions related to structural design, cultural factors, and humanresource policies largely determine the level of innovation withinthe organization. Similarly, management decisions, policies, andChapter End Chapter Start Contents * * Quit Video Web Site 1413

practices will determine the degree to which the organization learnsand adapts to changing environmental factors.

We found that the existence of work stress, in and of itself, neednot imply lower performance. The evidence indicates that stress canbe either a positive or negative influence on employee performance.For many people, low to moderate amounts of stress enable them toperform their jobs better, by increasing their work intensity, alertness,and ability to react. However, a high level of stress, or even a moderateamount sustained over a long period of time, eventually takes itstoll and performance declines. The impact of stress on satisfaction isfar more straightforward. Job-related tension tends to decrease generaljob satisfaction.73 Even though low to moderate levels of stressmay improve job performance, employees find stress dissatisfying.For Review1. What is meant by the phrase “we live in an age of discontinuity”?2. “Resistance to change is an irrational response.” Do you agree ordisagree? Explain.3. Why is participation considered such an effective technique forlessening resistance to change?4. Why does change so frequently become a political issue inorganizations?Chapter End Chapter Start Contents * * Quit Video Web Site 1414