Organiztional Behavior Ch 8 (1)
Organiztional Behavior Ch 8 (1)
Organiztional Behavior Ch 8 (1)
8.0 Objectives
8.1 Introduction
We are in the age of dynamic change. Even sometimes we may not have time to wonder
about the past for it is even difficult to deal with the present. As a student you might have
seen a lot of changes around; in the business there are thousands of business emerging and
dying, stiffer competition; even in public organization a lot of restructuring are going on. And
finally there is increasing use of information technology. Globally, there is a shift of power
economic development from one country to another or balanced power and development.
What is a change? Change in itself is the movement from the old way of doing things to a
new way. Change may entail installing new equipment, restructuring the organization,
implementing a new performance appraisal system anything that alters existing relationships
or activities. Although change is almost everywhere, this particular chapter will focus on the
organizational change.
Change is becoming a fact of life. Organizational changes occur as a result of life cycle of
the organization. i.e. Organization could pass through different life cycle which demands
different managerial approaches that might demand structural and technological change or
else change occur unexpectedly due to both internal and external forces that causes change.
Any alteration which occurs in the overall work environment of an organization is called
Organizational change
The way we individuals change due to age, education, change of job, illness, change in
geographical area, organizations also change due to several reasons over a period of time.
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Change is necessary for survival and growth. Changes are constantly taking place in our
environment.
Some changes are planned deliberately introduced by the management and some are a result
of a pressure from external forces.
More and more organizations today face dynamic and changing environment. Especially in
globalize era things/ situations can‟t stay longer as stable. The question is what forces causes
change in the organization?
The need for organizational change becomes apparent when managers sense that an
organization‟s activities, goals, or values are deficient in some way. The forces necessitating
organizational change can be found both inside and outside the organizations. If managers
are to take a comprehensive view of innovation and adaptation, they must be aware of both
types of forces and be able to account for both in their actions.
There are both external and internal forces that result in pressure for change,
A. External Factors
These are forces outside the organization but results in organizational change. These forces
include:
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Changes in the economic or market conditions (security market changes, interest rate
fluctuations, foreign currency fluctuations, inflations, decline in demand for a company
product etc.)
Changes in the legal or political situation- A new consumer protection law that affects
current products or practices is one example. In Ethiopia there is a change of political system
from dictatorial type of administration to democratic system.
Competition for scare resource, expanded market share and influence in the global market
is becoming the major reasons for change in the current era
As the name implies, these are forces within the organization that will result in change. These
factors include:
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Change in the organizational goals (when the priorities / emphases of goals
changes)
Employee Attitudes: Employee attitudes such as increased job dissatisfaction may
lead to increased absenteeism, more voluntary resignations, and even labor strikes.
Such events will often lead to changes in management policies and practices
Depending on the nature of the organization and leadership to be reactive or proactive, how
change is introduced in the organization varies. Thus, a change could be externally imposed
or deliberately introduced for the good of an organization. What is management of planned
change and what is involved in the planned change?
External forces may impose change on an organization. Ideally, however, the organization
will not only respond to change but will also anticipate it, prepare for it through planning, and
incorporate it in the organizations strategy. Thus, a planned change is change activities that
are intentional and goal oriented. The introduction of planned change, first it seeks to
improve the ability of the organization to adapt to changes in its environments; second, it
seeks to change employee behavior.
It also helps to think of planned change in terms of order of magnitude. First order change is
linear and continuous. It implies no fundamental shifts in the assumptions that organizational
members hold about the world and how the organization can improve its functioning.
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Who in organizations are responsible for managing change activities? The answer is change
agents people who act as catalysts and assume the responsibility for managing change
activities. Change agents can be managers or non- manager employees of the organization or
outside consultants.
For the changes to be introduced and properly implemented there is a need for the change
agents to meaningfully participate from the inception of change to its realization. As most
literature suggests what change agents can actually change could be categorized in to four:
c. Changing the physical setting – it is about altering the space and layout arrangement in
the work place. The layout of work space should not be a random activity. Typically,
management thoughtfully considers work demands, formal interaction requirements and
social needs when making decisions about space configurations, interior design, equipment
placement and the like.
For example, by eliminating walls and partitions and opening up an office design, it becomes
easier for employees to communicate with each other. This is what has been done practically
in most Ethiopian ministerial offices following BPR (Business Process Reengineering).
Similarly management can change the quantity and types of lights, the level of heats or cold,
the level and types on noise and the cleanliness of the work area as well as interior design
dimensions like furniture decorations and color schemes.
d. Changing people -To properly introduce a change, people‟s attitude and their commitment
matters a lot. Thus, change agents should help individuals and groups to work more
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effectively together. This category typically involves changing the attitudes and behaviors of
organizational members through the process of communication, decision making, and
problem solving.
Models are simplified versions of the realties. They represent the theoretical framework in a
reality in a systematic manner. Planned organization change requires a systematic process of
movement from one condition to another. Kurt lewin suggested that efforts to bring about
planned change in organizations should approach change as a multistage process.
1) Lewin’s process model – Lewin‟s model of planned change is made up of three steps:
Unfreezing is the process by which people become aware of the need for change. If people
are satisfied with current practices and procedures, they may have little or no interests in
making changes. The key factor in unfreezing is making employees understand the
importance of a change and how their jobs will be affected by it. Creating employees the
awareness of the need for change is the responsibility of the leadership in the organization.
Change (Movement to a new state): Changing or moving is the phase where the changes
that have been planned are actually initiated and carried out. Changes could relate to the
mission, strategy, objectives, people, tasks, work roles, technology, structure, corporate
culture, or any other aspects of the organization. Well thought out changes have to be
carefully implemented with participation of the members who will be affected by the change.
Changes incorporated too quickly without adequate preparation will result in resistance to
change.
Refreezing: It is the last phase of the planned change process. Refreezing ensures that the
planned changes that have been introduced are working satisfactorily, that
Any modifications, extra considerations, or support needed for making the changes
operational are attended to, and that there is reasonable guarantee that the changes will indeed
fill the gap and bring the system to the new, desired state of equilibrium. This necessarily
implies that the results are monitored and evaluated, and wherever necessary corrective
measures are taken up to reach the new goal. If the refreezing phase is neglected or
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temporarily attended to, the desired results will not ensure and the change may even be total
disaster.
Change New
Old state Unfreeze
(Refreezing)
(Movement from
(Awareness for change)
old state to new
state)
The Lewin‟s model is very simple and straight forward. It doesn‟t deal with several important
issues. The continuous change process model treats planned change from the perspective of
top management. It perceives that certain forces or trends call for change and the issue is
subjected to the organizations problem solving and decision making process. Usually, top
management defines its goals in terms of what the organization will look like after the
change. Alternatives for change are generated and evaluated, and an acceptable one is
selected.
The success or failure of change depends not only on accurate identification of the problem
and successful reduction of resistance to change but also on the appropriateness of the
selected strategy for implementing the change. Understanding the problem is not enough, nor
is having employees who are willing to change. Managers must make the right selection
among a wide variety of strategies of change. The major approaches for strategies for planned
change are:
This particular strategy is useful if the intended change is associated with the structure of the
organization. Changes in an organization‟s structure can take several forms. Some of the
more common techniques include the following:
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Changing the basis of departmentalization
Modifying the organization manual and its description of policies and procedures
(These are areas of focus not just a list of strategies of techniques to be applied)
Changing the techniques used for doing work in order to change worker machine
relations.
Changing the equipment used in work. For example, by introducing robots or expert
systems on an assembly line.
Strategies aimed at changing people tend to emphasize improving employee skills, attitudes
or motivation. Individual change strategies take many forms, such as introducing personnel
training programs in skills, communication effectiveness, decision making and attitude and
motivation. Most such strategies rely on the basic model of individual change developed by
Kurt lewin. It involves:
1. Creating desire for change- Before a change can occur; the individual must feel a need
for it. This need can result from a perceived deficiency, actual dissatisfaction, or a desire for
improvement.
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2. Unfreezing – unfreezing occurs when a person‟s equilibrium is sufficiently disturbed so
that he/she is motivated to attempt a new pattern of behavior. This can be accomplished either
by increasing the pressure to change or by reducing some of the threats or resistance to
change
3. Changing -changing involves the process by which a person is presented with a new
pattern of behavior and adopts the pattern as his/her own.
4. Refreezing – at this stage the changed attitudes are integrated into the individual‟s
personality in such a way that they become part of his/her way of thinking.
Narrow focus of change- this is when any effort to force change in the tasks of
individuals or groups failed to take into account the interdependencies among
organizational elements such as people, structure, tasks and the information system.
Group inertia – when an employee attempts to change his/her work behavior, the
group may resist by refusing to change other behaviors that are necessary to
complement to the individuals changed behavior. In other words, group norms may
act as a brake on individual attempts at behavior change.
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Threatened power – any redistribution of decision making authority such as with
reengineering or team based management may threaten an individual‟s power
relationships with others.
Resource allocation – groups that are satisfied with current resource allocation
methods may resist any change they believe will threaten future allocations.
Individual sources of resistance to change are rooted in basic human characteristics such as
needs and perceptions. Some of the individual sources of resistance:
Habit – People usually prefer to accept what they are accustomed with instead of learning an
entirely new set of steps makes the job more difficult.
Security – Some employees like the comfort and security of doing things the same old way.
People who believe their security is threatened by a change are ready to resist change.
Economic factors – the resistance become severe when employees feel change will make
their jobs obsolete or reduce their benefit (economy).
Lack of awareness – comes as a result of lack of proper and adequate information about the
change.
Social factors – people may resist charge for fear of what others will think.
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expertise to make a meaningful contribution, their involvement can reduce resistance, obtain
commitment, and increase the quality of the change decision.
c. Facilitation and support – change agents can offer a range of supportive efforts to reduce
resistance. When employee fear and anxiety are high, employee counseling and therapy, new
– skill training, or a short paid leave of absence may facilitate adjustments. Yet, it is time
consuming and costly.
d. Negotiation and Agreement: It is sometimes necessary for a team leader to negotiate with
potential resistance or exchange something of value for a minimizing the resistance. For
instance, if the resistance is from a few powerful individuals in the team, a specific reward
package can be negotiated that will meet their individual needs.
E. Manipulation and Co-operation: The leader seeks to „buy off’ the key members who are
resisting by giving them an important role in the change decision. The leader‟s advice is
sought, not to arrive at a better decision but to get their endorsement. Some of the co-
operating tactics include selectively sharing information and consciously structuring certain
types of events that would win support. This can be a quick and relatively easy and
inexpensive strategy to gain support. However, the purpose will be defeated if people feel
they are being manipulated.
f. Explicit and Implicit Coercion: The leaders can force the members to go along with
changes by threats involving loss or transfers of jobs, lack of promotion, etc. Such methods,
though not uncommon, is more difficult to gain support for future change efforts. This
strategy can be particularly resorted when changes have to be speedily enforced or when
changes are of a temporary nature. Though speedy and effective in the short run, it may make
8.8 Organizational Development (OD)
The OD paradigm values human and organizational growth, collaborative and participative
process, and spirit of inquiry. The underlying values in most OD efforts are:
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Respect for people- Individuals are perceived as being responsible, conscientious, and
caring. They should be treated with dignity and prospect.
Trust and support -aimed at inculcating trust, authenticity, openness and a supportive
climate.
Participation- The more those people who will be affected by a change are involved in the
decisions surrounding that change, the more they will be committed to implementing these
decisions. In general, OD strongly suggests collaborative process of problem diagnosis. i.e.
all the members of the organization who will be influenced by the problem should actively
take a part in the diagnosis phase, which possibly extended to search for the problems
OD is not just one time incident to be introduced to the organization; it is more of an ongoing
and process involving activities. The basic change processes used in organizational
development are:
a. Initial diagnosis – the fundamental question to be raised at this stage is what is the basic
problem? Can that problem be solved using organizational development techniques?
b. Data collection – once the areas of the problem are identified, the relevant data are
collected through interviews and questionnaires to verify the initial diagnosis and suggest
possible solutions.
c. Feedback and confrontation – the findings from the survey are fed back to the
participants, discussed, and examined as they relate to the group.
d. Planning and problem solving- Problem solving groups are established to tackle major
problem areas and goals.
e. Team building – Conscious efforts are made to develop work groups in to cohesive teams
rather than isolated individuals who happen to work together.
f. Inter group development- efforts are made to build and solidify good working
relationships among the various teams.
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g. Follow up and evaluation- results are compared with the initial goals and steps are
identified to ensure that resulting change.
The above steps involved in the OD are length and elaborated so other authors prefer to
classify the OD process in the following four phases:
Diagnosis phase- at this stage the consultant should take a part in diagnosis of the
chronic problem and should assist the management.
What should be considered for managing change successful? Here are some points:
Take a Holistic view- organization subsystems are interrelated and interdependent, therefore
it is better to consider holistic view instead of a limited view of an organization. That is to
mean, a holistic view with respect to organization change encompasses the culture and
dominant coalition as well as the people, tasks, structure, and information subsystem.
Secure top management support- The support of top management is essential to the success
of any change.
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Encourage participation- Problems related to resistance, control and power can be
overcome by broad participation in planning the change, allowing their place in the new
system.
Reward contributions- Employees who contribute to the change in any need to be rewarded.
Those who quickly grasp new work assignments work harder and to help others adjust to
changes desire special credit.
From behavioural perspective, individuals need to benefit in some way if they are to willingly
help change something that eliminates the old, comfortable way of doing the job.
Consider international issue- Nowadays the world is becoming a global village due to
advance in information technology and globalization. Especially for multinational
organization, it is advisable to consider international environment influence. Besides, to
consider successful international practices, experience as a benchmark could possibly
positively support the organization to implement change successfully. To sum up, in the
current dynamic environment, managers must anticipate the need for change and satisfy it
with more responsive and competitive organization systems.
More specifically, stress is associated with constraint and demands. Constraints prevent you
from doing what you desire. Demands refer the cost of something desired. So when you take
a test at school or you undergo your annual performance review at work, you feel stress
because you confront opportunities, constraints and demands.
Two conditions are necessary for potential stress to become actual stress. There must be
uncertainty over the outcome and the outcome must be important.
There are three categories of potential sources of stress: environmental, organizational and
individual.
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A. Environmental Factors
Technological uncertainty- New innovations can make an employee‟s skills and experience
obsolete in a very short period of time, computers, robots, automations and similar forms of
technological innovations are threat to many people and cause them stress.
B. Organizational Factors:
Task Demands- They includes the design of individual‟s job (autonomy, task variety, degree
of automation) working conditions, and the physical work layout.
Role Demands- relate to pressures placed on a person as a function of a particular role he/she
plays in the organization. Role conflicts create expectations that may be hard to reconcile or
satisfy. Role overload is expected when the employee is expected to do more than time
permits. Role ambiguity is created when role expectations are not clearly understood and the
employee is not sure what he/she is to do.
Interpersonal Demands- are pressure created by other employees. Lack of social support
from colleagues and poor interpersonal relationship can cause considerable stress, especially
among employees with high social needs.
Organizational Structure- defines the level of differentiation in the organization, the degree
of rules and regulations and where decisions are made. Excessive rules and lack of
participation in decisions that affect an employee are examples of structural variables that
might be potential sources of stress.
Organization go through a cycle- Organizations are established, they grow, become mature,
and eventually decline. An organization‟s life-stage that is where it is in the fourth stage cycle
creates different problems and pressures for employees. The establishment and decline
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stages are particularly stressful. The establishment stage is characterized by a great deal of
excitement and uncertainty, while the declining stage typically requires cut backs, layoffs
and a different set of uncertainties. Stress tends to be least in maturity where uncertainties at
their lowest level.
C. Individual Factors
Primarily these factors are family issues, personal economic problems, and inherent
personality characteristics. Economic problems created by individuals overextending their
financial resources can create stress for employees and distract their attention from their
work. Stress symptoms also expressed on the job may actually originate in the person‟s
personality.
Individual Differences
At an individual level, at least five variables such as perceptions, job experience, social
support, belief in locus of control and hostility have been found to be relevant moderators.
Perception- perception will moderate the relationship between a potential stress condition
and an employee‟s reaction to it. For example, one person‟s fear that he/she will lose his/her
job because his company is laying off personnel may be perceived by another as an
opportunity to get a large severance allowance and start his own business. So stress potential
does not lie in objective conditions; it lies in an employee‟s interpretation of those conditions.
Experience- The evidence indicates that experience on the job tends to be negatively related
to work stress. Two explanations have been offered;
First, the idea of withdrawal: - Voluntary turnover is more probable among people who
experience more stress. Therefore, people who remain with the organization longer are those
who are resistant to the stress characteristics of their organization.
Second, people eventually develop coping mechanism to deal with stress. Because this takes
time, senior members of the organization are more likely to be fully adapted and should
experience less stress.
Social support- There is increasing evidence that social support that is collegial relationships
with co- workers or supervisor can buffer the impact of stress. The logic underlying this
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moderating variable is that social support acts as a palliative mitigating the negative effects of
even high – strain stress.
Locus of control- Those with an internal locus of control believe they control their own
destiny. Those with an external locus believe their lives are controlled by outside forces.
Evidence indicates that internals perceive their jobs to be less stressful than do externals.
When internals and externals confront a similar stressful situation, the internals are likely to
believe that they can have a significant effect on the results. In contrast, externals are more
likely to be passive and feel helpless.
Hostility- Some people‟s personality includes high a degree of hostility and anger. These
people are chronically suspicious and mistrustful of others. Evidence indicates that this
hostility significantly increases a person’s stress and risk for heart disease. More
specifically, people who are quick to anger, maintain a persistently hostile outlook, and
project a cynical mistrust of others are more likely to express stress in situations
Stress shows itself in a number of ways. For instance, an individual who is explaining a high
level of stress may develop high blood pressure, ulcers, irritability, difficulty in making
routine discussions, loss of appetite, accident proneness and the like. These are classified
under three categories: physiological, psychological, and behavioural symptoms.
Physiological symptoms:-Research indicates that stress could create changes in metabolism
increase heart bit and breathing rates, increase blood pressure, bring on headaches and induce
heart attacks.
Psychological symptoms- Stress can cause dissatisfaction. Job related stress can cause job-
related dissatisfaction. Job dissatisfaction is the simplest and most obvious psychological
effect of stress. But stress shows itself in other psychological states such as tension, anxiety,
irritability boredom and procrastination.
Individual approaches- An employee can take personal responsibility for reducing his/her
stress level. Individual strategies that have proven effective include implementing time
management techniques, increasing physical exercise, relaxation training, and expanding the
social support network.
Many people manage their time poorly. The well-organized employee can often accomplish
twice as much as the person who is poorly organized. So an understanding and utilization of
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basic time management principles can help individuals better cope with tensions created by
job demands.
(4) Knowing your daily cycle and handling the most demanding parts of your job during the
high part of your cycle when you are most alert and productive.
Non-competitive physical exercise such as aerobics, walking, jogging swimming and riding a
bicycle have recommended by physicians as a way to deal with excessive stress levels. These
forms of physical exercise increase heart capacity, provide a mental diversion from work
pressure, and offer a means to “let off stream”.
Individuals can teach themselves to reduce tension through relaxation technique such as
meditation, hypnoses and biofeedback. The objective is to reach a state of deep relaxation,
where one feels physically relaxed, somewhat detached from the immediate environment and
detached from body sensations. Fifteen or twenty munities of a day of deep relaxation
releases tension and provide a person with a pronounced sense of peacefulness. Significant
changes in heart rate, blood pressure, and other physical factors result from achieving the
deep relaxation condition.
Organizational approach- Several of the factor that cause stress particularly task and role
demands and organizational structure are controlled by management. The strategies that
management might want to consider include:
- Redesigning of job
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