Module-2

Organizationa
l
Change
 Organizational Change can be defined
as,
 a concerted (determined), planned effort
to increase Organizational effectiveness
help thorough changes in Organization
dynamics using behavioral science
knowledge
 to make different in some particular
 to make radically different
 to give a different position, course, or direction to
 to replace with another
 to make a shift from one to another
 to exchange for an equivalent sum or comparable item
 to undergo a modification of
 to undergo transformation, transition or substitution
TYPE OF CHANGES:
 Following are examples of candidates for Change
Management. Computing Systems hardware:
Hardware changes:
Additions, deletions, reconfigurations, relocations, or
preventative or emergency maintenance.
 Computing Systems software:
PTF's, product releases, versions, table changes,
tuning, alterations to libraries, catalogs,
monitors, traps, or changes to priority mechanisms.
 Environmental:
Power, UPS system, generators, air conditioning,
chilled water, electrical work, facility
maintenance, security systems, fire control systems.
 Network Systems:
Additions, modifications, lines, modems routers,
network access, controllers, servers, protocol
converters. Software components either distributed or
centralized, bitnet tables,
router software, servers.
 Operating Procedures:
Changes in equipment downtime schedules, planned
system outages, changes in delivering services, or
changes to service levels.
 Workstations and Public Clusters:
Changes in hours of availability, hardware
configurations, operating systems, utilities,
applications including release levels or versions,
installations or de-installations of systems, servers.
 Change management means to plan,
initiate, realize, control, and finally
stabilize change processes on both,
corporate and personal level.
 Change may cover such diverse
problems as for example strategic
direction or personal development
programs for staff.
 Examples of organization-wide change
might include a change in mission,
restructuring operations
 (e.g., restructuring to self-managed
teams, layoffs, etc.),
 new technologies, mergers, major
collaborations, "rightsizing"
Why is it Important to Adapt to Change?

 Individuals, teams, or organizations that

do not adapt to change in timely ways
are unlikely to survive.
What is Change?

 Coping process of moving from a

unsatisfactory present state to a desired
state
 Organizationalchange management
is the process of developing a
planned approach to change in an
organization.
 Any variation or alteration; a passing
from one state or form to another
 A passing from one phase to another
If you force change on people
normally problems arise.
Change must be realistic,
achievable and measurable.
These aspects are especially
relevant to managing personal
change.
Before starting organizational change, ask yourself:

 What do we want to achieve with this change,

why, and
 how will we know that the change has been
achieved?
 Who is affected by this change, and how will
they react to it?
 How much of this change can we achieve
ourselves, and
 what parts of the change do we need help
with?
 Typicallythe objective is to maximize
the collective benefits for all people
involved in the change and minimize
the risk of failure of implementing the
change.
 To alter; to make different; to cause to
pass from one state to another; as, to
change the position, character, or
appearance of a thing (process or
activity)
 To alter by substituting something else
for, or by giving up for something else
 Thediscipline of change management
deals primarily with the human aspect of
change, and is therefore related to pure
and industrial psychology.
 Typically,the concept of organizational
change is in regard to organization-wide
change, as opposed to smaller changes
such as adding a new person, modifying
a program, etc.
 new programs such as Total Quality
Management, re-engineering, etc. Some
experts refer to organizational
transformation. Often this term
designates a fundamental and radical
reorientation in the way the organization
operates.
 Nature of change
 Change is defined as to make or
become different, give or begin to have a
different form.
 Change means dissatisfaction with the
old and belief in the new.
 Change underlies a qualitatively different
way of perceiving, thinking and behaving
and to improve over the past and
present.
 Nature of change

 change may be conceived as continuous

and intrinsic to an organization.
 Change as patterned and predictable
 Change and complex and unpredictable.
 The rate of change is faster than our
abilities to comprehend and cope up
with.
 Nature of change

 Change may be said to take place at

three levels:
 micro changes (personal lives)
 Organizational level (institution influence
people lives)
 Macro level (people, community &
society)
 Forces of change
Change customer
needs and
Political forces
preferences

System
dynamics
Increased Managerial and
Technological
Economic
global administrative
changes processes
forces
competition

Organizational design Individual and

and structure group
expectations

Government forces Technological forces

 Political forces

 The transition of east European nations

to democracy and a market economy.
 Collapse of soviet Russia
 Unification Germany
 Iraq crisis, Gulf War
 Economic forces

 The uncertainty about future trends in

the economy is a major cause of change
 Fluctuating bank interest rate
 Uncertainty arising out of inflation
 Low capital investment (Iron ore exp)
 Banking reforms- Crude oil Prices
 Market conditions
 Capital market structure
 Technological forces

 Tech advancements- online Trading

 Computer and technology
 Tele communications & its IMPACT
 Singapore & its state of economy (Tech)
 Information technology
 Bio science
 Government forces

 Planning (1929 depression)

 Deregulation
 Foreign exchange
 Antitrust laws
 Protectionism (Indigenous co.)
 Intellectual property rights
Increased global competition

 Makingtheir presence felt globally

 IBM,SONY,MICROSOFT,GM
Changing customer needs and preferences

 Continuous change in needs &

Preferences.
 Intel plans to convert desktop comp in to
entertainment hub using new
Technology.
 Sony initiative CD-DVD works
 Digital video recorder
 Internal forces of change

System dynamics
Human behavior,
Constant and Dynamic (Many) interactions
Relationship among subsystem (Cordial)
Internal politics, group/ ind Behavior
Formal & Informal relationships
Inadequacy of Admin Process

 Set of procedures and rules

 With changing times and the revision of
orgl goals and objectives, some existing
rules, procedure and regulations could
be at a variance with the demands of
reality.
Realization of their inadequacy is
force that induces CHANGE
Individual and group expectations

 Each one aiming to satisfy one’s own

needs and aspirations.
 Desires are keep changing
 Ambition and Aspiration
 Fear and insecurities and frustrations
operate as inter individual process.
 Structure focused change
 Orgn make changes to reduce cost and
increase profitability.
 Structural change can take a form of
Downsizing, decentralization, job
redesign.
 JP Morgan & HSBC have laid off some
employees as a part of restructuring
Indian operations.
 (forced many co. to become lean)
Technology focused change

 Change that impacts the actual process

of transforming input in to output is
referred to as change.
 CNC Machine
 CAD / CAM
 Robotics
 Person focused change

 Concerned with HR planning and

enhancing employee competence and
performance.
 Redefining orgl goals and Strategy
 Structural change in terms of expansion
 Resizing-all these have implications for
HRM
 Person focused change

 Introduction of new technology result in

person focused change.
 When employees cannot be trained
further. (replacement)
 Skilled person and redesigning the job
 Work is done in cost effective ways
 Profitability

A significant change that has

necessitated quite a number of orgn. To
restructure and reengineer themselves
relate to profitability issues such as loss
of revenue and low productivity.
 Resource constraints

 MMM personnel, technology.

 Non availability of these can be a
powerful force for any orgn.
 The principles of Change

 Honesty: It forms critical part of the

process of OC

 Aims: Without the knowledge of OC

Aims, people cannot participate.
 Participation: The more the people
participate and more they will be
committed to getting results.

 Recognition : People value recognition

for their change mgt endeavors more
than material rewards.
 Team working and inter personal
relationship : they form a fundamental
part, if the change management
process is to be successful
 Vision of Change : for unity to be
maintained throughout the change
management process ,people need a
clearly defined vision of the change aim.
 Types of change

 Happened change
Unpredictable. Occurs due to external
forces.
 Reactive change

Changes that are clearly in response to

an event or a series of events are
termed reactive.
 Anticipatory change

Change carried out in expectation of an

event or a series of events is called
anticipatory change. Failing to
anticipate future events can have
destructive consequences for
organizations.
 Planned change
 Planned change or developmental
change is undertaken to improve upon
the current ways of operating.
 It is a calculated change, initiated to
achieve a certain desirable
output/performance and to make the
organization to more responsive to
internal and external demands.
 Incremental change
 Change directed at micro level and focused
on units, sub units and components within an
organization are termed as incremental
changes.
 It also provides an opportunity to learn form
its own mistake and experiences.
 A failed incremental change will cause less
damage to a total system than unsuccessful
large scale implementation.
Operational changes
This is necessitated when an
organization needs to improve the
quality of its products or services due
to external competition, customers
changing requirements and demands
or internal organization dynamics.
 Strategic change
Change that is addressed to
organization as a whole or to most of
the organizations components,
including strategy, may be called
strategic change.
Directional change
a change in direction may
become imperative for an
organization due to severe
competition or regulatory shifts
in government policy and
control
Fundamental change

This entails a redefinition of

the current purpose or
mission of the organization
 Total change
 For a total change, the organization is
constrained to develop a new vision, and
a strong link between its strategy,
employed and business performance.
 The organization has to achieve a
turnaround or perish.
Transformational change
Such a change involves the entire or a
greater part of the organization. It could be a
change in the
 Shape (size & complexity)
 Structure (system & ownership)
 Nature (basic assumptions and Culture) of
the organization.
 Fundamental change in relationships
 A change in organization culture and norms
 Shift from product driven to technology
driven
 Revolutionary change

Abrupt changes in organizational strategy

and design represent revolutionary change.
 Such change represent 3 E’s
 Envisioning (clear & credible vision)
 Energizing (mobilizing employees-
demonstrating & inculcating the excitement
for change)
 Enabling (which is to provide the necessary
resources, support structure & process)
 Recreation change

 This involves a significant or drastic

change in an organization’s strategy
and design, or a radical departure from
its current practices to achieve total
transformation.
 Recreation is metamorphosis—
becoming not just best,but different.
Models of Organizational Change

 These model deal with the sequence of

steps involved in bringing about change
in an organization and with interventions
related to it.
Models of Organizational Change

 Lewin’s change model

 The planning model
 The action research model
 The integrative planning model

These models refer to the “planning” &

“process” aspects of change
management.
 Change affects three levels

 Individual (Change affecting individual

attitude beliefs, values, skills and
behavior)
 Structure and Systems (Change
affecting incentive system, Info Systems)
 Organizational Climate( Change
affecting leadership styles, interpersonal
relation ships, decision making)
Lewin’s model of Change
Desired State

Refreeze

Change/Move

Unfreeze

Restraining forces

CURRENT STATE

Driving forces
 Unfreezing
 The purpose of Unfreezing is to heighten
the awareness of employees about
discrepancies currently prevailing in their
behavior, the system and the
organizational climate & attune them to
the need for change-INFORMATION
 Behavior desired by orgn & behavior
exhibited - present behavior is
disconfirmed
Unfreezing

 Disconfirmation where present

conditions lead to dissatisfaction, such
as not meeting personal goals. However,
the larger the gap between what is
believed and what needs to be
believed for change to occur, the more
likely the new information will be ignored
Unfreezing techniques
 Unfreezing is the first of Lewin's change
transition stages, where people are taken from
a state of being unready to change to being
ready and willing to make the first step.
 Here are some ways to make it happen:
 Burning platform: Expose or create a crisis.
 Challenge: Inspire them to achieve remarkable
things.
 Command: Just tell them to move!
 Evidence: Cold, hard data is difficult to ignore.
Unfreezing techniques
 Destabilizing: Shaking people of their comfort zone.
 Education: Learn them to change.
 Management by Objectives (MBO): Tell people what
to do, but not how.
 Restructuring: Redesign the organization to force
behavior change.
 Rites of passage: Hold a wake to help let go of the
past.
 Setting goals: Give them a formal objective.
 Visioning: Done well, visions work to create change.
 Whole-system Planning: Everyone planning together.
 Changing / Moving

 This refers to the shift in behavior to a

new level resulting in the development of
new Behr., values and attitudes in
individuals through changes in orgl
structure and process.
 Orgl shake-ups
Changing / Moving

Once there is sufficient

dissatisfaction with the current
conditions and a real desire to make
some change exists, it is necessary
to identify exactly what needs to be
changed.
Transitioning techniques
 Kurt Lewin's three phases give main phases of
change. Once you have unfrozen the people, the next
question is how you keep them going.
 Boiling the frog: Incremental changes may well not be
noticed.
 Challenge: Inspire them to achieve remarkable things.
 Coaching: Psychological support for executives.
 Command: Tell them what to do.
 Education: Teach them, one step at a time.
 Facilitation: Use a facilitator to guide team meetings.
Transitioning techniques
 First steps: Make it easy to get going.
 Involvement: Give them an important role.
 Management by Objectives (MBO): Tell people what to do, but
not how.
 Open Space: People talking about what concerns them.
 Re-education: Train the people you have in new
knowledge/skills.
 Restructuring: Redesign the organization to force behavior
change.
 Shift-and-sync: Change a bit then pause restabilize.
 Spill and fill: Incremental movement to a new organization.
 Stepwise change: breaking things down into smaller packages.
 Whole-system Planning: Everyone planning together.
 Refreezing
 This stage where the orgn stabilizes and
achieves a new stage of equilibrium and
a preferred behavior.
 Reinforcing the new orgl state

 way to freeze Behr in orgl member may

include award, reward, recognition and
demonstration of benefits to individual.
Refreezing

 Refreezing is the final stage where new

behavior becomes habitual, which
 includes developing a new self-concept
& identity and establishing new
interpersonal relationships.
Refreezing technique
 Refreezing is the third of Lewin's change
transition stages, where people are taken from
a state of being in transition and moved to a
stable and productive state.
 Here are some ways to make it happen:
 Burning bridges: Ensure there is no way back.
 Evidence stream: Show them time and again
that the change is real.
 Golden handcuffs: Put rewards in their middle-
term future.
Refreezing technique
 Institutionalization: Building change into the
formal systems and structures.
 New challenge: Get them looking to the future.
 Rationalization trap: Get them into action then
help them explain their actions.
 Reward alignment: Align rewards with desired
behaviors.
 Rites of passage: Use formal rituals to confirm
change.
 Socializing: Build it into the social fabric.
Planning model
Scouting

Entry

Diagnosis

Planning

Action

Stabilization
&
Evaluation

Action
 Planning model

This model is based on the principle

that information must be freely and
openly shared between the
organization and
the change agent and this
information must be able to be
translated into action.
 Planning model

 Scouting : this is the phase where the

change agent and orgn. Jointly explore
the need for and areas requiring change.
 Entry : refers to the development of
mutual contract and mutual
expectations.
 Diagnosis : refers to stage where
specific improvement goals are
identified.
 Planning model

 Planning : this is the stage where actual

and possible reasons for resistance to
change are identified in addition to
planning for specific improvements
goals.
 Action : implementation of the steps
identified in the planning stage.
 Planning model

 Stabilization & Evaluation : to determine

the extent of success of the planed
change and need for further action or
termination.
 Termination :refers to the phase where a
decision is made to leave the system or
to end and begin another.
Action research model
Feedback by
Consultation
Perception these
with behavioral
of problem Experts to Joint
science
by key client or group diagnosis of
experts
individuals problems

Joint action Action Data gathering Feedback to

planning after action client group
by consultant

Re-diagnosis New Action New Data Re-diagnosis

and action gathering as a of situation,
planning by result of etc
client & action
consultant
 This model focuses on the planned
change activity as a “cyclical process”.
 Initial research about the orgn.
Undertaken which then provides the
requisite information to guide further
action.
 The result of the action are assessed to
provide information to guide further
action & this cycle is repeated as an
ongoing process.
 Problem identification : key executive
senses the problem and solves with the
help of OD practitioner.
 Consultation with behavioral expert :

after sensing the problem, and realizing

that it can be dealt with, the help of OD
expert is sought.
 Datagathering & preliminary
diagnosis :
the consultant, in conjunction with orgl
members, gathers data employing
methods such as interviews, process
observation, questionnaire, and the
analysis of orgl performance data.
 Feedback to client group : the data so
gathered is passed on to the client to
determine the strength and weakness of
the area under study, with the consultant
providing the client all relevant and
useful data
 Joint diagnosis of the problem : the
consultant and the management team
jointly agree on problem solving
methods.
 The specific action to be taken depends on
the orgns cultural, technological, and work
environment, problem to be solved.
 Action : this stage involves the actual
change from one orgl state to another.
 Installing new methods & procedures
 Reorganizing structure & work designs
 Reinforcing new work behavior
 Data gathering after action :
As this model is cyclical in nature, new
data is again gathered after action has
been taken to measure and determine
the effects of the action
Based on the feedback, the situation
may be re-diagnosed and new action
can be taken.
The integrative model of change

Exploration Phase Planning Phase Action Phase Integration Phase

Change process Change process Change process Change process

Need awareness Diagnosis Implementation Stabilization

Search Controlling Design Decision Evaluation Diffusion Renewal

The integrative model of change

 Thebasis for an integrative model of
planned change rests on the fact that an
orgn exists in different states at different
times and that planned movement can
occur from state another.
 Thisrequires an understanding both of
the temporal states & of the change
process needed to move from one state
to another.
Bullock & Batten (1985)
 Exploration Phase

 The orgn decides whether to plan for a

specific change and commit resources fir
it.
 Search for OD expert & contracting the
services of an OD expert
 Mutual assessment of requirement.
 Consultants skill- readiness state for
change
 Contracting phase lays rules and
regulations.
 What each party expects from
relationship
 How much time each will, invest
 Rules for carrying out the consulting
relationship
 Planning Phase

 Planning commence once the problems

identified and resources committed.
 Collecting pertinent information
 Appropriate action is designed to
improve the action
 The approval of key decision makers is
sought for the proposed changes.
 Action Phase

 The changes derived from planning are

implemented at this stage. It includes
process aimed at transitioning the orgn
from its current state to desired future
state.
 Thechange activities are monitored and
evaluated periodically to assess their
progress and to check whether positive
results are being achieved or whether
they need modification and refinement.
 Integration Phase

 This phase involves making the changes

part of regular organizational functioning
after having successfully implemented
and stabilized them.
 Thenew behavior is reinforced through
regular feedback, incentives, and
rewards. The contract with the OD
professional is gradually terminated.
 Resistance to change
Resistance to change can also be a source of
functional conflict. For example, resistance to
a reorganizatio9nh plan or a change in a
product line can stimulate a healthy debate
over the merits of the idea and result in a
better decision. But there is a defini9te
downside to resistance to change3. It hinders
adaptation and progress. Resistance to
change doesn't necessarily surface in
standardized ways. Resistance can be overt,
implicit, immediate, or deferred.
Individual Resistance

 Individual sources of resistance to

change reside in basic human
characteristics such as perceptions,
personalities, and needs.
 Habit
 Security
 Economic factors
 Fear of Unknown
 Selective Information Processing
 Organizational Resistance
 Structural inertia
 Limited focus of change
 Group Inertia
 Threat to Expertise
 Threat to Established Power
Relationships
 Threat to Established Resource
Allocations
 Overcoming Resistance to change
 Education and Communication
 Participation
 Facilitation and Support
 Negotiation
 Manipulation and co-optation
 Coercion
 Change Process
Vision

Strategy (Intended)

Impact analysis

Current State Movement Desired State

Structure Structure
Process Process
Technology Technology
Culture Culture
HRM HRM

Facilitated by
•Building support structure
(Internal support system, individual, team, top mgt and
systems and external support)
•Monitoring, evaluating and correcting
•Transition management
•Sustaining the momentum
 Confusion :A mental state characterized by
disorientation regarding time, place, or lack of
orderly thought
 Anxiety :Anxiety is a multi system response to a
perceived threat or Change
 Resistance :A force that tends to oppose or retard
motion.
 Frustration : refers to the state of someone who
denies himself, or who is denied,
 Treadmill :A monotonous task or set of tasks
seeming to have no end.
 Inertia : The tendency of resisting acceleration
John P Kotter's 'eight steps to
successful change'
 Increase urgency - inspire people to
move, make objectives real and
relevant.
 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'
 Get the vision right - get the team to
establish a simple vision and strategy focus on
emotional and creative aspects necessary to
drive service and efficiency.
 Communicate for buy-in - Involve as many
people as possible, communicate the
essentials, simply, and to appeal and respond
to people's needs. De-clutter communications
- make technology work for you rather than
against.
John P Kotter's 'eight steps to
successful change'
 Empower actions - Remove obstacles,
enable constructive feedback and lots of
support from leaders - reward and
recognize progress and achievements.
 Create short-term wins - Set aims that
are easy to achieve - in bite-size chunks.
Manageable numbers of initiatives.
Finish current stages before starting new
ones.
John P Kotter's 'eight steps to
successful change'
 Don't let up - Foster and encourage
determination and persistence - ongoing
change - encourage ongoing progress
reporting - highlight achieved and future
milestones.
 Make change stick - Reinforce the
value of successful change via
recruitment, promotion, new change
leaders. Weave change into culture.