Organizational Change

Learning Objective
2

Introduction
Forces of change
Types of Change
Force Field Model of change
Resistance to change
Responses to change

What is Change????

The term change refers to any alteration

which occurs in the overall work environment
of an organization.

Organizational Change

Organizational change
occurs when business
strategies or major sections
of an organization are
altered.
It is defined as a change
that has significant effects
on the way work is
performed
in
an
organization.

Forces of Changes
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Forces for change are of two types

External forces
Internal forces

FORCES OF CHANGE
6

Procedure

Policy

Political &
Legal Forces

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N
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L

E
X
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N
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Systems

Style

Social
Changes

Change in
Marketing
Conditions

Technological
changes

Internal Forces
Change in the top management:
system, structure and
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processes of the organization.

Change in size of the organization: internal structure

and complexity of the organization.

Performance gaps: targets and results,
Employee needs and values: policies with change in

needs and values of its employees.

External Forces
Technology

Business scenario:

the needs
and demands of customers,
suppliers and other stakeholders
is also increasing..

Environmental factors: Economic,

political and demographic factors

TYPES OF CHANGE
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Planned change
Unplanned Change
Incremental change
Fundamental Change

Types of Changes
Planned change:- When organization initiate change
activities deliberately and consciously in order to
accomplish certain organizational goals, it is known
as planned change or managed change.
Unplanned Change:- The change that occur in
organization suddenly without any significant effort
or involvement on the part of the employees or
management are called unplanned change

Types of Changes
Incremental change:- When the new state of things
have the same basic nature as the old state of things,
except for some moderate adjustments as the existing
structure of the organization , the change is known as
incremental change.
Fundamental Change:-When the new state of things
have a completely different nature from the old state
of things, the change is known as fundamental or
second order change.

LEWINs three- step model

12

Kurt Lewin (founder of modern social

psychology)
He suggested that organization should

use three steps to introduce permanent

change.

LEWINs three- step model

13

Unfreeze:- Employee are

educated about the external and

internal factors that make
change imperative.
Awareness

Benefits

LEWINs three- step model

14

Movement to change:- After resisting employees

are convinces or prepared for change , the actual

change process begin. This involve doing away old
practices and adopting the new methods
Ex:- Advanced equipment are installed.

LEWINs three- step model

15

Refreeze:- After change implemented it is to be

assimilated in organization process. These three
steps involve reinforcing change so that org. does not
revert to old state of things.
Ex:- Change process involves acquiring new skill and
behavior then they Should to do the role play before
returning to their jobs.

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Organizational Change: Process

Problem Recognition

Identify the causes of problem

Implementing the change

Generating motivation for change

Managing the transition state

Supporting the Change

Evaluating the Change

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Resistance to Change
It must be an objective for management
To study the causes and sources of resistance

to change.
To overcome this resistance.
To build in his own organization an awareness
of change
To develop an ability to forecast change
To form an attitude to welcome it

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Why do people resist to change?????

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Resistance to change may be of two types:

Individual resistance
Organizational resistance

Individual Resistance
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Selective Information Processing

Fear of unknown
Economic Factors
Security
Habit
Social factors
Peer pressure.

Organizational Resistance
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Change may bring some threat to the

organization power. Therefore, people

try to resist change.

Organizational politics.
Climate of mistrust.
Non-reinforcing reward systems.
Limited focus on change
Group Inertia
Threat to Expertise
Limitation of resources

Individual source of resistance

Selective Information Processing
Individual form their own perceptions about people and the

world around them and like to stick to these perceptions.

They do no like to receive any information that contradicts
their perceptions
They hear only that information that they want to and
ignore the rest that contradicts their perceptual world.

Fear of unknown
People associate change with uncertainty.
They are anxious about their ability to adapt to the

requirement of new system

For example: Computer replaced manual system.

Economic Factors
Employees resist to change if it is likely to decrease

their income or sources of earnings.

For example :- Job redesigning

Security
People are generally concerned about their security

and resist any change that threatens their safety and

security.

For example:- Introduction of new

machinery in organization that are likely to replace
the manual labor.

Habit

When the change is implemented , it may require

employees to for go or change some of their habits,

which they resist to change.

Social factors
People resist change when they anticipate that the

change might affect their status in the society

adversely

For example :- Job redesigning

Peer pressure.

Often, we utilize some kind of informal punishment

for colleagues who supports change which others not

support. This can affect on appearing and increasing
resistance to change;

Organization resistance
Organizational politics.
Some resist change as a political strategy to prove

that the decision is wrong. They may also resist to

show that the person leading the change is not up to
the task. They are committed to seeing the change
effort fail.

Climate of mistrust.
Meaningful organizational change does not occur in

a climate of mistrust. Trust, involves faith in the

intentions and behavior of others. Mutual mistrust
will doom an otherwise well-conceived change
initiative to failure.

Non-reinforcing reward systems.

There is a common business saying that managers get what

they reward. Organizational stakeholders will resist change

when they do not see any rewards. When working with
managers, I will ask them, Where is the reward to
employees for implementing your change? Without a
reward, there is no motivation to support the change over
the long term. This often means that organizational reward
systems must be altered to support the change that
management wants to implement. The change does not
have to always be major or costly.

Limited focus on change

An organization consists of many subsystems that

are interrelated and interdependent . Due to this

interdependency of subsystems, change in one
subsystem will affect the other subsystems as well.

Group Inertia

Sometimes group norms may prevent an

individual from adopting change.

For Example:- An individual may favor a

proposal of change from management but the may
not accept it if the union is not in favor in which
he is a member.

Threat to Expertise

The expertise of specialized group may be threatened

by changes in organization pattern.

For example:- A general manager may prefer to

make crucial decisions himself rather than
delegating them to his subordinates due to fear of
decentralization.

Overcoming Resistance to change

Participation of Employees.
Planning for change
Protection of their Interests
Negotiation
Group Dynamics
Cautions and Slow

Introduction

35

Models of Change
Change models , framework and processes help

people and organization to diagnose situations and

then make change happen.
These are the models for Change:Lewins Three Step change Model
Edgar Huses seven stages Model of of Change
John P Kotter's 'eight steps to successful change'

Edgar Huses seven stages Model of of

Change
1.In 1980, Edgar Huse proposed a seven-stage OD

model based upon the original three-stage model of

Lewin
2.Scouting - Where representatives from the
organization meet with the OD consultant to identify
and discuss the need for change. The change agent and
client jointly explore issues to elicit the problems in
need of attention.
3.Entry - This stage involves the development of, and
mutual agreement

Edgar Huses seven stages Model of of

Change

4.Diagnosis - Here, the consultant diagnoses the

underlying organizational problems based upon

their previous knowledge and training. This
stage involves the identification of specific
improvement goals and a planned intervention
strategy.
5. Planning - A detailed series of intervention
techniques and actions are brought together into
a timetable or project plan for the change
process.

Edgar Huses seven stages Model of Change

6. Action - The intervention is carried out according to the

agreed plans. Previously established action steps are

implemented.
7. Stabilization & Evaluation - The stage of 'refreezing' the
system. Newly implemented codes of action, practices and
systems are absorbed into everyday routines. Evaluation is
conducted to determine the success of the change process
and any need for further action is established

John P Kotter's 'eight steps to

successful change
Kotter's eight step change model can be summarized

as
1. Step 1: Create Urgency - inspire people to
move, make objectives real and relevant.
Step 2 Build the guiding team - get the right people
in place with the right emotional commitment, and
the right mix of skills and levels.
,

John P Kotter's 'eight steps to

successful change
3.Get the vision right - get the team to establish a

simple vision and strategy, focus on emotional and

creative aspects
4.Communicate for buy-in - Involve as many people
as possible, communicate the essentials, simply,
and to appeal and respond to people's needs. Declutter communications - make technology work for
you rather than against.

John P Kotter's 'eight steps to successful

change
5.Empower action - Remove obstacles, enable constructive

feedback and lots of support from leaders - reward and

recognize progress and achievements.
6.Create short-term wins - Nothing motivates more than
success. Give your company a taste of victory early in the
change process. Within a short time frame (this could be a
month or a year, depending on the type of change), you'll
want to have results that your staff can see. Without this,
critics and negative thinkers might hurt your progress.

John P Kotter's 'eight steps to successful

change
Create short-term targets not just one long-term

goal. You want each smaller target to be achievable,

with little room for failure. Your change team may
have to work very hard to come up with these
targets, but each "win" that you produce can further
motivate the entire staff.

John P Kotter's 'eight steps to successful

change
7.Don't let up - Foster and encourage determination

and persistence ongoing change - encourage

ongoing progress reporting - highlight achieved and
future milestones.
8. Make change stick - Reinforce the value of
successful change via recruitment, promotion, new
change leaders. Weave change into culture.

John P Kotter's 'eight steps to successful

change
Make continuous efforts to ensure that the change is

seen in every aspect of your organization. This will

help give that change a solid place in your
organization's culture.
It's also important that your company's leaders
continue to support the change. This includes
existing staff and new leaders who are brought in. If
you lose the support of these people, you might end
up back where you started.

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