ORGANIZATIONAL CHANGE AND STRESS MANAGEMENTForces for ChangeManaging Planned ChangeResistance to ChangeA. Major Forces for Resistance to Change (See Exhibit 18-2)C. The Politics of ChangeApproaches to Managing Organizational ChangeA. Lewin’s Three-Step ModelContemporary Change Issues for Today’s ManagersA. Technology in the Workplace1. Continuous Improvement Processes. Quality management programs seek toachieve continuous process improvements to consistently reduce variability.B. Stimulating InnovationD. Managing Change: It’s Culture Bound!A. What Is Stress? (see Exhibit 18-7)D. Individual DifferencesE. Consequences of StressF. Managing StressRobbins: Organizational Behavior Chapter EighteenORGANIZATIONAL CHANGE AND STRESS MANAGEMENTCHAPTER 18 OUTLINEForces for Change1. Organizations face a dynamic and changing environment. This requires adaptation. Exhibit 18-1 summarizes six specific forces that are acting as stimulants for change.2. The changing nature of the workforce:- A multicultural environment.- Human resource policies and practices changed to reflect the needs of an aging workforce. - Large expenditure on training to upgrade reading, math, computer, and other skills of employees3. Technology is changing jobs and organizations: - Sophisticated information technology is also making organizations more responsive. As organizations have had to become more adaptable, so too have their employees.- We live in an “age of discontinuity.” Beginning in the early 1970s with the overnight quadrupling of world oil prices, economic shocks have continued to impose changes on organizations. 4. Competition is changing: - The global economy means global competitors.- Established organizations need to defend themselves against both traditional competitors and small, entrepreneurial firms with innovative offerings. - Successful organizations will be the ones that can change in response to the competition.5. Social trends during the past generation suggest changes that organizations have to adjust for: - The expansion of the Internet, Baby Boomers retiring, and people moving from the suburbs back to cities- A global context for OB is required. No one could have imagined how worldpolitics would change in recent years. - September 11th has caused changes organizations have made in terms of practices concerning security, back-up systems, employee stereotyping, etc.Managing Planned Change1. Some organizations treat all change as an accidental occurrence, however, change as an intentional, goal-oriented activity is planned change.2. There are two goals of planned change:- Improve the ability of the organization to adapt to changes in its environment.1Robbins: Organizational Behavior Chapter Eighteen- Change employee behavior.3. Examples of planned-change activities are needed to stimulate innovation, empower employees, and introduce work teams.4. An organization’s success or failure is essentially due to the things that employees do or fail to do, so planned change is also concerned with changingthe behavior of individuals and groups within the organization.5. Who in organizations are responsible for managing change activities?- Change agents can be managers, employees of the organization, or outside consultants.- Typically, we look to senior executives as agents of change. 6. For major change efforts, top managers are increasingly turning to temporary outside consultants with specialized knowledge in the theory and methods of change. - Consultant change agents can offer a more objective perspective than insiders can. - They are disadvantaged in that they often have an inadequate understanding of the organization’s history, culture, operating procedures, and personnel. - Outside consultants are also more willing to initiate second-order changes.- Internal change agents are often more cautious for fear of offending friendsand associates.Resistance to Change1. One of the most well-documented findings is that organizations and their members resist change. - It provides a degree of stability and predictability to behavior. - There is a definite downside to resistance to change. It hinders adaptation and progress.2. Resistance to change does not necessarily surface in standardized ways. - Resistance can be overt, implicit, immediate, or deferred. - It is easiest for management to deal with resistance when it is overt and immediate. 3. Implicit resistance efforts are more subtle—loss of loyalty to the organization, loss of motivation to work, increased errors or mistakes, increased absenteeism due to “sickness”—and hence more difficult to recognize.4. Similarly, deferred actions cloud the link between the source of the resistance and the reaction to it. - A change may produce what appears to be only a minimal reaction at the time it is initiated, but then resistance surfaces weeks, months, or even years later. a. Reactions to change can build up and then explode seemingly totally out of proportion.b. The resistance was deferred and stockpiled, and what surfaces is a cumulative response.2Robbins: Organizational Behavior Chapter EighteenA. Major Forces for Resistance to Change (See Exhibit 18-2)1. Individual sources2. Organizational sourcesB. Overcoming Resistance to Change1. Six tactics used by change agents in dealing with resistance to change: 2. Education and communication:- Resistance can be reduced through communicating to help employees seethe logic of a change. The assumption is that the source of resistance lies in misinformation or poor communication. - It works provided that the source of resistance is inadequate communication and that management-employee relations are characterized by mutual trust and credibility.3. Participation:- It is difficult for individuals 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. - The negatives—potential for a poor solution and great time consumption.4. Facilitation and support:- Employee counseling and therapy, new-skills training, or a short paid leaveof absence may facilitate adjustment. The drawbacks—it is time-consuming, expensive, and its implementation offers no assurance of success.5. Negotiation: - Negotiation as a tactic may be necessary when resistance comes from a powerful source. - It has potentially high costs,