CHAPTER 18: MANAGING CHANGE
AND STRESS

Learning Objectives:
 Discuss the external and internal forces that create
the need for organizational change.
 Describe Lewin’s change model and the systems model
of change.
 Discuss Kotter’s eight steps for leading organizational
change
 Define organization development (OD) and
demonstrate your familiarity with its four identifying
characteristics.
 Summarize the 10 reasons employees resist change.

EXTERNAL AND INTERNAL FORCES THAT CREATE THE
NEED FOR ORGANIZATIONAL CHANGE
EXTERNAL
FORCES
INTERNAL
FORCES
 Demographic Characteristics
 Technological Advancements
 Customer and Market Changes
 Social and Political Pressures
 Human Resource
Problems/Prospects
 Managerial Behavior/Decisions

Kurt Lewin’s Three Stages of Change
Unfreezing – Change efforts to overcome
the pressure of both individual
resistance and group conformity
Changing- Referred to as transition or the
stage of actual implementation of change.
It involves acceptance of the new
ways of doing things.
Refreezing - Stabilizing a change
intervention by balancing
driving and restraining forces

A Systems Model of Change
Inputs
Strategic
Plans
Target
Elements
of Change
Outputs

1. Failure to establish a sense of urgency about the need for
change.
2. Failure to create a powerful-enough guiding coalition that is
responsible for leading and managing the change process.
3. Failure to establish a vision that guides the change process.
4. Failure to effectively communicate the new vision.
5. Failure to remove obstacles that impede the accomplishment of
the new vision.
6. Failure to systematically plan for and create short-term wins.
7. Declaration of victory too soon.
8. Failure to anchor the changes into the organization’s culture.
:Some Errors:

Kotter’s Eight Steps to Leading Organizational Change
Step Description
1. Establish a sense of urgency Unfreeze the organization by creating a compelling reason for why
change is needed
2. Create the guiding coalition Create a cross-functional, cross-level group of people with enough
power to lead the change
3. Develop a vision and strategy Create a vision and strategic plan to guide the change process
4. Communicate the change vision Create and implement a communication strategy that consistently
communicates the new vision and strategic plan
5. Empower broad-based action Eliminate barriers to change and use target elements of change to
transform the organization. Encourage risk-taking and creative
problem solving.
6. Generate short-term wins Plan for and create short-term “wins” or improvements. Recognize and
reward people who contribute to the wins.
7. Consolidate gains and produce more change The guiding coalition uses credibility from short-term wins to create
more change. Additional people are brought into the change process
as change cascades throughout the organization.
8. Anchor new approaches in the culture Reinforce the changes by highlighting connections between new
behaviors and processes and organizational success. Develop
methods to ensure leadership development and succession.

ORGANIZATIONAL DEVELOPMENT (OD)
• A set of techniques or tools used to implement
planned organizational change. It consists of
planned efforts to help people work and live
together more effectively over time in their
organizations. These goals are achieved by
applying behavioral science principles, methods,
and theories adapted from the fields of
psychology, sociology, education and
management.

FOUR CHARACTERISTICS OF OD
•OD involves Profound Change
•OD is Value-Loaded
•OD is a Diagnosis/Prescription Cycle
•OD is Process-Oriented

TEN OF THE LEADING REASONS WHY EMPLOYEES
RESISTS CHANGE IN THE FIRST PLACE:
1. An individual’s predisposition toward change.
2. Surprise and fear of unknown
3. Climate of mistrust.
4. Fear of Failure
5. Loss of status or job security
6. Peer Pressure

TEN OF THE LEADING REASONS WHY EMPLOYEES
RESISTS CHANGE IN THE FIRST PLACE:
7. Disruption of cultural traditions or group
relationships
8. Personality conflicts
9. Lack of tact or poor timing
10. Non-reinforcing reward system

Thank you!!!