Organisational Change

Change
It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change
- Charles Darwin

What is Organizational Change?

An alteration of an organizations environment,
structure, culture, technology, or people
A constant force An organizational reality An opportunity or a threat

Types of Organizational Change

Anticipatory changes: planned changes based
on expected situations. Reactive changes: changes made in response to unexpected situations. Incremental changes: subsystem adjustments required to keep the organization on course. Strategic changes: altering the overall shape or direction of the organization.

Types of Organizational Change.

Unplanned changes: unpredictable and
takes place naturally due to external factors. Planned change: calculated, initiated to make organisation more responsive to internal & external demand.

Forces of Change
External Forces
Govt Laws and Regulations Technology Labor market Economic Change Business Cycles Improvement/Up gradation Social Change Competition Innovation Mergers & Takeovers Market Change in
Customer Demographics, choice, etc

Forces of Change
Internal Forces
Changes in Organisational Strategies Workforce change Employee Attitude Restructuring Processes Technology

Resistance to Change
Surprise
Unannounced significant changes threaten employees sense of balance in the workplace.

Inertia
Employees have a desire to maintain a safe, secure, and predictable status quo.

Misunderstanding and lack of skills

Without introductory or remedial training, change may be perceived negatively.

Resistance to Change
Poor Timing
Other events can conspire to create resentment about a particular change.

Emotional Side Effects

Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.

Lack of Trust
Promises of improvement mean nothing if employees do not trust management.

Resistance to Change
Threat to Job Status/Security
Employees worry that any change may threaten their job or security.

Breakup of Work Group

Changes can tear apart established on-the-job social relationships.

Competing Commitments
Change can disrupt employees in their pursuit of other goals.

Resistance to Change
Fear of Failure
Employees are intimidated by change and doubt their abilities to meet new challenges.

Personality Conflicts
Managers who are disliked by their managers are poor conduits for change.

Overcoming Resistance to Change

Strategies for Overcoming Resistance to
Change
Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion

Models of Planned Change

Kurt Lewins Three-Step Process
Unfreezing Implementation of change Refreezing

Models of Planned Change

Force Field Analysis
Driving Forces are forces that push in a direction that causes change to occur. Restraining forces are forces that counter driving forces. They oppose change.

Models of Planned Change

Congruence Model
Analytical tool to assess the characteristics and functioning of the elements Evaluating the goodness of fit or how well the
elements go together

Input factors Environment Resources History

Models of Planned Change

Output Total level Group level Individual level Elements Strategy Work Informal organisation Formal organisation

Models of Planned Change

Power imbalance Task redefinition challenge

Loss of control Resistance to change

Congruence Model

Models of Planned Change

Contingency Model
Education & Communication Participation & Involvement Facilitation & Support Negotiation & Agreement Manipulation & Co-optation Explicit & Implicit Coercion

Organisational Development
Organization development is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organizations processes, using behavioral-science knowledge. - Beckhard

Organisational Development
Organization development is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. - Bennis

Organisational Development
Objectives of OD
meet organizational goals make organization a good place to work move in the direction that the world is going make organisation receptive and effective. change the organisation environment

Assumptions
Individuals
People are driven towards personal growth and development which can be attained in supportive environment. People are experts and organisations should work towards removing obstacles and rewarding success.

Assumptions
Groups
Individual goals should be integrated with group goals Work groups are best way to satisfy social and emotional needs at work Cooperation is always more effective than conflict Most people interact cooperatively with atleast one work group

Assumptions
Organisations
Traditional hierarchy structure is obsolete People are most important asset for the organisation An optimistic attitude towards people helps

Types of OD activities
For the individual For 2-3 people For teams or groups For inter-group relations For total organisation

OD Interventions
OD interventions are sets of structured activities in which selected organizational units (target groups or individuals) engage in a task or a sequence of tasks with the goals of organizational improvement and individual development. Address a wide range of specific problems
& opportunities Vehicles for causing change

OD Interventions
Diagnostic activities: fact-finding activities
designed to ascertain the state of the system. Team-building activities: activities designed to enhance the effective operation of system teams. Intergroup activities: activities designed to improve the effectiveness of interdependent groups.

OD Interventions
Survey feedback activities: activities that
rely on questionnaire surveys to generate information that is then used to identify problems and opportunities. Process consultation activities: activities that help the client to perceive, understand, and act upon process events which occur in the clients environment.

Questions???