Organizational Change and Stress Management

1. �Prentice Hall, 2001 Chapter 18 1 Organizational Change and Stress Management

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6. �Prentice Hall, 2001 Chapter 18 6 Resistance to Change Organizations and their members resist change. In a sense, their resistance can be positive. It provides a degree of stability and predictability, and it can be a source of functional conflict. But, resistance also hinders progress and adaptation. Often, organizations that have experienced lengthy periods of success are particularly resistant to change. Organizational resistance to change can take several forms: overt, implicit, immediate, or deferred. The following summarizes five reasons why individuals may resist change. � Force of habit. To cope with the complexities of day-to-day living, we rely on habits or programmed responses. When confronted with changes, this tendency to respond in habitual ways hinders change. � Need for security. People with a high need for security resist change because it threatens them. � Economic Factors. Another source of individual resistance is fear that changes will lower income. � Fear of the Unknown. Changes replace stability and familiarity with ambiguity and uncertainty. � Selective Information Processing. Individuals shape their world through their perceptions. Once they have created this world, it is resistant to change. So, individuals selectively process information in order to maintain their perceptions.Organizations and their members resist change. In a sense, their resistance can be positive. It provides a degree of stability and predictability, and it can be a source of functional conflict. But, resistance also hinders progress and adaptation. Often, organizations that have experienced lengthy periods of success are particularly resistant to change. Organizational resistance to change can take several forms: overt, implicit, immediate, or deferred. The following summarizes five reasons why individuals may resist change. � Force of habit. To cope with the complexities of day-to-day living, we rely on habits or programmed responses. When confronted with changes, this tendency to respond in habitual ways hinders change. � Need for security. People with a high need for security resist change because it threatens them. � Economic Factors. Another source of individual resistance is fear that changes will lower income. � Fear of the Unknown. Changes replace stability and familiarity with ambiguity and uncertainty. � Selective Information Processing. Individuals shape their world through their perceptions. Once they have created this world, it is resistant to change. So, individuals selectively process information in order to maintain their perceptions.

7. �Prentice Hall, 2001 Chapter 18 7 Resistance to Change Six sources of organizational resistance have been identified. � Group Inertia. Even if individuals want to change, group norms can constrain them. � Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability. � Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes. � Threat to Expertise. The expertise of specialized groups may be threatened by organizational change. � Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization. � Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations.Six sources of organizational resistance have been identified. � Group Inertia. Even if individuals want to change, group norms can constrain them. � Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability. � Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes. � Threat to Expertise. The expertise of specialized groups may be threatened by organizational change. � Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization. � Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations.

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10. �Prentice Hall, 2001 Chapter 18 10 Organizational Change Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving from the status quo (equilibrium) can be achieved in three ways: 1. The driving forces, which direct behavior away from the status quo, can be increased. 2. The restraining forces, which hinder movement away from the status quo, can be increased. 3. The two approaches can be combined. Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving from the status quo (equilibrium) can be achieved in three ways: 1. The driving forces, which direct behavior away from the status quo, can be increased. 2. The restraining forces, which hinder movement away from the status quo, can be increased. 3. The two approaches can be combined.

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13. �Prentice Hall, 2001 Chapter 18 13 Five OD Interventions Intergroup development Process consultation Sensitivity training Survey feedback Team building Intergroup Development. This technique can change attitudes, stereotypes, and perceptions that groups have of each other. One method emphasizes problem solving. Once problems have been identified, team members can move to the integration phase of working together to develop solutions to improve intergroup relations. Process Consultation. An outside consultant helps a client to perceive, understand, and act upon various processes in the workplace: such as work flow, informal relationships, and formal communication channels. Sensitivity Training. This method uses unstructured group interaction to change behavior. Members meet in an �open� environment to discuss their interactive processes and themselves. The discussion is loosely directed by a behavioral scientist. The group is process oriented, and individuals learn by observing and participating rather than being told. Survey Feedback. Management can use the survey feedback approach to assess the attitudes of organizational members in order to identify and address the discrepancies among their perceptions. Team Building. The following team building activities promote trust and openness between team members: goal setting, interpersonal development, role analysis, and team process analysis. Intergroup Development. This technique can change attitudes, stereotypes, and perceptions that groups have of each other. One method emphasizes problem solving. Once problems have been identified, team members can move to the integration phase of working together to develop solutions to improve intergroup relations. Process Consultation. An outside consultant helps a client to perceive, understand, and act upon various processes in the workplace: such as work flow, informal relationships, and formal communication channels. Sensitivity Training. This method uses unstructured group interaction to change behavior. Members meet in an �open� environment to discuss their interactive processes and themselves. The discussion is loosely directed by a behavioral scientist. The group is process oriented, and individuals learn by observing and participating rather than being told. Survey Feedback. Management can use the survey feedback approach to assess the attitudes of organizational members in order to identify and address the discrepancies among their perceptions. Team Building. The following team building activities promote trust and openness between team members: goal setting, interpersonal development, role analysis, and team process analysis.

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15. �Prentice Hall, 2001 Chapter 18 15 Definitions Advantages Characteristics What Is a Learning Organization? A learning organization is one that has developed the continuous capacity to adapt and change. Most organizations engage in single-loop learning: that is, detecting and correcting errors by using past routines and present policies. In contrast, learning organizations use double-loop learning: that is, detecting errors and correcting them in ways that modify the organization�s objectives, policies, and standard routines. Proponents believe that the learning organization can remedy the following three basic problems in traditional organizations. Fragmentation based on specialization creates �walls� and �chimneys� that separate different functions into independent and often warring fiefdoms. Stressing competition can hinder collaboration. Reactiveness misdirects management�s attention to solving problems rather than generating new ideas. The following are characteristics of a learning organization: 1. Everyone agrees to a shared vision. 2. People discard old ways of thinking and standard routines. 3. Members see that organizational processes and activities are interrelated. 4. People communicate openly across horizontal and vertical boundaries. 5. Employees sublimate departmental/personal interests for the shared vision. The learning organization is a paradigm built on contemporary management concepts. No company has successfully achieved all the characteristics. A learning organization is one that has developed the continuous capacity to adapt and change. Most organizations engage in single-loop learning: that is, detecting and correcting errors by using past routines and present policies. In contrast, learning organizations use double-loop learning: that is, detecting errors and correcting them in ways that modify the organization�s objectives, policies, and standard routines. Proponents believe that the learning organization can remedy the following three basic problems in traditional organizations. Fragmentation based on specialization creates �walls� and �chimneys� that separate different functions into independent and often warring fiefdoms. Stressing competition can hinder collaboration. Reactiveness misdirects management�s attention to solving problems rather than generating new ideas. The following are characteristics of a learning organization: 1. Everyone agrees to a shared vision. 2. People discard old ways of thinking and standard routines. 3. Members see that organizational processes and activities are interrelated. 4. People communicate openly across horizontal and vertical boundaries. 5. Employees sublimate departmental/personal interests for the shared vision. The learning organization is a paradigm built on contemporary management concepts. No company has successfully achieved all the characteristics.

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18. �Prentice Hall, 2001 Chapter 18 18 A Model of Stress Environmental stress factors include economic, political, and technological uncertainty. Organizational stress factors include task demands, role demands, interpersonal demands, organizational structure, organizational leadership, and the organization�s life stage. Individual stress factors include family problems, economic problems, personality. Stress builds up. To assess the total amount of stress that a person is under, we must sum up his or her opportunity stresses, constraint stresses, and demand stresses. Five variables moderate the relationship between potential and experienced stress. Employees react in response to their perception of reality rather than to reality itself. Experience on the job tends to be negatively related to stress. Social support can buffer the impact of stress. Those with an internal locus of control perceive their jobs to be less stressful than those with an external locus of control. A high degree of hostility and anger increases a person�s stress. The consequences of stress fall into three categories. The link between stress and physiological symptoms is not clear, even though early research focused on the physical manifestations of stress. For students of OB, the two following categories are more important. Job-related stress can cause job-related dissatisfaction�the most obvious psychological effect of stress. It can also cause tension, anxiety, irritability, boredom, and procrastination. Behavioral symptoms include changes in productivity, absence, and turnover. They also include substance abuse, overeating, chain smoking, and sleep disorders.Environmental stress factors include economic, political, and technological uncertainty. Organizational stress factors include task demands, role demands, interpersonal demands, organizational structure, organizational leadership, and the organization�s life stage. Individual stress factors include family problems, economic problems, personality. Stress builds up. To assess the total amount of stress that a person is under, we must sum up his or her opportunity stresses, constraint stresses, and demand stresses. Five variables moderate the relationship between potential and experienced stress. Employees react in response to their perception of reality rather than to reality itself. Experience on the job tends to be negatively related to stress. Social support can buffer the impact of stress. Those with an internal locus of control perceive their jobs to be less stressful than those with an external locus of control. A high degree of hostility and anger increases a person�s stress. The consequences of stress fall into three categories. The link between stress and physiological symptoms is not clear, even though early research focused on the physical manifestations of stress. For students of OB, the two following categories are more important. Job-related stress can cause job-related dissatisfaction�the most obvious psychological effect of stress. It can also cause tension, anxiety, irritability, boredom, and procrastination. Behavioral symptoms include changes in productivity, absence, and turnover. They also include substance abuse, overeating, chain smoking, and sleep disorders.

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20. �Prentice Hall, 2001 Chapter 18 20 Organizational Stress Management Stress is not necessarily bad. In fact, it can help one to achieve superior performance in a critical situation. But excess or prolonged stress can manifest itself in physiological, psychological, and behavioral problems. Today�s workers take on larger workloads, work longer hours, have fewer resources, confront ambiguity daily, and have less job security. These factors contribute to employee stress. While not all sources of stress can be controlled, management must realize that certain jobs are more stressful than others, and individuals vary in their response to stress situations. Therefore, selection and placement decisions must consider these factors. The use of goals can reduce employee frustration, job uncertainty, and stress. Wasting time causes stress, so management should provide time-management training. Redesigning jobs to give employees more responsibility, meaningful work, and increased feedback can reduce stress. Management can increase employee involvement in decision making to reduce uncertainty about goals, expectations, and evaluations. Helping employees to expand their social support networks can reduce tension. Improving formal organizational communication with employees lessens ambiguity and reduces stress. Physical activity programs supported by the organization focus on the employee�s total physical and mental condition.Stress is not necessarily bad. In fact, it can help one to achieve superior performance in a critical situation. But excess or prolonged stress can manifest itself in physiological, psychological, and behavioral problems. Today�s workers take on larger workloads, work longer hours, have fewer resources, confront ambiguity daily, and have less job security. These factors contribute to employee stress. While not all sources of stress can be controlled, management must realize that certain jobs are more stressful than others, and individuals vary in their response to stress situations. Therefore, selection and placement decisions must consider these factors. The use of goals can reduce employee frustration, job uncertainty, and stress. Wasting time causes stress, so management should provide time-management training. Redesigning jobs to give employees more responsibility, meaningful work, and increased feedback can reduce stress. Management can increase employee involvement in decision making to reduce uncertainty about goals, expectations, and evaluations. Helping employees to expand their social support networks can reduce tension. Improving formal organizational communication with employees lessens ambiguity and reduces stress. Physical activity programs supported by the organization focus on the employee�s total physical and mental condition.