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    Robbins: Organizational Behavior Chapter Eighteen

    ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT

    CHAPTER 18 OUTLINE

    Forces for Change

    1. Organizations face a dynamic and changing environment. This requiresadaptation. Exhibit 181 summarizes six specific forces that are acting asstimu!ants for change.

    ". The changing nature of the workforce:

    # mu!ticu!tura! environment.

    $uman resource po!icies and practices changed to ref!ect the needs of an

    aging %or&force.

    'arge expenditure on training to upgrade reading( math( computer( and

    other s&i!!s of emp!oyees

    ). Technology is changing jobs and organizations:

    *ophisticated information techno!ogy is a!so ma&ing organizations more

    responsive. #s organizations have had to become more adaptab!e( so toohave their emp!oyees.

    +e !ive in an ,age of discontinuity.- eginning in the ear!y 1/0s %ith the

    overnight quadrup!ing of %or!d oi! prices( economic shoc&s have continuedto impose changes on organizations.

    2. Copetition is changing:

    The g!oba! economy means g!oba! competitors.

    Estab!ished organizations need to defend themse!ves against both

    traditiona! competitors and sma!!( entrepreneuria! firms %ith innovativeofferings.

    *uccessfu! organizations %i!! be the ones that can change in response to

    the competition.

    3. !ocial trends during the past generation suggest changes that organizationshave to adjust for:

    The expansion of the 4nternet( aby oomers retiring( and peop!e moving

    from the suburbs bac& to cities

    # g!oba! context for O is required. 5o one cou!d have imagined ho% %or!d

    po!itics %ou!d change in recent years.

    *eptember 11thhas caused changes organizations have made in terms ofpractices concerning security( bac&up systems( emp!oyee stereotyping(etc.

    6anaging 7!anned Change

    1. *ome organizations treat a!! change as an accidenta! occurrence( ho%ever(change as an intentiona!( goa!oriented activity is p!anned change.

    ". There are t%o goa!s of p!anned change

    1

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    4mprove the abi!ity of the organization to adapt to changes in its

    environment.

    Change emp!oyee behavior.

    ). Examp!es of p!annedchange activities are needed to stimu!ate innovation(empo%er emp!oyees( and introduce %or& teams.

    2. #n organization9s success or fai!ure is essentia!!y due to the things that

    emp!oyees do or fai! to do( so p!anned change is a!so concerned %ith changingthe behavior of individua!s and groups %ithin the organization.

    3. +ho in organizations are responsib!e for managing change activities:

    Change agents can be managers( emp!oyees of the organization( or

    outside consu!tants.

    Typica!!y( %e !oo& to senior executives as agents of change.

    ;. For ma

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    Robbins: Organizational Behavior Chapter Eighteenout of proportion.

    b. The resistance %as deferred and stoc&pi!ed( and %hat surfaces is acumu!ative response.

    "# $ajor %orces for Resistance to Change ?*ee Exhibit 18"@

    1. 4ndividua! sources

    ". Organizationa! sources

    B# Overcoing Resistance to Change

    1. *ix tactics used by change agents in dea!ing %ith resistance to change

    ". Education and counication:

    =esistance can be reduced through communicating to he!p emp!oyees see

    the !ogic of a change. The assumption is that the source of resistance !iesin misinformation or poor communication.

    4t %or&s provided that the source of resistance is inadequate

    communication and that managementemp!oyee re!ations arecharacterized by mutua! trust and credibi!ity.

    ). &articipation:

    4t is difficu!t for individua!s to resist a change decision in %hich they

    participated.

    7rior to ma&ing a change( those opposed can be brought into the decision

    process( assuming they have the expertise to ma&e a meaningfu!contribution.

    The negatives>potentia! for a poor so!ution and great time consumption.

    2. %acilitation and support:

    Emp!oyee counse!ing and therapy( ne%s&i!!s training( or a short paid !eave

    of absence may faci!itate adit is timeconsuming( expensive( and its imp!ementation offers no assurance ofsuccess.

    3. 'egotiation:

    5egotiation as a tactic may be necessary %hen resistance comes from a

    po%erfu! source.

    4t has potentia!!y high costs( and there is the ris& that the change agent is

    open to the possibi!ity of being b!ac&mai!ed by other individua!s in positionsof po%er.

    ;. $anipulation and cooptation:

    $anipulationrefers to ,covert inf!uence attempts( t%isting and distorting

    facts to ma&e them appear more attractive( %ithho!ding undesirab!einformation( and creating fa!se rumors to get emp!oyees to accept achange.-

    Cooptationis ,a form of both manipu!ation and participation.- 4t see&s to

    ,buy off- the !eaders of a resistance group by giving them a &ey ro!e in thechange decision.

    3

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    oth manipu!ation and cooptation are re!ative!y inexpensive and easy

    %ays to gain support. The tactics can bac&fire if the targets become a%arethat they are being tric&ed or used.

    0. Coercion:

    This is ,the app!ication of direct threats or force upon the resisters.-

    Examp!es of coercion are threats of transfer( !oss of promotions( negative

    performance eva!uations( and a poor !etter of recommendation.C# The &olitics of Change

    1. Change threatens the status quo( ma&ing it an inherent!y po!itica! activity.

    ". 4nterna! change agents typica!!y are individua!s high in the organization %hohave a !ot to !ose from change.

    +hat if they are no !onger the ones the organization va!ues:

    This creates the potentia! for others in the organization to gain po%er at

    their expense.

    ). 7o!itics suggests that the impetus for change is more !i&e!y to come fromoutside change agents.

    2. 6anagers %ho have spent their entire careers %ith a sing!e organization andeventua!!y achieve a senior position in the hierarchy are often ma

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    Robbins: Organizational Behavior Chapter Eighteenequi!ibrium( can be decreased.

    # third a!ternative is to combine the first t%o approaches.

    2. Once the change has been imp!emented( the ne% situation needs to berefrozenso that it can be sustained over time.

    Bn!ess this !ast step is ta&en( there is a very high chance that the change

    %i!! be short!ived and that emp!oyees %i!! attempt to revert to the previousequi!ibrium state.

    The ob

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    *econd( resistance to change is reduced. Once emp!oyees have active!y

    participated in the feedbac& stage( the change process typica!!y ta&es on amomentum of its o%n.

    4# Organizational 4evelopent

    1. Organizationa! deve!opment ?OD@ is a term used to encompass a co!!ection ofp!annedchange interventions bui!t on humanisticdemocratic va!ues that see&

    to improve organizationa! effectiveness and emp!oyee %e!!being.". The OD paradigm va!ues human and organizationa! gro%th( co!!aborative and

    participative processes( and a spirit of inquiry.

    ). The under!ying va!ues in most OD efforts

    =espect for peop!e

    Trust and support

    7o%er equa!ization

    Confrontation

    7articipation

    2. OD techniques or interventions for bringing about change

    3. !ensitivity training:

    4t can go by a variety of names>!aboratory training( groups( or Tgroups

    ?training groups@>but a!! refer to a thorough unstructured groupinteraction.

    7articipants discuss themse!ves and their interactive processes( !oose!y

    directed by a professiona! behaviora! scientist.

    *pecific resu!ts sought inc!ude increased abi!ity to empathize %ith others(

    improved !istening s&i!!s( greater openness( increased to!erance ofindividua! differences( and improved conf!ict reso!ution s&i!!s.

    ;. !urvey feedback:

    One too! for assessing attitudes he!d by organizationa! members(

    identifying discrepancies among member perceptions( and so!ving thesedifferences is the survey feedbac& approach.

    Everyone can participate( but of &ey importance is the organizationa!

    ,fami!y.-

    a. # questionnaire is usua!!y comp!eted by a!! members in theorganization or unit.

    b. Organization members may be as&ed to suggest questions or may beintervie%ed.

    c. The questionnaire as&s for perceptions and attitudes on a broad rangeof topics.

    The data from this questionnaire are tabu!ated %ith data pertaining to an

    individua!9s specific ,fami!y- and to the entire organization and distributedto emp!oyees.

    a. These data then become the springboard for identifying prob!ems andc!arifying issues.

    b. 7articu!ar attention is given to encouraging discussion and ensuringthat discussions focus on issues and ideas and not on attac&ingindividua!s.

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    Robbins: Organizational Behavior Chapter Eighteen

    Fina!!y( group discussion in the survey feedbac& approach shou!d resu!t in

    members identifying possib!e imp!ications of the questionnaire9s findings.

    0. &rocess consultation:

    The purpose of process consu!tation is for an outside consu!tant to assist a

    manager( ,to perceive( understand( and act upon process events- thatmight inc!ude %or& f!o%( informa! re!ationships among unit members( andforma! communication channe!s.

    The consu!tant %or&s %ith the c!ient in

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    Robbins: Organizational Behavior Chapter Eighteenimprove re!ations bet%een the groups.

    *ubgroups( %ith members from each of the conf!icting groups( can no% be

    created for further diagnosis and to begin to formu!ate possib!e a!ternativeactions that %i!! improve re!ations.

    1."ppreciative 3n1uiry:

    6ost OD approaches are prob!emcentered. They identify a prob!em or set

    of prob!ems( then !oo& for a so!ution. #ppreciative inquiry see&s to identifythe unique qua!ities and specia! strengths of an organization.

    11. The #4 process essentia!!y consists of four steps

    4iscovery. The idea is to find out %hat peop!e thin& are the strengths of the

    organization. For instance( emp!oyees are as&ed to recount times they fe!tthe organization %or&ed best or %hen they specifica!!y fe!t most satisfied%ith their

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    2. Change refers to ma&ing things different. 4nnovation is a more specia!ized &indof change.

    4nnovation is a ne% idea app!ied to initiating or improving a product(

    process( or service.

    #!! innovations invo!ve change( but not a!! changes necessari!y invo!ve ne%

    ideas or !ead to significant improvements.

    4nnovations in organizations can range from sma!! incrementa!improvements to significant change efforts.

    ). !ources of innovation:

    *tructura! variab!es are the most studied potentia! source of innovation.

    First( organic structures positive!y inf!uence innovation because they

    faci!itate f!exibi!ity( adaptation and crossferti!ization.

    *econd( !ong tenure in management is associated %ith innovation.

    6anageria! tenure apparent!y provides !egitimacy and &no%!edge of ho% toaccomp!ish tas&s and obtain desired outcomes.

    Third( innovation is nurtured %here there are s!ac& resources.

    Fina!!y( interunit communication is high in innovative organizations. There

    is a high use of committee( tas& forces( crossfunctiona! teams and othermechanisms that faci!itate interaction.

    2. 3nnovative organizations tend to have siilar cultures:

    They encourage experimentation.

    They re%ard both successes and fai!ures.

    They ce!ebrate mista&es.

    6anagers in innovative organizations recognize that fai!ures are a natura!

    byproduct of venturing into the un&no%n.

    3. 6uan resources:

    4nnovative organizations active!y promote the training and deve!opment.

    They offer high

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    Robbins: Organizational Behavior Chapter Eighteencontinuous capacity to adapt and change.

    #!! organizations !earn>%hether they conscious!y choose to or not it is a

    fundamenta! requirement for their sustained existence.

    6ost organizations engage in sing!e!oop !earning. +hen errors are

    detected( the correction process re!ies on past routines and presentpo!icies.

    'earning organizations use doub!e!oop !earninga. +hen an error is detected( it9s corrected in %ays that invo!ve the

    modification of the organization9s obit see&s ,boundary!essness-.

    8# $anaging learning:

    +hat can managers do to ma&e their firms !earning organizations:

    a. Estab!ish a strategy.

    b. =edesign the organization9s structure.

    c. =eshape the organization9s cu!ture.

    6anagement sets the tone for the organization9s cu!ture both by %hat it

    says ?strategy@ and %hat it does ?behavior@.

    4# $anaging Change: 3t)s Culture Bound9

    To i!!ustrate( !et9s brief!y !oo& at five questions.

    -# 4o people believe change is possible

    4n cu!tures %here peop!e be!ieve that they can dominate their environment(

    individua!s %i!! ta&e a proactive vie% of change>the Bnited *tates andCanada.

    4n many other countries( such as 4ran and *audi #rabia( peop!e see

    themse!ves as sub

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    Robbins: Organizational Behavior Chapter Eighteenconsiderab!e patience.

    4n societies %ith a shortterm focus ?the Bnited *tates and Canada@(

    peop!e expect quic& resu!ts.

    /# 3s resistance to change greater in soe cultures than in others

    =esistance to change %i!! be inf!uenced by a society9s re!iance on tradition.

    4ta!ians focus on the past( %hi!e #mericans emphasize the present.

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    Robbins: Organizational Behavior Chapter Eighteen

    C# &otential !ources of !tress +see E,hibit -.*@0

    -# Environental factors:

    Environmenta! uncertainty inf!uences stress !eve!s among emp!oyees in an

    organization.

    Changes in the business cyc!e create economic uncertainties.

    7o!itica! uncertainties can be stress inducing.

    Techno!ogica! uncertainty can cause stress because ne% innovations can

    ma&e an emp!oyee9s s&i!!s and experience obso!ete in a very short periodof time.

    8# Organizational factors:

    7ressures to avoid errors or comp!ete tas&s in a !imited time period( %or&

    over!oad( a demanding and insensitive boss( and unp!easant co%or&ersare a fe% examp!es.

    Tas& demands are factors re!ated to a person9s creates different prob!ems and pressures for emp!oyees.

    d. The estab!ishment and dec!ine stages are particu!ar!y stressfu!.

    e. *tress tends to be !east in maturity %here uncertainties are at their!o%est ebb.

    /# 3ndividual factors:

    These are factors in the emp!oyee9s persona! !ife. 7rimari!y( these factors

    are fami!y issues( persona! economic prob!ems( and inherent persona!itycharacteristics.

    12

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    Robbins: Organizational Behavior Chapter Eighteen

    5ationa! surveys consistent!y sho% that peop!e ho!d fami!y and persona!

    re!ationships dear.

    Economic prob!ems created by individua!s overextending their financia!

    resources.

    # significant individua! factor inf!uencing stress is a person9s basic

    dispositiona! nature.

    2. *tressors are additivestress bui!ds up.

    4# 3ndividual 4ifferences

    1. Five individua! difference variab!es moderate the re!ationship bet%een potentia! stressors and experienced stress

    a. perception

    b.

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    Robbins: Organizational Behavior Chapter Eighteen

    7hysio!ogica! symptoms have the !east direct re!evance to students of O.

    2. &sychological syptos:

    obre!ated stress can cause !ac& of c!arity as to the incumbent9s

    duties( authority( and responsibi!ities>increase stress and dissatisfaction.

    The !ess contro! peop!e have over the pace of their %or&( the greater the

    stress and dissatisfaction.

    3. Behavioral syptos:

    ehaviora!!y re!ated stress symptoms inc!ude changes in productivity(

    absence( and turnover( as %e!! as changes in eating habits( increasedsmo&ing or consumption of a!coho!( rapid speech( fidgeting( and s!eepdisorders.

    The stressperformance re!ationship is sho%n in Exhibit 181.a. The !ogic under!ying the inverted B is that !o% to moderate !eve!s of

    stress stimu!ate the body and increase its abi!ity to react.

    b. 4ndividua!s then often perform their tas&s better( more intense!y( ormore rapid!y.

    c. ut too much stress p!aces unattainab!e demands or constraints on aperson( %hich resu!t in !o%er performance.

    d. Even moderate !eve!s of stress can have a negative inf!uence onperformance over the !ong term as the continued intensity of the stress%ears do%n the individua! and saps hisHher energy resources.

    4n spite of the popu!arity and intuitive appea! of the invertedB mode!( it

    doesn9t get a !ot of empirica! support.

    %# $anaging !tress

    1. $igh or !o% !eve!s of stress sustained over !ong periods of time( can !ead toreduced emp!oyee performance and( thus( require action by management.

    8# 3ndividual approaches:

    Effective individua! strategies inc!ude imp!ementing time management

    techniques( increasing physica! exercise( re!axation training( andexpanding the socia! support net%or&.

    7racticing time management princip!es such as

    a. ma&ing dai!y !ists of activities to be accomp!ished.

    b. prioritizing activities by importance and urgency.

    c. schedu!ing activities according to the priorities set.

    d. &no%ing your dai!y cyc!e and hand!ing the most demanding parts ofyour

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    Robbins: Organizational Behavior Chapter Eighteentechniques such as meditation( hypnosis( and biofeedbac&.

    $aving friends( fami!y( or %or& co!!eagues to ta!& to provides an out!et for

    excessive stress.

    /# Organizational approaches

    *trategies that management might %ant to consider inc!ude

    a. improved personne! se!ection and