Managing Change
and Stress
Chapter Eighteen
McGraw-Hill/Irwin
© 2013
The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO.1 Discuss the external and internal forces that
create the need for organizational change.
LO.2 Describe Lewin’s change model and the
systems model of change.
LO.3 Discuss Kotter’s eight steps for leading
organizational change.
LO.4 Define organization development (OD), and
explain the OD process.
LO.5 Explain the dynamic model of resistance to
change.
18-2
Learning Objectives (cont.)
LO.6 Discuss the key recipient and change agent
characteristics that cause resistance to change.
LO.7 Identify alternative strategies for overcoming
resistance to change.
LO.8 Define the term stress, and describe the model of
occupational stress.
LO.9 Discuss the stress moderators of social support,
hardiness, and Type A behavior.
LO.10 Review the four key stress-reduction techniques
and the components of a holistic approach toward
stress reduction.
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Forces of Change
External forces for
change
Internal forces for
change
 originate outside the
organization
 originate inside the
organization.
18-4
The External and Internal Forces for
Change
18-5
External Forces
Demographic characteristics
Technological advancements
Shareholder, customer and market changes
Social and political pressures
18-6
Internal Forces
Low job
satisfaction
Low productivity
Conflict
Strikes
18-7
Question?
ABC Trucking, conducted an analysis of employee
job satisfaction and turnover, and concluded that its
turnover rate was 48%. This was primarily attributed
to job dissatisfaction by employees. This represents
a(n) ______ for ABC.
A.External force for change
B.Social and political pressure
C.Technological advancements
D.Internal force for change
18-8
A Generic Typology of Organizational
Change
18-9
Lewin’s Change Model
Unfreezing
 Focus is to create the motivation to change
 Begin by disconfirming the usefulness or
appropriateness of employees’ present
behaviors or attitudes
18-10
Lewin’s Change Model
Benchmarking
 the overall process by which a company
compares its performance with that of other
companies, then learns how the strongestperforming companies achieve their results
18-11
Question?
Fredfirst, a securities trading company,
regularly compares its performance with that
of high performing organizations in the
industry, such as Merrill Lynch. This process
is described as
A.Change.
B.Refreezing.
C.Benchmarking.
D.A strategic plan
18-12
Lewin’s Change Model
Changing
 providing employees with new information, new
behavioral models, new processes or
procedures, new equipment, new technology,
or new ways of getting the job done
 change can be aimed at improvement or
growth, or it can focus on solving a problem
such as poor customer service or low
productivity
18-13
Lewin’s Change Model
Refreezing
 Change is supported by helping employees
integrate the changed behavior or attitude into
their normal way of doing things
 Giving employees the chance to exhibit new
behaviors, which are then reinforced
18-14
A Systems Model of Change
Systems Approach
 Based on the notion that any change, no matter
how large or small, has a cascading effect
throughout an organization
 Takes a “big picture” perspective of
organizational change
18-15
A Systems Model of Change
Mission statement
 represents the
“reason” an
organization exists
Vision
 a long-term goal
that describes
“what” an
organization wants
to become
18-16
A Systems Model of Change
Strategic plan
 outlines an organization’s long-term direction
and the actions necessary to achieve planned
results
 based on results from a SWOT analysis
18-17
Target Elements of Change
Target elements of
change
 the components of
an organization that
may be changed.
Organizational
arrangements
Social factors
Methods
People
18-18
A Systems Model of Change
18-19
Applying the Systems Model of Change
Two ways to apply the systems model:
Aid during the strategic planning process
Using the model as a diagnostic framework
to determine the causes of an organizational
problem and to propose solutions
18-20
Steps to Leading
Organizational Change
18-21
Question?
Dale needs to change the manufacturing
processes of his firm. This will cause many
changes to his labor force. He shares a
compelling reason to his employees. Which
step is this in leading change?
A.Generate short term wins
B.Develop a vision and strategy
C.Establish a sense of urgency
D.Create a guiding coalition
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Creating Change Through
Organization Development
Organization Development
 consists of planned efforts to help persons work
and live together more effectively, over time, in
their organizations
18-23
The OD Process
18-24
OD Research and Practical Implications
1.
2.
3.
4.
Planned organizational change works
Change programs are more successful when
they are geared toward meeting both short-term
and long-term results
Organizational change is more likely to succeed
when top management is truly committed to the
change process
Effectiveness of OD interventions is affected by
cross-cultural considerations
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A Dynamic Model of
Resistance to Change
18-26
Causes of Resistance to Change
Resistance to
change
 An emotional or
behavioral response
to real or imagined
threats to an
established work
routine
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Why People Resist Change
in the Workplace
1. An individual’s predisposition toward
change
2. Surprise and fear of the unknown
3. Fear of failure
4. Loss of status and/or job security
5. Peer pressure
6. Past success
18-28
Question?
Jamie is not directly affected by the change
introduced in her company, but she is actively
resisting it to protect the interests of her friends.
This describes which reason for resistance to
change?
A.Surprise and fear of the unknown
B.Personality conflicts
C.Peer pressure
D.Lack of tact
18-29
Overcoming Resistance to Change
Resilience to change
 represents a composite characteristic reflecting
high self-esteem, optimism, and an internal
locus of control, was positively associated with
recipients’ willingness to accommodate or
accept a specific organizational change
18-30
Change Agent Characteristics
1. Decisions that disrupt cultural traditions or
group relationships
2. Personality conflicts
3. Lack of tact or poor timing
4. Leadership style
5. Failing to legitimize change
18-31
Overcoming Resistance to Change
1. Provide as much information as possible to
2.
3.
4.
employees about the change
Inform employees about the rationale for the
change
Conduct meetings to address employee’s
concerns
Provide employees the opportunity to discuss
how the proposed change might affect them
18-32
Six Strategies for Overcoming
Resistance to Change
18-33
Defining Stress
Stress
 an adaptive response, mediated by individual
characteristics and/or psychological processes,
that is a consequence of any external action,
situation, or event that places special physical
and/or psychological demands upon a person
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Defining Stress
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
18-35
Defining Stress
Eustress
 Stress that is good
or produces a
positive outcome
18-36
A Model of Occupational Stress
18-37
Moderators of Occupational Stress
Social support
 the amount of
perceived helpfulness
derived from social
relationships.
Esteem
Informational
Social
Instrumental
18-38
Stress Reduction Techniques
18-39
Video Case: Louisville Slugger –
Hillerich & Bradsby
What role do information systems play at H&B?
What were the internal and external trade-offs
between reconfiguring the old information system
and designing a new one?
Why was the transition to the new system difficult?
How could Kotter’s eight steps be used to facilitate
such a transition?
Why did some people resist change and
experience stress? What strategies could H&B
have used to overcome resistance to change?
18-40