Organizational
Behavior, 8e
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc.
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Organizational Behavior: Chapter 19
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Chapter 19
Change, Innovation, and Stress
 Study questions.
– What is organizational change?
– What change strategies are used in
organizations?
– What can be done about resistance to change?
– How do organizations innovate?
– How does stress affect people at work?
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What is organizational change?
 Forms of change.
– Radical change.
• Also known as frame-breaking change.
• Change that results in a major overhaul of the
organization or its component systems.
– Incremental change.
• Also known as frame-bending change.
• Change that is part of the organization’s natural
evolution.
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What is organizational change?
 Change agents.
– Individuals and groups who take responsibility
for changing the existing behavior patterns of
another person or social system.
– Sometimes hired as outside consultants.
– Managers and leaders in contemporary
organizations are expected to be change
agents.
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What is organizational change?
 Unplanned change.
– Occurs spontaneously or randomly.
– May be disruptive or beneficial.
– The appropriate goal is to act quickly to
minimize any negative consequences and
maximize any possible benefits.
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What is organizational change?
 Planned change.
– The result of specific efforts by a change
agent.
– A performance gap is a direct response to a
perceived performance gap.
• A discrepancy between the actual and desired state
of affairs.
• May reflect problems or opportunities.
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What is organizational change?
 Organizational forces for change.
– Organization-environment relationships.
– Organizational life cycle.
– Political nature of organizations.
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What is organizational change?
 Organizational targets for change.
– Purpose.
– Objectives.
– Strategy.
– Culture
– People.
– Tasks.
– Structure
– Technology.
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What is organizational change?
 Phases of planned change.
– Unfreezing.
• Preparing a situation for change by disconfirming existing
attitudes and behaviors.
• Susceptibility to “boiled frog phenomenon.”
– Changing.
• Taking action to modify a situation by altering the targets of
change.
– Refreezing.
• Maintaining and eventually institutionalizing the change.
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What change strategies are
used in organizations?
 Force-coercion strategy.
– Draws on reward power, coercive power, and
legitimate power as primary inducements to
change.
– Change agent acts unilaterally to command
change.
– Usually results in temporary compliance.
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What change strategies are
used in organizations?
 Rational persuasion strategy.
– Also known as an empirical-rational strategy.
– Draws on expert power as primary inducement
to change.
– Change agent uses special knowledge,
empirical support, or rational arguments.
– Usually results in long-term internalization.
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What change strategies are
used in organizations?
 Shared power strategy.
– Also known as a normative-reeducative
approach.
– Draws on referent power as primary
inducement to change.
– Change agent empowers people affected by
the change and involves them in decision
making related to the change.
– Usually results in long-term internalization.
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What can be done about
resistance to change?
 Resistance to change.
– Any attitude or behavior that indicates
unwillingness to make or support a desired
change.
– Alternative views of resistance.
• Something that must be overcome for change to be
successful.
• Feedback that can be used to facilitate achieving
change objectives.
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What can be done about
resistance to change?
 Why people resist change.
– Fear of the unknown.
– Lack of good information.
– Fear for loss of security.
– No reason to change.
– Fear for loss of power.
– Lack of resources.
– Bad timing.
– Habit.
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What can be done about
resistance to change?
 Ways in which resistance is experienced.
– Resistance to the change itself.
– Resistance to the change strategy.
– Resistance to the change agent.
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What can be done about
resistance to change?
 How to deal with resistance.
– Education and communication.
– Participation and involvement.
– Facilitation and support.
– Negotiation and agreement.
– Manipulation and cooptation.
– Explicit and implicit coercion.
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What can be done about
resistance to change?
 Education and communication.
– Educates people about change prior to
implementation and helps them understand the
logic of change.
– Use when people lack information or have
inaccurate information.
– Advantage — creates willingness to help with
the change.
– Disadvantage — can be very time consuming.
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What can be done about
resistance to change?
 Participation and involvement.
– Allows people to help design and implement
the changes.
– Use when other people have important
information and/or power to resist.
– Advantages — adds information to change
planning; builds commitment to change.
– Disadvantage — can be very time consuming.
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What can be done about
resistance to change?
 Facilitation and support.
– Provides emotional and material assistance for
people experiencing the hardships of change.
– Use when resistance traces to resource or
adjustment problems.
– Advantage — directly satisfies specific
resource or adjustment needs.
– Disadvantages — can be time consuming; can
be expensive.
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What can be done about
resistance to change?
 Negotiation and agreement.
– Offers incentives to actual or potential change
resistors.
– Use when a person or group will lose
something because of the change.
– Advantage — helps avoid major resistance.
– Disadvantages — can be expensive; can cause
others to seek similar deals.
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What can be done about
resistance to change?
 Manipulation and cooptation.
– Use covert attempts to influence others by
selectively providing information and
consciously structuring events.
– Use when other methods don’t work or are too
expensive.
– Advantages — can be quick and inexpensive.
– Disadvantage — can create future problems if
people sense manipulation.
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What can be done about
resistance to change?
 Explicit and implicit coercion.
– Employ the force of authority to implement
change.
– Use when speed is important and the change
agent has power.
– Advantages — quick; overpowers resistance.
– Disadvantage — risky if people get mad.
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How do organizations innovate?
 Innovation.
– The process of creating new ideas and putting them
into practice.
 Product innovations.
– The introduction of new or improved goods or
services to better meet customer needs.
 Process innovations.
– The introduction of new and better work methods and
operations.
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How do organizations innovate?
 The innovation process.
– Idea creation.
– Initial experimentation.
– Feasibility determination.
– Final application.
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How do organizations innovate?
 Features of innovative organizations.
– Strategies and cultures that are built around a
commitment to innovation.
– Structures that support innovation.
– Staffing with a clear commitment to
innovation.
– Top management support for innovation.
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How does stress affect people at work?
 Stress.
– A state of tension experienced by individuals
facing extraordinary demands, constraints, or
opportunities.
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How does stress affect people at work?
 Source of stress.
– Stressors.
• The wide variety of things that cause stress for
individuals.
– Types of stressors.
• Work-related stressors.
• Nonwork and personal stressors.
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How does stress affect people at work?
 Work-related stressors.
– Task demands.
– Role ambiguities.
– Role conflicts.
– Ethical dilemmas.
– Interpersonal problems.
– Career developments.
– Physical setting.
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How does stress affect people at work?
 Nonwork and personal stressors.
– Family events.
– Economic difficulties.
– Personal affairs.
– Individual’s needs.
– Individual’s capabilities.
– Individual’s personality.
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How does stress affect people at work?
 Stress and performance.
– Constructive stress.
• Also known as eustress.
• Moderate levels of stress act in a positive way for
both individuals and organization.
– Destructive stress.
• Also known as distress.
• Low and especially high levels of stress act in a
negative way for both individuals and organization.
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How does stress affect people at work?
 Stress can harm people’s physical and
psychological health.
– Health problem associated with stress.
•
•
•
•
•
•
•
•
•
Heart attack.
Stroke.
Hypertension.
Migraine headache.
Ulcers.
Substance abuse.
Overeating.
Depression.
Muscle aches.
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How does stress affect people at work?
 Key symptoms of excessive stress.
– Changes from:
• Regular attendance to absenteeism.
• Punctuality to tardiness.
• Diligent work to careless work.
• A positive attitude to a negative attitude.
• Openness to change to resistance to change.
• Cooperation to hostility.
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How does stress affect people at work?
 Stress prevention.
– The best first-line strategy in battling stress.
– Involves taking action to keep stress from
reaching a destructive level.
– Need to monitor personal and nonwork
stressors and to be proactive in preventing
their adverse impact.
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How does stress affect people at work?
 Stress management.
– Used once stress has reached a destructive
point.
– Begins with the recognition of stress
symptoms and continues with actions to
maintain a positive performance edge.
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How does stress affect people at work?
 Wellness.
– Personal wellness involves the pursuit of one’s
physical and mental potential through a
personal health promotion program.
– Recognizes individual responsibility for
maintaining and enhancing one’s physical and
mental health.
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