Summary Notes On Organizational Change and Stress Management

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Summary Notes on Organizational Change and Stress Management

 Contrast Planned and Unplanned Change

Organizations face a dynamic and changing environment. This requires adaptation. Six specific
forces that are acting as stimulants for change.

1. The nature of the workforce. Almost every organization must adjust to a multicultural
environment, demographic changes, immigration, and outsourcing.

2. Technology is changing jobs and organizations. It is not hard to imagine the very idea of an
office becoming an antiquated concept in the near future.

3. Economic shocks. These led to the elimination, bankruptcy, or acquisition of some of the
best-known U.S. companies, including Bear Stearns, Merrill Lynch, Lehman Brothers,
Countrywide Financial, Washington Mutual, and Ameriquest. Tens of thousands of jobs were
lost and may never return.

4. Competition is changing. Competitors are as likely to come from across the ocean as from
across town. Successful organizations will be fast on their feet, capable of developing new
products rapidly and getting them to market quickly. In other words, they’ll be flexible and will
require an equally flexible and responsive workforce.

5. Social trends don’t remain static either. Consumers who are otherwise strangers now
meet and share product information in chat rooms and blogs. Companies must continually
adjust product and marketing strategies to be sensitive to changing social trends, as Liz
Claiborne did when it sold off fashion brands (such as Ellen Tracy), deemphasized large
vendors such as Macy’s, and streamlined operations and cut staff. Consumers, employees,
and organizational leaders are more sensitive to environmental concerns, also, as “green”
practices are quickly becoming expected rather than optional. And last but not least is world
politics. A global context for OB is required. No one could have imagined how world politics
would change in recent years. We’ve seen a major set of financial crises that have rocked
global markets, a dramatic rise in the power and influence of China, and dramatic shakeups
in government across the Arab world. Throughout the industrialized world, businesses—
particularly in the banking and financial sectors—have come under new scrutiny.

Contrast Planned and Unplanned Change

Planned Change - Change involves making something different. When change is an intentional,
goal-oriented activity it is planned change. There are two goals of planned change:

1. Improve the ability of the organization to adapt to changes in its environment. Change
employee behavior. Change agents are those responsible for managing change activities.
Change involves making things different. Some organizations treat all change as an
accidental occurrence; however, change as an intentional, goal-oriented activity is planned
change.

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