Organizational Change and Stress Management
Learning Objectives • Describe the forces that stimulate change • Learn about planned/unplanned changes • Learn how individuals and organizations resist change • Discuss overcoming resistance to change • Learn about Lewin’s change model • Describe potential sources of stress • Learn how individual variables moderate the stress-outcome relationship
The Downsizing Job Market Question
Responses
Have you or someone in your household been forced to work fewer hours or take a cut in pay?
Reduced hours = 15% Cut in pay = 35% Both = 17%
Have you or someone in your household been required to work more hours than usual?
Yes = 54%
Has the fear of losing your job caused you to cut back your spending?
Cut back severely = 35% Cut back moderately = 55%
What changes would you be willing to make to keep your present job?
Get more education or training = 93% Work longer hours = 82% Take fewer vacation days = 71% Accept smaller benefits = 53% Accept a lower wage = 44%
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Workforce World Politics
Social Trends
Technology
Forces For Change Competition
Economic Shocks
Planned and Unplanned Organizational Changes Organizational Change planned Changes • Changes in products and services • Changes in administrative systems • Changes in organizational size or structure • Introduction of new technologies • Advances in information processing and communication
Unplanned Changes • Changing employee demographics • Performance gaps • Governmental regulations • Economic competition in the global arena
What Can Change Agents Change?
Structure
Technology
Physical Setting
People
Structure, Technology, and People as Targets of Organizational Change Structure
Technology
People
Organizational Change
Resistance to Change • Forms of Resistance to Change – Overt and immediate • Voicing complaints, engaging in job actions
– Implicit and deferred • Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
Resistance to Change Selective Information Processing
Force of Habit
Individual
Fear of the Unknown
Need for Security Economic Factors
Overcoming Resistance to Change Education and Communication
Participation
Negotiation
Facilitation and Support
Manipulation and Cooptation
Coercion
Organizational Change
Unfreezing
Changing
Refreezing
Lewin’s Three-Step Process
Unfreezing the Status Quo Desired State Restraining Forces
Status Quo Driving Forces Time
Action Research Process One:
Diagnosis
Three:
Feedback Five:
Evaluation Two:
Analysis
Four:
Action
Survey Feedback: An Overview
Data Collection Employees complete surveys to provide information about problems in their organization
Feedback Feelings about the organization are summarized and shared with all employees
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Develop Action Plans Through group discussions, specific plans for overcoming problems are identified and developed
Organizational Development • Respect for people • Trust and support • Power equalization • Confrontation • Participation
Five OD Interventions • Intergroup development • Process consultation • Sensitivity training • Survey feedback • Team building
Sources of Innovation Human Resources Structural Variables Organizational Culture