M-HROD, SEM-II

UNIVERSITY OF DELHI

MODULE-3: Organizational
Change, Renewal, and
Development

Faculty: Seep Sethi

M-HROD, SEM-II
UNIVERSITY OF DELHI

SYLLABUS
Planned change,

Kurt Lewins Model of change: Force Field Analysis

Organizational Growth and its implication for change.
Change Cycles: Power and Participative Types.
Organizational Renewal and Re-energizing.
Role of creativity and innovation-Institution Building.

M-HROD, SEM-II
UNIVERSITY OF DELHI

PLANNED CHANGE
Three theories of planned change:
Lewins change model- Refer to unit-1.

Action Research model- Refer to unit-1.

The Positive model

M-HROD, SEM-II
UNIVERSITY OF DELHI

POSITIVE MODEL
Positive model focuses on what the organization is doing
right, instead of focusing on organizations problem and its
solutions.
It helps members understand their organization when it is
working at its best and builds off capabilities to achieve even
better results.
It focuses on positive dynamics in organizations that give rise
to extraordinary outcomes.
Positive model has been applied to planned change through
Appreciative Inquiry.

M-HROD, SEM-II
UNIVERSITY OF DELHI

AI promotes social constructionism and infuses a positive

value orientation into analyzing and changing organizations.
AI encourages positive orientation to conceive and manage
change.
The positive model of planned change involves 5 phases:
Initiate the inquiry.
Inquire into Best practices.
Discover the Themes.
Envision a Preferred future.
Design and deliver ways to create the future.

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

FORCE FIELD ANALYSIS

Refer Unit-1

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UNIVERSITY OF DELHI

MODEL
Desired
state

Restraining
forces

Status quo
Driving
forces

Time

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

CHANGE CYCLES
LEVELS OF CHANGE:
Individual Level
Knowledge change.
Attitude change.
Behavior change.
Group Level
Organization Level

M-HROD, SEM-II
UNIVERSITY OF DELHI

Levels of change become very significant in case of change

cycles.
Two types of change cycle:
Participative change cycle.
Power/ Directive change cycle.

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

PARTICIPATIVE CYCLE
Appropriate when groups and individuals are achievement
oriented, self motivated, seek responsibility and have a high
degree of knowledge and experience.
Participative change cycles tend to be effective when
implemented by leaders having personal power.
Participative change is slow and evolutionary in nature,
however its results are long lasting.

M-HROD, SEM-II
UNIVERSITY OF DELHI

DIRECTIVE/ POWER CYCLE

Appropriate and productive with individuals and group who
are not ambitious, dependent and are unwilling to take new
responsibilities unless forced.
Directive change cycles tend to be effective when
implemented by leaders having position power.
Directive change is implemented speedily however tends to
be volatile.

M-HROD, SEM-II
UNIVERSITY OF DELHI

ORAGNIZATION RENEWAL
Organization renewal requires that top management make
adaptive changes to the environment.
It is defined as the ongoing process of building innovation
and adaptation into the organization.
Organization renewal is an approach to preventing corporate
entropy.

For most organization, it has been observed the more effective

they have been in past the more likely they are to resist
change.

M-HROD, SEM-II
UNIVERSITY OF DELHI

Stability is necessary but is a major obstruction to change.

Organizations structure, procedures, and relationships
continue to reinforce prior patterns of behavior and to resist
new ones.
Thus there is an urge that organizations must develop an
adaptive orientation.
Stability and adaptation are essential to continued survival
and growth.

M-HROD, SEM-II
UNIVERSITY OF DELHI

KEY FACTORS IN RENEWAL

Informed opportunism.
Direction and empowerment.
Friendly facts.
A different mirror.
Teamwork and trust.
Stability in motion.
Attitudes and attention.
Causes and commitment.

M-HROD, SEM-II
UNIVERSITY OF DELHI

Approaches to Change
Two dimensions:
Adaptive orientation.
Degree of adaptiveness or flexibility

Environmental stability.
Stable Environment.
Hyper-turbulent environment.

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

Sluggish Thermostat: (Stable environment, Low adaptation)

Term originated by David Miller.
Refers to organization that resist change until cost tradeoffs favor it.
Implies management style based on low risk, with
formalized procedure and a high degree of structure and
control.
Organizations have stable goals and highly centralized
structure.
Value seniority more than performance.
Tendency to value tradition: Do things as they have always
been done.

M-HROD, SEM-II
UNIVERSITY OF DELHI

Satisficing Management: (Stable environment, High

Adaptation)
Management-Adequate and average.
Planning and decision-making concentrated at top.
Change is accomplished at the rate good enough to keep
up with the industry.
Reactive Management (Hyper-turbulent environment, Low
adaptation:
Reacting to stimulus after conditions in the environment
changes.
Short-term, crisis type of adaptation.
Replacement of key people and hasty reorganization.

M-HROD, SEM-II
UNIVERSITY OF DELHI

Renewing/ Transformational Management: (Hyperturbulent environment, High Adaptation).

Proactively taking advantage of new opportunity and
innovation.
Deal with future conditions before conditions occur.
Faster developing new ideas and more participative.
More responsive to competitive changes.
Renewing manger constantly fight entropy and proactively
builds future.

M-HROD, SEM-II
UNIVERSITY OF DELHI

ORGANIZATION GROWTH
Organizations feel compelled to grow, but faces the dilemma.

LARGE

Economies of Scale.
Global reach.
Vertical hierarchy.
Complex.
Stable market.
Organization men

VS

SMALL

Responsive, flexible.
Regional reach.
Flat Structure.
Simple.
Niche Finding.
Entrepreneurs

M-HROD, SEM-II
UNIVERSITY OF DELHI

Organization Life cycle is a useful way to think about organizational

growth and change.
OLC suggest that organizations are born, grow older and eventually
die.
Organization structure, leadership style, and administrative systems
follow a fairly predictable pattern through stages in the OLC.
OLC suggests the 4 stages that characterize Organization
development:
Entrepreneurial stage
Collectivity stage.
Formalization stage.
Elaboration stage.

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

M-HROD, SEM-II
UNIVERSITY OF DELHI

INSTITUTION BUILDING
ORGANIZATION VS. INSTITUTION:
Organizations aim at maintenance of internal order and
efficiency in goal realization, institutions extend beyond these
goals.
Institutions have relatively more permanence than
organizations.
Organizations are organic, where as Institutions are more
enduring.
They perform services and functions which are valued in the
community or society and also play the roles of a change
inducing, a change-protecting agent within the community.
While all institutions basically start as organizations, it is only
a few organizations that can survive, grow and adopt to
achieve finally an institution status.

M-HROD, SEM-II
UNIVERSITY OF DELHI

INSTITUTION- Defined
Institution may be defined as a responsive, adaptive
organization which is a product of social needs and pressures.
It is a part of the larger system i.e. the community or the
society.

It is a forward looking, adaptive and proactive part of the

community.
Institutions are defined as organizations which incorporate,
foster and protect normative relationships and action patterns
and perform functions and services which are valued in the
environment.

M-HROD, SEM-II
UNIVERSITY OF DELHI

INSTITUTION BUILDING
Institution building refers to transforming an organization into
an integrated organic part of the community, so that the
organization can effectively play the role of projecting new
values and become an agent of change in the community.
Institution building refers to the process aspects of:
Establishing or transforming an organization;
Making an organization an integrated or organic part of the
community;
The maintenance role of adopting or adjusting to the existing
values;
Projecting new values through its own efforts of self growth
and organizational renewal, and thus;
the proactive role of bringing change contributing to change
in the existing values of needs of the society.

M-HROD, SEM-II
UNIVERSITY OF DELHI

FACTORS INFLUENCING
INSTITUTION BUILDING

Goals or Objectives.
People: Task maturity and Psychological maturity
Organization structure and design.
Organization culture.
Top management style.
Ability to establish effective, operative linkages with external
environment.

M-HROD, SEM-II
UNIVERSITY OF DELHI

DIMENSIONS OF INSTITUTION
BUILDING
Two of the significant dimensions of institution building are:
Self-renewal, and
Innovation:

M-HROD, SEM-II
UNIVERSITY OF DELHI

SELF RENEWAL
It refers to concentrated and continuing efforts on the part of
the organization to
Relate its technology, structure and people to problems
confronting it from political, economic and social changes.

The act of self examination from time to time forms the basis
of organization renewal

M-HROD, SEM-II
UNIVERSITY OF DELHI

The different stage in self-renewal process are :

Sensing of change.
Identification of the implication of these changes.
Deciding an appropriate plan of action
Introducing the change.
Stabilizing the change
Obtaining feedback

M-HROD, SEM-II
UNIVERSITY OF DELHI

INNOVATION
It is defined as a new idea or practice or approach that helps
the system or the individual to deal effectively with a problem
or change.
Innovation is possible if the organization has a conducive
environment for it to occur such as openness flexibility,
decentralization etc.
Some characteristic features of innovation are :
Innovative changes should be thought of in a system
perspective.

M-HROD, SEM-II
UNIVERSITY OF DELHI

It thrives in a collaborative rather than a competitive

environment.
Acceptability of innovative change depends upon:
Its relative advantage over the existing ideas or
approaches or other suggested ideas or approaches.
Compatibility with existing norms, values and work
behaviors.
Simplicity both in concept and practice.
Utilitarian value for either coping with external
demands or obtaining the desired results and the stakes
involved.
Compatibility with existing skills