Managing Change

20 Oct 10 Prof. Samir Pradhan

 Organizational Change

Planned Change - Unplanned Change -

change resulting change that is imposed
from a deliberate on the organization
decision to alter the and is often
organization unforeseen

Managers must be
prepared to handle both
 External Forces for Change

Globalization Workforce
Diversity

Changing Ethical
Technology Behavior
Globalization

Organizations must rethink

the most efficient ways to
Majority of
Use resources
new workers
Disseminate/gather information
will be female
Develop people
Will be from small towns
Or tier 2/3 cites
Structural
Change
&
Workforce is aging -
Mental less young workers, more
Change middle-aged
Workforce
Diversity
 Ethical
Behavior Other Organizations

Customers
Ethical
Treatment Changes
Environment in work
relationships

Society Technological
Change
Changes in
Changing organizational
Technology structure
 Internal Forces for Change

Company
Declining Crisis
Effectiveness

Changing
Changing Employee
Work Climate Expectations
 Scope of Change

Incremental Change - change of a relatively small

scope, such as making small improvements
Strategic Change - change of a larger scale, such
as organizational restructuring
Transformational Change - change in which the
organization moves to a radically different, and
sometimes unknown, future state
 The Change Agent’s Role
Change Agent - the individual or group who
undertakes the task of introducing and
managing a change in an organization

The change agent can be internal or external

 Internal Change Agents

Advantages Disadvantages
 know past history,  may be associated

political system, and with factions,

culture accused of favoritism
 must live with  may be too close to

results of change so the situation to be

will move carefully objective
 External Change Agents

Disadvantages
Advantages
 limited knowledge of
 outsider’s
organization’s history
objective view
 may be viewed with
 impartiality
suspicion

To succeed, they must be perceived as trustworthy,

be experts with proven track records, be similar to
those they are working with
 Resistance to Change

• Fear of the unknown

• Fear of loss
• Fear of failure
• Disruption of interpersonal relationships
• Personality conflicts
• Politics
• Cultural assumptions and values
 Dealing with
Resistance to Change
• Communication
– details
– rationale
• Participation in the process
– ownership
– commitment
• Empathy and support
 Reactions to Change & Managerial Interventions
Reaction Expression Managerial
Intervention
Disengagement Withdrawal Confront, identify
psychological withdrawal
from change
Disidentification Sadness, worry Explore, transfer
feeling that one’s
identity is being
threatened by change
Disenchantment Anger Neutralize,
feeling negativity or acknowledge
anger toward a change
Disorientation Confusion Explain, plan
feelings of loss and
confusion due to change
Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15.
Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.
Lewin’s Three Step Change Model

1. Unfreezing - involves encouraging individuals to

discard old behaviors by shaking up the
equilibrium state that maintains the status quo
2. Moving - new attitudes, values, and behaviors
are substituted for old ones
3. Refreezing - involves the establishment of new
attitudes, values, and behaviors as the new
status quo
 Force Field Analysis of Decision to Engage in
Exercise
Forces for change Forces for status quo
Weight gain Lack of time
Feel lethargic; No exercise facility at
have no energy work
Family history of Spouse/partner hates to
cardiovascular exercise
disease Equilibrium
No interest in physical
New, physically activity or sports
demanding job
 Applying Lewin’s Model to the
Organization
• Unfreezing: the organization eliminates
rewards for current behavior
• Moving: the organization initiates new options
and explains their rationale
• Refreezing: organizational culture & formal
reward systems encourage the new behaviors
Organizational Development (OD)

Organizational Development (OD) - a

systematic approach to organizational
improvement that applies behavioral science
theory and research in order to increase
individual and organizational well-being and
effectiveness
 Diagnosis & Needs Analysis

Diagnosis and Intervention

needs analysis

Follow-up

Ask
• What are the forces for change?
• What are the forces preserving the status quo?
• What are the most likely sources of resistance?
• What are the goals to be accomplished by change?
 OD Intervention Methods:
Organizational/Group Techniques
Survey Feedback - a widely
used method of
intervention whereby
employee attitudes are
solicited by Anonymous
questionnaire Group reporting format

No repercussions
Clear purpose
Follow up
 OD Intervention Methods:
Organizational/Group Techniques
Management by Objective -
an organization-wide
intervention technique of
joint goal setting
between employees and Initial objectives
managers Periodic progress reviews
Problem solving to
remove obstacles to
goal achievement
 OD Intervention Methods:
Organizational/Group Techniques
Quality Program - a
program that embeds
product and service
quality excellence into
the organizational
culture Raise aspirations about
product/service quality
Embed product/service
quality excellence in the
organizational culture
 OD Intervention Methods:
Organizational/Group Techniques
Team Building - an
intervention designed to
improve the
effectiveness of a work
group Seek feedback
Discuss errors
Reflect on successes & failures
Experiment with new ways of
performing
Climate of psychological safety
 OD Intervention Methods:
Organizational/Group Techniques
Large Group Interventions -
events that bring all of
the key members of a
group together in one
room for an extended
period of time Outside consultants determine
participants & goals
Participants = critical mass
supporting change
 OD Intervention Methods:
Organizational/Group Techniques
Process Consultation - an
OD method that helps
managers and employers
improve the processes Outside consultant:
Enters organization
that are used in Defines the relationship
organizations Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
 OD Intervention Methods:
Individual-Focused Techniques
Skills Training -
increasing the job
knowledge, skills,
and abilities that are
necessary to do a job
In formal classroom settings
effectively On the job (Continual updating)
 OD Intervention Methods:
Individual-Focused Techniques
Sensitivity Training - an
intervention designed to
help individuals under-
stand how their behaviorOutside trainer who
affects others intervenes only to move
the group forward.
Training can:
• help employees
understand each other
•recognize their own feelings
•improve communication
 OD Intervention Methods:
Individual-Focused Techniques
Management
Development Training
- a host of techniques
for enhancing
managers’ skills in anVerbal information
organization Intellectual skills
Attitudes
Development
 OD Intervention Methods:
Individual-Focused Techniques
Role Negotiation - a
technique whereby
individuals meet and
clarify their
psychological contract Outcomes:
• Better understanding of
what each can be
expected to give & receive
• Less ambiguity
 OD Intervention Methods:
Individual-Focused Techniques
Job Redesign - an OD
intervention method
that alters jobs to
improve the fit
between individual
Realign task demands and
skills and the demands
individual capabilities
of the job Redesign jobs to fit new
techniques or organization
structures
 OD Intervention Methods:
Individual-Focused Techniques
Ex. Stress reduction education,
Health Promotion employee assistance
Programs
Match individual’s career
Career Planning aspirations with organizational
opportunities
 Ethical Considerations in
Organizational Development

• Selection of the OD method

• Voluntary participation
• Confidentiality
• Potential for manipulation by the change
agent