Unit 4: Stress Management & Organizational Change

Stress at Work (Workplace Stress)

Work stress is the physical and emotional reaction that happens when job demands do not match an employee’s capabilities, resources, or needs.
It affects:

Productivity
Health
Job satisfaction

Four Approaches to Stress

These are the four major approaches to understanding and managing stress:

The Medical Approach

Focuses on biological and physiological symptoms of stress.
Looks at how stress affects the body (e.g., high blood pressure, headaches, heart rate).
Treatment includes medication, medical tests, and lifestyle changes.

The Cognitive (Psychological) Approach

Focuses on how thinking patterns cause stress.
Stress comes from how we interpret events, not from the event itself.

Management includes:

positive thinking
counselling
CBT (Cognitive Behavioural Therapy)
reframing thoughts

The Behavioral Approach

Focuses on specific actions or behaviours related to stress.

Behavioural symptoms include:

smoking, drinking
procrastination
aggression

Management includes:

changing habits
relaxation techniques
time management
healthy behaviours

The Organizational (Structural) Approach

Stress is viewed as a result of poor organizational design.

Sources:

work overload
poor leadership
role ambiguity
lack of control

Solutions:

job redesign
better communication
leadership training
employee participation

The Stress Response (Fight or Flight Response)

When a person faces a stressful situation, the body responds automatically:

1. Alarm Stage

Body releases stress hormones (adrenaline, cortisol).
Heart rate increases, muscles tighten.
This is the fight or flight response.

2. Resistance Stage

Body tries to cope with stress.
Energy is used to balance the situation.
Prolonged resistance leads to fatigue.

3. Exhaustion Stage

If stress continues for long, body energy becomes depleted.
Leads to burnout, illness, depression, and low performance.

Sources of Work Stress (Workplace Stressors)

1. Individual-Level Stressors

Personality type (Type A personality)
Work–life imbalance
Lack of skills
Career concerns

2. Group-Level Stressors

Conflicts with coworkers
Poor team coordination
Lack of social support

3. Organizational-Level Stressors

Workload (too much or too little)
Long working hours
Role conflict / role ambiguity
Poor physical working conditions
Lack of job security

4. Environmental-Level Stressors

Economic uncertainty
Rapid technological changes
Competition
Pandemic situations

Occupational Stress

Occupational stress refers to stress directly related to one’s job or profession.

Examples

Deadlines
Pressure to perform
Unethical demands
Shift work
Monotonous work

Effects

Physical: headache, hypertension
Emotional: anxiety, depression
Behavioural: absenteeism, turnover
Organizational: low productivity, more errors

Preventive Stress Management

This involves identifying stress early and preventing it from becoming harmful.

Levels of Preventive Stress Management

1. Primary Prevention (Before Stress Occurs)

Improve workplace design
Job rotation
Time management
Training programs
Healthy organizational culture

2. Secondary Prevention (Managing Stress When It Appears)

Yoga, meditation
Counselling
Employee assistance programs (EAP)
Exercise and relaxation

3. Tertiary Prevention (Treatment After Stress Causes Damage)

Medical treatment
Stress therapy
Rehabilitation
Mental health support

Occupational Safety

Occupational safety refers to the policies, procedures, and conditions in a workplace that ensure employee health and safety.

Key Elements

Safety training
Safety equipment (PPE)
Fire and emergency procedures
Risk assessment
Accident reporting
Legal compliance (Factories Act, OSHA standards)

Objectives

Reduce accidents
Protect employee health
Maintain safe work environment

Grievance Redressal Mechanism

Grievance = complaint or dissatisfaction raised by an employee.

Process of Grievance Handling

Step 1: Employee lodges complaint to supervisor
Step 2: Supervisor investigates
Step 3: Escalation to HR or higher authority if unresolved
Step 4: Grievance Committee hearing
Step 5: Decision & solution
Step 6: Follow-up to ensure satisfaction

Methods

Grievance box
HR help desk
Online portals
Open-door policy

Change Cycles

A change cycle explains how people react to organizational change over time.

1. Denial

Employees refuse to accept the change (“This won’t happen”).

2. Resistance

Fear, anger, frustration (“Why should we change?”).

3. Exploration

Employees start exploring how to adapt (“How can I adjust?”).

4. Acceptance / Commitment

Employees accept and support change.
Performance improves.

Popular Change Cycle Models

Lewin’s Change Model (Unfreeze → Change → Refreeze)
ADKAR Model (Awareness, Desire, Knowledge, Ability, Reinforcement)
Kübler–Ross Change Curve

Types of Change

Organizations face different types of changes depending on their needs:

1. Strategic Change

Change in mission, vision, strategy, or long-term goals.
Example: shifting from offline to digital business.

2. Structural Change

Changes in organizational hierarchy, roles, reporting lines.
Example: creating new departments or merging teams.

3. Technological Change

Adoption of new technologies, automation, or digital systems.
Example: implementing ERP, AI tools, CRM systems.

4. People-Centric Change

Changes in skills, attitudes, behaviours, and culture.
Example: training, leadership development, cultural transformation.

5. Process Change

Improving workflows, procedures, and methods.
Example: using lean manufacturing or Six Sigma.

6. Transformational Change

Major overhaul of entire organization.
High impact, long-term, disruptive.
Example: complete digital transformation.

7. Incremental Change

Small, gradual improvements.
Low risk and easier to implement.

8. Reactive vs. Proactive Change

Reactive: Responds to external pressures.
Proactive: Planned in advance to prepare for the future.

Readiness for Change

Readiness for change means the organization is mentally, emotionally, and structurally prepared to accept change.

Components of Readiness

Awareness – Employees know why the change is needed.
Desire – They are motivated to support the change.
Knowledge – They understand what the change involves.
Ability – They have the skills/resources to carry it out.
Support – Management backs the change with guidance and tools.

Indicators of High Readiness

Positive attitudes
Open communication
Smooth cooperation
Willingness to learn

Indicators of Low Readiness

Fear, rumours, pushback
Lack of trust in management
Poor skills or unclear goals

Resistance to Change

Resistance is a natural reaction when employees feel threatened or uncomfortable with change.

Causes of Resistance

Fear of job loss
Habit and comfort zones
Lack of trust
Poor communication
Unclear benefits
Fear of failure
Role ambiguity
Personality differences

Diagnosis of Resistance to Change

Diagnosis means identifying why people are resisting.

Methods of Diagnosis

Interviews – talking to employees directly.
Surveys/Questionnaires – gathering opinions confidentially.
Observation – watching employee behaviour.
Feedback Meetings – group discussions.
Data Analysis – turnover, absenteeism, performance metrics.

Symptoms of Resistance

Low participation
Rumour spread
Delays in work
Complaints
Passive aggression
Open refusal

Levels of Change (Hersey & Blanchard)

Hersey & Blanchard describe three levels of change:

1. Knowledge Change

Involves providing new information or concepts.
Example: training sessions, workshops.

2. Attitudinal Change

Changing feelings, beliefs, values.
Harder than knowledge change.
Example: motivation programs, culture building.

3. Behavioural Change

Changing actual employee actions and habits.
Most difficult and long-term.
Example: performance appraisals, coaching, counselling.

Organizational Change Models

Many structured models help guide organizational change:

Popular Models

Lewin’s Change Model
Seven-Stage Model
Kotter’s 8-Step Model
ADKAR Model
Burke–Litwin Model
McKinsey 7-S Model

Diagnosis in OD

Diagnosis is the systematic process of understanding the current state of the organization before planning change.

Steps of Diagnosis

Entry and Contracting – define goals and responsibilities.
Data Collection – surveys, interviews, observation.
Data Analysis – finding patterns, problems, gaps.
Feedback – presenting findings to management.
Action Planning – designing suitable interventions.

Red Flags in Diagnosis

Red flags indicate that diagnosis may be wrong or incomplete:

1. Insufficient Data

Limited surveys, few interviews.

2. Biased Information

Employees hide problems due to fear.

3. Overlooking Key Stakeholders

Not including opinions of important departments.

4. Misinterpreting Symptoms as Causes

Example: High absenteeism may be due to poor managers (cause), not employee laziness (symptom).

5. Ignoring Cultural Issues

Culture is often the root problem but gets ignored.

6. Consultant-Client Miscommunication

Goals and expectations unclear.

7. No Follow-Up

Diagnosis not updated or verified.

Theories & Models of Planned Change

A. Lewin’s Change Model (3-Stage Model)

A simple and most widely used model:

1. Unfreeze

Prepare the organization for change.
Explain why change is necessary.
Reduce resistance.
Create urgency.

2. Change (Movement)

Implement new processes, systems, behaviours.
Provide training, support, communication.

3. Refreeze

Stabilize the change.
Reinforce new behaviours.
Update policies and culture to support change.

B. Seven-Stage Model (Lippitt, Watson & Westley)

This expands Lewin’s model to provide more detail.

1. Develop the Need for Change

Identify problems, create awareness.

2. Establish a Change Relationship

Build trust between consultant and client.

3. Diagnose the Problem

Collect and analyze data.

4. Examine Alternatives

Explore different change options.

5. Choose the Best Option

Select the most feasible solution.

6. Implement the Change

Put the action plan into practice.

7. Terminate the Helping Relationship

Consultant exits after change stabilizes.