Managing Change and Stress Chapter 19 Managing Change and Stress Forces of Change Models and Dynamics of Planned Change Understanding and Managing Resistance to Change Dynamics of Stress

The External Forces of Change 19-2 Figure 19-1 The External Forces of Change Demographic Characteristics Age Education Skill level Gender Immigration Technological Advancements Manufacturing information Information technology Market Changes Mergers and acquisitions Domestic and international competition Recession Social and Political Pressures War Values Leaders The Need for Change McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Internal Forces of Change 19-3 Figure 19-1 cont. The Internal Forces of Change The Need for Change Human Resource Problems/Prospects Unmet needs Job dissatisfaction Absenteeism and turnover Productivity Participation/suggestions Managerial Behavior/Decisions Conflict Leadership Reward systems Structural reorganization McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Generic Typology of Organizational Change 19-4 Figure 19-3 A Generic Typology of Organizational Change Radically Innovative Change Adaptive Change Innovative Change Reintroducing a familiar practice Introducing a practice new to the organization Introducing a practice new to the industry Low High Degree of complexity, cost, and uncertainty Potential for resistance to change McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Lewin’s Change Model 19-6 Changing Refreezing Unfreezing Creates the motivation to change Encourages the replacement of old behaviors and attitudes with those desired by management Entails devising ways to reduce barriers to change Creates psychological safety Changing Provides new information, new behavioral models, or new ways of looking at things Helps employees learn new concepts or points of view Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change Refreezing Helps employees integrate the changed behavior or attitude into their normal way of doing things Positive reinforcement is used to reinforce the desired change Coaching and modeling help reinforce the stability of change McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A Systems Model of Change 19-7 Figure 19-3 A Systems Model of Change Target Elements of Change Organizing Arrangements Inputs Outputs Internal Strengths Weaknesses External Opportunities Threats Internal Organizational level Department/ group level Individual level Social Factors Strategy Goals People Methods McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Kotter’s Eight Steps for Leading Organizational Change 19-8 Table 19-1 Kotter’s Eight Steps for Leading Organizational Change Step Description Unfreeze the organization by creating a compelling reason for why change is needed Establish a sense of urgency Create a cross-functional, cross-level group of people with enough power to lead the change Create the guiding coalition Create a vision and strategic plan to guide the change process Develop a vision and strategy Create and implement a communication strategy that consistently communicates the new vision and strategic plan Communicate the change-vision McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Kotter’s Eight Steps for Leading Organizational Change 19-9 Table 19-1 cont. Kotter’s Eight Steps for Leading Organizational Change Step Description Eliminate barriers to change, use target elements of change to transform the organization Empower broad-based action Plan for and create short-term “wins” or improvements Generate short-term wins The guiding coalition uses credibility from short-terms wins to create change. Additional people are brought into the change process as change cascades throughout the organization Consolidate gains and produce more change Reinforce the changes by highlighting connections between new behaviors and processes and organizational success Anchor new approaches in the culture McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Development 19-10 Organizational Development Organizational Development a set of techniques or tools that are used to implement organizational change McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Overcoming Resistance to Change 19-15 Table 19-2 Overcoming Resistance to Change Approach Commonly Used in Situations Where: Advantages Drawbacks Can be very time consuming if lots of people are involved Once persuaded, people will often help with implementation of change There is a lack of information or inaccurate information & analysis Education + Communication Can be very time consuming if participators design an inappropriate change People who participate will be committed to the implementation of change The initiators do not have all the information they need to design the change & others have considerable power to resist Participation + Involvement Can be very time consuming, expensive and still fail No other approach works as well with adjustment problems People are resisting because of adjustment problems Facilitation + Support McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Overcoming Resistance to Change 19-16 Table 19-2 cont. Overcoming Resistance to Change Approach Commonly Used in Situations Where: Advantages Drawbacks Can be too expensive in may cases if it alerts other to negotiate for compliance Sometimes it is a relatively easy way to avoid major change Someone or some group will clearly lose out in a change and where that group has considerable power to resist Negotiation + Agreement Can lead to future problems if people feel manipulated It can be relatively quick and inexpensive Other tactics will not work or are too expensive Manipulation + Co-optation Can be very risky ad leave people made at the initiators It is speedy and can overcome any kind of resistance Speed is essential and where the change initiators possess considerable power Explicit + Implicit coercion McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

19-17 Stress Stress behavioral, physical, or psychological response to stressors Stress is not merely nervous tension Stress can have positive consequences Stress is not something to be avoided The complete absence of stress is death Stress is inevitable McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.