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BA 520 Chapter 16 Powerpoint
- 1. Because learning changes everything.® Angelo Kinicki Behavior Organizational A Practical, Problem-Solving Approach 3e CHAPTER 16 Managing Change and Stress © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
- 2. © McGraw Hill After reading this chapter, you should be able to: 16.1 Identify the major forces of organizational change. 16.2 Apply various models to effectively manage change. 16.3 Outline the major causes of resistance to change. 16.4 Explain the benefits and problems associated with stress. 16.5 Apply OB knowledge and tools to manage stress. 16.6 Describe the implications of managing change and stress for me and managers.
- 3. © McGraw Hill Forces for Change 1 External forces. • Can apply to the organization, competitors, or the entire industry. • Dramatically affects why an organization exists and which markets it will participate in and how. Key external forces: • Demographic characteristics. • Technological advancements. • Shareholder, customer, and market changes. • Social and political pressures.
- 4. © McGraw Hill Forces for Change 2 Internal forces may • Be subtle: E.g., low levels of job satisfaction. • Manifest in outward signs: low productivity; increased conflict; or strikes. Key internal forces: • Human resource issues. • Managerial behavior and decisions.
- 5. © McGraw Hill Test Your OB Knowledge 1 Managers at Storm Kayak Corporation (SKC) changed their marketing strategy to target baby boomers. Which change force did SKC experience? A. internal: job dissatisfaction. B. internal: leadership. C. external: demographic. D. external: domestic or international competition. E. external: information technology.
- 6. © McGraw Hill Three General Models of Change Key assumptions underlying change models: • Learn and unlearn⏤Resistance. • Motivation ⏤ Reinforce. • People make or break. Access the text alternate for slide image.
- 7. © McGraw Hill Lewin’s Change Model
- 8. © McGraw Hill Systems Model of Change 1 Assumes that any change has a cascading effect throughout an organization. Practical model to diagnose what to change and how to evaluate the success of a change effort.
- 9. © McGraw Hill Systems Model of Change 2 Inputs. • Intended change must align with: • Mission: the reason an organization exists. • Vision: a compelling future state for an organization. • Readiness for change: • Necessity. • Top-management support. • Personal ability to cope with changes. • Received personal consequences .
- 10. © McGraw Hill Systems Model of Change 3 Strategic plans. • Outlines an organization’s long-term direction and the actions necessary to achieve planned results. Target elements of change. • Used to diagnose problems and identify change-related solutions and consists of: • Organizational arrangements. • Social factors. • Methods. • People.
- 11. © McGraw Hill Systems Model of Change 4 Outputs. • Represent the desired end results or goals of a change. • Should be consistent with organization’s strategic plan. • Can be at the individual, group, or organizational level.
- 12. © McGraw Hill Kotter’s Steps for Leading Organizational Change 1 Provides specific recommendations about behaviors and activities needed to lead organizational change. Does not help in diagnosing the need for or targets for change. Consists of eight sequential steps.
- 13. © McGraw Hill Kotter’s Steps for Leading Organizational Change (2 of 2) 1. Establish a sense of urgency. 2. Create the guiding coalition. 3. Develop a vision and strategy. 4. Communicate the change vision. 5. Empower the broad- based action. 6. Generate short-term wins. 7. Consolidate gains and produce more change. 8. Anchor new approaches in the culture.
- 14. © McGraw Hill Change Through Organizational Development The organizational development process. Access the text alternate for slide image.
- 15. © McGraw Hill What Is Organizational Development? About planned change aimed at increasing an organization’s ability to improve itself as a humane and effective system. Takes theories and results from the laboratory and applies them to real-life work settings. Takes a distinctively democratic and participative approach to solving conflicts and problems.
- 16. © McGraw Hill How Does OD Influence Organizational Outcomes? Employee satisfaction with change is higher when top management is committed to the change. Varying one target element of change creates changes in other target elements. Interventions using more than one technique are more effective in changing job attitudes. United States and European firms use OD interventions more frequently than firms from China and Japan.
- 17. © McGraw Hill Test Your OB Knowledge 2 When managing organizational change, managers should do all of the following EXCEPT: A. provide employees with new information to get the job done. B. be clear on the overarching motive for change. C. generate short-term wins. D. discourage individuals to replace old behaviors and attitudes with new ones. E. use feedback to determine the effectiveness of the intervention.
- 18. © McGraw Hill Resistance to Change What is resistance to change? • Any thought, emotion, or behavior that does not align with real or potential changes to existing routines. • One of three possible influence outcomes including compliance and commitment.
- 19. © McGraw Hill Dynamic Model of Resistance to Change Access the text alternate for slide image.
- 20. © McGraw Hill Causes of Resistance to Change Recipient characteristics: • Includes a variety of individual differences: • Dispositional resistance to change. • Surprise and fear of the unknown. • Fear of failure. • Loss of status or job security. • Peer pressure. • Past success. Change agent characteristics: • Include a variety of individual differences: • Decisions that disrupt cultural traditions or group relationships. • Personality conflicts. • Lack of tact or poor timing. • Leadership style. • Failing to legitimize change. Change agent–recipient relationship. Resistance reduced when there is a positive, trusting relationship.
- 21. © McGraw Hill Test Your OB Knowledge 3 All of the following are causes of resistance to change EXCEPT: A. a change agent who is perceived as a transformational leader. B. fear of failure on the part of recipients. C. past success on the part of recipients. D. mistrust between recipients and change agent. E. change agent failing to legitimize change.
- 22. © McGraw Hill The Good and Bad of Stress 1 Stress, an adaptive response to environmental demands, referred to as stressors, that produce adaptive responses: • Physical. • Emotional. • Behavioral reactions. Each response is influenced by individual differences: • Inevitable and needs to be managed, not escaped. • Occupational stress. • Can come from multiple sources including: individual, group, organization, and extra-organizational.
- 23. © McGraw Hill The Good and Bad of Stress 2 What is good stress? • Stress associated with positive emotions and outcomes called eustress. • Remember: • 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.
- 24. © McGraw Hill Occupational Stress 1 Cognitive appraisals. • Primary appraisals: • Perceptions of whether a stressor is irrelevant, positive, or negative. • Secondary appraisals: • Perceptions of how able you are to deal or cope with a given demand. “It’s not what happens to you but how you respond that matters”
- 25. © McGraw Hill Occupational Stress 2 Coping strategies: • Control strategy. • Escape strategy. • Symptom management strategy. Stress outcomes: • Psychological or attitudinal. • Behavioral. • Cognitive. • Physical stress. • Outcomes linked to counterproductive behaviors and negatively affects physical and psychological health.
- 26. © McGraw Hill Overcoming Resistance to Change 1 Employees are more likely to resist when they perceive that the personal costs of change outweigh the benefits, so managers should: • Provide as much information as possible to employees. • Inform employees about their reasons or rationale. • Conduct meetings to address employees’ questions. • Provide employees the opportunity to discuss how the proposed change might affect them. Above points also: • Help build trust. • Improve the agent–recipient relationship.
- 27. © McGraw Hill Overcoming Resistance to Change 2 Organizational processes and practices: • Avoid the assumption that people are consciously resisting change. • Obtain employee feedback about obstacles to change. • Consider modifying the targeted elements of change.
- 28. © McGraw Hill Overcoming Resistance to Change: A Contingency Approach Managerial responses: 1. Inspire. 2. Recognize progress. 3. Expect mistakes. 4. Model, measure, and Reward Collaboration. 5. Positivity. 6. Goals and time.
- 29. © McGraw Hill Test Your OB Knowledge 4 Janice is experiencing a stressful situation at work. She reacts to the situation by going out drinking after work. Which coping strategy is Janice using? A. control strategy. B. escape strategy. C. cognitive restructuring strategy. D. symptom management strategy.
- 30. © McGraw Hill Managing Change and Stress: Putting It All in Context Figure 16.10 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Access the text alternate for slide image.
- 31. Because learning changes everything.® www.mheducation.com © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Notes de l'éditeur
- External forces for change: originate outside the organization. External forces can dramatically affect why an organization exists, as well as which markets it participates in and how. External changes can either present new opportunities for organizations to realize and grow, or they can cause the ultimate demise or failure of a business. Demographic Characteristics: Organizations are changing benefits and aspects of the work environment in order to attract, motivate, and retain diverse employees. Organizations are changing the way in which they design and market their products and services and design their store layouts based on generational differences. Technological Advancements: Social media is one of the most notable technological changes to impact business over the past several years. The five most significant digital enterprise trends in business are the digital engagement of customers, big data and advanced analytics, digital engagement of employees and external partners, automation, and digital innovation. Shareholder, Customer and Market Changes: Increased shareholder activism is one of the most significant forces for change public companies have faced in the past several years. Increasing customer sophistication is requiring organizations to deliver higher value in their products and services. Companies often seek customer feedback about a wide range of issues in order to attract and retain customers and to turn any negative situation from social media to a positive one. Social, Political, and Regulatory: Social, political, and regulatory forces are created by social and political events. Governments can apply political pressures that can force or block changes.
- Internal forces for change: originate inside the organization. Internal forces can be subtle, such as low job satisfaction, or can manifest in outward signs, such as low productivity, conflict, or strikes. Human Resource Problems or Prospects: These problems stem from employee perceptions about how they are treated at work and the match between individual and organization needs and desires. Job dissatisfaction is a symptom of an underlying employee problem that should be addressed. Unusual or high levels of absenteeism and turnover also represent forces for change. Managerial Behavior and Decisions: Excessive interpersonal conflict between managers and their subordinates or the board of directors is a sign that change is needed. Inappropriate leader behaviors such as inadequate direction or support may result in human resource problems requiring change.
- The correct answer is D, external: domestic or international competition.
- Adaptive change: reintroduces a familiar practice either in a different unit or in the same unit at a different point in time. Adaptive change is lowest in complexity, cost, and uncertainty. Adaptive changes are not particularly threatening to employees because they are familiar. Innovative change: introduces a practice new to the organization. This type of change falls midway on the continuum of complexity, cost, and uncertainty. Innovative changes are complex, since organizations need to learn new behaviors, as well as create, implement, and enforce new policies and practices. Innovative changes have more uncertainty and cause more fear than adaptive changes. Radically innovative change: introduces a practice new to the industry. This type of change is at the high end of the continuum of complexity, cost, and uncertainty.
- Kurt Lewin developed a three-stage model of planned change that explained how to initiate, manage, and stabilize the change process. Unfreezing: The focus of this stage is to create the motivation to change. Managers can begin the unfreezing process by presenting data highlighting how current practices are now obsolete or less than ideal, such as low employee or customer satisfaction data, or market share gains made by competitors. Changing: This stage entails 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 should be targeted to a specific desired end-result. The Organizing Framework for Understanding and Applying OB is a good tool to use for identifying particular targets or purposes for change. Refreezing: The goal of this stage is to support and reinforce the 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. Role modeling helps to reinforce the stability of the change.
- A systems approach is based on the notion that any change will have a cascading effect throughout an organization. Figure 16.6, in the text, illustrates the four main components of a systems model of change. This practical approach can be used to diagnose what to change and to determine how to evaluate the success of a change effort.
- Inputs include the firm’s mission, vision, readiness, internal strengths and weaknesses, and external opportunities and threats. The starting point for organizational change should be asking and answering the question: “Why change?” All organizational changes should be consistent with an organization’s mission, vision, and resulting strategic plan. Mission statement: expresses the reason why an organization exists. Vision: a compelling future state for an organization. Readiness for change: beliefs, attitudes, and intentions regarding the extent to which changes are needed, and the capacity available to successfully implement those changes. Readiness can be both an individual- and/or an organizational-level input, and its components are necessity for change, top management support for change efforts, personal ability to cope with changes, and perceived personal consequences of change.
- A strategic plan outlines an organization’s long-term direction and the actions necessary to achieve planned results. Strategic plans are based on results from a SWOT—strengths, weaknesses, opportunities, and threats—analysis. The SWOT analysis aids in developing an organizational strategy to attain desired goals, such as profits, customer satisfaction, quality, adequate return on investment, and acceptable levels of turnover and employee satisfaction. Target elements of change are the components of an organization that may be changed. They essentially represent change levers that managers can push and pull to influence various aspects of an organization. Target elements include organizational arrangements, social factors, methods, and people. See Figure 16.6 in the text. The double-headed arrows connecting each target element of change indicate that change ripples across an organization—change one element, and it may change another. The “people” component is in the center because all organizational change ultimately impacts employees.
- Outputs represent the desired end results of change. Change can be directed at the individual, group, or organizational level. Change efforts are more complicated and difficult to manage when they are targeted at the organizational level since these changes are more likely to affect multiple target elements of change.
- John Kotter believes that organizational change most often fails, not because of inadequate planning, but because of ineffective implementation. He proposes an eight-step process for leading change to avoid typical implementation errors. The model is not diagnostic in determining what needs to be changed, but helps managers sequence the change process.
- Table 16.1 in the text, and from which this slide’s content is derived, describes the following steps to Kotter’s model: Establish a sense of urgency: unfreeze the organization by creating a compelling reason why change is needed. Create the guiding coalition: create a cross-functional, cross-level group with enough power to lead the change. Develop a vision and strategy: create a vision and strategic plan to guide the change process. Communicate the change vision: create and implement a communication strategy that consistently conveys the new vision and strategic plan. Empower broad-based action: eliminate obstacles (processes and people) and encourage risk taking and creative problem solving. Generate short-term wins: plan for and create short-term improvements. Recognize and reward people who contribute to the wins. Consolidate gains and produce more change: the guiding coalition uses credibility from short-term wins to create more change. Anchor new approaches in the culture: reinforce the changes by highlighting connections between new behaviors and processes and organizational success.
- Figure 16.7 presents the components of the OD process: Diagnosis: What is the problem and its causes? Intervention: What can be done to solve the problem? Evaluation: Is the intervention working? Feedback: What does the evaluation suggest about the diagnosis and the effectiveness of how the intervention was implemented? In the diagnosis stage, interviews, surveys, meetings, written materials, and direct observation can be used to determine the problem and its associated causes. A contingency approach should be used to select the intervention that seems best suited for the problem and causes at hand. Evaluation requires the organization to develop measures of effectiveness, and the proper measure depends on the problem. If the evaluation stage reveals that the intervention worked, then the OD process is complete, and you can consider how best to “refreeze” the changes. A negative evaluation means one of two things: (1) either the initial diagnosis was wrong, or (2) the intervention was inappropriate or not effectively implemented.
- The correct answer is D, discourage individuals to replace old behaviors and attitudes with new ones.
- Resistance to change: any thought, emotion, or behavior that does not align with actual or potential changes to existing routines. People resist both actual and imagined events. Resistance is one of the three possible influence outcomes—the other two being compliance and commitment.
- Many managers of change see resistance as employees pursuing their own interests and attempting to undermine the interests of the manager or larger organization. Some of the most widely recognized change experts argue that resistance does not reside within the individual but instead is a result of the context in which change occurs. Resistance is caused by an interaction between change recipients, change agents, and the relationship between the two. Figure 16.8 illustrates that resistance is a dynamic form of feedback.
- Recipient Characteristics: Individuals with a dispositional resistance to change are less likely to voluntarily initiate changes and more likely to form negative attitudes toward the changes they encounter. When innovative or radically different changes are introduced without warning, affected employees become fearful of the implications. Intimidating changes on the job can cause employees to doubt their capabilities, and this fear of failure erodes their self-confidence and performance. Changes that threaten to alter power bases or eliminate jobs generally trigger strong resistance. Someone who is not directly affected by a change may actively resist it to protect the interest of his or her friends and coworkers. Success can breed complacency and foster a stubbornness to change. Change Agent Characteristics: A change agent is someone who is a catalyst in helping organizations deal with old problems in new ways. Change agents can be external consultants or internal employees. A change agent who fails to communicate with employees or is perceived as instituting unfair policies is likely to create resistance from recipients. Another contributing factor is the change agent’s perception of the reason employees behave the way they do in the face of organizational change. Table 16.2 in the text identifies common pitfalls effective change agents should avoid. Change can cause cultural and group dynamics to be thrown into disequilibrium. The personalities of change agents can breed resistance. Undue resistance can occur because changes are introduced in an insensitive manner or at an awkward time. People are less likely to resist change when the change agent uses transformational leadership. Active, honest communication and aligned reward systems help recipients understand and believe in the value of changes.
- The correct answer is A, a change agent who is perceived as a transformational leader.
- Job stress: the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker. Figure 16.9 in the text presents a very useful and comprehensive model of occupational stress.
- Eustress: stress that is associated with positive emotions and outcomes. Since stress is inevitable, your efforts need to be directed at managing stress, not at somehow escaping it altogether.
- Cognitive appraisal is the process by which people evaluate the meaning of events and demands. People make two types of appraisals when evaluating the potential impact of stressors on their lives: primary and secondary appraisals. Primary appraisal: perceptions of whether a stressor is irrelevant, positive, or negative. Secondary appraisal: perceptions of how able you are to deal or cope with a given demand. The combination of an individual’s primary and secondary appraisal influences the choice of coping strategies and in turn the subsequent outcomes.
- Coping strategies are characterized by the specific behaviors and cognitions used to cope with a situation. Coping strategies include control, escape, and symptom management strategies. Control strategy: using behaviors and cognitions to directly anticipate or solve problems. Escape strategy: avoiding or ignoring stressors. Symptom management strategy: focuses on reducing the symptoms of stress. Stress Outcomes: stress has psychological, attitudinal, behavioral, cognitive, and physical health consequences or outcomes. Workplace stress is negatively related to job satisfaction, organizational commitment, organizational citizenship behavior, positive emotions, and performance, and positively related to emotional exhaustion, burnout, absenteeism, and turnover. Stress negatively affects our physical and psychological health and is associated with the frequency of drinking and taking illicit drugs.
- Employees are more likely to resist when they perceive that the personal costs of change outweigh the benefits. Managers are advised to: Provide as much information as possible to employees about the change. Inform employees about the reasons/rationale for the change. Conduct meetings to address employees’ questions regarding the change. Provide employees the opportunity to discuss how the proposed change might affect them. These four recommendations also will improve the agent–recipient relationship by enhancing the level of trust between the parties.
- Managers should not assume that people are consciously resisting change. Resistance may have a cause that involves some obstacle in the work environment, such as job design or performance management practices. Managers should obtain employee feedback about any obstacles that may be affecting their ability or willingness to accept change. Change agents should not be afraid to modify the targeted elements of change or their approach toward change based on employee resistance. Managers should use a contingency approach to overcoming resistance and apply the concepts from Table 16.3 in the text to determine which managerial strategy for overcoming resistance would be appropriate.
- Inspire. Do the best you can to describe a vivid and compelling vision of what the changed organization will look like, and equally important, what role you see those who report to you playing and the value they can provide. Recognize progress, Not Just Outcomes. Many if not most organizational changes occur over long periods of time, which means changes will include multiple steps along the way. Observe and recognize people for their efforts, and don’t wait for ultimate performance outcomes. This is similar to Kotter’s advice from earlier in the chapter, create and celebrate small wins. Don’t simply wait for performance metrics at the end of the quarter, the year, or until the merger is close and the cultures or systems integrated. Expect mistakes. Expect them, tell your people you expect them, and don’t panic when they happen. Treat them as learning opportunities, which means you need to analyze and identify what to do and what not to do in the future. Model, Measure, and Reward Collaboration. A common sign of resistance is a lack of collaboration, and one way to overcome this is to apply what you learned in Chapter 6 to make collaboration part of the performance expectations. Communicate, model, measure, and reward collaboration. Positivity. As you learned previously, we tend to negative events, experiences, and emotions more than positive ones, and this is especially common in the context of organizational change. Therefore, it can be an excellent and productive opportunity to exercise mindfulness, and for you and employees to identify and reflect on the positive elements of the change. Goals and time. Just as you learned in Chapter 6, setting SMART goals and being sure to include a time element will help focus people’s efforts. It is better to set a deadline and need to change it, rather than not setting one at all.
- The correct answer is D, symptom management strategy.