Managing Change and Stress

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

2. 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
19-2
Figure 19-1
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3. The Internal Forces of Change
Human Resource Problems/Prospects
 Unmet needs
 Job dissatisfaction
 Absenteeism and turnover
 Productivity
 Participation/suggestions
Managerial Behavior/Decisions
 Conflict
 Leadership
 Reward systems
 Structural reorganization
The Need for Change
19-3
Figure 19-1 cont.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

4. A Generic Typology of
Organizational Change
Adaptive
Change
Innovative
Change
Radically
Innovative
Change
Reintroducing
a familiar
practice
Introducing a
practice new
to the
organization
Introducing a
practice new
to the industry
 Degree of complexity,
cost, and uncertainty
 Potential for
resistance to change
Low High
19-4
Figure 19-3
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5. Lewin’s Change Model
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
 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
19-6
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6. A Systems Model of Change
Organizing
Arrangements
People
Goals Social
Factors
Methods
Target Elements of Change
Internal
 Strengths
 Weaknesses
External
 Opportunities
 Threats
Inputs
Internal
 Organizational
level
 Department/
group level
 Individual level
Outputs
Strategy
19-7
Figure 19-3
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

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

8. Kotter’s Eight Steps for Leading
Organizational Change
Reinforce the changes by highlighting
connections between new behaviors and
processes and organizational success
8) Anchor new approaches
in the culture
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
7) Consolidate gains and
produce more change
Plan for and create short-term “wins” or
improvements
6) Generate short-term wins
Eliminate barriers to change, use target
elements of change to transform the
organization
5) Empower broad-based
action
Description
Step
19-9
Table 19-1 cont.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

9. Organizational Development
 Organizational
Development a set of
techniques or tools that are used
to implement organizational
change
19-10
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10. Overcoming Resistance to Change
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
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 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
Drawbacks
Advantages
Commonly Used in
Situations Where:
Approach
19-15
Table 19-2
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11. Overcoming Resistance to Change
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
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 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
Drawbacks
Advantages
Commonly Used in
Situations Where:
Approach
19-16
Table 19-2 cont.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

12. 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
19-17
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