Chapter 5 - Organisational Change and Individual Stress Flashcards
8 Internal Forces of Change
S I P P I W C P
Strategy
- A change in strategic direction would cause a change in the following areas of the Org: Structure, Culture, Balance of Power or Technology it uses.
Implementation of New Technology
- The availability of new technology may force an organisation to change to remain competitive.
Poor Performance
- May trigger change and implementation of change programmes.
Pressure to Grow
- Pressure from stakeholders could force an organisation to initiate change efforts.
Innovation Lacking
- Centering commercial exploitation and application of ideas. If this stagnates it will force the organisation to change. This is evident in industries where constant innovation is needed such as Silicone Valley, the electronics capital.
Workforce Problems
- Example PnP entered into a favourable agreement with a labour union and this allowed the Org to retrench more than 3000 employees.
Changes in Top Management
- Referred to as “new broom” affect where new changes take place when a new CEO or management team tale office.
Power and Politics
- A shift in power can lead to internal conflict and eventually change.
6 External Forces of Change
P E E E S N
Political Forces of Change
- Includes the political risks governments create by their actions such as corruption, the integrity of courts, policies and laws that affect the stability and thus the level of direct investment into a country. Labour laws also govern economic activity in the private sector such as the Employment Equity Act that has a crucial impact on org. and the way they operate forcing them to change their labour components and investigating alternative production methods.
Events that occur in one country may lead to a change in the way organisations operate in another country due to integration and interdependence of world markets.
Ecological and Physical forces of change
- This relates to how organisations obtain raw materials and the environment into which organisation dump their waste. Climate change and sustainability has driven these efforts to govern this aspect worldwide and in SA.
Economic Forces
- Affects them and forces them to change, example World Wide recession in 2008.
Social Forces
- Stemming from economic, technological and cultural environments affect consumer and employees which force an organisation to change. Factors such as demographic trends, levels and quality of education, ethical, gender and race issues.
New Technology creates the availability of new processes, materials and equipment and accelerates change and innovation and enables organisation to change their production methods to become more effective and efficient.
The dimensions of change
Planned vs Reactive
Planned Change vs Reactive Change
Planned change is used by managers to solve problems, adapt or improve performance or prepare for future changes.
Reactive change takes place in the course of events, when organisations react to change accordingly to minimise its negative effects and limit disruption and improve on the current situation.
The dimensions of change
Revolutionary vs Incremental change
Revolutionary vs Incremental change
Revolutionary change involves radical, transformational and rapid change . Eg. Downsizing or re eningineering.
Incremental change is a process by whereby individual and other parts of the organisation deal incrementally with one problem at a time. Change will take place consecutive, limited and negotiated in systems and structures.
The dimensions of change
Punctuated vs continuous change
Punctuated vs continuous change
Punctuated Change implies that organisation evolve through relatively long periods of stability that are interrupted by short bursts of fundamental change. Eg a breakthrough in technology.
Continuous Change is a pattern of uninterrupted adjustments in work processes and social practices driven by organisational instability and cumulative reactions to daily events.
Resistance to change
Organisational Barriers
Organisation barriers to change
- Organisational Inertia
when forces for and against change are equally strong therefore the org stays in the same position. - Unforeseen Circumstances of changing one part of an organisation and it negatively affecting another
Resistance to change
Individual barriers to change
P
E
L
M
Perceived threat to individual or group - change might need them to give something up.
Ethical Convictions - A clash between ethical convictions and nature of change might cause resistance.
Low tolerance for change - The human fear of the unknown may cause resistance to change.
Misunderstanding and lack of trust: When management fails to convey the implications, benefits and disadvantages of change to employees it could create resistance. Resistance to change will be evident if there is a lack of trust between employees.
** Manager’s Methods of overcoming resistance to change
F E N M E P
Facilitation and Support
- Effective when fear and anxiety is the cause of resistance to change. Managers can offer support through training, time off and emotional support, but its at the cost of time for them.
Explicit and Implicit Coercion
- Managers use this when time is of the essence for the change. Managers force thier employees to accept change by threatening them by using thier power to with hold promotions and bonuses.
Negotiation and Agreement
Managers resort to negotiation when someone stands to lose something beacuse of the change initiative but doesnt have the power to resist change. They offer incentives or negotiate deals to get them on track.
Manipulation and Co-Optation
This is defined as “selective use of information and the concious structuring of events”. Co Optation refer to managers giving an employee a role in the change initiative only to secure thier endorsement of the initiative.
Education and Communication
Precise communications of the extent and consequences of a change initiative can eliminate the barriers of misinformation regarding the logic and need for a change initiative.
Participation and Involvement
Allowing people whom the change initiative will affect to participate in the design and implementation of the initiative. Downside is that it might not obtain otimum solution and might be time consuming.
Situational Factors influencing strategic choices of anagers change initiatives
Anticipated strength of resistance to change
Anticipated need of information and commitment of change initiator
The risks involved in implementation of change initiator
The position of the change intiator in terms of power compared to the resistors of change
** 2 Approaches to Managing Change
Lewins Change Model
Kotters 8 Step Process of succesful change
Lewins Change Model - Framework for understanding Org Change.
Step 1: Unfreezing the Organisation
Quasi-stationary equilibrium
- The inability of an organisation to change with thier environment in which they operate. The more successful an organisation has been in the past the greater thier inertia for change will be. Lewin argued that forces of inertia need to be destabilised before old behaviour will be unlearned and discarded.
Step 2: Change. Requires the group to move towards a more acceptable set of behaviours. Interventions through a change in processes, systems and structures to stimulate a change in behaviour.
Step 3: Refreeze. Establishing a new quasi-stationery equilibriumto ensure that new behaviors do not regress to old behaviors. Refreeing requires a chnage in orgnaisational norms, cultures and policies.
Kotters 8 errors that cause failure of Organisations to change
Allowing too much complacency
Failing to create an effective guiding team
Underestimating the power of vision
Failing to remove the obstacles that block new vision
Failing to celebrate short wins
Declaring victory too soon
Failing to change culture that supports new vision
Kotters 8 Step Process of Successful Change.
Step 1: Create an urgency
Step 2: Form a guiding team
Step 3: Create a change vision and strategy
Step 4: Communicate the Vision
Step 5: Empower Other to Act
Step 6: Produce short term wins.
Step 7: Consolidate improvements and produce more change
Step 8: Create a new culture
The Areas of Organisational Change
Strategic Change
The Process of proactively aligning the organisartions resources with its threats and opportunities caused by changes in the external environment.
Changes in structure and design
Either a complete restructing of the organistion, resturcturing of its departments, co-operation mechanisms or its design with organisational processes such as incentive schemes or training.
Change in Technology
Chnaging the use of information technology.
Changing People
Initiatives to change the peoples abilties and skills within the organisation through training programmes.
Managing Work Stress
The Nature of Stress
The Nature of Stress
Stress is defined as excessive detrimental overloading of an object. For humans it is an inbalance in the body.
Selye’s General Adaptation Syndrome of reacting to stress.
GAS Syndrome
GAS Syndrome
First Phase: An alarm response.
Second Phase: A resistance Phase.
Third Phase: Exhaustion or recovery.
