Change and Stress Management
Old types of organizations
Mills Textile manufacturing Old manual / batch operated factories Typewriting institutes Secretary jobs
New types
BPOs Transcription Rise in service industries : Healthcare Finance Insurance
Old types of jobs
10.30 to 5.30 jobs Stable working conditions. Look for gratuity and pension at the time of joining
New types of jobs
People work 24 x 7 , organizations work 24 X 7 Employees change many jobs Ongoing education, employees update themselves
Change
Environmental forces that require managers to implement comprehensive change programs. Why people and organizations often resist change and how this resistance can be overcome?
Contemporary change issues for today's managers.
Forces for Change
Nature of the workforce
More cultural diversity Increase in professionals people with special degrees Many new entrants with inadequate skills.
Technology
Information technology Digitization of media, entertainment Social networking sites
Forces for Change contd
Economic Shocks
Global recession Global demand Shift from manufacturing to servicing industries
Competition
Global competitors Mergers and consolidations Growth of e-commerce
Forces for Change
Social Trends
Internet chat rooms Increased interest in urban living Rural Urban divide
World Politics
Opening of markets in China Growth in South Asian Economy Religious fundamentalism Wars / Global recession and so on
Managing Planned Change
Installing state-of the art equipment on the shop floor Mergers or takeovers change in top management of the company Change in company strategies / policies programs Growth of organization / Decline of organization Any change that create anxieties in the minds of employees and might affect work conditions
Change
Proactive Purposeful Intentional Goal oriented activity
NOT Accidental / or Just happen
Planned Change
Change
Making things different
Planned Change
An intentional, goal-oriented activity Goals of planned change Improving the ability of the organization to adapt to changes in its environment Changing employee behavior
17-12
Change Agents
Persons who act as catalysts and assume the responsibility for managing change activities Managers , non-managers, employees, outside consultants
Resistance to change
In a sense it is positive Provides degree of stability and predictability to behavior. If not for resistance, OB would take the form of chaotic randomness Resistance to change can also be source of functional conflict, hindrance to adaptation and progress.
Resistance to Change
Resistance to change appears to be a natural and positive reaction to change. Forms of Resistance to Change:
Overt and Immediate
Voicing complaints, engaging in job actions
Implicit and Deferred
Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism Deferred resistance clouds the link between source and reaction
17-15
Sources of Resistance to Change
17-16
Sources of Resistance to Change
Tactics for Overcoming Resistance to Change Education and Communication
Show those effected the logic behind the change
Participation
Participation in the decision process lessens resistance
Building Support and Commitment
Counseling, therapy, or new-skills training
Implementing Change Fairly
Be consistent and procedurally fair
Manipulation and Cooptation
Spinning the message to gain cooperation
Selecting people who accept change
Hire people who enjoy change in the first place
Coercion
Direct threats and force
17-18
The Politics of Change
Impetus for change is likely to come from external change agents, new employees, or managers outside the main power structure. Internal change agents are most threatened by their loss of status in the organization. Long-time power holders tend to implement incremental but not radical change.
The outcomes of power struggles in the organization will determine the speed and quality of change.
17-19
Lewins Three-Step Change Model
Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity by increasing the driving force and decreasing the restraining force
Moving
Moving from the status quo to the desired end state
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces
Unfreeze
Move
17-20
Refreeze
SEE E X H I B I T 17-3
Lewin: Unfreezing the Status Quo
Driving Forces
Forces that direct behavior away from the status quo
Restraining Forces
Forces that hinder movement from the existing equilibrium
E X H I B I T 17-4
17-21
Kotters Eight-Step Plan
A detailed approach to implementing change that is built on Lewins three-step model To implement change:
1. 2. 3. 4. 5. 6. 7. 8. Establish a sense of urgency Form a coalition Create a new vision Communicate the vision Empower others by removing barriers Create and reward short-term wins Consolidate, reassess, and adjust Reinforce the changes
17-22
Unfreezing
Movement
Refreezing
SEE E X H I B I T 17-5
Action Research
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates
Process steps:
1. Diagnosis 2. Analysis 3. Feedback 4. Action 5. Evaluation
Action research benefits:
Problem-focused rather than solution-centered Heavy employee involvement reduces resistance to change
17-23
Organizational Development
Organizational Development (OD)
A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being
OD Values
Respect for people Trust and support Power equalization Confrontation Participation
17-24
Six OD Techniques
1. Sensitivity Training
Training groups (T-groups) seek to change behavior through unstructured group interaction Provides increased awareness of others and self Increases empathy with others, listening skills, openness, and tolerance for others
2. Survey Feedback Approach
The use of questionnaires to identify discrepancies among member perceptions; a discussion follows and remedies are suggested
3. Process Consultation (PC)
A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.
17-25
Six OD Techniques (Continued)
4. Team Building
High interaction among team members to increase trust and openness
OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other Instead of looking for problems to fix, appreciative inquiry seeks to identify the unique qualities and special strengths of an organization, which employees can then build on to improve performance. This process comprises of four steps:
Discovery: Recalling the strengths of the organization Dreaming: Speculation on the future of the organization Design: Finding a common vision Destiny: Deciding how to fulfill the dream
5. Intergroup Development
6. Appreciative Inquiry
17-26
1. Stimulating a Culture of Innovation
Creating a Culture for Change: Innovation
Innovation: a new idea applied to initiating or improving a product, process, or service Sources of Innovation:
Structural variables: organic structures Long managerial tenure Slack resources High degree of interunit communication
Idea Champions: Individuals who actively promote the innovation
17-27
2. Learning Organization
Creating a Culture for Change: Learning
An organization that has developed the continuous capacity to adapt and change Characteristics
Holds a shared vision Discards old ways of thinking Views organization as a system of relationships Communicates openly Works together to achieve shared vision
SEE E X H I B I T 17-6
17-28
Creating a Learning Organization
Overcomes traditional organization problems such as:
Fragmentation Competition Reactiveness
Manage Learning by:
Establishing a strategy Redesigning the organizations structure
Flatten structure and increase cross-functional activities
Reshaping the organizations culture
Reward risk-taking and intelligent mistakes
17-29
