Organizational Change and Stress

Topics: Management, Organization, Change management Pages: 10 (2062 words) Published: June 30, 2013
Topic:
Organizational Change and Stress

FUNDAMENTALS OF CHANGING AN ORGANIZATION
* 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

* 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

* CHANGE VERSUS STABILITY

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

FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION

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

* THE CHANGE AGENT
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

Special skills that is 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

* DETERMINING WHAT SHOULD BE CHANGED
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

FACTORS THAT WILL INCREASE ORGANIZATIONAL EFFECTIVENESS
TECHNOLOGICAL FACTORS
* Process
* Equipment
PEOPLE CHANGE
* Attitude
* Leadership Skill
* Communication Skills
STRUCTURAL FACTORS
* Policies
* Procedures

* THE KIND OF CHANGE TO MAKE
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:

* TECHNOLOGICAL CHANGE
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

* DESCRIBING STRUCTURAL CHANGE
Structural Change is change aimed at increasing organizational effectiveness through modifications to the existing organizational structure. This modification can take several forms: * Clarifying and defining jobs.

* Modifying organizational structure to fit the communication needs of the organization * Decentralizing the organization to reduce the cost of coordination, increase the controllability of subunits, increase motivation and gain greater flexibility

* MATRIX ORGANIZATION
Matrix organization provides 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...
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