1. Organizational Behavior, 9/E Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

2. Organizational Behavior: Chapter 162 Chapter 16 Study Questions  What is organizational change?  What change strategies are used in organizations?  How is resistance to change best managed?  How do organizations innovate?  How does stress affect people in change environments?

3. Organizational Behavior: Chapter 163 Study Question 1: What is organizational change?  Transformational change. – Results in a major overhaul of the organization or its component systems. – Described as radical change or frame-breaking change. – Organizations experiencing transformational change undergo a significant shift in basic characteristic features.

4. Organizational Behavior: Chapter 164 Study Question 1: What is organizational change?  Incremental change or frame-bending change. – Part of the organization’s natural evolution in building on the existing ways of operating to enhance or extend them in new directions. – Introduction of new products, new technologies, and new systems and processes. – Continuous improvement through incremental change is an important asset.

5. Organizational Behavior: Chapter 165 Study Question 1: What is organizational change?  Change agents. – Individuals and groups who take responsibility for changing the existing behavior patterns of another person or social system. – Success of change efforts depends in part on change agents. – Being an effective change agent means being a great change leader.

6. Organizational Behavior: Chapter 166 Study Question 1: What is organizational change?  Unplanned change. – Occurs spontaneously and without a change agent’s direction, and such change may be disruptive. – Appropriate goal is to act quickly to minimize the negative consequences and maximize any possible benefits.

7. Organizational Behavior: Chapter 167 Study Question 1: What is organizational change?  Planned change. – The result of specific efforts by a change agent. – Direct response to someone’s perception of a performance gap. A performance gap is the discrepancy between the desired and actual state of affairs. Performance gaps represent problems to be resolved or opportunities to be explored.

8. Organizational Behavior: Chapter 168 Study Question 1: What is organizational change?  Organizational forces for change. – Organization-environment relationships. – Organizational life cycle. – Political nature of organizations.

9. Organizational Behavior: Chapter 169 Study Question 1: What is organizational change?

10. Organizational Behavior: Chapter 1610 Study Question 1: What is organizational change?  Reasons for failure of transformational change. – No sense of urgency. – No powerful guiding coalition. – No compelling vision. – Failure to communicate the vision. – Failure to empower others to act. – Failure to celebrate short-term wins. – Failure to build on accomplishments. – Failure to institutionalize results.

11. Organizational Behavior: Chapter 1611 Study Question 1: What is organizational change?  Phases of planned change. – Unfreezing. Preparing a situation for change by disconfirming existing attitudes and behaviors. – Changing. Taking action to modify a situation by altering the targets of change. – Refreezing. Maintaining momentum and eventually institutionalizing the change.

12. Organizational Behavior: Chapter 1612 Study Question 2: What change strategies are used in organizations?

13. Organizational Behavior: Chapter 1613 Study Question 3: How is resistance to change best managed?  Resistance to change. – Any attitude or behavior that indicates unwillingness to make or support a desired change. – Alternative views of resistance. Something that must be overcome for change to be successful. Feedback that can be used to facilitate achieving change objectives.

14. Organizational Behavior: Chapter 1614 Study Question 3: How is resistance to change best managed?  Why people resist change. – Fear of the unknown. – Lack of good information. – Fear for loss of security. – No reasons to change. – Fear for loss of power. – Lack of resources. – Bad timing. – Habit.

15. Organizational Behavior: Chapter 1615 Study Question 3: How is resistance to change best managed?  Resistance to the change itself. – People may reject a change because they believe it is not worth their time, effort, or attention. – To deal with resistance to the change itself, all those affected should know how it satisfies the following criteria: Benefit. Compatibility. Complexity. Triability.

16. Organizational Behavior: Chapter 1616 Study Question 3: How is resistance to change best managed?  Resistance to the change strategy. – Force-coercion strategy. Likely resistance among individuals who resent management by “command” or the use of threatened punishment. – Rational persuasion strategy. Likely resistance when the data are suspect or the expertise of advocates is unclear. – Shared-power strategy. Likely resistance if it appears manipulative and insincere.

17. Organizational Behavior: Chapter 1617 Study Question 3: How is resistance to change best managed?  Resistance to the change agent. – Resistance to the change agent is directed at the person implementing the change and often involves personality and other differences.

18. Organizational Behavior: Chapter 1618 Study Question 3: How is resistance to change best managed?  How to deal with resistance. – Education and communication. – Participation and support. – Facilitation and support. – Negotiation and agreement. – Manipulation and cooptation. – Explicit and implicit coercion.

19. Organizational Behavior: Chapter 1619 Study Question 3: How is resistance to change best managed?

20. Organizational Behavior: Chapter 1620 Study Question 4: How do organizations innovate?  Innovation. – The process of creating new ideas and putting them into practice.  Product innovations. – The introduction of new or improved goods or services to better meet customer needs.  Process innovations. – The introduction of new and better work methods and operations.

21. Organizational Behavior: Chapter 1621 Study Question 4: How do organizations innovate?

22. Organizational Behavior: Chapter 1622 Study Question 4: How do organizations innovate?  Features of innovative organizations. – Strategies and cultures that are built around a commitment to innovation. – Structures that support innovation. – Staffing with a clear commitment to innovation. – Top-management support for innovation.

23. Organizational Behavior: Chapter 1623 Study Question 5: How does stress affect people in change environments?  Stress. – A state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities.

24. Organizational Behavior: Chapter 1624 Study Question 5: How does stress affect people in change environments?  Source of stress. – Stressors. The wide variety of things that cause stress for individuals. – Types of stressors. Work-related stressors. Life stressors.

25. Organizational Behavior: Chapter 1625 Study Question 5: How does stress affect people in change environments?  Work-related stressors. – Task demands. – Role ambiguities. – Role conflicts. – Ethical dilemmas. – Interpersonal problems. – Career developments. – Physical setting.

26. Organizational Behavior: Chapter 1626 Study Question 5: How does stress affect people in change environments?  Life stressors. – Family events. – Economic difficulties. – Personal affairs. – Individual’s needs. – Individual’s capabilities. – Individual’s personality.

27. Organizational Behavior: Chapter 1627 Study Question 5: How does stress affect people in change environments?  Stress and performance. – Constructive stress (or eustress). Moderate levels of stress act in a positive way for both individuals and organization. – Destructive stress (or distress). Low and especially high levels of stress act in a negative way for both individuals and organization. – Job burnout. A loss of interest in and satisfaction with a job due to stressful working conditions.

28. Organizational Behavior: Chapter 1628 Study Question 5: How does stress affect people in change environments?  Stress and health. – Stress can harm people’s physical and psychological health. – Health problems associated with stress. Heart attack. Stroke. Hypertension. Migraine headache. Ulcers. Substance abuse. Overeating. Depression. Muscle aches. – Managers and team leaders should be alert to signs of excessive stress.

29. Organizational Behavior: Chapter 1629 Study Question 5: How does stress affect people in change environments?  Stress management. – Stress prevention. Taking action to keep stress from reaching destructive levels in the first place. – Once stress has reached a destructive point, special techniques of stress management can be implemented. – Stress management. Begins with the recognition of stress symptoms and continues with actions to maintain a positive performance edge.

30. Organizational Behavior: Chapter 1630 Study Question 5: How does stress affect people in change environments?  Stress management (cont.). – Personal wellness. Pursuit of one’s job and career goals with the support of a personal health promotion program. – Employee assistance programs. Provide help for employees who are experiencing personal problems and related stress.

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