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Power and Stress in Organizational Change

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Power and Stress in Organizational Change

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© All Rights Reserved
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Available Formats
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Week 4 – Topic Overview

Power and Stress


Management

UU-BBA-3012: Organizational Behaviour Page 1


1. Organization Change

“Change is a pervasive influence. It is an inescapable part of both social and


organizational life and we are all subject to continual change of one form or
another” (Mullins, 2007). Organizational change can be difficult and costly but
change is inevitable for organizations sustainability and advancement.

The main forces for change are:

Insufficient natural resources


Political interests
Information technology and new technology
Uncertain economic conditions
Globalization and world competition

Changing nature of the workforce. Many if not all organizations are adjusting to
a multi-cultural environment. In addition, demographic alterations, immigration
and outsourcing have altered the nature of the employees.

Information Technology and Computers. Due to the constant advancement of


technology, organizations are faced to adapt to technological changes.
Information technology compromises networks of computers,
telecommunications systems, and remote-controlled devices. Information
technology has a significant effect on individual employees, teams, and
organizations.

Globalization. Organizations face a huge global competition on an


unprecedented scale. Globalization means that the main players in the world’s
economy are now international or multinational corporations.

In order for organizations to ensure their survival, they must be adaptable to the
external demands. Other forces of change that might be pressure organizations
are:

Increased demands for quality and high levels of customer service and
satisfaction
Organization conflict that derives from within the organization
The changing nature of the workforce
Greater flexibility in the structure of work organizations and patterns
management

UU-BBA-3012: Organizational Behaviour Page 2


Change tends to originate from within the organization. A significant amount of
change is part of the natural process of time. For example, material resources
such as equipement or machinery will deteriorate or lose efficiency over time.
Therefore, their replacement and advancements is inevitable.

1. 2 Planned organization change

Planned organisational change represents an intentional attempt to improve the


operational effectiveness of the organization.

The fundamental objectives that drive change can be generalised as:

Altering the behavioural patterns of organizations’ members


Refining the capacity of the organization to handle changes in its
environment.
2. Resistance

Regardless of the possible positive results of change often individuals and


organizations are resistant to change.
Resistance to change has a lot of forms and usually is difficult to identify the
exact reasons to it. The forces against change may include: ignoring the
needs and expectations of members or when members do not understand the
need for change. Fears over these matters can take the form of employment
levels and job security, de-skilling of work, loss of job satisfaction, wage
differences, changes to social structures and working conditions, loss of
individual control over work and greater management control.

Individual Resistance Organizational Resistance

Perceptions Organization design


Personality
Habit Organizational culture
Threats to power and Resource limitations
influence
Fear of the unknown Fixed investments
Economic reasons
Interorganizational agreements

Resistance to Change

UU-BBA-3012: Organizational Behaviour Page 3


Reasons for individual resistance:

Perceptions

Individuals experience a perceptual defence. That is, a perceptual error in


which individuals perceive selectively the things that fit more comfortably in
their world perception. Therefore, individuals resist in changing their
established understanding of reality. In addition, they resist in the possibility of
change by being informed only by what they agree with, forgetting any
knowledge that may lead to different perspectives and misinterpreting
communication that if it was properly understood it would not be suitable to
their existing attitudes and values.

Personality

Features of an individual’s personality may incline him/her to resist in change.


For example, a highly dogmatic individual is more probable to resist in change
than a less one. Another example is dependency. For example, employees
that are dependent on their managers for performance feedback most likely
will not accept any new methods for doing their work unless their managers
individually support the changes and explain how these changes will benefit
the employees.
Even though there is a predisposition to ‘blame’ resistance to change in the
workplace on individual personalities, personality rarely is the most significant
factor in a situation that involves change.

Habit

A habit can cause comfort, safety and satisfaction for individuals because it
allows them to adjust to the world and cope with it. If a habit becomes a main
source of resistance to change depends on whether individuals perceive sort
of advantages from changing their behaviours. For example, if an organization
unexpectedly announced that employees will receive a 15% raise on their
salary some of the employees would object.

Threats to Power and Influence

Some individuals may perceive change as a threat to their power or influence.


When a power position is established, individuals tend to resist to changes
that they perceive as reducing their ability to influence others.

UU-BBA-3012: Organizational Behaviour Page 4


Fear of the unknown

Confronting the unknown makes most people anxious. Each major change in
a work situation produces a level of uncertainty. For example, individuals that
start a new job may be concerned with their ability to perform adequately.
Individuals may be that anxious and threatened by change that they refuse
job advancements that necessitate moving to a different location or significant
changes in job responsibilities.

Economic Reasons

Money is an important factor and it should be expected that individuals will


resist to changes that might lower their incomes. Changes in individuals work
tasks and responsibilities may threaten their economic security.

Reasons for Organizational resistance:

Organizational design

Stability and continuity are important aspects in organizations’ effectiveness.


The need for structure in organizations can lead also to resistance to change.

Organizational culture

Organizational culture is important in change, however, cultures are not easy


to modify and can become a major source of resistance to essential changes.
An aspect of an effective organizational culture is whether it has the flexibility
to take advantage of opportunities to change.
An ineffective organizational culture is the one that familiarises its employees
to an old culture even though that is ineffective.

Resource limitations

Change requires capital, time and competent individuals. Therefore,


organizations need to have an adequate amount of resources in order to
implement change.

Fixed investments

Capital intensive organizations might not be able to change because of fixed


capital investments in assets that they cannot easily modify such as
equipment, land.

UU-BBA-3012: Organizational Behaviour Page 5


Interorganizational Agreements

Agreements between organizations usually impose obligations on them that


can restrain their actions. For example, labour negotiations and contracts.
That is, the right of the company to hire and fire an individual may become a
subject to negotiation and be fixed in a negotiated contract.

3. Overcoming resistance

Resistance to change cannot be ceased entirely. However, supervisors and


employees can learn to recognize and minimalize resistance in order to
promote change.

Individuals struggle to comprehend situations that involve change. This


happens partly due to change problems involve a large number of variables
thus change becomes quite complicated.

Lewin (1951), a social psychologist, has studied change and developed a


useful approach for managers and employees to perceive change. This
approach, is called ‘force field analysis’, suggests that ‘any situation can be
considered to be in a state of equilibrium resulting from a balance of forces
constantly pushing each other. Certain forces in the situation – various types of
resistance to change - tend to maintain the status quo. At the same time,
various pressures for change are acting opposite to these forces and are
pushing for change.

To initiate change, the current equilibrium of forces must be modified by one or


more of three actions:

Increasing the strength of pressure for change


Reducing the strength of the resisting forces or removing them
completely from the situation
Changing the direction of a force. For example, by changing a resistance
into a pressure for change’.

Force field analysis benefits:

1. During this process, managers and employees are required to analyse the
current situation. By being able to identify the driving sources for and
revisiting change individuals gain a better understanding of the relevant
aspects of a change situation.

UU-BBA-3012: Organizational Behaviour Page 6


2. Force field analysis highlights the factors that can be changed and those
that cannot be changed. Individuals tend to waste their time by taking into
consideration actions that are related to forces which have little or no
control. Whereas, when individuals and subsequently teams focus on the
forces in which they have control they increase the probability of being
able to change the situation’.

Have in mind that strong pressure on individuals and teams might result in conflicts
that eventually will disrupt the organization.

‘A programme of planned change and improved performance developed by Lewin


involves the management of a three-phase process of behaviour modification:

Unfreezing - reducing those forces which maintain behaviour in its present


form, recognition of the need for change and improvement to occur.
Movement - development of new attitudes or behaviour and the
implementation of the change.
Refreezing – stabilizing change at the new level and reinforcement through
supporting mechanisms, for example policies, structure or norms (Lewin,
1951)’.

Other important factors that contribute to overcoming resistance to change in


the workplace are:

Empathy and support: Understanding how employees are feeling about


change is helpful. It helps in the identification of those individuals that
are concerned by change and comprehends their fears.
Communication: Effective communication can decrease gossip and
unfounded worries.
Participation and involvement: Involved employees are more dedicated
to applying the planned changes.

UU-BBA-3012: Organizational Behaviour Page 7


1.1 Power
What is power?

Power is “the capacity that A has to influence the behavior of B, so that B acts in
accordance with A’s wishes” (Robbins, 2003). Power is a function of dependency. If
an individual has a high dependency on another individual then the other individual’s
power on the relationship is equivalent. Individuals have power over others only
when they control something that they want. For example, at a university the course
instructor might have power over his/her students since he/she can pass the
students in order for them to get what they want, their degree. “The most important
aspect of power is that is a function of dependency. The greater B’s dependence on
A, the greater is A’s power in the relationship. Dependence, in turn, is based on
alternatives that B perceives the importance that B places on the alternative(s) that A
controls”.

1.2 Bases of Power


According to Robbins (2009), the most effective base of power is that of personal
power (‘expert power’ and ‘referent power’). It appears that expert power and
referent power are positively associated with employees and their supervision
satisfaction, organization commitment and performance. In contrast, these outcomes
do not appear to be associated with reward power and legitimate power.
Furthermore, coercive power appears to be negatively correlated with employee
satisfaction and commitment.

1.2.1 Informal Power


Formal Power is based on an individual’s position in an organization. It consists of
coercive power, reward power, legitimate power and information power.

Coercive power

Coercive power is based on fear. The foundation of coercive power is that an


individual will react out of fear of the possible negative results to order opposition.
For example, a manager in an organization possesses coercive power over an
employee when the manager can dismiss, suspend, or demote the employee who
wishes to maintain his work position. Alternative, a manager can have coercive
power when he/she assigns unpleasant and embarrassing work activities to an
employee.

UU-BBA-3012: Organizational Behaviour Page 8


Reward power

Reward power is based on the ability to distribute rewards that other view as
valuable. People tend to comply with others since that will gain them some benefits.
Having that in mind, the individual that can distribute rewards, viewed as beneficial to
others has power over them. The types of rewards may include controlling pay rates,
raises, bonuses, interesting work activities, friendly colleagues, sales territories,
promotions (Ward, 2001).

Legitimate power

Legitimate power is based on the power an individual receives as a result on the


individual’s position in the formal hierarchy of an organization. It includes acceptance
by members of the organization and their tendency to recognize the individual’s
position and authority in the organization.

Information power

Information power is based on the power that comes from the access and control
over information. Individuals that possess knowledge or information that others need
can make them dependable on them. For example, a manager in a company that
has access on salaries can use this information in order to control his/her
employees’ behaviour.

1.1.2 Personal Power


Personal power is based on power that comes from an individual’s unique
characteristics.

Expert power

Expert power is influence based on special skills or knowledge. It is considered one


of the most powerful sources of influence since jobs have become more specialized.

Referent power

Referent power is based on identification with an individual who has desirable


resources or personal traits. It develops out of admiration of another and desire to be
like that person. For example, if an individual (A) admires and respects another (B),
then the other individual (B) has power over him/her (A) because the individual (A)
wants to please him/her (B).

UU-BBA-3012: Organizational Behaviour Page 9


Charismatic power

Charismatic power is an extension of referent power deriving from an individual’s


personality and interpersonal style. A charismatic leader has the ability to make
others follow him/her due to their articulate attractive visions, take personal visions,
take personal risks and engage in unconventional behaviour.

2. Dependency
Dependency as we mentioned above, is the key to power. “The greater B’s
dependency on A, the greater the power A has over B. When you possess anything
that others require but that you alone control, you make them dependent on you, and
therefore you gain power over them. Dependency, then, is inversely proportional to
the alternative sources of supply. If something is plentiful, possession of it will not
increase your power. If everyone is intelligent, intelligence gives no special
advantage”.

What creates dependency?


“Dependency is increased when the resource you control is important, scarce, and
non-substitutable”.

Importance

In order to create dependency, the thing you control must be considered to be


important.

Scarcity

Non-substitutability

3. Power Tactics

According to Robbins (2009), rational persuasion, inspirational appeals, and


consultation appear to be the most effective power tactics. Whereas, it appears that
pressure tends to be the least effective of the below mentioned power tactics. By
using more than one power together you can maximize your chance of success. For
example, an employee that wants to get a raise can start with a rational persuasion
tactic.

UU-BBA-3012: Organizational Behaviour Page 10


That is, present a well thought and logical argument to management.

 “Legitimacy. Relying on one’s authority position or stressing that a request is


in accordance with organizational policies or rules.
 Rational persuasion. Presenting logical arguments and factual evidence to
demonstrate that a request is reasonable.
 Inspirational appeals. Developing emotional commitment by appealing to a
target’s values, needs, hopes, and aspirations.
 Consultation. Increasing the target’s motivation and support by involving him
or her in deciding how the plan or change will be accomplished.
 Exchange. Rewarding the target with benefits or favours in exchange for
following a request.
 Personal appeals. Asking for compliance based on friendship or loyalty.
 Ingratiation. Using flattery, praise, or friendly behaviour prior to making a
request.
 Pressure. Using warnings, repeated demands, and threats.
 Coalitions. Enlisting the aid of other people to persuade the target or using the
support of others as a reason for the target to agree”.

It appears that some tactics are more effective than others. According to research,
the most effective tactics are: rational persuasion, inspirational appeals and
consultation. In contrast, the least effective tactic seems to be ‘pressure’ as in many
cases tends to backfire. In order to increase the effectiveness of your tactics you
may use more than one tactic.
For example, an employee seeks to get a raise. He can start by using ‘rational
persuasion’. That is to figure out the best possible way to build his case in order to
reach his target.

3.1.2 Organizational sources of power


There are a number of ways in which individuals or groups can gain power in
organizations:

“Providing resources: for example money, prestige, legitimacy, rewards and


sanctions, and expertise that creates a dependency on the part of other
people.
Coping with uncertainty: the ability to permit the rationalisation of
organisational activity, for example through standard operating procedures, or
to reduce uncertainty or unpredictability.
Being irreplaceable: having exclusive training, knowledge or expertise that
cannot be acquired by others, or through the use of lack of adequate
documentation or specialised language and symbols.

UU-BBA-3012: Organizational Behaviour Page 11


Affecting decision processes: the ability to affect some part of the decision
process for example by the basic values and objectives used in making the
decision, or by controlling alternative choices.
By consensus: the extent, to which individuals share a common perspective,
set of values or definition of the situation, or consensus concerning knowledge
and technology.”

3. Organizational Politics

Organizational politics may be defined as the power which affects decision making in
an organization or on behaviours by members that are ‘self-serving and
organizationally non-sanctioned’.
Therefore, political behaviour can be defined as the ‘activities that are not required
as part of a person’s formal role, or attempt to influence, the distribution of
advantages and disadvantages within the organization’.

4. What is Stress?

Stress can be defined as a general reaction to an act or situation that places special
physical and/or psychological strains to a person. Furthermore, stress involves an
interaction of an individual with the environment. The physical and psychological
strains are labelled as stressors. Even though stressors can have different forms
they tend to produce stress when an individual believes that the stressors’ demands
cannot be dealt by the person’s capacity to react.

1.2. Sources of Stress

An individual is possible to experience stress both in personal and work life. This
section will aim to help you diagnose the sources of stress in organisations.

1.2.1 Work stressors

Workload

For many individuals dealing with a lot of things, being assigned to too much work
and not having enough time in order to complete their tasks can be overwhelming
and stressful. ‘Role Overload’ is when the capacity of an employee to meet all of the
demands is being exceeded.

UU-BBA-3012: Organizational Behaviour Page 12


Paradoxically, having too little work can also create stress thus a lot of people find an
‘under load’ situation to be stressful. For example, when managers’ jobs are not
challenging enough, they might micromanage. Managers’ micromanagement can
reduce significantly the stress that was created by boredom but as a consequence it
will increase the subordinates’ stress due to the constant scrutiny they receive.

Job Conditions

Poor working conditions can produce stress. For example, loud noise, extreme
temperatures, too much or too little lighting, radiation and air pollution. When these
kinds of stressors are being present job performance tends to deteriorate.
In addition, constant travel demands and long distance commuting are considered to
be stressful as well.

Role conflict and Ambiguity

Contradictory demands or expectations on an individual at a work setting can


produce role conflict. Role ambiguity happens when an employee is unclear
regarding the allocated job responsibilities. It appears that conflicting expectations
and uncertainty specifically affect managers since being accountable for others
behaviour is quite stressful.

Career Development

Stressors related to career development are: job security, promotions, transfers and
developmental opportunities. That is, an employee might feel stress not being able to
progress as quickly as he/she desires or by a promotion that exceeds the
employee’s abilities.

Interpersonal Relations

Groups and teams have a major impact on the behaviour of people in organizations.
Good working relationships and interactions with peers, underlings and supervisors
are critical features of organisational life.
For example, in a study involving office workers indicated that disruptions resulted
from noisy co-workers, ringing phones and other individuals that intruded their
workstations were significant sources of stress (Sutton & Rafaeli, 1987).
In addition, office politics can create stress for managers and employees. In
conclusion, interpersonal relationships can either act as a stressor or as social
support that helps employees handle stressors.

UU-BBA-3012: Organizational Behaviour Page 13


Aggressive Behaviour

A serious type of work stressors is overly aggressive behaviour in the workstation.


This can be either violence or sexual harassment. Aggressive behaviour that causes
genuine physical or psychological damage to an employee is categorized as
workplace violence.
‘Sexual harassment is unwanted contact or communication of a sexual nature’.
Management has the obligation to prevent sexual harassment from happening.
However, when it occurs, it needs to be dealt decisively and definite.

Suggestions for managers who have to deal with this unsettling issue:

Take all complaints about sexual harassment seriously.


Issue a policy strongly condemning sexual harassment.
Notify all employees of their rights and responsibilities under the policy.
Develop a positive complaint process that offers alternative ways for filing a
complaint.
Directly respond to any complaint and examine it with impartiality, discretion
and due process.
Discipline managers and employees involved in sexual harassment.
Preserve detailed records of complaints, investigations, and actions taken.
Frequently hold training sessions to educate managers and employees about
sexual harassment issues and individuals’ responsibilities. Republish the
sexual harassment policy periodically.
Conduct exit interviews to uncover any evidence that sexual harassment
might exist

Conflict between work and other roles

Individuals have many roles in life; these roles can trigger conflicting demands which
subsequently will become stressors. In addition, individuals might have other needs
and goals part from their work. These other needs may conflict with career goals,
therefore adding stress to the individual. For example, the personal desire to spend
more time with family and friends may conflict with dedicating extra hours in work for
career advancement.

UU-BBA-3012: Organizational Behaviour Page 14


1.2.2 Life stressors

Both family and work stressors can contribute in producing conflict between work
and family because stress in one area can decrease a persons’ ability to cope with
stress in the other. This conflict represents a further source of stress.
A significant amount of stress is typically produced by life stressors. Each individual
deals with these stressors in a different way because of variances in personality,
age, gender, experience and other characteristics.
Conversely, life stressors that affect almost everyone are those produced by major
changes: divorce, marriage, death of a family member.

Please find the stressful events for college students:

Events having high levels of stress

Death of a parent
Death of a spouse
Divorce
Flunking out
Unwed pregnancy

Events having moderate levels of stress

Academic probation
Change of major
Death of close friend
Failing important course
Finding a new love interest
Loss of financial aid
Major injury or illness
Parents’ divorce
Serious arguments with romantic partner
Outstanding achievement

Events having relatively low levels of stress

Change in eating habits


Change in sleeping habits
Change in social activities
Conflict with instructor
Lower grades than expected

Source: Adapted from Baron, R. A., & Byrne, D. (1991). Social Psychology: Understanding
Human Interaction (6th ed.). Boston: Allyn & Bacon.

UU-BBA-3012: Organizational Behaviour Page 15


1.3 Stress and Job Burnout

“Job burnout refers to the adverse effects of working conditions where stressors
seem unavoidable and sources of job satisfaction and relief from stress seem
unavailable. The burnout phenomenon typically contains three components:

A state of emotional exhaustion;


Depersonalization of individuals; and
Feelings of low personal accomplishment”.

Stress Management

‘Stress Management refers to any program that reduces stress by helping people
understand the stress response, recognize stressors, and use coping techniques to
minimize the negative impact of stress.’

1. 2 Individual Methods

The first step in individual methods included the identification of the stressors that
affect a person’s life. In the second step the individual needs to decide how to deal
with them.

Suggestions for individual stress management:

Plan in advance and have a good time management.


Exercise regularly, have a balance diet, rest and take good care of yourself.
Maintain a positive attitude.
Balance your work and personal life. Allow time for yourself.
Practice relaxation techniques.

2. 2 Organizational Methods

Stress management by organizations by organizations is designed to reduce the


harmful effects of stress in three ways: 1. Identify and then modify or eliminate work
stressors, 2. Help employees modify their perception and understanding of work
stress and, 3. Help employees cope more effectively with the consequences of
stress.

UU-BBA-3012: Organizational Behaviour Page 16


“Stress management programs aimed at eliminating or modifying work stressors
often include:

Improvements in the physical work environment


Job redesign to eliminate stressors
Changes in workloads and deadlines
Structural reorganization
Changes in work schedules, more flexible hours, and sabbaticals
Management by objectives or other goal-setting programs
Greater levels of employee participation, particularly in planning changes that
affect them; and
Workshops dealing with role clarity and role analysis.”

Programs that endorse more role clarity and role analysis can be really helpful in
reducing role ambiguity and role conflict which are the two main sources of stress.
Research suggests that uncertainty and perceived lack of control increases stress
levels. When jobs are high in stressors and low in controllability, stress levels are
heighten.

UU-BBA-3012: Organizational Behaviour Page 17


‘Programs of stress management targeted at perceptions and experiences of stress
and outcomes of stress include:

Team building
Behavior modification
Career counseling and other employee assistance programs
Workshops on time management
Workshops on job burnout to help employees understand its nature and
symptoms
Training in relaxation techniques; and
Physical fitness or “wellness” programs’.

2.2.2 Wellness programs

There are three main types of wellness programs. The first type of wellness
programs were concerned with raising awareness and providing information. These
programs aim to inform employees about the consequences of unhealthy behaviour.

The second type involves the modification of employees’ lifestyle. These might
include physical fitness programs, quit smoking programs, and weight control/fitness
programs. For example according to a Monster article, “Microsoft offers education
and resources for smoking cessation, weight management, and fitness training,
Microsoft will also fund your gym memberships or fitness-related equipment and
activity purchases while also providing free Zumba classes, onsite walking and
running tracks, along with basketball, volleyball, and baseball courts. Additionally,
Microsoft holds “Know Your Numbers” health screening events that provide
employees and their spouses with screenings for heart disease, diabetes,
cholesterol, and blood pressure, along with mammograms and flu shots. The
Microsoft campus also offers health-care services, including onsite clinics,
optometrists, and pharmacists. The Microsoft CARES employee assistance program
also offers free personal and family counseling, stress management, and referrals for
child and elder care. The cafés come stocked with healthy dining options, including a
new “Real Easy Wellness” labeling system to help employees easily identify healthy
food options. Even better, though, Microsoft offers onsite grocery and dry cleaning
delivery, too. Not to mention, Microsoft has a mentorship program, employee source
groups, networks, and social groups to build a sense of community and camaraderie
among co-workers” (Martis, n.d).

The third type of wellness program is promoting the sustainability of the healthy
lifestyles that were acquired in the other programs.

In general, wellness programs are an important aspect in maintaining employees’


health and can be beneficial to individuals and to organizations.

UU-BBA-3012: Organizational Behaviour Page 18


References

Hellrieger, D., Slocum, [Link]. & Woodman, R. W. (2001). Organizational Behavior.


(9th ed.). Ohio: South-Western College Publishing.

Lewin, K. (1951). Field theory in social science: selected theoretical papers.


Retrieved from
[Link]
M7AAAAMAAJ&redir_esc=y

Martis, L. (n.d.) 7 companies with epic wellness programs. Retrieved from


[Link]

Mullins, L.J. (2007). Management and organisational behaviours. (8th ed.). Great
Britain: Pearson Education Limited.

Robbins, S.P. & Judge, T.A. (2009). Organizational Behaviour. (13th ed.).New
Jersey: Peason Prentice Hall.

Sutton, R.I. & Rafaeli, A. (1987). Characteristics of work stations as potential


occupational [Link] of Management Journal, 30, pp. 260-276.

Further reading

Aldana, S. (2018). THE 7 BEST REASONS TO HAVE A WELLNESS PROGRAM:


BENEFITS OF WELLNESS. Retrieved from
[Link]
benefits-of-wellness/

UU-BBA-3012: Organizational Behaviour Page 19

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