Ch16: ORGANIZATIONAL CHANGE & STRESS MGMT

FORCES FOR CHANGE Changing nature of the workforce

o Need to adjust to: Multicultural environment Demo changes Immigration Outsourcing

Technology Eco shocks

o Eco crisiso Elimination, bankruptcy or acquisition of E

Competitiono Flexibilityo Need of responsive workforce

Social trends World politics

RESISTANCE TO CHANGE Sources

o Individual sources Habit Security Eco factors Fear of the unknown Selective info processing

o Organizational sources Structural inertia

Built-in mechanismso To produce stabilityo Ex: selection processes, regulations…

Limited focus of change Interdependent sub-system

Group inertia Group norms

Threat to expertise Threat to established power relationships Threat to established resources allocation

Overcoming Resistance to Changeo 8 Tactics

Edu & communication Fights the effects of misinfo Help “sell” the need for change

Participation Building support & commitment Develop positive relationships

Implementing changes fairly Manipulation & cooptation

Manipulation: covert influence attempts Cooptation: combination of participation &

manipulation Selecting people who accept change Coercion

APPROACHES TO MANAGING ORG CHANGE Lewin’s 3 Step Models

o Unfreezing the status quo Status quo = equilibrium state

Need to overcome individual resistance & group conformity

Driving forceso Behavior away from status quo

Restraining forceso ++ Status quo

o Mvt to a desired end stateo Freezing the new change

To make it permanent

Kotter’s 8 Step Plan for Implementing Changeo Establish a sense of urgency

By creating a compelling reason for why change is neededo Form a coalition

With enough power to lead the changeo Create a new vision

To direct the change & strategies for achieving ito Communicate the visiono Empower others to act on the vision

By removing barriers to change By encouraging risk taking & creative pb solving

o Plan for, create & reward short term “wins”o Consolidate improvements, reassess changes

Necessary adjustmentso Reinforce the changes

By demonstrating the relation btw new behaviors & org success

Organizational Dev (OD)o Definition

Collection of change methods that try to improve org effectiveness & employee well-being

o Underlying values Respect for ppl

Responsible

Conscientious Caring To be treated with dignity

Trust & support Authenticity Openness

Power equalization De-emphasize hierarchy & control

Confrontation Not swept under the rug

Participationo 5 OD techniques

Survey feedback Employee POV on range of topics

Process consultation Outside consultant to assist a client to perceive,

understand and act upon process event Sensitivity training Emphasizing involvement Dealing with interpersonal pbs Disadvantages

o Task orientedo Only guidance

Team building High interaction act To increase trust & openness ++ Coordinative efforts ++ Team performance Dev of interpersonal relations

Intergroup dev To change groups’ attitudes, stereotypes & perceptions // diversity training Steps

o Listing the perception of ourself & the othero Sharing the listo Identify causes of ≠o Attempt to improve relations: INTEGRATION

Appreciative inquiry Accentuate on the positive

o Focus on successes 4 steps

o Discovery Identify the E’s strengths

o Dreaming Use discovery info to speculate on

futureo Design

Common vision of the org’s future Agree on its unique qualities

o Destiny Write action plans Dev implementation strategies

CREATING A CULTURE FOR CHANGE Stimulating a Culture of Innovation

o Definition Specialized kind of change A new idea applied to initiating or improving a product,

process or service 2 types

Small incremental improvements Radical breakthroughs

o Sources Structural variables

Organic structureso Lower in vertical differentiationo Lower in formalization & centralizationo ++ flex

Long tenure in mgmto Legitimacy

Abundance of resourceso Possibility to absorb failures

Inter-unit communication Cultures

Encourage experimentation Celebrate mistakes Risk taking ++

Human resources Training ++ Ideas champions

o NRJ, confidence, persistence, risk taking…o Transformational leadership

WORK STRESS & ITS MGMT What is Stress?

o Dynamic condition in which an individual is confronted with an opportunity, demand or resource related to what the individual desires and for which the outcome is perceived to be important and uncertain

o Positive value Deadlines as positive challenges

o Challenge stressors With workload, pressure to complete tasks, time urgency…

o Hindrance stressors

That keeps you from reaching your goals Ex: office politics, confusion over responsibilities…

o Associated with demand & resources Demand

Responsibilities Pressures Obligations Uncertainties

Resources Things within an individual’s control to use to resolve

the demands Reduce the stressful nature of demand

Csq of Stresso Physiological symptoms

Changes in metabolism Increase heart & breathing rates Increased blood pressure Headaches Heart attacks Increased susceptibility to:

Upper respiratory illnesses Poor immune system

o Psychological symptoms Job dissatisfaction Irritability Tension Anxiety Boredom

o Behavioral symptoms Turnover Absenteeism Eating habits Increased smoking or drinking alcohol Rapid speech Sleep disorders

Managing Stresso Individual approaches

Time mgmt Daily lists of activities to be accomplished Prioritizing activities by importance & urgency Scheduling activities Knowing daily cycle

Physical exercises Non competitive Ex: jogging, swimming, aerobics… Mental diversion from work pressures

Increased heart capacity Relaxation techniques

Ex: hypnosis, meditation, biodfeedback… Detachment from immediate sensations A sense of peacefulness

Social support networkso Org approaches

Selection & placement Training Goal setting

Less employee frustration Less role ambiguity Less stress

Redesigning jobs More responsibility More meaningful work More autonomy Increased feedback

Increased employee involvement Organizational communication

Reduce uncertainty To shape employee POV

Wellness program

GLOBAL IMPLICATIONS Organizational changes

o Do people believe change is possible? US: proactive view of change Iran: passive

Individuals subjugated to environmento How long will it take?

Cf. Hofstede, time orientation Japan: long term patience US: quick improvement

o Is resistance greater in some cultures? Depends on society’s reliance on trad Italy: focus on past US: focus on present

o Does culture influence how change efforts will be implemented? Power distance Thailand: changes = autocratic Denmark: democratic methods

o Do idea champions do things ≠ in ≠ cultures? Cross functional support appeal

CLASS NOTES

The Firm (1993 film)o // with Devil Wears Prada

Power: legitimacy, dynamics, coercion Leadership