Unit 10.

Organizational Change and Stress Management

Unit 10
Organizational Change and Stress
Management

Introduction

Stress management and change management. Goals of

Planned Change: Improving the ability of the organization to adapt to changes
in its environment. Changing the behavior of individuals and groups in the
organization. Change Making things different. Planned Change Activities
that are intentional and goal oriented.
Organizational change is the movement of an organization from one
state of affairs to another. It may involve a change in a company's structure,
strategy, policies, procedures, technology, or culture. The change may be
planned years in advance or may be forced on an organization because of a
shift in the environment.
Change is more likely to lead to stress when the change has
consequences for matters that are central to employees' sense of self, and
particularly so when the personal self is salient. This effect is mediated by
feelings of uncertainty
Stress is the body's reaction to any change that requires an adjustment
or response. The body reacts to these changes with physical, mental, and
emotional responses. Even positive life changes such as a promotion, a
mortgage, or the birth of a child produce stress.

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Learning Outcomes
1. Understand the necessity of change in the organization
2. Analyze the implications of change in the organization
3. Contrast the individual and organizational approaches to managing
stress.

Topic 1 : Organizational Change

Time Allotment: Hours

Learning Objectives

After studying this lesson, you should be able to:

1. Contrast the forces for change and planned change.

2. Describe ways to overcome resistance to change.
3. Compare the External and Internal factors of change.

Activating Prior Knowledge

1. What does this Picture say about?

2. Take a Moment…..
List one thing you are afraid of changing.
 What is the worst that could happen if it did change?
 What is the best thing that could happen?

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Presentation of Contents
Organizational change can be defined as the alteration in structure,
technology or people in an organization or behavior by an organization. Here
we need to note that change in organizational culture is different from change
in an organization. A new method or style or new rule is implemented here.

An organizational change occurs due to two major factors namely −

Source: .Lumen Learning.com

1. External factor Forces

External factors are those factors that are present outside the firm but
force the firm to change or implement a new law, rule etc. External force are
changes that are part of an organization’s general and business environment.
For example, all banks are bound to follow the rules laid down by the RBI.

General Environment
 Socio-cultural - The local and regional conditions greatly influence
people’s values, habits, norms, attitudes and demographic
characteristics in the society. All of these factors highly influence the
business operations or will do so in the future.
 Demographic A changing work demographic might require an
organizational change in culture. For instance, Avon built and grew
their business around door-to-door cosmetic sales, with the stay-at-
home wife and mother as their primary front line employee. When
more women entered the workforce in 9-to-5 jobs, Avon had to shift
gears and find new ways to get their products in front of their
customers.
 Economic - The macroeconomic factors like the political and legal
environment, the rate of inflation and unemployment, monetary and
fiscal policies of the government, etc. are causes that have a high
influence on companies and prompt for changes in the organization.
Managers need to carefully track these indicators in order to make the
right decisions for change.

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 Global Environment - The increasing globalization of markets has

made organizations sensitive to changes. Any change or crisis in the
global market affects every business, and corrective measures are not
often easy and immediately taken.
 Technology - Technology has become an intrinsic part of business
operations. It regulates processes in all aspects like manufacturing,
distribution, logistics, finance, etc. Organizations have to be up-to-date
with the ever-changing technological advancements in order to
improve efficiencies and remain competitive.
Business Environment
 Industry- The industry that the organization is a part of may be subject to
new regulation, or may simply have existing regulations changed. The new
rules might only affect a part of the organization, but it is possible that every
aspect of the way the business operates will have to change to comply.
 Competition- Sales may have declined because of competition from a
similar company that has always been an opponent in the marketplace, or
competition from a new company with a different way of winning
customers. If a business wants to stay competitive, it will need to fight back
by changing the way it operates or changing what it offers to customers.
While engaging in competition is usually an inherent part of doing business,
that competition may be especially threatening if it comes from an adversary
which has some advantage that the organization was not prepared for.
 Consumer Demands - Consumers may be leaving and reporting that they
are unhappy with how they are treated, unhappy with the product they
purchased or unhappy with the policies of the company. Customers may also
apply pressure while they are still patronizing a business by making
complaints.

2. Internal factor
Internal factors are those factors that are caused or introduced
inside an organization that forces a change. For example, no smoking in
the workplace.
Companies can also experience internal forces of change, which can
often be related to external forces, but are significant enough to be
considered separately. Internal forces of change arise from inside the
organization and relate to the internal functioning of the organization.
They might include low performance, low satisfaction, conflict, or the
introduction of a new mission, new leadership.
Types of Change

Planned change is a change that occurs when managers or employees make a

conscious effort to change in response to a specific problem.

An unplanned change occurs randomly and spontaneously without any

specific intention on the part of managers or employees of addressing a
problem.

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 When change is planned, like a new information management system

or a different accounts payable procedure, change management can
also be planned to minimize employee resistance. When an unplanned
change occurs, like a sudden economic downturn or a shortage of
resources, managers are taken by surprise and adaptation may not be
as organized.

Changes can affect four elements within an organization:

 Technology. Changes in the way inputs are transformed into outputs,

such as machinery, work processes, delivery of goods and services to
clients.
 Product or service. Changes in the product or services delivered to
customers, such as new product, improved products, customized
products.
 Administration and management. Changes in how companies are
organized and managed, including changes in mission, structure,
policies, etc.
 People or human resources. Changes in employee behaviors, skills,
and attitudes, as well as personnel changes.

Resistance to Change

Resistance to change is as much an organizational and group issue as it

is individual issue.

Individual Resistance

Habit, security, economic factors, fear of the unknown, selective

information processing

People resist change because they fear the consequences. Change

means learning new habits and facing new situations. Learning new skills
comes with te uncertainty of being able to master those skills. It’s easy to see
why change can seem threatening. Sometimes Individual traits can make one
change resistant. Culture, personality and prior experiences can contribute to
one’s level of acceptance where change is concerned.

Organizational Resistance

Structural inertia, limited focus of change, group inertia, threat to

expertise, threat to established power relationships, threat to established
resource allocations Timing of change can also in organizational inertia.

If the organization is still recovering from a large-scale change in

organizational structure, that would not be the time to introduce a new
information management system. Employees will likely to resist the change
and turmoil that goes along with a second change. Thinking about the order
and timing of a planned change can help managers avoid employee resistance

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Group Resistance

When groups start to work well together, it’s because they established
norms and cohesion. Central norms in a group can be difficult to change,
because they involve the group’s identity. Any change to them is likely to be
resisted they involve the group’s identity.

Any change to them is likely to be resisted, as group members will

work to protect each other and preserve the group. If a group is used because it
goes against their norm to practicing centralized decision making and
suddenly they’ve been told to use a decentralized style of decision making,
they likely to resist because it goes against their norm.

Overcoming Resistance to Change

1. Education and communication

 If there is a fear of the unknown, organization shouldn’t compound that
with a lack of information. Face to face meetings, newsletters, and
updates can often help reduce those fears.
2. Participation and Involvement
 People who participate in change are less likely to resist it. Managers
can involve employees in the change process, creating an ownership
around it that minimizes resistance.
3. Facilitation and Support
 Facilitation and support requires active listening and counseling. These
methods can be highly effective when dealing with individual
resistance, but are time consuming and run a high risk of failure
4. Negotiation and Agreement
 This approach recognizes the role and power of others in the success of
the change effort. Trade-offs and incentives are offered in exchange for
acceptance. This is a relatively easy way to deal with resistance but can
be expensive and lead to more negotiation.
5. Manipulation and cooperation
 Changing employees focus and attention to other issues can be a quick
and easy way to minimize resistance to change, but can lead to mistrust
and resentment on behalf of those manipulated.
6. Explicit and Implicit Coercion
 If there’s no time and no choice, managers can rely on force to push
past change. This method is quick and effective, but it doesn’t build.

Models of Change Management

Lewin’s Three-Step Change Model

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Unfreezing process, change efforts to overcome the pressures of both

individual resistance and group conformity, the equilibrium state can be
unfrozen in one of three ways. The driving force forces, which direct behavior
away from the status quo, can be increase. The restraining forces, which
hinder movement from the existing equilibrium, can be decreased. Or,
managers can put a combination of the two to use.

Movement process, is the actual implementation of change. New

practices and policies are implemented.

Refreezing process, stabilizing a change intervention by balancing

driving and restraining forces. The newly adopted behaviors and processes are
encouraged and supported to become a part of the employees’ routine
activities. Coaching, training and an appropriated award system help to
reinforce.

Kotter’s Eight-Step Plan

 Build from Lewin’s Model
 To Implement change:
1. Establish a sense of urgency Unfreezing
2. Form a coalition
3. Communicate the vision
4. Empower others by removing barriers
5. Create and reward short-term “wins” Movement
6. Consolidate, reassess, and adjust
7. Reinforce the changes Freezing

Action Research
Action research is a change process based on systematic collection of
data and then selection of a change action on what the analyzed data indicate.

The process of action research consists of five steps, very similar to the
scientific method:

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In the diagnosis stage, information is gathered about the problem or

concerns. During analysis, the change agent determines what information is of
primary concern and develops a plan of action, often involving those that will
be impacted by the change. Feedback includes sharing with employees what
has been discovered during diagnosis and analysis with the intent of getting
their thoughts and developing action plans. Action, employees and the change
agent carry out the actions required to solve the problem and evaluation,
where the action plan’s effectiveness is reviewed and, if necessary, tweaked
for better performance.

This approach is very problem focused, where many people approach a

problem with a more solution-centered outlook. It also minimizes resistance to
change because it involves affected employees all along the process.

Application

Activity 1.
1. How does change affect an organization? Individual? (
2. What are the common mistakes managers make when trying to
initiate a change?

Feedback

IDENTIFICATION

Directions: Identify the following questions with the correct answers;

Write your answer on the space provided before each item.

________________1. Changes that are part of an organization’s

general and business environment.
________________2. The local and regional conditions greatly
influence people’s values, habits, norms, attitudes and demographic
characteristics in the society.
________________3. The increasing globalization of markets has
made organizations sensitive to changes.
________________4. It is a part of may be subject to new regulation,
or may simply have existing regulations changed. The new rules might
only affect a part of the organization, but it is possible that every aspect
of the way the business operates will have to change to comply.
________________5. Factors that are caused or introduced inside
an organization that forces a change. For example, no smoking in
the workplace.
_________________6. Changes in the way inputs are transformed
into outputs, such as machinery, work processes, delivery of goods
and services to clients.
_________________7. Changes in how companies are organized
and managed, including changes in mission, structure, policies, etc.

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_________________8. Changes in employee behaviors, skills, and

attitudes, as well as personnel changes.
_________________9. It is a change process based on systematic
collection of data and then selection of a change action on what the
analyzed data indicate.
________________10. Stabilizing a change intervention by
balancing driving and restraining force

Essay: Distinguish Planned and Unplanned Changes

_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

Topic 2 : Organizational Stress Management

Time Allotment: Hours

Learning Objectives

After studying this lesson, you should be able to:

1. Identify the potential environmental, organizational, and personal

sources of stress at work and the role of individual and cultural
differences.
2. Identify the physiological, psychological, and behavioral symptoms of
stress at work.
3. Describe individual and organizational approaches to managing stress
at work.

Activating Prior Knowledge

Stress Management – anywhere, anytime

Spend at least one minute on each:

 What can you see? Look close and far, colors, shapes, and light.

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 What can you hear? Hear as many sounds as you can and keep looking
for new ones, don’t focus on any one for too long.

 What can you taste? This is less fun when you’re not eating – but try to
last the minute.

 What can you smell? Focus on the smells around you – what are they
and how many can you find?

 What can you feel? Send your attention to the parts of your body that
have contact with something, like the earth or a chair or table

Presentation of Contents

What is Stress?
Stress is a dynamic condition in which an individual is confronted
with an opportunity, constraint, or demand related to what he or she desires
and for which the outcome is perceived to be both uncertain and important.
Stress can be caused by environmental, organizational, and personal
factors. Environmental factors include economic uncertainties, political
uncertainties, technological change or terrorism. Organizational factors
include task, role, and interpersonal demands. Factors specific to the
individual, including their economic status, can contribute to stress.
In addition, there are individual differences in people’s ability to deal
with stress, a situation that is highly stressful for one individual may be
comfortable for another. Individual differences of perception, job experience,
social support, belief in locus of control, self-efficacy, and hostility have also
been found to be relevant stress moderators.
Effective stress management helps you break the hold stress has on
your life, so you can be happier, healthier, and more productive. The ultimate
goal is a balanced life, with time for work, relationships, relaxation, and fun—
and the resilience to hold up under pressure and meet challenges head on.

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Stress Management in The Workplace

Whether it be extended hours,

near impossible deadlines, demanding
colleagues or unappreciative
bosses, workplace stress is something
many people are familiar with.

According to the World Health

Organization’s definition, occupational
or work-related psychosocial stress “is
the response people may have when presented with work demands and
pressures that are not matched to their knowledge and abilities and which
challenge their ability to cope.” (Leka, Griffiths, & Cox, 2003)

But the effects of workplace stress aren’t simply isolated to the

workplace; they spill over into our personal relationships, our home lives, and
our overall productivity.

Duke University found that workplace stress was responsible for over 70% of
workplace accidents, 50% of absenteeism, and over $300 billion in associated
costs (“Stress Facts in the Workplace,” 2018).

These figures require action.

Causes of workplace stress

The most and least stressful job report for 2018, conducted by CareerCast
revealed that the top most stressful jobs of the year were Enlisted Military
Personnel, Firefighters, Airline Pilots, and Police Officers. The least stressful
jobs were Diagnostic Medical Sonographer, hair stylist, audiologist, and
University professor (“CareerCast Rates Least and Most Stressful Jobs for
2018,” 2018).

While some jobs are undoubtedly more stressful than others, all workplaces
are prone to stress of some degree.

The below diagram, obtained from the WSH Institute (2018) displays the
various factors that can lead to workplace stress, along with the organization
and individuals role in dealing with these hazards.

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Symptoms of workplace stress

Symptoms of workplace stress can manifest physically (headaches, stomach

aches, pains, fatigue or eating, and sleeping disturbances), cognitively (trouble
with concentrating, decision making, thinking or remembering), and
emotionally (feeling down, tense and irritated).

Prevention of workplace stress

The prevention of workplace stress is most successful when a

combination of both organizational change and individual stress management
is used. That is, like any healthy relationship, both parties – the employee and
the employer make an effort.

What can the company do to manage stress?

 Promote leave, rest and breaks;

 Encourage exercise and meditation, both within and outside of work
hours;
 Ensure the workload is in line with workers’ abilities and resources;
 Provide stimulation and opportunities for workers to use skills;
 Boost workplace morale by creating opportunities for social interactions;
 Clearly set out workers’ roles and responsibilities;
 Encourage participation in decision making that affects individuals roles;
 Encourage open communication;
 Establish no tolerance policy for workplace discrimination;
 Engage an external consultant to suggest a fresh approach to any existing
issues;
 Create family-friendly policies to encourage work-life balance;

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 and provide training for workplace stress management.

The figure below summarizes the benefits of workplaces that promote healthy
and low-stress environments.

What if you do not have a healthy workplace, and that isn’t likely to change
any time soon? Luckily, there are ways for individuals to manage their own
stress.

Personal strategies for stress management are to:

 Set realistic deadlines;

 Take a lunch break;
 Go home on time;
 Take your holiday leave;
 Leave work at work;
 Participate in work functions;
 Establish open and professional communication;
 Respect other employees;
 Do not tolerate discrimination of any sort, report any instances;
 Sign up for workplace training programs to develop and improve your
skills;
 If required, seek therapy to manage and develop skills to cope with
workplace stressors;
 and develop a healthy work-life balance, creating time for exercise.

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Stress management advantages

The below table, from the WHO (2018) illustrates the advantages of
workplace stress management:

To the Organization To the Employees

A well-managed health and safety A safe and healthy environment
program
A positive and caring image Enhanced sel=esteem
Improved staff morale Reduced stress
Reduced staff turnover Improved morals
Reduce absenteeism Increased Job Satisfaction
Increased productivity Increased skills for health protector
Reduced health care/insurance costs Improved health
Reduced risk of fines and litigation Improved sense of well-being

Today, companies are recognizing the link between productivity and

health, and a conscious workplace. Some companies are going to great lengths
to achieve this.

A survey conducted by CareerBliss, found that the happiest employees

in America worked for the Austin, Texas company, Keller Williams Realty.
The outcome was based on 10 key factors, including their relationship with
management, workplace environment, compensation, satisfaction with job
function and growth opportunities (“Forbes Welcome,” 2018).

A staff member from the winning company explained, “One of the

greatest benefits is how our company promotes from within. All employees
are encouraged and supported to be in control of their growth and career
paths.”

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Application
Activity 1.

1. How would you respond if your manager gave you negative feedback
in front of your peers?
2. How do you prevent a situation from getting too stressful to manage?
3. What advice would you give to calm down a colleague who’s stressed
out about a deadline?

Feedback

Directions: Assess whether each statement is true or false. If statement is true,

write T on the blank; otherwise F.
_____ 1. High blood pressure is a sign of stress .
_____ 2. All stressful events are negative ones.
_____ 3. Relaxation helps you manage stress.
_____ 4. Exercise is an effective coping strategy for stress.
_____ 5. After working a night shift, it is a good idea to have alcohol
before bedtime because it will help you fall asleep faster and stay asleep
longer.
_____ 6. Drinking coffee when you are feeling drowsy will help you stay
alert.
_____ 7. Major life changes are not stressful.
_____ 8. When a person feels too overwhelmed by stress, they should
always just handle it on their own.
_____ 9. Stress can sometimes lead you to perform at your best.
_____ 10. Watching a funny movie is a good way to reduce stress.

Essay: How stress management can change your relationship with work?

_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

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