organizational change and stress management

1. ORGANIZATIONAL
CHANGE AND STRESS
MANAGEMENT
CHAPTER-8
AUTHORS:
DR. KIRAN NERKAR
DR. VILAS CHOPDE

2.  Refers to the organization-wide change as opposed to smaller
changes, such as changing the organizational structure or
method of production.
 In an organization, the scope of change can be determined by
using the following 3Cs parameters:
 Cost
 The investment required to bring the change
 Complexity/Compositeness
 The amount of difficulty faced while implementing change
 Certainty
 The predictability of the outcome
ORGANIZATIONAL CHANGE
© 2011, Dreamtech Press :: Chapter 8 2

3. • The change at the personal level that is reflected in various
developments.
Individual Level
• The change at the level of a group that occurs because most
activities in organizations are managed on a group basis.
Group Level
• The major changes that influence the entire organization.
Organizational Level
LEVELS OF CHANGE
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4. Planned Change •Refers to a conscious change that occurs as a result of logic.
Emergent Change
•Refers to a spontaneous occurrence arising out of factors beyond the reach of a
change implementer.
Episodic Change •Refers to a change that does not occur on a daily basis.
Continuous Change
•Refers to a change that occurs on a daily basis. It is often termed as first order
change.
Remedial Change
•Refers to a change that calls for transformation in a particular situation, task,
procedure, or policy.
Developmental Change
•Refers to a change that is taken up for the purpose of improvement and is vague in
nature.
Subsystem Change •Includes a transformation within a department, team, or group.
Organization-wide Change •Refers to a change that affects the entire organization.
Transactional Change
•Refers to the first order change whose outcome is predictable and execution is not
difficult.
Transitional Change
•Refers to a change in which old processes and work procedures are replaced with
new ones.
Transformational Change •Refers to a second order change. The outcome of such a change is not clearly
distinguishable.
TYPES OF CHANGE
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5.  The employees who are enjoying powerful positions in the
organization might have fear of losing those powers.
 Such fears make the employees psychologically
uncomfortable with change.
 Two of the important sources of resistance are:
 Rational Resistance
 Occurs when people do not have the proper knowledge or information to
evaluate the change
 Emotional Resistance
 Involves the psychological problems of fear, anxiety, suspicion, and
insecurity
RESISTANCE TO CHANGE
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6. • Refers to the fear of unemployment among people as they feel
that due to technological up-gradation they can be replaced by
machines.
Fear of Technological Up-gradation
• Refers to the fear of getting less pay after change.
Fear of Salary Reduction
• Refers to the fear of people that their present skills would get
obsolete and they would be not able to master the new skills.
Obsolesce of Skills
ECONOMIC REASONS FOR INDIVIDUAL
RESISTANCE TO CHANGE
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7. •Indicates that some people just want to continue the way they are at present and any
kind of change is not accepted by them.
Inherent Liking for Status Quo
•Refers to a reason for resistance in which a superior discard good ideas of
subordinates because of his/her ego problem.
Ego-Defensiveness
•Indicates that employees might have the fear of losing their powerful position after
the implementation of change.
Threatened Power
•Points towards the fear of an individual for the unforeseen future events.
Fear of the Unknown
PSYCHOLOGICAL REASONS FOR INDIVIDUAL
RESISTANCE TO CHANGE
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8.  Change agent refers to a person or group that brings the
change or helps in its implementation.
 There are two types of change agents, which are as follows:
 External Change Agent
 Refers to an outside consultant who is an expert in managing change
 Internal Change Agent
 Refers to a manager who knows how to handle change.
 The selection of a change agent totally depends on the
situation.
CHANGE AGENT
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9. • Refers to locating the places where change is
required, or where the problem or opportunity lies.
Recognizing the Forces
Demanding Change
• Refers to the step in which the problem is identified.Diagnosing the
Problem
• Refers to the step in which an action plan is
designed to manage the change.Planning the Change
• Refers to the step where the change is
implemented in the real-life scenario.
Implementing the
Change
• Refers to the last stage in which the result of the
change is derived.Following Up
PROCESS OF CHANGE MANAGEMENT
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10.  Fear of the Unknown
 Refers to the negative feeling in the mind of employees that they will
not be able to adapt to change or they will have to do more hard work
that will disturb their comfort zone.
 New Learning
 Refers to performing new tasks where individuals learn new
languages, technologies, and work culture.
 Friendship among Old Employees
 Refers to the fear that social friendship of old employees can get
disturbed due to change.
 Distrust on Management
 Creates a fear of exploitation in the minds of employees. Thus, they
oppose change initiated by the management of the organization.
INDIVIDUAL CHALLENGES FACED DURING
CHANGE MANAGEMENT
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11.  Threat to Power
 Acts as the greatest challenge for organizations that is required to be
solved at the initial stages of change implementation.
 Organizational Structure
 Covers the organizational policies and procedures that are designed
to maintain the organizational stability.
 Resource
 Constitutes the most important component of the organization.
 Sunk Cost
 Refers to the costs that are invested in fixed assets by the
organization.
ORGANIZATIONAL CHALLENGES FACED
DURING CHANGE MANAGEMENT
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12.  Stress is an adaptive response, mediated by individual
characteristics and/or psychological processes, which are a
consequence of any external action, situation, or event that
places special physical and / or psychological demands upon
a person. --- Ivancevich and Matteson
 The job stress is a condition arising from the interaction of
people and their jobs and characterized by changes within
people that force them to deviate from their normal
functioning. --- Beehr and Newman
STRESS
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13. External
stressors
Physical Environment
Social Interaction
Organizational Factors
Major Life Events
Internal stressors
Personal Interests
Aesthetic Craving
Fastidious Nature
TYPES OF STRESSORS
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14. •Refer to various internal and external environment factors, such as
economic, political, and technological uncertainties.
Environmental Factors
•Refer to the factors that influence employees within the organization, such
as time constraint, target pressure, organizational structure and reward
system.
Organizational Factors
•Refer to the inherent factors of an individual, which leads to stress, such as
family issues, economic problems and inherent personality characteristics.
Individual Factors
SOURCES OF STRESS
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15.  Physiological symptoms
 Refer to the effects of stress on the health of an individual, such as
high blood pressure, exhaustion, muscles cramps, stomach problems,
headache, and back pain.
 Psychological symptoms
 Refer to the effects of stress on the mental and emotional condition
of an individual, such as nervousness, irritability, tension, anger, and
depression.
 Behavioral symptoms
 Refer to the effects of stress on the behavior of an individual, such as
change in productivity, increase in absenteeism and employee
turnover, rapid speech, and sleep disorders.
CONSEQUENCES OF STRESS
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16.  Time Management Techniques
 Refer to the methods that can be used to avoid stress caused due to
pressure of time limits.
 Increasing Physical Exercise
 Indicates that the physical exercise not only makes an individual
more fit but also helps in reducing stress.
 Keeping a Stress Diary
 Refers to maintaining a diary that can be helpful in managing stress.
 Relaxation Training
 Refers to certain ways by which an individual can relax his/her body
and mind. For example, yoga and meditation.
 Expanding Social Support Network
 Includes the social circle that comprises our relatives, friends, and
colleagues.
STRESS BUSTER STRATEGIES AT
INDIVIDUAL LEVEL
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17.  Improved Personnel Selection and Job Placement
 Realistic Goal Setting
 Redesigning of Jobs
 Increased Employee Involvement
 Improved Organizational Communication
 Establishment of Corporate Wellness Programs
 Supportive Organizational Climate
 Career Planning and Counseling
 Stress Control Workshops and Employee Assistance Programs
STRESS BUSTER STRATEGIES AT
ORGANIZATIONAL LEVEL
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18.  Burnout refers to a feeling of physical and mention fatigue
that can occur from working under difficult and demanding
conditions.
 The causes of burnout are:
 Extreme Work Load
 Lack of Recognition
 Ambiguity in Role
 Reduced Career Opportunities
 Conflict
BURNOUT AND ITS CAUSES
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19.  Developing precise and clear boundaries between professional
and personal life
 Nurturing and fulfilling relationships professionally and
personally
 Inducing regular breaks in the routine work
 Becoming honest and giving your best in a job
 Becoming aware of various dangers to your physical, mental,
emotional, and spiritual health
 Obtaining support from peer/family whenever required
 Eating, sleeping, and exercising properly
 Taking periodic annual breaks to revitalize
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STRATEGIES FOR HANDLING BURNOUT

20.  Change is imperative for the growth and development of an
organization in the long run.
 However, bringing any type of change in an organization is an
uphill task as change always evokes resistance from
employees.
 Employees resist change because of the risks associated with
it. The risks tend to cause threat to a peaceful living and give
rise to stress.
 Thus, these two have become important issues that need to
be taken care of in an organization.
 When employees are receptive and open to change, the
organization as a whole becomes more adaptive and flexible
towards external environment.
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RECAP