Ch#pter 18:

ORGANIZATIONAL
CHANGE AND STRESS
MANAGEMENT
M#rk Hopl#m#zi#n - CEO
of Hy*tt Hotels Corpor*tion

Forces of Ch#nge
● Ch#nging n#ture of

workforce
● Technology

● Economic Shocks

● Competition

● Soci#l Trends

● World Politics

Ch#nge - m*king things

different
Pl#nned Ch#nge - ch*nge
*ctivities th*t *re intention*l
*nd go*l oriented
Ch#nge Agents - persons
who *ct *s c*t*lysts *nd
*ssume the responsibility for
m*n*ging ch*nge *ctivities

SOURCES OF RESISTANCE
TO CHANGE
Individu#l Sources
● H#bit - progr*mmed

responses
● Security - ch*nge

thre*tens their feelings

of s*fety
● Economic F#ctors -

people *re concerned

th*t they wonʼt be *ble
to perform the new
t*sks or routines to their
previous st*nd*rds
● Fe#r of the Unknown -

ch*nge substitutes
*mbiguity *nd
uncert*inty of the
unknown
● Selective Inform#tion

Processing - individu*ls
*re guilty of selectively
 processing inform*tion
in order to keep their
perceptions int*ct
Org#niz#tion#l Sources
● Structur#l inerti# - *cts

*s * counterb*l*nce to
sust*in st*bility
● Limited focus of ch#nge

- limited ch*nges in
subsystems tend to be
nullified by the l*rger
system
● Group inerti# - group

norms m*y *cts *s *

constr*int
● Thre#t to expertise -

ch*nge m*y thre*ten

the expertise of
speci*lized groups
● Thre#t to est#blished

power rel#tionships -
*ny redistribution of
decision-m*king
*uthority c*n thre*ten
 long-est*blished power
rel*tionships within the
org*niz*tion

Eight t#ctics th#t c#n help

ch#nge #gents de#l with
resist#nce to ch#nge
● Communic#tion

● P#rticip#tion

● Building Support #nd

Commitment
● Develop Positive

Rel#tionships
● Implementing Ch#nges

F#irly
● M#nipul#tion #nd

Coopt#tion
– M#nipul#tion - refers to

covert influence
*ttempts
– Coopt#tion - combines

m*nipul*tion *nd
p*rticiption
● Selecting People Who
 Accept Ch#nge
● Coercion - the
*pplic*tion of direct
thre*ts or force on the
resisters

APPROACHES TO
MANAGING
ORGANIZATIONAL
CHANGE
Lewinʼs Three-Step Model
● Unfreezing the st#tus

quo
● Movement to # desired

end st#te
● Refreezing the new

ch#nge to m#ke it
perm#nent
Three w#ys of unfreezing:
A. (Incre*se) Driving
Forces - forces th*t
direct beh*vior *w*y
from the st*tus quo
C. (Decre*se) Restr*ining
 Forces - decre*se,
forces th*t hinder
movement from the
exiting equilibrium
K. Combin*tion of both

Kotterʼs Eight-Step Pl#n

by John Kotter of H#rv#rd
Business School
– * det*iled *ppro*ch to

Lewinʼs Three-Step
Model
A. Est#blish # sense of
urgency by cre#ting #
compelling re#son
C. Form # co#lition with
enough power
K. Cre#te # new vision to
direct the ch#nge #nd
str#tegies
L. Communic#te the vision
throughout the
org#niz#tion
M. Empower others to #ct
 on the vision by
removing b#rriers to
ch#nge #nd encour#ge
risk t#king #nd cre#tive
problem solving
S. Pl#n for, cre#te, #nd
rew#rd short-term
“wins”
T. Consolid#te
improvements, re#ssess
ch#nge, #nd m#ke
necess#ry #djustments
U. Reinforce the ch#nge by
demonstr#ting the
rel#tionship between
new beh#viors #nd
org#niz#tion#l success

Action Rese#rch
– * ch*nge process

b*sed on system*tic
collection of d*t* *nd
then selection of *
ch*nge *ction b*sed on
 wh*t the *n*lyzed d*t*
indic*te
Five steps of 7ction
rese7rch
A. Di#gnosis
C. An#lysis
K. Feedb#ck
L. Action
M. Ev#lu#tion
Adv7nt7ges of Action
Rese7rch:
A. Problem-focused
C. Lowers resist#nce

Org#niz#tion#l
Development
– * collection of pl*nned

ch*nge interventions,
built on hum*nistic-
democr*tic v*lues, th*t
seeks to improve
org*niz*tion*l
effectiveness *nd
employee well-being
 Six OD techniques
● Sensitivity Tr#ining -
tr*ining groups th*t
seek to ch*nge
beh*vior through
unstructured group
inter*ction
● Survey Feedb#ck - the
use of questionn*ires to
identify discrep*ncies
*mong member
perceptions; discussion
follows, *nd remedies
*re suggested
● Process Consult#tion -
* meeting in which *
consult*nt *ssists *
client in underst*nding
process events with
which he or she must
de*l *nd indentifying
processes th*t need
improvement
● Te#m Building - high
 inter*ction *mong te*m
members to incre*se
trust *nd openness
● Intergroup Development
- org*niz*tion*l
development efforts to
ch*nge the *ttitude,
stereotypes *nd
perceptions th*t groups
h*ve of e*ch other
● Appreci#tive Inquiry -
*n *ppro*ch th*t seeks
to identify the unique
qu*lities *nd speci*l
strengths of *n
org*niz*tion, which c*n
then be built on to
improve perform*nce
Four steps of
#ppreci#tive inquiry:
A. Discovery
C. Dre#ming
K. Design
L. Destiny
Cre#ting # Culture for
Ch#nge
M7n7ging P7r7dox
P#r#dox Theory - the
theory th*t the key p*r*dox
in m*n*gement is th*t there
is no fin*l optim*l st*tus for
*n org*niz*tion
● Le#rning

● Org#nizing

● Performing

● Belonging

Stimul#ting # Culture of
Innov#tion
● Innov#tion - * new ide*

*pplied to initi*ting or
improving * product,
process or service
Sources of Innov7tion
● Strucutr*l V*ri*bles

A. Org*nic structures
postivelt influence
 innov*tion
C. Long tenure in
m*n*gement is
*ssoci*ted with
innov*tion
K. Long tenure in
m*n*gement is
nurtured when there *re
sl*ck resources
L. Interunit communic*tion
is hkgh in innov*tive
org*niz*tions
Ide# Ch#mpions -
individu*ls who t*ke *n
innov*tion *nd *ctivelry *nd
ethisi*sric*lly promote the
ide*, build support,
overcome resist*nce *nd
ensure th*t the ide* is
implemented.

Cre#ting # Le#rning
Org#niz#tion
● Le#rning Org#niz#tion
 - *n org*niz*tion th*t
h*s developed the
continuous c*p*city to
*d*pt *nd ch*nge
Three fund#ment#l
problems of tr#dition#l
org#niz#tions:
A. fr#gment#tion
C. competition
K. re#ctiveness
M#n#ging Le#rnings
A. Est#blish # str#tegy
C. Redesign the
org#niz#tionʼs stucture
K. Resh#le the
org#niz#tionʼs culture

Stress #t Work
● Stress - *n unple*s*nt

pshycologix*l process
th*t occurs in response
to environment*l
pressures
● Ch#llenge Stressors -
 stressors *ssoci*ted
with worklo*d, pressure
to complete t*sks *nd
time urgency
● Hindr#nce Stressors -
stressors th*t keep you
from re*ching your
go*ls
● Dem#nds -
responsibilities,
pressures, oblig*tions
*nd even uncert*inties
th*t individu*ls f*ce in
the workpl*ce
● Resources - things
within *n individu*lʼs
control th*t c*n be used
to resolve dem*nds
● Allost#tis - working to
ch*nge beh*vior *nd
*ttitudes to find st*bility

Potenti#l Sources of
Stress
 ● Environment7l F7ctors
○ Economic

Uncert#inties
○ Politic#l

Uncert#inties
○ Technologic#l

Uncert#inties
● Org7niz7tion7l
F7ctors
○ T#sk Dem#nds

○ Role Dem#nds

○ Interperson#l

Dem#nds
● Person#l F#ctors
○ F#mily Issues

○ Person#l Economic

Problems
○

Differences in h#ndling
stress
● Individu7l Differences

○ Perception

○ Job Experience

○ Soci*l Support
 ○ Person*lity Tr*its
● Cultur7l Differences

Consequences of Stress #t
Work
● Physiologic#l Symptoms

● Psychologic#l

Symptoms
● Beh#vior#l Symptoms

M#n#ging Stress
● Individu7l Appro7ches

○ Time-M#n#gement

Techniques
○ Physic#l Exercise

○ Rel#x#tion

Techniques
○ Soci#l Support

Networks
● Org7niz7tion7l

Appro7ch
○ Selection #nd

Pl#cement #nd
Tr#ining
○ Go#l Setting
○ Redesigning Jobs
○ Employee
Involvement
○ Org#niz#tion#l
Communic#tion
○ Employee
S#bb#tic#ls
○ Wellness Progr#ms
- org#niz#tion#lly
supported
progr#ms th#t focus
on the employeeʼs
tot#l physic#l #nd
ment#l condition