Organizational change and stress


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  • Organizational change and stress

    1. 1. Source: Samuel Certo
    2. 2. DEFINING CHANGING AN ORGANIZATION > The process of modifying an existing organization to increase organizational effectiveness – that is, the extent to which an organization accomplishes its objective > These modifications can involve virtually any organizational segment, but typically affect the lines of organizational authority, the levels of responsibility held by various organization members and the established lines of organizational communication
    3. 3. IMPORTANCE OF CHANGE > The study of organizational change is extremely important because all managers at all organizational levels are faced throughout their careers with the task of changing their organization > Managers who can determine appropriate changes and then implement such changes successfully enable their organization to be more flexible and innovative
    4. 4. (1) (2) (3) (4) (5) STABILITY LOW HIGH ADAPTATION HIGH (1)High death probability (slow) (2) High survival probability (3) High survival and growth probability (4) Certainty of death (quick) (5) Certainty of death (quick)
    6. 6. CHANGE AGENT – the individual inside or outside the organization who tries to modify the existing organizational situation > This individual might be responsible for making very broad changes, like altering the culture of the whole organization; or more narrow ones, like designing and implementing a new safety program or a new quality program
    7. 7. Special skills that are necessary for success as a change agent. Ability to determine how a change should be made The skill to solve change-related problems Facility in using behavioral science tools to influence people appropriately during the change process Ability to determine how much change employees can withstand
    8. 8. Another major factor managers need to consider is exactly what should be changed within the organization. In general, managers should make only those changes that will increase organizational effectiveness
    9. 9. TECHNOLOGICAL FACTORS • Process • Equipment PEOPLE CHANGE • Attitude • Leadership Skill • Communication Skills STRUCTURAL FACTORS • Policies • Procedures ORGANIZATIONAL EFFECTIVENESS
    10. 10. The kind of change to make is the third major factor that managers need to consider when they set out to change an organization. Most changes can be categorized as one of three kinds: 1. Technological 2. Structural 3. People
    11. 11. Emphasizes modifying the level of technology in the management system STRUCTURAL CHANGE It emphasizes organizational effectiveness by changing controls that influence organization members during the performance of their jobs
    12. 12. Structural Change is change aimed at increasing organizational effectiveness through modifications to the existing organizational structure. These modification can take several forms: 1. Clarifying and defining jobs. 2. Modifying organizational structure to fit the communication needs of the organization 3. Decentralizing the organization to reduce the cost of coordination, increase the controllability of subunits, increase motivation and gain greater flexibility DESCRIBING STRUCTURAL CHANGE
    13. 13. Matrix organization provide a good illustration of structural change. According to C. J. Middleton, a matrix organization is a traditional organization modified primarily for the purpose of completing some kind of special project. Essentially, a matrix organization is one in which individuals from various functional departments are assigned to a project manager responsible for accomplishing specific task. For this reason, matrix organization are also called PROJECT ORGANIZATION
    14. 14. Universal Products Company Automotive products division Electrical products division Aerospace products division Chemical products division Resource allocation Market liaison Production facilities Accounts and control Personnel and safety Materials and procurement Engineering and research Supporting Functional Assistance to Project
    15. 15. Universal Products Company Automotive products division Electrical products division Aerospace products division Chemical products division Resource allocation Market liaison Production facilities Accounts and control Personnel and safety Materials and procurement Engineering and research Supporting Functional Assistance to Project Project Venus Project Saturn Project Production Group Engineering Group Materials Group Personnel Group Accounting Group Production Group Engineering Group Materials Group Personnel Group Accounting Group Traditional Organization Chart Transformed into Matrix Organization Chart Line operations flow of work performance
    16. 16. There are several advantages and disadvantages to making structural changes such as those reflected by the matrix organization MAJOR ADVANTAGES • Such structural changes generally result in better control of a project • Better customer relations • Shorter project development time • Lower project costs • Matrix organizations are flexible enough to allow managers to shift resources to special projects as needed DISADVANTAGE • Such structural changes generally create more complex internal operations, which commonly cause conflict, encourage inconsistency in the application of company policy, and result in a more difficult situation to manage
    17. 17. Successfully changing people factors necessarily involves some consideration of structure and technology, the primary emphasis is on people COMMONLY USED MEANS OF CHANGING ORGANIZATION MEMBERS DESCRIBING PEOPLE CHANGE: ORGANIZATION DEVELOPMENT (OD) PEOPLE CHANGE  Emphasizes increasing organizational effectiveness by changing certain aspect of organization members  The focus of this kind of change is on such factors as employee’s attitude and leadership skills  The process of people change can be referred to as ORGANIZATION DEVELOPMENT (OD)
    18. 18. GRID OD  One traditionally used OD technique for changing people in organizations is called GRID ORGANIZATION DEVELOPMENT, or GRID OD MANAGERIAL GRID  Basic model describing various managerial styles  Used as the foundation for grid OD  The managerial grid is based on the premises that various managerial styles can be described by means of two primary attitudes of the manager: CONCERN FOR PEOPLE and CONCERN FOR ATTITUDE
    19. 19. 5,5 MANAGEMENT Adequate organization performance is possible through balancing the necessity to get out work while maintaining morale of people at a satisfactory level 1,9 MANAGEMENT Thoughtful attention to needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo 1,1 MANAGEMENT Exertion of minimum effort to get required work done is appropriate to sustain organization membership 9,1 MANAGEMENT Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree 9,9 MANAGEMENT Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect CONCERN FOR PRODUCTION C O N C E R N F O R P E O P L E
    20. 20.  THE STATUS OF ORGANIZATION DEVELOPMENT  If the entire OD area is taken into consideration, changes that emphasizes both people and the organization as a whole seem to have inherent strength  However, several commonly voiced weaknesses in OD efforts. These weaknesses are as follows: 1. The effectiveness of an OD program is difficult to evaluate 2. OD programs are generally too time consuming 3. OD objectives are commonly too vague 4. The total cost of an OD program are difficult to gauge at the time the program start 5. OD program are generally too expensive
    21. 21. These weaknesses, however, should not eliminate OD from consideration, but should indicate areas to perfect within it. Managers can improve the quality of OD efforts by doing the following 1. Systematically tailoring OD programs to meet the specific needs of the organization 2.Continually demonstrating exactly how people should change their behavior 3. Conscientiously changing organizational reward system so organization members who change their behavior in ways suggested by the OD program are rewarded
    22. 22. A fourth major factor to be considered by managers when changing an organization is the people who will be affected by the change. A good assessment of what to change and how to make the change will be wasted if organization members do not support the change. To increase the chances of employee support, managers should be aware of the following factors: 1. The usual employee resistance to change 2. How this resistance can be reduced
    23. 23. RESISTANCE TO CHANGE • Resistance to change within an organization is as common as the need for change. After managers decide to make some organizational change, they typically meet with employee resistance aimed at preventing that change from occurring REDUCING RESISTANCE TO CHANGE • To ensure the success of needed modification, managers must be able to reduce the effects of the resistance that typically accompanies proposed change
    24. 24. Resistance can usually be lowered by following these guidelines: 1. AVOID SURPRISES People need time to evaluate a proposed change before management implements it. Unless they are given time to evaluate and absorb how the change will affect them, employees are likely to be automatically opposed to it 2.PROMOTE REAL UNDERSTANDING When fear of personal loss related to a proposed change is reduced, opposition to the change is also reduced
    25. 25. 3. SET THE STAGE FOR CHANGE Perhaps the most powerful tool for reducing resistance to change is management’s positive attitude toward the change. This attitude should be displayed openly by top and middle management as well as by lower management 4. MAKE TENTATIVE CHANGE Resistance to change can also be reduced if the changes are made on a tentative basis. This approach establishes a trial period during which organization members spend some time working under a proposed change before voicing support or nonsupport of it. TENTATIVE CHANGE is based on the assumption that a trial period during which organization members live under a change is the best way of reducing feared personal loss
    26. 26. Judson has summarized the benefits of using the tentative approach:  Employees affected by the change are able to test their reactions to the new situation before committing themselves irrevocably to it.  Those who will live under the change are able to acquire more facts on which to base their attitudes and behavior toward the change  Those who had strong preconceptions about the change are in a better position to assess it with objectivity. Consequently, they may review and modify some of their preconceptions  Those involved are less likely to regard the change as a threat  Management is better able to evaluate the method of change and make any necessary modifications before carrying it out more fully
    27. 27.  As with all other managerial actions, managers should spend some time evaluating the changes they make. The purpose of this evaluation is not only to gain insight into how the change itself might be modified to further increase its organizational effectiveness, but to determine whether the steps taken to make the change should be modified to increase organizational effectiveness the next time they are used  According to MARGUILIES and WALLACE, making this evaluation may be difficult because the data from individual change may be unreliable  Evaluation of change often involves watching for symptoms that indicate that further change is necessary
    28. 28. DEFINING STRESS  STRESS – the bodily strain that an individual experiences as a result of coping with some environmental factor  Hans Selye said that stress constitutes the factors affecting wear and tear on the body  In organizations, this wear and ear is cause primarily by the body’s unconscious mobilization of energy when an individual is confronted with organizational or work demands
    29. 29. THE IMPORTANCE OF STUDYING STRESS Stress can have damaging psychological and physiological effects on employees’ health and on their contributions to organizational effectiveness. It can cause heart disease, and it can prevent employees from concentrating or making decisions  Stress is a major cause of employee absenteeism and turnover. Certainly, such factors severely limit the potential success of an organization  A stressed employee can affect the safety of other workers or even the public  Stress represents a very significant cost to organizations
    31. 31. Note that extremely high and extremely low levels of stress tend to have negative effects on production. Additionally, while increasing stress tends to bolster performance up to some point, when the level of stress increases beyond this point, performance will begin to deteriorate IDENTIFYING UNHEALTHY STRESS IN ORGANIZATIONS Managers often find it difficult to identify the people in the organization who are experiencing detrimentally high levels of stress. Part of this difficulty is that people respond to high stress in different ways, and part is that physiological reactions to stress are hard, if not impossible, for managers to observe and monitor. Such reactions include high pressure, pounding heart, and gastrointestinal disorders.
    32. 32. Observable symptoms of undesirably high stress levels that managers can learn to recognize  Constant fatigue  Low energy  Moodiness  Increased aggression  Excessive use of alcohol  Temper outbursts  Compulsive eating  High level of anxiety  Chronic worrying
    33. 33. HELPING EMPLOYEE HANDLE STRESS • STRESSOR – an environmental demand that causes people to feel stress. Stressor are common in situations where individuals are confronted by circumstances for which their usual behaviors are inappropriate or insufficient and where negative consequence are associated with failure to deal properly with the situation A manager who observes one or more of these symptoms in employees should investigate to determine if those exhibiting the symptoms are indeed under too much stress. If so, the manager should try to help those employees handle their stress and/or should attempt to reduce stressors in the organization
    34. 34. STRATEGIES TO HELP PREVENT THE INITIAL DEVELOPMENT OF UNWANTED STRESSORS IN ORGANIZATION 1.Create an organizational climate that is supportive of individuals 2. Make job interesting 3. Design and operate career counseling programs • Stress is seldom significantly reduced until the stressor causing it have been coped with satisfactorily or withdrawn from the environment