Ch 13 - Organizational Change - BUS 203

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Fundamentals of Changing an Organization
Changing an Organization (Organizational Change):
is the process of modifying an existing organization to increase
organizational effectiveness( the extent to which organization
accomplishes its objectives).
 What
is affected by change in an organization?
 These modification can involve virtually any organizational
segment, but effect the lines of organizational authority, the
levels of responsibility held by various organizational members,
and the established lines of organizational communication.
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Fundamentals of Changing an Organization
 What
are the drives of change in an organization?
 Change is driven by new technology, expanding global
opportunities, and organizational streamlining.
 The
Importance of Change:
 Organization must change continually in response to
significant developments in the environment, such as
changing customers needs, technological changes, and new
government regulations. (these are also drives of change)
 Change
is a fundamental (basic) part of organizational existence.
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Fundamentals of Changing an Organization
 Managers
who can determine appropriate changes and then
implement such changes successfully enable their organizations
to be more flexible and innovative, leading to organizational
success.
 Many
mangers encourage employee to continually search for
areas in which beneficial changes can be made.
 (For
example, GM provides employees with a ‘think list’ to
encourage them to develop ideas for organizational change and to
remind them that change is vital to the continued success of GM.
(see page 337) )
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Fundamentals of Changing an Organization
 Change
Versus Stability: ( see figure 14.1)
 In
addition to organizational change, some degree of stability is a
prerequisite (needed) for long term organizational success.
 Change and stability are important to organizational survival.
 The
organizational survival and growth are most probable when
both stability and adaptation are high within the organization
(number 3 on the model).
 The organization without enough stability to complement change
is at a definite disadvantage.
 Change after change without regard for the essential role of stability
typically results in confusion and employee stress.
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Fundamentals of Changing an Organization
Adaptation ~ Change
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Factors to Consider When Changing an Organization
This figure is for your
own information only
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Change and Stress
 Stress:
The bodily strain that an individual experiences as a result
of coping with some environmental factor
 Stress:
constitutes the factors affecting wear and tear on the
body.
 Any
change may be creating stress. Very high level of stress,
make organizations less effective
 The
Importance of Studying Stress: (read the book P:346)
 Damaging
 Major
 Can
A
psychological and physiological effects…
cause of employee absenteeism and turnover…
affect the safety of other workers or even the public…
very significant cost to organizations…
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Change and Stress - Managing Stress in Organizations
 Managing
1.
Stress in Organizations (3 steps):
Understanding How Stress Influences Worker Performance
 The manager must understand the relationship between the
amount of stress felt by a worker and the worker’s
performance.
 Extremely high and extremely low levels of stress tend to have
negative effects on production (decrease
production/performance of workers)
 In sum, a certain amount of stress among employee is
generally considered to be advantageous for organization
because it tends to increase production
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Change and Stress - Managing Stress in Organizations
2.
Identifying Unhealthy Stress in Organizations
 Observable
symptoms of undesirably high stress levels:
 Constant fatigue
 Low energy
 Moodiness
 Increased aggression
 Excessive use of alcohol
 Temper outbursts
 Compulsive eating
 High levels of anxiety
 Chronic worrying
 High blood pressure
 Pounding heart
 Gastrointestinal disorder
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Change and Stress
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Change and Stress - Managing Stress in Organizations
3.
Helping Employees Handle Stress
A
Stressor: is an environmental demand that causes people to feel
stress
 When
do they face stressors? when their usual behaviors are
inappropriate or insufficient and where negative consequences are
associated with their actions
 Strategies
to Prevent Initial Development of Unwanted
Stressors:
1. Create an organizational climate that is supportive of individuals
2. Implement stress management courses
3. Make jobs interesting
4. Design and operate career counseling programs
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