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BDO 219

BDO 219. Module 2. Study Unit 9. Chapter 18: Organizational Change. Study Unit Outcome. Identify forces that act as stimulants to change and contrast planned and unplanned change. Describe the sources of resistance to change.

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BDO 219

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  1. BDO 219 Module 2

  2. Study Unit 9 Chapter 18: Organizational Change

  3. Study Unit Outcome Identify forces that act as stimulants to change and contrast planned and unplanned change. Describe the sources of resistance to change. Compare the four main approaches to managing organizational change. Demonstrate two ways of creating a culture for change. Define stress and identify its potential sources. Identify the consequences of stress. Contrast the individual and organizational approaches to managing stress

  4. Identify forces that act as stimulants to change and contrast planned and unplanned change 1

  5. Identify forces that act as stimulants to change and contrast planned and unplanned change • Planned Change • Some organizations treat all change as an accidental occurrence; however, change as an intentional, goal-oriented activity is planned change. • There are two goals of planned change: • Improve the ability of the organization to adapt to changes in its environment. • Change employee behavior. 1

  6. Describe the sources of resistance to change 1

  7. Describe the sources of resistance to change • Overcome Resistance • Education and Communication- communicate the logic of change • Participation- difficult to resist change if you have participated • Building Support and Commitment – managers building some emotional support • Implementing changes fairly- implement fair changes • Develop Positive Relationships- people more willing to accept change if they trust managers implementing the changes • Manipulation (covert influence attempts) and Cooptation (manipulation and participation) • Selecting People Who Accept Change (personality big influence) • Coercion (forced to change) 1

  8. Describe the sources of resistance to change • The Politics of Change • Change threatens the status quo, making it an inherently political activity. • Politics suggests the motivation for change is more likely to come from outside change agents, employees new to the organization (who have less invested in the status quo), or managers slightly removed from the main power structure. 1

  9. Compare the four main approaches to managing organizational change • Lewin’s Three-Step Model (Exhibit 18-3) • Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5) • Action Research • Organizational Development 1

  10. Compare the four main approaches to managing organizational change 1

  11. Compare the four main approaches to managing organizational change

  12. Compare the four main approaches to managing organizational change 1

  13. Compare the four main approaches to managing organizational change • Action research is a change process based on the systematic collection of data and then selection of a “change action” based on what the analyzed data indicate. • The process consists of five steps: diagnosis, analysis, feedback, action, and evaluation. • Action research provides at least two specific benefits for an organization: problem focused and resistance to change is reduced. 1

  14. Compare the four main approaches to managing organizational change • Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being. • The OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. 1

  15. Compare the four main approaches to managing organizational change • The underlying values in most OD efforts: • Respect for people • Trust and support • Power equalization • Confrontation • Participation 1

  16. Compare the four main approaches to managing organizational change • The six interventions/OD techniques: • Sensitivity training(unstructured group intervention) • Survey feedback(attitude held by Org members) • Process consultation (an outsider to assist to perceive, understand, and act) • Team building (high interaction group activities) • Intergroup development (change group perceptions about each other) • Appreciative inquiry (accentuates the positive) 1

  17. Demonstrate two ways of creating a culture for change • We’ve considered how organizations can adapt to change. • But recently, some OB scholars have focused on a more proactive approach. • How organizations can embrace change by transforming their cultures. • Two such approaches: • Stimulating an innovative culture and • Creating a learning organization. 1

  18. Demonstrate two ways of creating a culture for change • Stimulating a Culture of Innovation • Innovation, a more specialized kind of change, is a new idea applied to initiating or improving a product, process, or services. • Innovations can range from small incremental improvements, such as netbook computers, to radical breakthroughs, such as Nissan’s electric Leaf car. 1

  19. Demonstrate two ways of creating a culture for change • Sources of Innovation: • Structural variables are the most studied potential source of innovation. • Organic structures positively influence innovation. • Long tenure in management is associated with innovation. • Innovation is nurtured where by slack resources. • Inter-unit communication is high in innovative organizations. 1

  20. Demonstrate two ways of creating a culture for change • Sources of Innovation: • Innovative organizations tend to have similar cultures: • They encourage experimentation. • They reward both successes and failures. • They celebrate mistakes. • Managers in innovative organizations recognize that failures are a natural by-product of venturing into the unknown. 1

  21. Demonstrate two ways of creating a culture for change 1

  22. Demonstrate two ways of creating a culture for change • What can managers do to make their firms learning organizations? • Establish a strategy. • Redesign the organization’s structure. • Reshape the organization’s culture. 1

  23. Define stress and identify its potential sources 1

  24. What is stress • Stress is a dynamic condition in which an individual is confronted with an opportunity, demand, or resource related to what the individual desires and for which the outcome is perceived to be both uncertain and important. • Stress is an unpleasant psychological process that occurs in response to environmental pressures

  25. Define stress and identify its potential sources 1

  26. Define stress and identify its potential sources • Cultural Differences • Research suggests the job conditions that cause stress show some differences across cultures. • Chinese compared to U.S. workers. • World-wide Type A personalities. • 20 individualistic countries. 1

  27. Identify the consequences of stress • Consequences of Stress-Physiological Symptoms • Most early concern with stress was directed at physiological symptoms because most researchers were specialists in the health and medical sciences. • Research has found profound effect of stress on physical aspects 1

  28. Identify the consequences of stress • Consequences of Stress-Psychological Symptoms • Job-related stress and job-related dissatisfaction. • Job dissatisfaction is “the simplest and most obvious psychological effect” of stress. • Multiple and conflicting demands increase stress and dissatisfaction. • The less control people have over the pace of their work, the greater the stress and dissatisfaction. 1

  29. Identify the consequences of stress • Consequences of Stress-Behavioral Symptoms • Research on behavior and stress has been conducted across several countries and over time, and the relationships appear relatively consistent. • Behavior-related stress symptoms include reductions in productivity, absence, and turnover, as well as changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep disorders. 1

  30. Identify the consequences of stress 1

  31. Contrast the individual and organizational approaches to managing stress • Managing Stress • Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience them. • What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee. 1

  32. Contrast the individual and organizational approaches to managing stress • Managing Stress- Individual Approaches • An employee can take personal responsibility for reducing stress levels. • Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks. 1

  33. Contrast the individual and organizational approaches to managing stress • Managing Stress- Organizational Approaches • Several organizational factors that cause stress are controlled by management. • Strategies include improved employee selection and job placement, training, realistic goal-setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. 1

  34. Contrast the individual and organizational approaches to managing stress • Goal-setting • Goals can reduce stress as well as provide motivation. • Employees who are highly committed to their goals and see purpose in their jobs experience less stress. 1

  35. Contrast the individual and organizational approaches to managing stress • Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others. 1

  36. Contrast the individual and organizational approaches to managing stress • Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. • By giving these employees a voice in the decisions management can increase employee control and reduce role stress. • Managers should consider increasing employee involvement in decision making. 1

  37. Contrast the individual and organizational approaches to managing stress • Increasing formal organizational communication with employees reduces uncertainty by lessening role ambiguity and role conflict. • Given the importance that perceptions play in moderating the stress-response relationship, management can also use effective communications as a means to shape employee perceptions. 1

  38. Contrast the individual and organizational approaches to managing stress • Some employees need an occasional escape from the frenetic pace of their work. • These sabbaticals—ranging in length from a few weeks to several months—allow employees to travel, relax, or pursue personal projects that consume time beyond normal vacations. 1

  39. Contrast the individual and organizational approaches to managing stress • Organizationally supported wellness programs. • These typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program; they focus on the employee’s total physical and mental condition. 1

  40. Summary and Implications for Managers • The need for change has been implied throughout this text. • Managers are the primary change agents in most organizations. • Cultures of Innovation • Organizational Learning • Work Stress

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