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Robbins: Organizational Behavior Chapter Eighteen ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT CHAPTER 18 OUTLINE Forces for Change 1. Organizations face a dynamic and changing environment. This requires adaptation. Exhibit 18-1 summarizes six specific forces that are acting as stimulants for change. 2. The changing nature of the workforce:  A multicultural environment.  Human resource policies and practices changed to reflect the needs of an aging workforce.  Large expenditure on trai
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  Robbins: Organizational Behavior Chapter Eighteen ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT CHAPTER 18 OUTLINE Forces for Change1. Organizations face a dynamic and changing environment. This requires adaptation. Exhibit 181 summarizes six specific forces that are acting as stimu!ants for change. . The changing nature of the workforce: ã  # mu!ticu!tura! environment. ã $uman resource po!icies and practices changed to ref!ect the needs of an aging %or&force. ã 'arge expenditure on training to upgrade reading( math( computer( and other s&i!!s of emp!oyees). Technology is changing jobs and organizations: ã *ophisticated information techno!ogy is a!so ma&ing organizations more responsive. #s organizations have had to become more adaptab!e( so too have their emp!oyees. ã +e !ive in an ,age of discontinuity.- eginning in the ear!y 1/0s %ith the overnight quadrup!ing of %or!d oi! prices( economic shoc&s have continued to impose changes on organizations. 2. Copetition is changing: ã The g!oba! economy means g!oba! competitors. ã Estab!ished organizations need to defend themse!ves against both traditiona! competitors and sma!!( entrepreneuria! firms %ith innovative offerings. ã *uccessfu! organizations %i!! be the ones that can change in response to the competition.3. !ocial trends during the past generation suggest changes that organizations have to adjust for:   ã The expansion of the 4nternet( aby oomers retiring( and peop!e moving from the suburbs bac& to cities ã  # g!oba! context for O is required. 5o one cou!d have imagined ho% %or!dpo!itics %ou!d change in recent years. ã *eptember 11 th  has caused changes organizations have made in terms of practices concerning security( bac&up systems( emp!oyee stereotyping( etc.6anaging 7!anned Change1. *ome organizations treat a!! change as an accidenta! occurrence( ho%ever( change as an intentiona!( goa!oriented activity is p!anned change. . There are t%o goa!s of p!anned change 1  Robbins: Organizational Behavior Chapter Eighteen ã 4mprove the abi!ity of the organization to adapt to changes in its environment. ã Change emp!oyee behavior.). Examp!es of p!annedchange activities are needed to stimu!ate innovation( empo%er emp!oyees( and introduce %or& teams.2.#n organization9s success or fai!ure is essentia!!y due to the things that emp!oyees do or fai! to do( so p!anned change is a!so concerned %ith changingthe behavior of individua!s and groups %ithin the organization.3.+ho in organizations are responsib!e for managing change activities: ã Change agents can be managers( emp!oyees of the organization( or outside consu!tants. ã Typica!!y( %e !oo& to senior executives as agents of change. ;. For ma<or change efforts( top managers are increasing!y turning to temporary outside consu!tants %ith specia!ized &no%!edge in the theory and methods of change. ã Consu!tant change agents can offer a more ob<ective perspective than insiders can. ã They are disadvantaged in that they often have an inadequate understanding of the organization9s history( cu!ture( operating procedures( and personne!. ã Outside consu!tants are a!so more %i!!ing to initiate secondorder changes. ã 4nterna! change agents are often more cautious for fear of offending friendsand associates.=esistance to Change1. One of the most %e!!documented findings is that organizations and their members resist change. ã 4t provides a degree of stabi!ity and predictabi!ity to behavior. ã There is a definite do%nside to resistance to change. 4t hinders adaptation and progress. . =esistance to change does not necessari!y surface in standardized %ays. ã =esistance can be overt( imp!icit( immediate( or deferred. ã 4t is easiest for management to dea! %ith resistance %hen it is overt and immediate. ). 4mp!icit resistance efforts are more subt!e>!oss of !oya!ty to the organization( !oss of motivation to %or&( increased errors or mista&es( increased absenteeism due to ,sic&ness->and hence more difficu!t to recognize.2. *imi!ar!y( deferred actions c!oud the !in& bet%een the source of the resistance and the reaction to it. ã  # change may produce %hat appears to be on!y a minima! reaction at the time it is initiated( but then resistance surfaces %ee&s( months( or even years !ater. a. =eactions to change can bui!d up and then exp!ode seeming!y tota!!y 2  Robbins: Organizational Behavior Chapter Eighteen out of proportion.b. The resistance %as deferred and stoc&pi!ed( and %hat surfaces is a cumu!ative response.   # $ajor %orces for Resistance to Change ?*ee Exhibit 18 @1. 4ndividua! sources . Organizationa! sources B# Overcoing Resistance to Change 1. *ix tactics used by change agents in dea!ing %ith resistance to change . Education and counication: ã =esistance can be reduced through communicating to he!p emp!oyees seethe !ogic of a change. The assumption is that the source of resistance !ies in misinformation or poor communication. ã 4t %or&s provided that the source of resistance is inadequate communication and that managementemp!oyee re!ations are characterized by mutua! trust and credibi!ity.). &articipation: ã 4t is difficu!t for individua!s to resist a change decision in %hich they participated. ã 7rior to ma&ing a change( those opposed can be brought into the decision process( assuming they have the expertise to ma&e a meaningfu! contribution. ã The negatives>potentia! for a poor so!ution and great time consumption.2. %acilitation and support: ã Emp!oyee counse!ing and therapy( ne%s&i!!s training( or a short paid !eaveof absence may faci!itate ad<ustment. The dra%bac&s>it is timeconsuming( expensive( and its imp!ementation offers no assurance of success.3. 'egotiation: ã 5egotiation as a tactic may be necessary %hen resistance comes from a po%erfu! source. ã 4t has potentia!!y high costs( and there is the ris& that the change agent is open to the possibi!ity of being b!ac&mai!ed by other individua!s in positionsof po%er.;. $anipulation and cooptation: ã $anipulation  refers to ,covert inf!uence attempts( t%isting and distorting facts to ma&e them appear more attractive( %ithho!ding undesirab!e information( and creating fa!se rumors to get emp!oyees to accept a change.- ã Cooptation  is ,a form of both manipu!ation and participation.- 4t see&s to ,buy off- the !eaders of a resistance group by giving them a &ey ro!e in the change decision. 3  Robbins: Organizational Behavior Chapter Eighteen ã oth manipu!ation and cooptation are re!ative!y inexpensive and easy %ays to gain support. The tactics can bac&fire if the targets become a%are that they are being tric&ed or used.0. Coercion: ã This is ,the app!ication of direct threats or force upon the resisters.- ã Examp!es of coercion are threats of transfer( !oss of promotions( negative performance eva!uations( and a poor !etter of recommendation. C# The &olitics of Change 1. Change threatens the status quo( ma&ing it an inherent!y po!itica! activity. . 4nterna! change agents typica!!y are individua!s high in the organization %ho have a !ot to !ose from change. ã +hat if they are no !onger the ones the organization va!ues: ã This creates the potentia! for others in the organization to gain po%er at their expense.). 7o!itics suggests that the impetus for change is more !i&e!y to come from outside change agents.2. 6anagers %ho have spent their entire careers %ith a sing!e organization and eventua!!y achieve a senior position in the hierarchy are often ma<or impediments to change. ã Change itse!f is a very rea! threat to their status and position( yet( they maybe expected to imp!ement changes. ã +hen forced to introduce change( these !ongtime po%er ho!ders tend to imp!ement firstorder changes. =adica! change is too threatening.3. 7o%er strugg!es %ithin the organization %i!! determine the speed and quantity of change. ã 'ongtime career executives %i!! be sources of resistance. ã oards of directors that recognize the imperative for the rapid introduction of secondorder change in their organizations frequent!y turn to outside candidates for ne% !eadership. #pproaches to 6anaging Organizationa! Change   # (ewin)s Three*!tep $odel  1. Aurt 'e%in argued that successfu! change in organizations shou!d fo!!o% three steps +!ee E,hibit -.*/0: ã Bnfreezing the status quo ã 6ovement to a ne% state ã =efreezing the ne% change to ma&e it permanent . The status 1uo  can be considered to be an equi!ibrium state. ). To move from this equi!ibrium>to overcome the pressures of both individua! resistance and group conformity> unfreezing   is necessary. ã The driving forces( %hich direct behavior a%ay from the status quo( can be increased. ã The restraining forces( %hich hinder movement from the existing 4
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