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Module IV:

Organizational Change

A Presentation by

Mr. Indranil Mutsuddi


What is Organizational Change

Organizational change is the process by which


organizations move from their present state to
desired state to increase their effectiveness
Characteristics of Organizational
Change
 Change is vital so as to avoid stagnation.
 Change is a process not an event
 Change is normal & constant
 Change is fast & likely to increase further in the present
competitive business
 Change is both directive as well as participative
 It is incremental
 It is an interdependent function
Change Management

Historical
&
Political
Evolution

Change

People Mgt & Orgn.

Corporate Culture
Levels of Change

 Individual-level Changes:
 Changes in Job assignments
 Relocation
 Internal Mobility
 Job enrichment, Job Enlargement, Job Rotation
 Job Re-designing, Job-structuring
 Skill/Competency Development
 Changes in behavior, attitudes
 Performance enhancement
Levels of Change

 Group Level Changes:


 Work flow changes
 Job designs
 Social organization
 Changes in influence (authority) & Status systems
 Changes in communication & networking patterns
 Organization of groups (formal/informal)
 Team Building
Levels of Change

 Organizational Level Changes:


 Structure
 Process
 Systems
 Strategic Perspective
 Policy level changes
 Organization Development
Types of Change

Systems Processes

Change through
TQM

Management People

Re-engineering
Components of Re-engineering

Business processes Mgt & Evaluation

Re-engineering

Values & beliefs Jobs & Structures


Reasons for changes

 External Causes:
 Globalization
 Workforce Diversity
 Technological Change
 Managing ethical behavior
 Govt. Policies
 Competition
 Scarcity of resources
Reasons for changes

 Internal causes:
 Organizational stagnation
 Decreasing performance effectiveness
 Crisis
 Changing employee expectations
 Change in the work climate
Resistance of Change
Organizational level: Group-level:

• Structure • Composition
• Culture • Group Norms
• Strategy • Cohesiveness
• Over-determination • Groupthink

Change
Individual level:

• Cognitive Biases
Sub-unit-level: • Uncertainty
• Fear of Loss
• Differences in orientation • Selective participation
• Power & Conflict • habit
• Logical Reasoning
Models of Change

Lewin’s Change Model

Unfreezing Moving Refreezing

Reducing the Developing Reinforcing


Forces for New attitudes, New values
Status quo Values & Attitudes &
Behaviors behaviors
Models of Change
Resistance to Change Resistance to Change
Level of Performance

New Status Quo


Change

Status Quo

Forces for Change Forces for Change

Time
Lewin’s Force Field Model of Change
The Change Process
 Becoming aware of the pressure for change
 Recognizing the need for change
 Diagnosing the problem
 Planning the change
 Implementing the change
 Managing Resistance to the change
 Following-up the change
Organizational Development
 OD comprises a special set of organizational change
process.
 It is a planned, systematic process of organizational change
based on the behavioral science, research & theory.

Goal of OD:

 The goal of OD is to create adaptive organizations capable of


transforming & reinvesting themselves, so as to remain
effective.
Characteristics of OD

 Planned change
 Comprehensive change
 Emphasis on work groups/teams
 Long-term change process
 Participation of a change agent/facilitator
 Emphasis on intervention
 Collaborative management
 Organizational Culture
 Action Research
Pre-requisites of OD

 Perceptions of Organizational problems by key people


 Introduction of a change agent/facilitator
 Top management commitment
 Participation & commitment of work teams & leaders
 Operationalizing of Action Research
 Earlier success stemming ways for future successes
 An open, educational philosophy about the theory &
technology of OD
Pre-requisites of OD

 Acknowledgement of the congruency between OD & many


previous effective management practices.
 Involvement of personnel & IR, as well as HR executives
in the OD process
 Development of internal OD resources & facilitative skills
 Effective management of OD process & stabilization of
changes
 Monitoring the OD process & assessing the results on an
on-going basis.
Situations appropriate for OD

 Organization’s managerial strategy (norms, values, power


structures etc)
 Organizational culture
 Inter-group collaborations
 Organizational structure; Organizational roles
 Motivational levels of employees
 Trust & support among organizational members
 Synergistic solutions to problems
Action Research

 A primary change process used in most OD programs


 It’s a data based, problem-solving process of organizational
change.

Advantages of Action Research:

 Careful diagnosis of the current situation


 Involvement of the employees in the change process
Steps of Action Research

 Gathering information about problems, concerns &


needed changes from organizational members
 Organizing this information in some meaningful way &
sharing the same with the team involved in the change
process.
 Planning & carrying out specific actions to correct
identified problems.