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Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

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Chapter 19 Change, Innovation, and Stress  Study questions. – What is organizational change? – What change strategies are used in

organizations? – What can be done about resistance to change? – How do organizations innovate? – How does stress affect people at work? Organizational Behavior: Chapter 19

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What is organizational change?  Forms of change. – Radical change. • Also known as frame-breaking change. • Change that results in a major overhaul of the organization or its component systems. – Incremental change. • Also known as frame-bending change. • Change that is part of the organization’s natural

evolution. Organizational Behavior: Chapter 19

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What is organizational change?  Change agents. – Individuals and groups who take responsibility

for changing the existing behavior patterns of another person or social system. – Sometimes hired as outside consultants. – Managers and leaders in contemporary organizations are expected to be change agents. Organizational Behavior: Chapter 19

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What is organizational change?  Unplanned change. – Occurs spontaneously or randomly. – May be disruptive or beneficial. – The appropriate goal is to act quickly to

minimize any negative consequences and maximize any possible benefits. Organizational Behavior: Chapter 19

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What is organizational change?  Planned change. – The result of specific efforts by a change

agent. – A performance gap is a direct response to a perceived performance gap. • A discrepancy between the actual and desired state

of affairs. • May reflect problems or opportunities. Organizational Behavior: Chapter 19

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What is organizational change?  Organizational forces for change. – Organization-environment relationships. – Organizational life cycle. – Political nature of organizations.

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What is organizational change?  Organizational targets for change. – Purpose. – Objectives. – Strategy. – Culture – People. – Tasks. – Structure – Technology. Organizational Behavior: Chapter 19

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What is organizational change?  Phases of planned change. – Unfreezing. • Preparing a situation for change by disconfirming existing

attitudes and behaviors. • Susceptibility to “boiled frog phenomenon.”

– Changing. • Taking action to modify a situation by altering the targets of

change.

– Refreezing. • Maintaining and eventually institutionalizing the change. Organizational Behavior: Chapter 19

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What change strategies are used in organizations?  Force-coercion strategy. – Draws on reward power, coercive power, and

legitimate power as primary inducements to change. – Change agent acts unilaterally to command

change. – Usually results in temporary compliance. Organizational Behavior: Chapter 19

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What change strategies are used in organizations?  Rational persuasion strategy. – Also known as an empirical-rational strategy. – Draws on expert power as primary inducement

to change. – Change agent uses special knowledge,

empirical support, or rational arguments. – Usually results in long-term internalization. Organizational Behavior: Chapter 19

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What change strategies are used in organizations?  Shared power strategy. – Also known as a normative-reeducative approach. – Draws on referent power as primary inducement to change. – Change agent empowers people affected by the change and involves them in decision making related to the change. – Usually results in long-term internalization. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Resistance to change. – Any attitude or behavior that indicates

unwillingness to make or support a desired change. – Alternative views of resistance. • Something that must be overcome for change to be

successful. • Feedback that can be used to facilitate achieving change objectives. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Why people resist change. – Fear of the unknown. – Lack of good information. – Fear for loss of security. – No reason to change. – Fear for loss of power. – Lack of resources. – Bad timing. – Habit. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Ways in which resistance is experienced. – Resistance to the change itself. – Resistance to the change strategy. – Resistance to the change agent.

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What can be done about resistance to change?  How to deal with resistance. – Education and communication. – Participation and involvement. – Facilitation and support. – Negotiation and agreement. – Manipulation and cooptation. – Explicit and implicit coercion. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Education and communication. – Educates people about change prior to implementation and helps them understand the logic of change. – Use when people lack information or have inaccurate information. – Advantage — creates willingness to help with the change. – Disadvantage — can be very time consuming. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Participation and involvement. – Allows people to help design and implement

the changes. – Use when other people have important information and/or power to resist. – Advantages — adds information to change planning; builds commitment to change. – Disadvantage — can be very time consuming. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Facilitation and support. – Provides emotional and material assistance for people experiencing the hardships of change. – Use when resistance traces to resource or adjustment problems. – Advantage — directly satisfies specific resource or adjustment needs. – Disadvantages — can be time consuming; can be expensive. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Negotiation and agreement. – Offers incentives to actual or potential change

resistors. – Use when a person or group will lose something because of the change. – Advantage — helps avoid major resistance. – Disadvantages — can be expensive; can cause others to seek similar deals. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Manipulation and cooptation. – Use covert attempts to influence others by selectively providing information and consciously structuring events. – Use when other methods don’t work or are too expensive. – Advantages — can be quick and inexpensive. – Disadvantage — can create future problems if people sense manipulation. Organizational Behavior: Chapter 19

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What can be done about resistance to change?  Explicit and implicit coercion. – Employ the force of authority to implement

change. – Use when speed is important and the change agent has power. – Advantages — quick; overpowers resistance. – Disadvantage — risky if people get mad. Organizational Behavior: Chapter 19

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How do organizations innovate?  Innovation. – The process of creating new ideas and putting them

into practice.

 Product innovations. – The introduction of new or improved goods or

services to better meet customer needs.

 Process innovations. – The introduction of new and better work methods and

operations. Organizational Behavior: Chapter 19

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How do organizations innovate?  The innovation process. – Idea creation. – Initial experimentation. – Feasibility determination. – Final application.

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How do organizations innovate?  Features of innovative organizations. – Strategies and cultures that are built around a

commitment to innovation. – Structures that support innovation. – Staffing with a clear commitment to

innovation. – Top management support for innovation. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Stress. – A state of tension experienced by individuals

facing extraordinary demands, constraints, or opportunities.

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How does stress affect people at work?  Source of stress. – Stressors. • The wide variety of things that cause stress for

individuals.

– Types of stressors. • Work-related stressors. • Nonwork and personal stressors. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Work-related stressors. – Task demands. – Role ambiguities. – Role conflicts. – Ethical dilemmas. – Interpersonal problems. – Career developments. – Physical setting. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Nonwork and personal stressors. – Family events. – Economic difficulties. – Personal affairs. – Individual’s needs. – Individual’s capabilities. – Individual’s personality. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Stress and performance. – Constructive stress. • Also known as eustress. • Moderate levels of stress act in a positive way for both individuals and organization. – Destructive stress. • Also known as distress. • Low and especially high levels of stress act in a

negative way for both individuals and organization. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Stress can harm people’s physical and

psychological health.

– Health problem associated with stress. • • • • • • • • •

Heart attack. Stroke. Hypertension. Migraine headache. Ulcers. Substance abuse. Overeating. Depression. Muscle aches. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Key symptoms of excessive stress. – Changes from: • Regular attendance to absenteeism. • Punctuality to tardiness. • Diligent work to careless work. • A positive attitude to a negative attitude. • Openness to change to resistance to change. • Cooperation to hostility. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Stress prevention. – The best first-line strategy in battling stress. – Involves taking action to keep stress from

reaching a destructive level. – Need to monitor personal and nonwork

stressors and to be proactive in preventing their adverse impact. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Stress management. – Used once stress has reached a destructive

point. – Begins with the recognition of stress

symptoms and continues with actions to maintain a positive performance edge. Organizational Behavior: Chapter 19

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How does stress affect people at work?  Wellness. – Personal wellness involves the pursuit of one’s

physical and mental potential through a personal health promotion program. – Recognizes individual responsibility for

maintaining and enhancing one’s physical and mental health. Organizational Behavior: Chapter 19

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