MGMT 3720 Lecture 11Outline of Last Lecture Chapter 17- Human resource policies and practicesI. Substantive selection methodsII. Contingent selectionIII. Four main types of trainingIV. Informal training methodsV. On-the-job and off-the-job trainingVI. Methods of performance evaluationVII. How managers can improve performance evaluationsVIII. Leadership role in HR organizationsOutline of Current Lecture Chapter 18- Organizational change and stress managementI. Planned and unplanned changesII. Sources of resistance to changeIII. Four main approaches to managing changeIV. Creating a culture for changeV. Potential sources of stressVI. Consequences of stressVII. Managing stressCurrent LectureForces for change:1. Nature of the workforce2. TechnologyThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.3. Economic shocks4. Competition5. Social Trends6. World politicsExamples of forces of change:- Cultural diversity- Aging population- Increased immigration and outsourcing- Faster, cheaper, mobile devices- Growth of social network sites- Deciphering of human genetic code- Rise and fall of global housing market- Financial sector collapse- Global recession- Global competitors- Mergers and consolidations- Increased government regulation of commerce- Increased environmental awareness- Liberalization of attitudes toward gay, lesbian, and transgender employees- More multitasking and connectivity- Rising health care costs- Negative social attitude toward business and executives- Opening of markets in ChinaChange - Change involves making something different.Planned change- when change is an intentional, goal-oriented activity Two goals of planned change: 1. Improve the ability of the organization to adapt to changes in its environment2. Change employee behaviorChange agents- those responsible for managing change activities- Change agents can be managers, employees of the organization, or outside consultants. Many change agents fail because of organizational resistance to change.Sources of resistance to change- Change isn’t always welcome. - We often see change as threatening. - These reactions can sap the organization of vital energy when it is most needed. - Resistance to change can be positive if it leads to open discussion and debate. 5 Individual sources of resistance to change: 1. Habits- To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. 2. Security- People with a high need for security are likely to resist change because it threatens their feelings of safety. 3. Economic factors- Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity. 4. Fear of the unknown- Change can lead to ambiguity and feelings of uncertainty 5. Selective information processing- People are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world they’ve created.5 major sources of organizational resistance to change: 1. Inertia- Organizations have built-in mechanisms to produce stability; this structural inertia acts as a counterbalance to sustainability. 2. Limited focus of change- Organizations are made up of a number of interdependent subsystems. Changing one affects the others. 3. Group inertia- Group norms may act as a constraint.4. Threat to expertise- Changes in organizational patterns may threaten the expertise of specialized groups. 5. Threat to established power relationships- Redistribution of decision-making authority can threaten long-established power relationships. Overcoming Resistance to Change1. Education and communication- resistance to change can be reduced through communicatingand educating, to help employees see the logic of a change. It fights the effects of misinformation and poor communication: if employees receive the full facts and clear up misunderstandings, resistance should subside.- It’s better to communicate changes or layoffs than to keep it a secret. The downside is that good people might leave when they hear of this.2. Participation- it’s difficult for people to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process, assuming they have the expertise to make a meaningful contribution- This creates the potential for a poor solution and great time consumption. 3. Building support and commitment- When employees’ fear and anxiety are high, counseling and therapy, new-skills training, or a short paid leave of absence may facilitate adjustment. When managers or employees have low emotional commitment to change, they favor the status quo and resist it. So firing up employees can also help them emotionally commit to the change rather than embrace the status quo. 4. Develop positive relationships- People are more willing to accept changes if they trust the managers implementing them. Research suggests that if managers are able to facilitate positive relationships, they may be able to overcome resistance to change even among those who ordinarily don’t like changes.5. Implementing changes fairly- Procedural fairness is especially important when employees perceive an outcome as negative, so it’s crucial that employees see the reason for the change and perceive its implementation as consistent and fair. 6. Manipulation and cooptation- Manipulation refers to covert influence attempts, twisting anddistorting facts to make them appear more attractive, withholding undesirable information, and creating false rumors to get employees to accept a change.Cooptation is a form of both manipulation and participation. It seeks to “buy off” the leaders of a resistance group by giving them a key role in the change decision. Both manipulation and cooptation are relatively inexpensive and easy ways to gain support. The tactics can backfire if the targets become aware that they are being tricked or used.- This sometimes gives people the impression of participating in the decision process, when in reality they aren’t.7. Selecting people who accept change- Research suggests