1. Source: Samuel Certo

2. DEFINING CHANGING AN ORGANIZATION
> The process of modifying an existing organization to
increase organizational effectiveness – that is, the extent
to which an organization accomplishes its objective
> These modifications can involve virtually any
organizational segment, but typically affect the lines of
organizational authority, the levels of responsibility held
by various organization members and the established
lines of organizational communication

3. IMPORTANCE OF CHANGE
> The study of organizational change is
extremely important because all managers at all
organizational levels are faced throughout their
careers with the task of changing their organization
> Managers who can determine appropriate
changes and then implement such changes
successfully enable their organization to be more
flexible and innovative

4. (1) (2) (3)
(4) (5)
STABILITY
LOW
HIGH
ADAPTATION HIGH
(1)High death
probability
(slow)
(2) High
survival
probability
(3) High survival
and growth
probability
(4) Certainty of
death (quick)
(5) Certainty of
death (quick)

5. SUCCESS OF
CHANGE
CHANGE AGENT
INDIVIDUALS
AFFECTED BY
CHANGE
TYPE OF CHANGE TO BE
MADE
EVALUATION OF
CHANGE
DETERMINATION
OF WHAT SHOULD
BE CHANGE

6. CHANGE AGENT – the individual inside or
outside the organization who tries to modify
the existing organizational situation
> This individual might be responsible
for making very broad changes, like altering
the culture of the whole organization; or
more narrow ones, like designing and
implementing a new safety program or a
new quality program

7. Special skills that are necessary for success as
a change agent.
Ability to determine how a change
should be made
The skill to solve change-related
problems
Facility in using behavioral science tools
to influence people appropriately during
the change process
Ability to determine how much change
employees can withstand

8. Another major factor managers need
to consider is exactly what should be
changed within the organization. In
general, managers should make only those
changes that will increase organizational
effectiveness

9. TECHNOLOGICAL
FACTORS
• Process
• Equipment
PEOPLE CHANGE
• Attitude
• Leadership Skill
• Communication
Skills
STRUCTURAL
FACTORS
• Policies
• Procedures
ORGANIZATIONAL
EFFECTIVENESS

10. The kind of change to make is the third major
factor that managers need to consider when they
set out to change an organization. Most changes
can be categorized as one of three kinds:
1. Technological
2. Structural
3. People

11. Emphasizes modifying the level of
technology in the management system
STRUCTURAL CHANGE
It emphasizes organizational
effectiveness by changing controls that
influence organization members during the
performance of their jobs

12. Structural Change is change aimed at increasing
organizational effectiveness through modifications to the
existing organizational structure. These modification can
take several forms:
1. Clarifying and defining jobs.
2. Modifying organizational structure to fit the
communication needs of the organization
3. Decentralizing the organization to reduce the cost of
coordination, increase the controllability of
subunits, increase motivation and gain greater flexibility
DESCRIBING STRUCTURAL CHANGE

13. Matrix organization provide a good
illustration of structural change. According to C. J.
Middleton, a matrix organization is a traditional
organization modified primarily for the purpose
of completing some kind of special project.
Essentially, a matrix organization is one in which
individuals from various functional departments
are assigned to a project manager responsible for
accomplishing specific task. For this reason,
matrix organization are also called PROJECT
ORGANIZATION

14. Universal Products Company
Automotive
products
division
Electrical
products
division
Aerospace
products
division
Chemical
products
division
Resource
allocation
Market liaison
Production
facilities
Accounts and
control
Personnel
and safety
Materials and
procurement
Engineering
and research
Supporting Functional Assistance to Project

15. Universal Products Company
Automotive
products
division
Electrical
products
division
Aerospace
products
division
Chemical
products
division
Resource
allocation
Market liaison
Production
facilities
Accounts
and control
Personnel
and safety
Materials and
procurement
Engineering
and research
Supporting Functional Assistance to Project
Project
Venus
Project
Saturn
Project
Production
Group
Engineering
Group
Materials
Group
Personnel
Group
Accounting
Group
Production
Group
Engineering
Group
Materials
Group
Personnel
Group
Accounting
Group
Traditional Organization
Chart Transformed into
Matrix Organization Chart
Line operations flow of work performance

16. There are several advantages and disadvantages to making
structural changes such as those reflected by the matrix
organization
MAJOR ADVANTAGES
• Such structural changes generally result in better control of a
project
• Better customer relations
• Shorter project development time
• Lower project costs
• Matrix organizations are flexible enough to allow managers to
shift resources to special projects as needed
DISADVANTAGE
• Such structural changes generally create more complex
internal operations, which commonly cause conflict, encourage
inconsistency in the application of company policy, and result in
a more difficult situation to manage

17. Successfully changing people factors necessarily involves
some consideration of structure and technology, the primary
emphasis is on people
COMMONLY USED MEANS OF CHANGING
ORGANIZATION MEMBERS
DESCRIBING PEOPLE CHANGE: ORGANIZATION
DEVELOPMENT (OD) PEOPLE CHANGE
 Emphasizes increasing organizational effectiveness by changing
certain aspect of organization members
 The focus of this kind of change is on such factors as employee’s
attitude and leadership skills
 The process of people change can be referred to as
ORGANIZATION DEVELOPMENT (OD)

18. GRID OD
 One traditionally used OD technique for changing
people in organizations is called GRID
ORGANIZATION DEVELOPMENT, or GRID OD
MANAGERIAL GRID
 Basic model describing various managerial styles
 Used as the foundation for grid OD
 The managerial grid is based on the premises that
various managerial styles can be described by means of
two primary attitudes of the manager: CONCERN
FOR PEOPLE and CONCERN FOR ATTITUDE

19. 5,5 MANAGEMENT
Adequate organization
performance is
possible through
balancing the necessity
to get out work while
maintaining morale of
people at a satisfactory
level
1,9 MANAGEMENT
Thoughtful attention to needs
of people for satisfying
relationships leads to a
comfortable, friendly
organization
atmosphere
and work
tempo
1,1 MANAGEMENT
Exertion of minimum
effort to get required
work done is appropriate to
sustain organization
membership
9,1 MANAGEMENT
Efficiency in operations
results from arranging
conditions of work in
such a way that human
elements interfere to a
minimum degree
9,9 MANAGEMENT
Work accomplishment
is from committed
people; interdependence
through a “common stake”
in organization purpose
leads to relationships
of trust and respect
CONCERN FOR PRODUCTION
C
O
N
C
E
R
N
F
O
R
P
E
O
P
L
E

20.  THE STATUS OF ORGANIZATION
DEVELOPMENT
 If the entire OD area is taken into consideration, changes
that emphasizes both people and the organization as a whole
seem to have inherent strength
 However, several commonly voiced weaknesses in OD
efforts. These weaknesses are as follows:
1. The effectiveness of an OD program is difficult to evaluate
2. OD programs are generally too time consuming
3. OD objectives are commonly too vague
4. The total cost of an OD program are difficult to gauge at
the time the program start
5. OD program are generally too expensive

21. These weaknesses, however, should not eliminate OD
from consideration, but should indicate areas to
perfect within it. Managers can improve the quality of
OD efforts by doing the following
1. Systematically tailoring OD programs to meet the
specific needs of the organization
2.Continually demonstrating exactly how people
should change their behavior
3. Conscientiously changing organizational reward
system so organization members who change their
behavior in ways suggested by the OD program are
rewarded

22. A fourth major factor to be considered by managers
when changing an organization is the people who
will be affected by the change. A good assessment of
what to change and how to make the change will be
wasted if organization members do not support the
change. To increase the chances of employee
support, managers should be aware of the following
factors:
1. The usual employee resistance to change
2. How this resistance can be reduced

23. RESISTANCE TO CHANGE
• Resistance to change within an organization is as
common as the need for change. After managers
decide to make some organizational change, they
typically meet with employee resistance aimed at
preventing that change from occurring
REDUCING RESISTANCE TO
CHANGE
• To ensure the success of needed
modification, managers must be able to reduce the
effects of the resistance that typically accompanies
proposed change

24. Resistance can usually be lowered by following these
guidelines:
1. AVOID SURPRISES
People need time to evaluate a proposed
change before management implements it. Unless
they are given time to evaluate and absorb how the
change will affect them, employees are likely to be
automatically opposed to it
2.PROMOTE REAL UNDERSTANDING
When fear of personal loss related to a
proposed change is reduced, opposition to the
change is also reduced

25. 3. SET THE STAGE FOR CHANGE
Perhaps the most powerful tool for reducing resistance to
change is management’s positive attitude toward the change.
This attitude should be displayed openly by top and middle
management as well as by lower management
4. MAKE TENTATIVE CHANGE
Resistance to change can also be reduced if the changes
are made on a tentative basis. This approach establishes a trial
period during which organization members spend some time
working under a proposed change before voicing support or
nonsupport of it. TENTATIVE CHANGE is based on the
assumption that a trial period during which organization
members live under a change is the best way of reducing feared
personal loss

26. Judson has summarized the benefits of using the tentative
approach:
 Employees affected by the change are able to test their
reactions to the new situation before committing themselves
irrevocably to it.
 Those who will live under the change are able to acquire
more facts on which to base their attitudes and behavior
toward the change
 Those who had strong preconceptions about the change
are in a better position to assess it with objectivity.
Consequently, they may review and modify some of their
preconceptions
 Those involved are less likely to regard the change as a
threat
 Management is better able to evaluate the method of
change and make any necessary modifications before
carrying it out more fully

27.  As with all other managerial actions, managers
should spend some time evaluating the changes they make.
The purpose of this evaluation is not only to gain insight
into how the change itself might be modified to further
increase its organizational effectiveness, but to determine
whether the steps taken to make the change should be
modified to increase organizational effectiveness the next
time they are used
 According to MARGUILIES and WALLACE, making
this evaluation may be difficult because the data from
individual change may be unreliable
 Evaluation of change often involves watching for
symptoms that indicate that further change is necessary

28. DEFINING STRESS
 STRESS – the bodily strain that an individual
experiences as a result of coping with some
environmental factor
 Hans Selye said that stress constitutes the factors
affecting wear and tear on the body
 In organizations, this wear and ear is cause
primarily by the body’s unconscious mobilization of
energy when an individual is confronted with
organizational or work demands

29. THE IMPORTANCE OF STUDYING STRESS
Stress can have damaging psychological and
physiological effects on employees’ health and on
their contributions to organizational effectiveness. It
can cause heart disease, and it can prevent employees
from concentrating or making decisions
 Stress is a major cause of employee absenteeism
and turnover. Certainly, such factors severely limit
the potential success of an organization
 A stressed employee can affect the safety of other
workers or even the public
 Stress represents a very significant cost to
organizations

30. MANAGING STRESS IN ORGANIZATIONS
 UNDERSTANDING HOW STRESS INFLUENCES WORKER
PERFORMANCE
HIGH
HIGH
LOW
LOW MODERATE
A
LEVEL
OF
WORKER
PERFORMANCE
WORKER STRESS
The relationship between worker stress and the level of worker performance

31. Note that extremely high and extremely low levels of stress
tend to have negative effects on production.
Additionally, while increasing stress tends to bolster
performance up to some point, when the level of stress
increases beyond this point, performance will begin to
deteriorate
IDENTIFYING UNHEALTHY STRESS IN
ORGANIZATIONS
Managers often find it difficult to identify the
people in the organization who are experiencing
detrimentally high levels of stress. Part of this difficulty is
that people respond to high stress in different ways, and
part is that physiological reactions to stress are hard, if not
impossible, for managers to observe and monitor. Such
reactions include high pressure, pounding heart, and
gastrointestinal disorders.

32. Observable symptoms of undesirably high
stress levels that managers can learn to
recognize
 Constant fatigue
 Low energy
 Moodiness
 Increased aggression
 Excessive use of alcohol
 Temper outbursts
 Compulsive eating
 High level of anxiety
 Chronic worrying

33. HELPING EMPLOYEE HANDLE
STRESS
• STRESSOR – an environmental demand that causes people
to feel stress. Stressor are common in situations where
individuals are confronted by circumstances for which their
usual behaviors are inappropriate or insufficient and where
negative consequence are associated with failure to deal
properly with the situation
A manager who observes one or more of these symptoms in
employees should investigate to determine if those
exhibiting the symptoms are indeed under too much stress.
If so, the manager should try to help those employees
handle their stress and/or should attempt to reduce
stressors in the organization

34. STRATEGIES TO HELP PREVENT THE
INITIAL DEVELOPMENT OF UNWANTED
STRESSORS IN ORGANIZATION
1.Create an organizational climate that is
supportive of individuals
2. Make job interesting
3. Design and operate career counseling
programs
• Stress is seldom significantly reduced until the
stressor causing it have been coped with
satisfactorily or withdrawn from the environment