Change and Stress Management

Old types of organizations

Mills Textile manufacturing Old manual / batch operated factories Typewriting institutes Secretary jobs

New types
BPOs Transcription Rise in service industries : Healthcare Finance Insurance

Old types of jobs

10.30 to 5.30 jobs Stable working conditions. Look for gratuity and pension at the time of joining

New types of jobs

People work 24 x 7 , organizations work 24 X 7 Employees change many jobs Ongoing education, employees update themselves

Change
Environmental forces that require managers to implement comprehensive change programs. Why people and organizations often resist change and how this resistance can be overcome?

Contemporary change issues for today's managers.

Forces for Change

Nature of the workforce
More cultural diversity Increase in professionals people with special degrees Many new entrants with inadequate skills.

Technology
Information technology Digitization of media, entertainment Social networking sites

Forces for Change contd

Economic Shocks
Global recession Global demand Shift from manufacturing to servicing industries

Competition
Global competitors Mergers and consolidations Growth of e-commerce

Forces for Change

Social Trends
Internet chat rooms Increased interest in urban living Rural Urban divide

World Politics
Opening of markets in China Growth in South Asian Economy Religious fundamentalism Wars / Global recession and so on

Managing Planned Change

Installing state-of the art equipment on the shop floor Mergers or takeovers change in top management of the company Change in company strategies / policies programs Growth of organization / Decline of organization Any change that create anxieties in the minds of employees and might affect work conditions

Change
Proactive Purposeful Intentional Goal oriented activity

NOT Accidental / or Just happen

Planned Change
Change
Making things different

Planned Change
An intentional, goal-oriented activity Goals of planned change Improving the ability of the organization to adapt to changes in its environment Changing employee behavior
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Change Agents
Persons who act as catalysts and assume the responsibility for managing change activities Managers , non-managers, employees, outside consultants

Resistance to change
In a sense it is positive Provides degree of stability and predictability to behavior. If not for resistance, OB would take the form of chaotic randomness Resistance to change can also be source of functional conflict, hindrance to adaptation and progress.

Resistance to Change
Resistance to change appears to be a natural and positive reaction to change. Forms of Resistance to Change:
Overt and Immediate
Voicing complaints, engaging in job actions

Implicit and Deferred

Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism Deferred resistance clouds the link between source and reaction
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Sources of Resistance to Change

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Sources of Resistance to Change

Tactics for Overcoming Resistance to Change Education and Communication

Show those effected the logic behind the change

Participation
Participation in the decision process lessens resistance

Building Support and Commitment

Counseling, therapy, or new-skills training

Implementing Change Fairly

Be consistent and procedurally fair

Manipulation and Cooptation

Spinning the message to gain cooperation

Selecting people who accept change

Hire people who enjoy change in the first place

Coercion
Direct threats and force
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The Politics of Change

Impetus for change is likely to come from external change agents, new employees, or managers outside the main power structure. Internal change agents are most threatened by their loss of status in the organization. Long-time power holders tend to implement incremental but not radical change.

The outcomes of power struggles in the organization will determine the speed and quality of change.
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Lewins Three-Step Change Model

Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity by increasing the driving force and decreasing the restraining force

Moving
Moving from the status quo to the desired end state

Refreezing
Stabilizing a change intervention by balancing driving and restraining forces

Unfreeze

Move
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Refreeze

SEE E X H I B I T 17-3

Lewin: Unfreezing the Status Quo

Driving Forces
Forces that direct behavior away from the status quo

Restraining Forces
Forces that hinder movement from the existing equilibrium

E X H I B I T 17-4
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Kotters Eight-Step Plan

A detailed approach to implementing change that is built on Lewins three-step model To implement change:
1. 2. 3. 4. 5. 6. 7. 8. Establish a sense of urgency Form a coalition Create a new vision Communicate the vision Empower others by removing barriers Create and reward short-term wins Consolidate, reassess, and adjust Reinforce the changes
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Unfreezing

Movement

Refreezing
SEE E X H I B I T 17-5

Action Research
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates

Process steps:
1. Diagnosis 2. Analysis 3. Feedback 4. Action 5. Evaluation

Action research benefits:

Problem-focused rather than solution-centered Heavy employee involvement reduces resistance to change
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Organizational Development
Organizational Development (OD)
A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being

OD Values
Respect for people Trust and support Power equalization Confrontation Participation
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Six OD Techniques
1. Sensitivity Training
Training groups (T-groups) seek to change behavior through unstructured group interaction Provides increased awareness of others and self Increases empathy with others, listening skills, openness, and tolerance for others

2. Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions; a discussion follows and remedies are suggested

3. Process Consultation (PC)

A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.

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Six OD Techniques (Continued)

4. Team Building
High interaction among team members to increase trust and openness
OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other Instead of looking for problems to fix, appreciative inquiry seeks to identify the unique qualities and special strengths of an organization, which employees can then build on to improve performance. This process comprises of four steps:
Discovery: Recalling the strengths of the organization Dreaming: Speculation on the future of the organization Design: Finding a common vision Destiny: Deciding how to fulfill the dream

5. Intergroup Development

6. Appreciative Inquiry

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1. Stimulating a Culture of Innovation

Creating a Culture for Change: Innovation

Innovation: a new idea applied to initiating or improving a product, process, or service Sources of Innovation:
Structural variables: organic structures Long managerial tenure Slack resources High degree of interunit communication

Idea Champions: Individuals who actively promote the innovation

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2. Learning Organization

Creating a Culture for Change: Learning

An organization that has developed the continuous capacity to adapt and change Characteristics
Holds a shared vision Discards old ways of thinking Views organization as a system of relationships Communicates openly Works together to achieve shared vision
SEE E X H I B I T 17-6
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Creating a Learning Organization

Overcomes traditional organization problems such as:
Fragmentation Competition Reactiveness

Manage Learning by:

Establishing a strategy Redesigning the organizations structure
Flatten structure and increase cross-functional activities

Reshaping the organizations culture

Reward risk-taking and intelligent mistakes
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