Organization
Organization Change
Change
Organizational change is the process
through which an organisation moves from
the present state to an improved state.
Change management comprises three
elements: evolution of the firm, its
management and organization, and the
people who work for it.
Three levels of change are observed:
individual
level,
group
level,
and
organisations.
Nature
Nature of
of Change
Change
vital if a company were to avoid stagnation;
a process and not an event;
normal and constant;
fast and is likely to increase further in the present competitive
business;
directive, that is, implemented by top down management or
participative, that is, involving those parties impacted by change;
is natural, that is, evolutionary or adaptive, that is, a reaction to
external circumstances and pressures;
is incremental, that is continuous small changes or step, that is,
radical shift from current to new processes; and
is interdependent on organizational environment or culture. 3
Types
Types of
of change
change
Evolutionary change and revolutionary
change
Reactive change & proactive change
Forces
Forces for
for Change
Change
Force
Examples
Nature of the workforce
More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology
Faster, cheaper, and more mobile computers
On-line music sharing
Deciphering of the human genetic code
Economic shocks
Rise and fall of stocks
Global economy slowdown
Competition
Global competitors
Mergers and consolidations
Growth of e-commerce
Forces
Forces for
for Change
Change
Force
Examples
Social trends
Internet chat rooms
Retirement of Baby Boomers
Rise in discount and big box retailers
World politics
IraqU.S. war
Opening of markets in China
War on terrorism following 9/11/01
Outsourcing noise
Managing
Managing Planned
Planned Change
Change
Change
Making things
different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume
the responsibility for
managing change
activities.
Goals
Goalsof
ofPlanned
Planned
Change:
Change:
Improving
Improvingthe
theability
abilityof
of
the
theorganization
organizationto
to
adapt
adaptto
tochanges
changesininits
its
environment.
environment.
Changing
Changingthe
thebehavior
behavior
of
ofindividuals
individualsand
and
groups
groupsininthe
the
organization.
organization.
Resistance
Resistance to
to Change
Change
Forms of Resistance to Change
Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism
Deferred resistance clouds the link between source and
reaction
Sources
Sources of
of Resistance
Resistance to
to Change
Change
Sources
Sources of
of Individual
Individual Resistance
Resistance to
to Change
Change
Sources
Sources of
of Organizational
Organizational Resistance
Resistance to
to
Change
Change
Overcoming
Overcoming Resistance
Resistance to
to Change
Change
Tactics
Tacticsfor
fordealing
dealingwith
withresistance
resistance
to
tochange:
change:
Education
Educationand
andcommunication
communication
Participation
Participation
Facilitation
Facilitationand
andsupport
support
Negotiation
Negotiation
Manipulation
Manipulationand
andcooptation
cooptation
Coercion
Coercion
Tactics
Tactics for
for Overcoming
Overcoming Resistance
Resistance to
to Change
Change
Education and Communication
Show those effected the logic behind the change
Participation
Participation in the decision process lessens
resistance
Building Support and Commitment
Counseling, therapy, or new-skills training
Implementing Change Fairly
Be consistent and procedurally fair
Manipulation and Cooptation
Spinning the message to gain cooperation
Selecting people who accept change
Hire people who enjoy change in the first place
Coercion
Direct threats and force
Six Methods for Dealing With Resistance to Change
The
The Politics
Politics of
of Change
Change
Impetus for change is likely to come from outside
change agents.
Internal change agents are most threatened by
their loss of status in the organization.
Long-time power holders tend to implement only
incremental change.
The outcomes of power struggles in the
organization will determine the speed and quality
of change.
Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model
Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model
Unfreezing
Change efforts to overcome the pressures of
both individual resistance and group conformity
Refreezing
Stabilizing a change intervention by balancing
driving and restraining forces
Force
Force field
field analysis
analysis
Driving Forces
Forces that direct behavior away from the status
quo.
Restraining Forces
Forces that hinder movement from the existing
equilibrium.
Unfreezing
Unfreezing the
the Status
Status Quo
Quo
The
The Six-Stage
Six-Stage Change
Change Process
Process
Kotters
KottersEight-Step
Eight-StepPlan
Planfor
forImplementing
ImplementingChange
Change
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency by creating a compelling reason
for why change is needed.
Form a coalition with enough power to lead the change.
Create a new vision to direct the change and strategies for
achieving the vision.
Communicate the vision throughout the organization.
Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem
solving.
Plan for, create, and reward short-term wins that move the
organization toward the new vision.
Consolidate improvements, reassess changes, and make
necessary adjustments in the new programs.
Reinforce the changes by demonstrating the relationship
between new behaviors and organizational success.
Kotters
Kotters Eight-Step
Eight-Step Plan
Plan
Builds from Lewins Model
To implement change:
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency
Form a coalition
Unfreezing
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term winsMovement
Consolidate, reassess, and adjust
Refreezing
Reinforce the changes
