MANAGING CHANGE

AND STRESS
Efraim F. Giri

Forces of change
External forces
Demographic characteristic
Technological advancements
Shareholders, customer, and market changes
Social and political pressures
Internal forces:
Human resources problems/prospects
Managerial behviour/decisions

External forces
Demographic characteristic
Age, education, skill level, gender, immigration
Technological advancements
Manufacturing automation, Information technology

Shareholders, customer, and market changes

Changing customer preferences
Domestic and international competition
Merger and acquisitions
Social and political pressures
War, values, leadership

Internal forces
Human resources problems/prospects
Unmet needs
Job dissatisfactions
Absenteeism and turnover
Productivity
Participant/suggetions
Managerial behaviour/decisions
Conflict
Leadership
Reward systems
Structural reorganizations

Models and Dynamics of

Planned Change
Organization changes natural, normal,

and constant, do every day

Types of Changes:
Adaptive change
Innovative changes
Radically innovative change

Types of Changes

Radically
Changes

Innovative
Changes
Adaptive
change

Low

Degree of complexity, cost, uncertainty

Potential for resistance to change

High

Change Models
1. Lewins Change Models
2. Kotters Eight Steps for Leading

Organizational Change
3. Creating Change through
Organization Development (OD)

Lewinss Change Model

Assumptions Lewins Model
1. The changes process involves learnings
something new, discountinued current attitudes,
behaviours, or organizations practices
2. Changes occur there is motivation to change
3. People are the hub all organization changes
4. Resistance to change is found even change are
highly desirable
5. Effective change require new behaviour,
attitudes, and organizational practices.

Lewins Change Model

Unfreezing
Create motivation to change (disconfirming employees

behaviour, or attitudes; presenting datalevel of efficiency,

customer satisfaction; benchmarking; show the fact)
Changing
Improve some process, procedure, product, service, or

outcome of interest of management

Providing new models, process, procedures, new IT, should
be targeted of desired end result.
Refreezing
Support and reinforce the change; integrated change

behaviour; coaching models, extrinsic rewards.

System Model of Change

Framework to use for diagnosing what to change, how to

evaluate the success of change

Components:
1.

Input
Consistent with vision, mission, and strategic plan; benchmarking; SWOT.

2.

Strategic plans
Long term direction, actions to achieve goals; based on SWOT; strategies

3.

Target elements of change

Change levers.push and pull to influence various aspect of an organ.; diagnosis
problem;
Target element of changes: organizational arrangement, people, methods, and
social factors)

4.

Outputs
Individual level, departement level, organizational level

Applying the systems model of change

1. An aid during the strategic planning process
2. Diagnostic framework to determine the causes of an

organizational problems and to propose solutions.

Kotters Eight Steps for Leading Organizational

Change
1. Establish a sense of urgency
2. Create the guiding coalition
3. Develop a vision an strategy
4. Communication the change vision
5. Empower broad based actions
6. Generate short term wins
7. Consolidate gains and produce more change
8. Anchor new approaches in the culture

Creating Change through Organization

Development (OD)
Diagnostic focus associated with the systems model of

change
Broader orientations
Definition:
Planned efforts to help persons work and live together more
effectively, over time, in their organizations; achieved by applying
behavioral science principles, methods, and theoriesadapted from
the fields of psychology, sociology, education, and management

OD put into practice by change agents (CA).

CA can be external or internal employees

Organization Development
(OD) Process
1. Diagnosis
Problem and causes

2. Intervention
Alternatives can be done to solve the problem

3. Evaluation
Is the intervention (actions) working

4. Feedback
What does the evaluation suggest about diagnosis and

the effectiveness of how the actions was implemented?

Research Implications
Employee satisfaction with change was higher

. when top management was highly

committed to the change effort.
Varying one target element of changecreated
changes in other target elements.
Positive relationship between individual
behavior change and organizational level
changes.
Multifacets interventions (more than one OD)
techniques were more effective in changing
job and work attitudes

Understanding and Managing

Resistance to Change
Resistance to Change
OC is managements attempt to have employees
behave, think, or perform differently.
Three components influence outcomes:
Resistance; Commitment; Compliance.

Resistence to change is represent a failed

influence attempt by a change agent

Emotional/behavioral respons to real or imagined
threats to an establish work routine.

Source of Resistance
Resistance is viewed as a negative

outcome that is caused by:

Irrational and self serving recipients.
The change agents characteristics, actions,

inactions, and perceptions

The quality of relationship between change
agents and change recipients

Sources of Resistance
1. The recipient characteristics:
Predepositions toward change
Surprise and fear unknown
Fear of failure
Loss of status and/or job security
Peer pressure
Past success
2. The change agents characteristics:
3. The quality of relationship between change

agents and change recipients

Sources of Resistance
1. The change agents characteristics:
Decision that disrupt cultural tradition or group
relationship
Personality conflicts
Lack of tact or poor timing
Leadership style
Failing to legitimize change
2. The quality of relationship between

change agents and change recipients

Good and positive relationship

Alternative StrategiesResistance to Change

Resistence is feedback and manager need to

understand why?
High resistance: opportunity or personal cost to
change is higher than benefit
Managers are advisedimprove the agent-recipinet
relationship:
Provide much information
Inform employess about the reason
Conduct meetings to address employees questions
Provide employees the opportunity to discuss