Organizational Behavior Chapter 18 PDF

Organizational Behavior Eighteenth Edition, Global Edition Chapter 18 Organizational Change and Stress Management Copyright © 2019 Pea...

Organizational Behavior Eighteenth Edition, Global Edition Chapter 18 Organizational Change and Stress Management Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. What is Change? Change is something that happens to people, even if they don’t agree with it Change is the way things will be different Results from a shift in the externals of a situation Made up of events Can happen quickly Focused on outcomes (visible and tangible) Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Forces for Change and Planned Change Forces for Change Force Examples Nature of the workforce More cultural diversity Aging population Increased immigration and outsourcing Technology Faster, cheaper, and more mobile computers and handheld devices Emergence and growth of social-networking sites Economic shocks Rise and fall of global housing market Financial sector collapse Global recession Competition Global competitors Mergers and consolidations Increased government regulation of commerce Social trends Increased environmental awareness Liberalization of attitudes toward gay, lesbian, and transgender employees More multitasking and connectivity World politics Rising health care costs Negative social attitudes toward business and executives Opening of new markets worldwide Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Contrast the Forces for Change and Planned Change Change involves making something different. When change is an intentional, goal-oriented activity it is planned change. – There are two goals of planned change: ▪ Improve the ability of the organization to adapt to changes in its environment. ▪ Change employee behavior. Change agents are those responsible for managing change activities. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  5 Why is change difficult to accomplish? Many people are inherently cynical about change People are afraid of the unknown People believe that things are fine the way they are While we recognise the need to change, acting on it can be difficult Change requires the ‘management’ of people’s emotions, most people find it Copyright difficult to deal with or address them © 2019 Pearson Education, Ltd. All Rights Reserved. Resistance to Change Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Resistance to Change Sources of Resistance to Change Individual Sources Habit—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. Security—People with a high need for security are likely to resist change because it threatens their feelings of safety. 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. Selective information processing—Individuals 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. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Resistance to Change Organizational Sources Structural inertia—Organizations have built-in mechanisms—such as their selection processes and formalized regulations—to produce stability. When an organization is confronted with change, this structural tendency to remain unchanged, acts as a counterbalance to sustainability. Limited focus of change—Organizations consist of a number of interdependent subsystems. One can’t be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system. Group inertia—Even if individuals want to change their behavior, group norms may act as a constraint. Threat to expertise—Changes in organizational patterns may threaten the expertise of specialized groups. Threat to established power relationships—Any redistribution of decision-making authority can threaten long-established power relationships within the organization. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Overcoming Resistance to Change Overcoming Resistance to Change – Communication: Changes are most effective when an organization communicates a rationale that balances the interests of various stakeholders (shareholders, employees, customers, etc.) – Participation in decision making – Building support and commitment (training) – Develop positive relationships (trust) – Implementing changes fairly – Selecting people who accept change – Coercion (threats or force on resisters) Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change “Change management is a structured approach to ensure that individuals, teams, and organisations are ready, willing and able to transition from a current state to a desired future state.” Adapted from: http://www.change-management-coach.com/definition-of-change-management.html Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Approaches to managing change: – Lewin’s Three-Step Model – Kotter’s Eight-Step Plan for Implementing Change – Action Research – Organizational Development Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Choosing a Change Model Change management is not a prescriptive methodology. It is a set of interventions, designed to help people come to terms with what is going on and build upon it. There is no one size fits all change management strategy – each organisation develops its own – however there are some key elements that if applied generally help to minimise resistance and manage the impact of any change on people. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Lewin’s Three-Step Change Model Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Unfreezing the Status Quo Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Kotter’s Eight-Step Plan for Implementing Change 1. Establish a sense of urgency by creating a compelling reason for why change is needed. 2. Form a coalition with enough power to lead the change. 3. Create a new vision to direct the change and strategies for achieving the vision. 4. Communicate the vision throughout the organization. 5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. 6. Plan for, create, and reward short-term “wins” that move the organization toward the new vision. 7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. 8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. Source: Based on J. Kotter, Leading Change (Boston, MA: Harvard Business School, 1996). Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Action research: a change process based on the systematic collection of data and selection of a change action based on what the analyzed data indicate. – Five steps: Diagnosis, Analysis, Feedback, Action, and Evaluation. – Provides at least two specific benefits: ▪ It is problem-focused. ▪ It reduces resistance to change. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change Organizational development (OD): a collection of change methods that try to improve organizational effectiveness and employee well-being. – OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. – Focuses on how individuals make sense of their work environment. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Approaches to Managing Organizational Change The six OD interventions for change agents are: – Sensitivity training – Survey feedback – Process consultation (PC) – Team building – Intergroup development – Appreciative inquiry (AI) Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  18-19 Approaches to Managing Organizational Change The six interventions for change agents are: – Sensitivity training: Participants discuss themselves and their interactive processes. ✓ Provides increased awareness of others and self. ✓ Increases empathy with others, improves listening skills, greater openness, and increased tolerance for others. – Survey feedback: Questionnaires are used to identify discrepancies among member perceptions; discussion follows and remedies are suggested. – Process consultation (PC): An outside consultant works with clients to understand the process/events managers must deal with, and then coaches him/her through the problem. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  18-20 Approaches to Managing Organizational Change – Team building: High interaction among team members to increase trust and openness. – Intergroup development: Seeks to change groups’ attitudes, stereotypes, and perceptions about each other. – Appreciative inquiry (AI) asks participants to look forward and project the future based on the unique qualities and special strengths of an organization. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Managing a Paradox – There is no such thing as a separate discipline of “change management” because all management is dealing with constant change and adaptation. ▪ Learning ▪ Organizing ▪ Performing ▪ Belonging – Managers can learn a few lessons from paradox theory which states the key paradox or conflict in management, is that there is no final optimal status for an organization. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Stimulating a Culture of Innovation – Innovation: a more specialized kind of change, is a new idea applied to initiating or improving a product, process, or services. – Innovations can range from small incremental improvements, such as netbook computers, to radical breakthroughs, such as Nissan’s electric Leaf car. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Sources of Innovation: – Structural variables are the most studied potential source of innovation. ▪ Organic structures positively influence innovation. ▪ Innovation-contingent rewards positively influence integration. ▪ Innovation is nurtured when there are slack resources. ▪ Inter-unit communication is high in innovative organizations. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  18-24 Creating a Culture for Change Sources of Innovation: – Structural variables are the most studied potential source of innovation: ▪ Organic structures positively influence innovation: Less formal, more centralized which facilitates flexibility and adaptability that make adoption of innovations easier. ▪ Innovation-contingent rewards positively influence innovation: Rewarding creativity and giving employees feedback tends to enhance their innovative spirit. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  18-25 Creating a Culture for Change ▪ Innovation is nurtured when there are slack resources: Abundant resources, including wealth, allows for the purchase or development of innovations and the cost of instituting them or absorbing costs if they fail. ▪ Inter-unit communication is high in innovative organizations: Heavy use of committees, task forces, cross-functional teams that facilitate interaction across departmental lines. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Innovative organizations tend to have similar cultures: – They encourage experimentation. – They reward both successes and failures. – They celebrate mistakes. Managers in innovative organizations recognize that failures are a natural by-product of venturing into the unknown. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Innovative organizations: – Actively promote the training and development of their members so they keep current. – Offer high job security so employees don’t fear getting fired for making mistakes. – Encourage individuals to become champions of change. Once a new idea is developed, idea champions actively and enthusiastically promote it, build support, overcome resistance, and ensure it’s implemented. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Characteristics of a Learning Organization 1. There exists a shared vision that everyone agrees on. 2. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs. 3. Members think of all organizational processes, activities, functions, and interactions with the environment as part of a system of interrelationships. 4. People openly communicate with each other (across vertical and horizontal boundaries) without fear of criticism or punishment. 5. People sublimate their personal self-interest and fragmented departmental interests to work together to achieve the organization’s shared vision. Source: Based on P. M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization, 2nd ed. (New York: Random House, 2006). Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change What can managers do to make their firms learning organizations? – Establish a strategy: Management needs to confirm its commitment to change, innovation and continuous improvement. – Redesign the organization’s structure: Flattening the structure, eliminating or combining departments and increasing the use of cross-functional teams reinforce interdependence and reduce boundaries. – Reshape the organization’s culture: Managers must demonstrate by their actions that taking risks and admitting failure are desirable. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Creating a Culture for Change Organizational Change and Stress – Research shows that organizational changes incorporating OB knowledge of how people react to stressors may yield more effective results than organizational changes that are only objectively managed through goal-setting. ▪ The role of leadership is critical. – Changes are stressful because employees perceive aspects to be threatening. ▪ Employees need to see the changes as fair. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Stress at Work Work Is a Top Source of Stress What area of your life causes you the most Blank stress? Area Causes Most Stress Financial worries 64% Work 60% Family responsibilities 47% Health concerns 46% Source: Based on “Stress in America: Paying with Our Health,” American Psychological Association, February 4, 2015, http://www.apa.org/news/press/releases/stress/2014/stress-report.pdf. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Stress at Work A Model of Stress Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Stress at Work Cultural Differences – Research suggests the job conditions that cause stress show some differences across cultures. ▪ For example, U.S. employees are stressed by a lack of control, whereas Chinese employees are stressed by job evaluations and lack of training. – Research also shows that stress is equally bad for employees of all cultures. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Consequences of Stress at Work Consequences of Stress – Physiological Symptoms: research supports the link between job stress and poor health. – Psychological Symptoms: job dissatisfaction is an obvious cause of stress. – Behavioral Symptoms: reductions in productivity, absence, turnover, as well as changes in eating habits, increased smoking and/or consumption of alcohol, rapid speech, fidgeting, and sleep disorders. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Managing Stress – Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience stress at these levels. – What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Individual Approaches – An employee can take personal responsibility for reducing stress levels. – Individual strategies include: ▪ Time-management techniques. ▪ Increased physical exercise. ▪ Relaxation training. ▪ Expanded social support networks. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Workplace strategies for managing stress include: – Better selection and placement, and training. – Goal-setting. – Redesigning jobs. – Employee involvement. – Organizational communication. – Employee extended leave. – Wellness programs. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Selection and Placement – Individuals with little experience or an external locus of control tend to be more prone to stress. – Selection and placement decisions should take these facts into consideration. – Training can increase an individual’s self-efficacy and thus lessen job strain in these situations. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Goal-setting – Goals can reduce stress as well as provide motivation. – Employees who are highly committed to their goals and see purpose in their jobs experience less stress. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Redesigning Jobs – Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Employee involvement – Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. ▪ Giving employees a voice in management decisions can increase employee control and reduce role stress. ▪ Managers should consider increasing employee involvement in decision making. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Organizational Communication – Increasing formal organizational communication with employees reduces uncertainty by lessening role ambiguity and role conflict. – Given the importance that perceptions play in moderating the stress-response relationship, management can also use effective communications as a means to shape employee perceptions. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Managing Stress at Work Employee extended leave – Some employees need an occasional escape from the frenetic pace of their work. – These sabbaticals/extended leave—ranging in length from a few weeks to several months—allow employees to travel, relax, or pursue personal projects that consume time beyond normal vacations. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Managing Stress at Work Corporate wellness programs – Typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program. – Focus on the employee’s total physical and mental condition. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Implications for Managers Consider that, as a manager, you are a change agent in your organization. The decisions you make and your role- modeling behaviors will help shape the organization’s change culture. Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Implications for Managers Some stress is good. Increasing challenges brought by autonomy and responsibility at work will lead to some stress, but they will also increase feelings of accomplishment and fulfillment. Hindrance stressors like bureaucracy and interpersonal conflicts, on the other hand, are entirely negative and should be eliminated. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.  Implications for Managers You can help alleviate harmful workplace stress for your employees by accurately matching work-loads to employees, providing employees with stress-coping resources, and responding to employee concerns. You can identify extreme stress in your employees when performance declines, turnover increases, health-related absenteeism increases, and engagement declines. Stay alert for early indicators and be proactive. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. End of Presentation Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.