Organisational Change

Organisational Change
• Change refers to any alteration that occurs in
total work environment
• OC involves disequilibrium in the situation and
environment in which the people and the
group exist

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19–3
Managing Planned Change
Goals of Planned Change:
Improving the ability of the
organization to adapt to
changes in its environment.
Changing the behavior of
individuals and groups in
the organization.

Nature and characteristics or OC
• Change disturbs the old equilibrium
• Change affects the whole organisation
• Change is a continuous process
• Change be reactive or proactive
• Change is perceptual and bahavioral
• Change affects individuals in the multiple roles
• Change is natural as is death
• Change may be planned or unplanned
• Change may be incremental or transformational
• Change may originate in response to internal needs
• Initiation of change efforts

Importance
• Changes in the environment
• Changes in managerial level-human resources
• Deficiency in present organisation
• Check the growth of inflexibility

Stability Vs change
Stability Change
Org. want to improve, innovate, grow,
make more profit, develop, establish will
go for change
Org. concentrates more on safety,
stability, risk averse will not go for change

Proactive Vs Reaction Change
Proactive change Reactive Change
Creation
Improvement
Migration
Modification
Correction
Variation
Expansion
Re-configuration

Forces of change
• External forces
– Technology
– Marketing conditions
– Social changes
– Political forces
• Internal forces
– Changes in managerial personnel
– Changes in operative personnel
– Deficiencies in existing structure

Change process
• Problem recognition
• Identifying the causes of problems
• Implementing change
• Generating motivation for change
• Managing the transition state
• Supporting the change
• Evaluating the change

• Identify the need for change
• Diagnose the problem
• Plan the change
• Implement the change
• Follow-up and feedback

Steps in the Organizational Change Process
Figure 11.6

Lewin’s three step model of change
process
• Unfreesing:- the first of Kurt Lewin’s three related
conditions or states that result in behavioural
change- the state in which individuals experience
a need to learn new behaviours
• Changing:- it is the phase where new learning
occurs.
• Refreesing:- the individual internalise the new
beliefs, feelings and bahaviour learned in the
changing phase. Individual’s experimentally
performed behaviours become part of the
person.

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19–13
Lewin’s Three-Step Change Model

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19–14
Lewin’s Three-Step Change Model
E X H I B I T 19-5

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19–15
Unfreezing the Status Quo
E X H I B I T 19-6

Unfreesing change (move) Re - freesing

Planned change
• Change that is designed and implemented in
an orderly and timely fashion in anticipation
of future events
• A new scientific way of viewing change is “the
planned alteration in the existing
organisational system”

Features of planned change
• It is deliberate, systematic and intentionally undertaken
• It takes place in all organisations at varying speeds and degrees of
importance
• It takes place in all parts of an organisation
• It challenges the status quo and sets the organisation on a new path
• It can have positive as well as negative impacts. When viewed
positively, employees accept and undertake change enthusiastically.
If employees look at it in an unfavourable way, they tend to oppose
it vehemently
• Planned change may focus on organisation’s technology, products,
markets, processes, people, etc.
• Planned changes are difficult to bring about, costly and time
consuming

Process of planned change
• According to Kurt Lewin every behaviour is the
result of an equilibrium between driving and
restraining forces. The driving forces push one
way; the restraining forces push the other.
• Force field analysis:- is the process of finding
which forces drive and which resist a
proposed change.

Phases of change/need for change
• Creativity
• Direction
• Delegation
• Co-ordination
• collaboration

Approaches to organisational change
• Structural approach
• Technological approach
• Task approach
• People approach

Human response to change
• Resistance
• Indifference
• Acceptance

Resistance to change
• Economic reasons
– Fear of economic loss (reduced work, unemployment, reduced
wages/incentives etc.)
– Obsolescence of skills (what they have been doing so long might be under
threat)
• Personal Reasons
– Fear of unknown
– Status quo ( habit)
– Self-interest and ego-defensiveness (perceived loss of power)
• Social Reasons
– Social displacement (breaking of informal groups)
– Peer pressure
• Organisational Issues
– Threat to power and influence
– Organisation structure
– Resource constraints
– Sunk costs

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19–24
Resistance to 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

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19–25
Sources of Individual Resistance to
Change
E X H I B I T 19-2

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Sources of Organizational Resistance
to Change
E X H I B I T 19-40

Overcoming resistance to change
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and cooptation (selectively
withhold undesirable information, create false
rumours, distort facts to get potential resisters
accept the change.
• Coercion
• Group dynamics

Managing change
• Effective planning for change
• Introduce/implement the change
• Overcome the resistance to change
• Feedback

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19–29
Action Research
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather than
solution-centered.
Heavy employee
involvement reduces
resistance to change.

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19–30
Organizational Development
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation

OD values, assumption and beliefs
• Values, assumption and beliefs are
integral to a human being and also to an
organization. OD values tend to be
humanistic, optimistic and democratic.
The values, assumptions and beliefs of an
organization shape the goals and methods
in the case of OD.

The following are the values in
OD efforts
• Respect People: People are the raison d'etre
of organisation and they are responsible for
creating opportunities for growth. ...
• Confidence and Support: ...
• Confrontation: ...
• Employee Participation: ...
• Expression: ...
• Seeking Cooperation:

OD process Model

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19–37
Organizational Development
Techniques (cont’d)

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19–38
Organizational Development
Techniques

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19–39
Organizational Development
Techniques (cont’d)

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19–40
Organizational Development
Techniques (cont’d)
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal
relations.
• Role analysis to each
member’s role and
responsibilities.
• Team process analysis.

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19–41
Organizational Development
Techniques (cont’d)
Intergroup Problem
Solving:
• Groups independently
develop lists of
perceptions.
• Share and discuss lists.
• Look for causes of
misperceptions.
• Work to develop
integrative solutions.

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19–42
Organizational Development
Techniques (cont’d)
Appreciative Inquiry (AI):
• Discovery: recalling the
strengths of the
organization.
• Dreaming: speculation
on the future of the
organization.
• Design: finding a
common vision.
• Destiny: deciding how to
fulfill the dream.

• https://www.youtube.com/watch?v=rrH90zd9
uco
• https://www.youtube.com/watch?v=BdsVdFn
UfCU&list=RDCMUCM64sHTH3EUbhhD0ewz8
YkA&index=1 ( monkey and banana story)

End of 1st Module