1. Organizational Change
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3. Nothing is permanent but “change” -
Heraclitus

4. Organizational Change
 Planned or unplanned transformations in an organization’s
structure, technology, and/or people.
 First-Order Change: that is continuous in nature and
involves no major shifts in the way an organization
operates.
 Second-Order Change: Radical change; major shifts
involving many different levels of the organization and
many different aspects of business.

5. Characteristics of change
 Vital to avoid stagnation
 Process not a event
 Fast especially in present competitive scenario
 Can be directive or participative
 Natural or adaptive
 Incremental or step
 Interdependent on organizational environment or culture

6. Need for Change
 Need for Change
 Globalization
 Environmental concern
 Health consciousness
 Changes in lifestyle
 Need for non-traditional employees
 Knowledge asset of the company

7. External Forces for Change
Government Force
Technology Faster ,cheaper & more mobile computer
Economic factor Fluctuating interest rate, declining
productivity, uncertainties due to inflation or
deflation, oil prices etc.
Competition Global competition, mergers & acquisitions,
growth of e commerce
Social Trends Internet chat room, retirement of body
boomers
Customers Changing need & preference

8. Internal Forces for Change
Nature of workforce More cultural diversity; aging population;
many new entrant with inadequate skill
System dynamics Technology, dominant group, formal or
informal relationship
Inadequacy of admin processes Revision of org goal & objective; rules
;regulations, procedures.
Individual/group speculations Positive factor need, ambitions, potentialities,
capabilities, career growth etc.
Structure focused change Downzing,rightsizing,job redesign
Technological changes Changes in equipment, work process, sequence,
information processing system, automation
Resources constraints Depletion, non-availability

9. Levels of change
 Individual level
 Development changes such as- job assignment
 Physical movement to other location
 Change in the maturity of a person occurring over a period of time
 Group level
 Important because most of the activities are on group basis
 Change can affect work flow, job design, social organization, status, communication
pattern
 Informal group must be considered-major barrier
 Formal group- in the form of trade unions
 Organizational level
 Major programs that affect both individual and group
 Made by senior mgt and are seldom implemented by single manager
 Long term and requires considerable planning- reorganization, revamping remuneration
system,etc also
 Referred as organizational development

10. Targets of Change
Organizational
Technology People
structure

11. Resistance to Change
The tendency for employees to be unwilling to go along
with organizational changes, either because of individual
fears of the unknown, or organizational impediments
 Individual barriers to change
 Organizational barriers to change
 Readiness for change
 Overcoming resistance to change

12. Readiness for change
Readiness = D (Dissatisfaction) x V (Vision) x F (First steps) > R (Resistance)
Is there enough dissatisfaction with the current state?
D What is the gap between the current reality and the envisioned future?
Is there a sense of compelling vision of a highly desirable future state?
V To what degree is it shared?
To what degree are individuals committed to the vision?
F Are the first steps for making the change 'doable'?

13. Sources of Resistance to
Change
Individual Sources Organizational Sources
 Habit  Structural inertia
 Security  Limited focus to change
 Economic factors  Group inertia
 Fear for the unknown  Threat to expertise
 Selective information  Threat to established power
processing relationships
 Threat to established allocation
of resources

14. Overcoming Resistance to
Change
 Education and Communication
 Participation
 Build Support & Commitment
 Negotiation
 Manipulation & Cooptation
 Coercion
 Selecting people who accept change
 Overcoming Resistance to Change

15. Tactics to Minimize Resistance
• Explain why • Provide appropriate training in new
skills and coaching in new values
• Identify the benefits and behaviors
• Invite and answer questions • Encourage self-management
• Give more feedback than usual to
• Solicit participation, and, if possible, ensure people always know where
early involvement they stand
• (“first-draft / straw model” reviews, • Allow for resistance. Help people let
membership in go of the “old”
planning/implementation teams,
etc.) • Measure results, step back and take
a look at what is going on. Keep
• Avoid surprises asking “Is the change working the
way we want it to?”
• Set standards and clear targets • Encourage people to think and act
creatively
• Inform/involve informal leaders • Look for any “opportunity” created
• Recognize and reward efforts by the change
• Over communicate • Allow for withdrawal and return of
people who are temporarily resistant

16. Managing Planned Change
Managing Planned Change
 Goals of Planned Change
Change (Making
things different.)  Improving the ability of the
organization to adapt to
changes in its environment.
Planned Change  Changing the behavior of
(Activities that are
intentional and goal individuals and groups in the
oriented) organization
Change Agents
(Persons who act as
catalysts and assume the
responsibility for
managing change
activities)

17. Approaches to Managing
Organizational Change
 Lewin’s three-step Change Model
 Action Research
 Organizational Development

18. Lewin’s Three-Step Change
Model
Unfreezing Movement Refreezing

19. UNFREEZING
Creating motivation and readiness to change
Techniques to reinforce unfreezing . . .
• Acknowledge feelings and empathise
• Give people as much information about the change as
possible
• Say what will not change
• Treat the past with respect
• Help others to see the gap

20. CHANGE & MOVEMENT
Guiding through the transition
Techniques to reinforce movement . . .
• Provide focus and direction
• Strengthen peoples' connections to one another
• Open up two way communications
• Provide the individual with a specific role in the
change process
• Provide leadership and tenacity

21. RE-FREEZING
Integrating the new point of view
Techniques to reinforce re-freezing:
• (before reverting to the old point of view)
• Ensure that individuals and leaders are
reinforced for new behaviour
• Implement quick results and highlight successes
• Build feedback mechanisms
• Celebrate!

22. Action Research
A change process based on systematic collection of data and then
selection of a change action based on what the analyzed data
indicate.
Process Steps
 Entry
 Startup
 Assessment and Diagnosis
 Feedback
 Action planning
 Intervention Evaluation

23. Action Research
Action research benefits;
 Problem-focused rather than solution-centered.
 Heavy employee involvement reduces resistance to
change.

24. Organizational Development
Organizational Development (OD) A collection of planned
interventions, built on humanistic-democratic values, that seeks
to improve organizational effectiveness and employee well-being.
OD Values:
 Respect for people
 Trust and support
 Power equalization
 Confrontation
 Participation

25. Organizational Development
Techniques
 Sensitivity
 Training groups (T-groups) that seek to change behavior
through unstructured group interaction.
 Provides increased awareness of others and self.
 Increases empathy with others, improves listening
skills, greater openness, and increased tolerance for others.

26. Creating a Learning
Organization
Learning Organization An organization that has developed
the continuous capacity to adapt and change.
Characteristics:
 Holds a shared vision
 Discards old ways of thinking.
 Views organization as system of relationships.
 Communicates openly.
 Works together to achieve shared vision.

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28. Organizational Culture
 Organizational Culture is a system of shared beliefs and
values that develop within an organization and guide the
behavior of its members
 “The way we do things around here.”
 Basic assumptions, values, norms
 Implications:
 Culture is a perception.
 Culture is shared.
 Culture is descriptive.
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29. Organizational Stakeholders
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30. Dimensions of Org Culture
Exhibit 3.2
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31. Keeping Culture Alive
 Sources of Organizational Culture
 The organization’s founder
 Vision and mission
 Past practices of the organization
 The way things have been done
 The behavior of top management
 Continuation of the Organizational Culture
 Recruitment of like-minded employees who “fit”
 Socialization of new employees to help them adapt to the
culture
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32. Equity
Fullfillment-orientated Project-Oriented
Incubator Guided Missile
Person Task
Emphasis Emphasis
Family Eiffel-Tower
Power-oriented Rule-oriented
culture culture
Hierarchy

33.  Family culture
 Strong emphasis on hierarchy and orientation to the person
 Family-type environment that is power oriented and headed
by a leader who is regarded as a caring parent
 Management looks after employees, and tries to ensure that
they are treated well and have continued employment
 May catalyze and multiply the energies of the personnel or
end up supporting a leader who is ineffective and drains
their energies and loyalties

34.  Eiffel Tower
 Strong emphasis on hierarchy and orientation to the task
 Jobs are well defined, and everything is coordinated from the
top
 This culture is narrow at the top, and broad at the base
 Relationships are specific, and status remains with the job.
 Managers seldom create off-the-job relationships with their
people, because they believe this could affect their rational
judgment
 This culture operates very much like a formal hierarchy—
impersonal and efficient and loyalties

35.  Guided Missile
 Strong emphasis on equality in the workplace and orientation
to the task
 This culture is oriented to work
 Work typically is undertaken by teams or project groups
 In projects, formal hierarchical considerations are given low
priority, and individual expertise is of greatest importance
 All team members are equal (or at least potentially equal
 All teams treat each other with respect, because they may need the
other for assistance
 Egalitarian and task-driven organizational culture

36.  Incubator
 Strong emphasis on equality and personal orientation
 Based on the premise that organizations serve as
incubators for the self-expression and self-fulfillment of
their members
 Little formal structure
 Participants in an incubator culture are there primarily to
perform roles such as
confirming, criticizing, developing, finding resources for, or
helping to complete the development of an innovative
product or service

37. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Relationships Diffuse relation- Specific role in Specific tasks in Diffuse, spontaneo
between ships to organic mechanical cybernetic system us relationships
employees whole to which system of targeted on shared growing out of
one is bonded required objectives shared creative
interaction process
Attitude toward Status is ascribed Status is ascribed Status is achieved Status is achieved
authority to parent figures to superior roles by project group by Individuals
who are close and that are distant yet members who Exemplifying
powerful powerful contribute to creativity and
targeted goal growth
Ways of thinking Intuitive, holistic, la Logical, analytical, Problem Process
and learning teral and error vertical, and centered, professi oriented, creative,
correcting rationally efficient onal, practical, cro ad
ss disciplinary hoc, inspirational

38. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Attitudes toward Family members Human resources Specialists and Co-creators
people experts
Ways of changing “Father” changes Change rules and Shift aim as target Improvise and
Course procedures moves attune
Ways of Intrinsic Promotion to Pay or credit for Participation in the
motivating and satisfaction in greater performance and process of creating
rewarding being loved and position, larger problems solved new realities
respected role
Management by Management by Management by Management by
subjectives job description objectives enthusiasm

39. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Criticism and Turn other Criticism is Constructive task Improve creative
conflict resolution cheek, save accusation of related only, then idea, not negate it
other’s face, do irrationalism admit error and
not lose power unless there are correct fast
game procedures to
arbitrate conflicts
Source: Adapted from Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture:
Understanding Diversity in Global Business, 2nd ed. (Burr Ridge, IL: Irwin, 1998), p. 183.

40. Strong versus Weak Cultures
 Strong Cultures
 Are cultures in which key values are deeply held and widely
held.
 Have a strong influence on organizational members.
 Factors Influencing the Strength of Culture
 Size of the organization
 Age of the organization
 Rate of employee turnover
 Strength of the original culture
 Clarity of cultural values and beliefs
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41. How Employees Learn Culture
 Stories - a narrative of significant events or
people
 Rituals - repetitive sequences of activities
 Material symbols – essential in creating an
organization’s personality
 Language - unique terminology or jargon
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42. How Culture Affects Managers?
 Plan - degree of risk that plans should contain
 Organize - degree of autonomy given to employees
 Lead - degree of concern for employees, style of
leadership
 Control - what criteria to use when evaluating
performance
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43. How do we make a working environment more
conducive?
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44. Besides Organizational Culture…
Organizational Culture
Managerial Organization’s Environment
Discretion
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45. The External Environment
Suppliers Customers
The
Organization
Public
Pressure Competitors
Groups
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46. How do we make a working
environment more conducive?
 Employee empowerment,
 Employee motivation, or
 Employee satisfaction,
 Employee engagement
 Employee engagement must be a strategy that focuses
 Employee engagement must focus on business results
& measure the outcomes of their performance.
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47. Continue…
 An effective recognition and reward system
 Frequent feedback
 Shared values and guiding principle
 Positive relationships with coworkers
 Demonstrated respect, trust, and emotional
intelligence on the part of the employee's direct
supervisor
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48. Thank You…..