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“How To Introduce & Manage
Of Organization Change ”
Presented to:
Miss Gul-E-Hina
Organizational change
Organizational change occurs when business
strategies or major section of an organization are
altered.
. It is defined as a change that has significant
effects on the way work is performed in an
organization.
Change Management
 Change management is a structured approach to shifting
individuals, teams and organizations from a current state to a
desired future state.
 kotter defines change management
“ as the utilization of basic structures and tools to
control any organizational change effort. ”
 Goal of change management is to minimize the change
impacts on workers and avoid distractions.
 Change agents are responsible for managing change activities
.
SOME BASIC FORMS OF
CHANGE
PLANNED CHANGE
UNPLANNED CHANGE
RADICAL CHANGE
TRANSFORMATIONAL CHANGE
1. Planned change
Its a change resulting from a deliberate decision to alter the
organization.
2. Unplanned change
It is imposed on the organization and is often unforeseen. Changes in
government regulations and changes in the economy.
3. Radical Change
It is a process by which firms regain competitive advantage after it has
been lost or threatened significantly.
4. Transformational change
Transformational change occurs when organizations incur drastic
changes and must essentially transform themselves.
FORCES FOR CHANGE
 Most organizations prefer stability to change because the more
predictable and routine activities are, the higher the level of
efficiency that can be obtained.
 But organizations are not static; they are continuously
changing in response to a variety of forces coming from both
inside and outside.
FORCES
FOR
CHANGE
EXTERNAL FORCES
INTERNAL FORCES
EXTERNAL FORCES
The major external forces for change are:-
 Nature of the workforce: Almost every organization must adjust to a
multicultural environment, demographic changes, immigration and
outsourcing.
 Technology :Is continually changing jobs and organization. Ex: faster,
cheaper and more mobile computers and handheld devices.
 Economic shocks: Rise and fall of global housing market, financial
sector collapse, global recession.
 Competition: Is changing Competitors are as likely to come from
across the ocean as from across town. Ex: increased government
regulation of commerce.
 Social trends: Don’t remain static Companies must continually adjust
product and marketing strategies to be sensitive to changing social
trends.
INTERNAL FORCES
Following are the internal forces.
 Declining effectiveness: is a pressure to change. A company
that experiences its third quarterly loss within a fiscal year is
undoubtedly motivated to do something about it.
 A crisis situation: also may stimulate change in an
organization. Strikes or walkouts may lead management to
change the wage structure.
 Changes in employee expectations: also can trigger change
in organizations. A company that hires a group of young
newcomers may be met with a set of expectations very
different from those expressed by older workers.
 Changes in the work climate at an organization: can also
stimulate change. A workforce that seems lethargic,
unmotivated, and dissatisfied is a symptom that must be
addressed.
RESISTANCE TO CHANGE
 SELF INTEREST
 FEAR OF THE UNKNOWN
 FEAR OF LOSS
 FEAR OF FAILURE
 POOR COMMUNICATION
 DISRUPTION OF INTERPERSONAL RELATIONSHIPS
 PERSONALITY CONFLICTS
 INTERNAL AND EXTERNAL POLITICS
 CULTURE ASSUMPTION AND VALUES
 LACK OF TRUST
STRATEGIES FOR MANAGING RESISTANCE TO
CHANGE
EFFECTIVE COMMUNICATION
 Educating employees on new work procedures is often helpful.
Providing accurate and timely information about the change.
Open communication in a culture of trust is a key ingredient for
successful change
The drawback of this approach is that it is expensive to implement
and does not always yield the desired results.
PARTICIPATION AND INVOLVEMENT
 Participation helps employees gain understanding
 increase the quality of the change decision
Employees must be engaged and involved in order for change to
work
LEADERSHIP
 A capable leader can reinforce a climate of psychological support
for change.
 Greater the prestige and credibility of the person who is acting
as a change agent.
 A strong and effective leader can exert emotional pressure on his
subordinates to bring about the desired change.
FACILITATION AND SUPPORT
 Removing physical barriers
 Supportive efforts
 Emotional support
NEGOTIATION AND AGREEMENT
 Negotiation and Agreement technique is used when costs and
benefits
must be balanced for the benefit of all concerned parties.
 Negotiation before implementation can make the change go
much
more smoothly, even if at the later stages if some problems
arise,
the negotiated agreement can be referred to.
MANIPULATION AND CO-OPTATION
 Used in the situation, where other methods are not working or
are not available.
 Managers can resort to manipulation of information,
resources and favors to overcome resistance.
 they can resort to co-optation, which means to co-opt an
individual, perhaps a key person with in a group, by giving him a
desirable role in designing or carrying out the change
process.
 This technique has some doubtful ethics and it may also back
fire in some cases.
EFFORTS AT THE GROUP LEVEL
 A group is a cluster of persons related in
some way by common interests over a
period of time.
 Although change can be obtained
individually; it is more meaningful if it is
done through a group.
 The more attractive the group is to the
members, the greater is the influence of
the group to accept or resist a change
APPROACHES TO MANAGING ORGANISATIONAL
CHANGE:
LEWIN’S THREE STEP MODEL
CONCEPTS
Driving forces
 Driving forces are forces that push in a direction that causes
change
to occur.
 Driving forces facilitate change because they push the person in
the
desired direction.
 They cause a shift in the equilibrium towards change.
Restraining force
 Restraining forces are forces that counter driving forces.
Restraining forces hinder change because they push the person
in the opposition direction
 Restraining forces cause a shift in the equilibrium which
opposes change
Equilibrium
 Equilibrium is a state of being where driving forces equal
restraining forces and no change occurs
 Equilibrium can be raised or lowered by changes that occur
between the driving and restraining forces.
UNFREEZING
 Finding a method of making it possible for people to let
go
 Necessary to overcome the strains
 Unfreezing can be achieved by the use of these three
methods.
◦ Increase the driving forces that direct behavior away from the
existing situation or status quo.
◦ Decrease the restraining forces that negatively affect the
movement from the existing equilibrium.
◦ Find a combination of the two methods listed above.
CHANGE
 Change in thoughts, feeling & behavior.
 Once team members have opened up their minds,
change can start. The change process can be
dynamic.
 To take on new tasks and responsibilities, which
entail a learning curve that will at first slow the
organization down.
 An investment, both in terms of time and the
allocation of resources:
after the new organization and processes have been
REFREEZING
 Change will only reach its full effect if it’s made
permanent.
 Make sure the new organization reaches the new
standard.
 “Re-freezing” gives people the opportunity to thrive in
the new organization and take full advantage of the
change.
REFREEZING
Change will only reach its full effect if it’s made permanent. Once the
organizational changes have been made and the structure has regained its
effectiveness, efforts should be made to cement them and make sure the
new organization reaches the standard.
“Re-freezing” gives people the opportunity to thrive in the new
organization and take full advantage of the change
APPROACHES TO MANAGING ORGANISATIONAL
CHANGE:
KOTTER’S EIGHT STEP MODEL
APPROACHES TO MANAGING
ORGANISATIONAL CHANGE:
ACTION RESEARCH
Action research: is “a change process based on the systematic collection of
data and then selection of a change action based on what the analyzed data
indicate.”
These steps closely parallel the scientific method.
•Diagnosis: begins by gathering information about problems, concerns, and
needed changes from members of the organization
•.
•Analysis:of information is synthesized into primary concerns, problem areas,
and possible actions. Action research includes extensive involvement of the
people who will be involved in the change program.
•Feedback: requires sharing with employees what has been found from steps
one and two and the development of a plan for the change.
•Action:is the step where the change agent and employees set into motion the
specific actions to correct the problems that were identified.
•Evaluation:is the final step to assess the action plan’s effectiveness. Using the
initial data gathered as a benchmark, any subsequent changes can be compared
and evaluated.
Specific benefits for an
organization
 Action research provides at least two specific benefits
for an organization.
◦ First, it is problem-focused. The change agent
objectively looks for problems and the type of
problem determines the type of change of action.
◦ Second, resistance to change is reduced. Once
employees have actively participated in the feedback
stage, the change process typically takes on a
momentum of its own.
APPROACHES TO MANAGING
ORGANISATIONAL CHANGE:
ORGANIZATIONAL DEVELOPMENT
 Organizational development (OD) is a term used to encompass
a collection of planned-change interventions built on humanistic-
democratic values that seek to improve organizational
effectiveness and employee well-being.
 The OD paradigm values human and organizational growth,
collaborative and participative processes, and a spirit of inquiry.
 The underlying values in most OD efforts:
◦ Respect for people
◦ Trust and support
◦ Power equalization
◦ Confrontation
◦ Participation
OD techniques or
interventions for bringing
about change:
 1. Sensitivity Training:
 Specific results sought include increased ability to
empathize with others, improved listening skills, greater
openness, increased tolerance of individual resolution
skill.differences, and improved conflict
 2.Survey Feedback:
• group discussion in the survey feedback approach should
result in members identifying possible implications of the
questionnaire’s findings.
3.Process Consultation:
The consultant works with the client in jointly diagnosing what processes
need improvement
By having the client actively participate in both the diagnosis and the
development of alternatives, there will be greater understanding of the
process and the remedy and less resistance to the action plan chosen.
4.Team Building:
Team building can also address itself to clarifying each member’s role on the
team.
It utilizes high-interaction group activities to increase trust and
openness among team members.
5.Intergroup Development:
It seeks to change the attitudes, stereotypes, and perceptions that
groups have of each other
Once the causes of the difficulty have been identified, the groups can
move to the integration phase—working to develop solutions that will
improve relations between the groups.
6.Appreciative Inquiry.
They identify a problem or set of problems, then look for a solution.
Appreciative inquiry seeks to identify the unique qualities and special
strengths of an organization.
Discovery.
• The idea is to find out what
people think are the
strengths of the
organization.
Dreaming
• The information from the
discovery phase is used to
speculate on possible
futures for the organization.
Design
• Based on the dream
articulation, participants
focus on finding a common
vision of how the
organization will look and
agree on its unique
qualities.
Destiny
• In this final step,
participants discuss how
the organization is going to
fulfill its dream.
CREATING A CULTURE FOR
CHANGE
 Change: refers to making things different. Innovation is a more
specialized kind of change.
 There is no guaranteed formula with which an organization can
become innovative; certain characteristics surface again and
again. They are grouped into structural, cultural, and human
resource categories.
Innovation is a new idea applied to initiating or improving a
product, process, or service.
All innovations involve change, but not all changes necessarily
involve new ideas or lead to significant improvements.
Innovations in organizations can range from small incremental
improvements to significant change efforts.
Organizational change

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Organizational change

  • 1. “How To Introduce & Manage Of Organization Change ” Presented to: Miss Gul-E-Hina
  • 2. Organizational change Organizational change occurs when business strategies or major section of an organization are altered. . It is defined as a change that has significant effects on the way work is performed in an organization.
  • 3. Change Management  Change management is a structured approach to shifting individuals, teams and organizations from a current state to a desired future state.  kotter defines change management “ as the utilization of basic structures and tools to control any organizational change effort. ”  Goal of change management is to minimize the change impacts on workers and avoid distractions.  Change agents are responsible for managing change activities .
  • 4.
  • 5. SOME BASIC FORMS OF CHANGE PLANNED CHANGE UNPLANNED CHANGE RADICAL CHANGE TRANSFORMATIONAL CHANGE
  • 6. 1. Planned change Its a change resulting from a deliberate decision to alter the organization. 2. Unplanned change It is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy. 3. Radical Change It is a process by which firms regain competitive advantage after it has been lost or threatened significantly. 4. Transformational change Transformational change occurs when organizations incur drastic changes and must essentially transform themselves.
  • 7. FORCES FOR CHANGE  Most organizations prefer stability to change because the more predictable and routine activities are, the higher the level of efficiency that can be obtained.  But organizations are not static; they are continuously changing in response to a variety of forces coming from both inside and outside. FORCES FOR CHANGE EXTERNAL FORCES INTERNAL FORCES
  • 8. EXTERNAL FORCES The major external forces for change are:-  Nature of the workforce: Almost every organization must adjust to a multicultural environment, demographic changes, immigration and outsourcing.  Technology :Is continually changing jobs and organization. Ex: faster, cheaper and more mobile computers and handheld devices.  Economic shocks: Rise and fall of global housing market, financial sector collapse, global recession.  Competition: Is changing Competitors are as likely to come from across the ocean as from across town. Ex: increased government regulation of commerce.  Social trends: Don’t remain static Companies must continually adjust product and marketing strategies to be sensitive to changing social trends.
  • 9. INTERNAL FORCES Following are the internal forces.  Declining effectiveness: is a pressure to change. A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it.  A crisis situation: also may stimulate change in an organization. Strikes or walkouts may lead management to change the wage structure.  Changes in employee expectations: also can trigger change in organizations. A company that hires a group of young newcomers may be met with a set of expectations very different from those expressed by older workers.  Changes in the work climate at an organization: can also stimulate change. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed.
  • 10. RESISTANCE TO CHANGE  SELF INTEREST  FEAR OF THE UNKNOWN  FEAR OF LOSS  FEAR OF FAILURE  POOR COMMUNICATION  DISRUPTION OF INTERPERSONAL RELATIONSHIPS  PERSONALITY CONFLICTS  INTERNAL AND EXTERNAL POLITICS  CULTURE ASSUMPTION AND VALUES  LACK OF TRUST
  • 11. STRATEGIES FOR MANAGING RESISTANCE TO CHANGE EFFECTIVE COMMUNICATION  Educating employees on new work procedures is often helpful. Providing accurate and timely information about the change. Open communication in a culture of trust is a key ingredient for successful change The drawback of this approach is that it is expensive to implement and does not always yield the desired results. PARTICIPATION AND INVOLVEMENT  Participation helps employees gain understanding  increase the quality of the change decision Employees must be engaged and involved in order for change to work
  • 12. LEADERSHIP  A capable leader can reinforce a climate of psychological support for change.  Greater the prestige and credibility of the person who is acting as a change agent.  A strong and effective leader can exert emotional pressure on his subordinates to bring about the desired change.
  • 13. FACILITATION AND SUPPORT  Removing physical barriers  Supportive efforts  Emotional support NEGOTIATION AND AGREEMENT  Negotiation and Agreement technique is used when costs and benefits must be balanced for the benefit of all concerned parties.  Negotiation before implementation can make the change go much more smoothly, even if at the later stages if some problems arise, the negotiated agreement can be referred to.
  • 14. MANIPULATION AND CO-OPTATION  Used in the situation, where other methods are not working or are not available.  Managers can resort to manipulation of information, resources and favors to overcome resistance.  they can resort to co-optation, which means to co-opt an individual, perhaps a key person with in a group, by giving him a desirable role in designing or carrying out the change process.  This technique has some doubtful ethics and it may also back fire in some cases.
  • 15. EFFORTS AT THE GROUP LEVEL  A group is a cluster of persons related in some way by common interests over a period of time.  Although change can be obtained individually; it is more meaningful if it is done through a group.  The more attractive the group is to the members, the greater is the influence of the group to accept or resist a change
  • 16. APPROACHES TO MANAGING ORGANISATIONAL CHANGE: LEWIN’S THREE STEP MODEL
  • 17. CONCEPTS Driving forces  Driving forces are forces that push in a direction that causes change to occur.  Driving forces facilitate change because they push the person in the desired direction.  They cause a shift in the equilibrium towards change. Restraining force  Restraining forces are forces that counter driving forces. Restraining forces hinder change because they push the person in the opposition direction  Restraining forces cause a shift in the equilibrium which opposes change
  • 18. Equilibrium  Equilibrium is a state of being where driving forces equal restraining forces and no change occurs  Equilibrium can be raised or lowered by changes that occur between the driving and restraining forces.
  • 19. UNFREEZING  Finding a method of making it possible for people to let go  Necessary to overcome the strains  Unfreezing can be achieved by the use of these three methods. ◦ Increase the driving forces that direct behavior away from the existing situation or status quo. ◦ Decrease the restraining forces that negatively affect the movement from the existing equilibrium. ◦ Find a combination of the two methods listed above.
  • 20. CHANGE  Change in thoughts, feeling & behavior.  Once team members have opened up their minds, change can start. The change process can be dynamic.  To take on new tasks and responsibilities, which entail a learning curve that will at first slow the organization down.  An investment, both in terms of time and the allocation of resources: after the new organization and processes have been
  • 21. REFREEZING  Change will only reach its full effect if it’s made permanent.  Make sure the new organization reaches the new standard.  “Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change.
  • 22. REFREEZING Change will only reach its full effect if it’s made permanent. Once the organizational changes have been made and the structure has regained its effectiveness, efforts should be made to cement them and make sure the new organization reaches the standard. “Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change APPROACHES TO MANAGING ORGANISATIONAL CHANGE: KOTTER’S EIGHT STEP MODEL
  • 23. APPROACHES TO MANAGING ORGANISATIONAL CHANGE: ACTION RESEARCH
  • 24. Action research: is “a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.” These steps closely parallel the scientific method. •Diagnosis: begins by gathering information about problems, concerns, and needed changes from members of the organization •. •Analysis:of information is synthesized into primary concerns, problem areas, and possible actions. Action research includes extensive involvement of the people who will be involved in the change program. •Feedback: requires sharing with employees what has been found from steps one and two and the development of a plan for the change. •Action:is the step where the change agent and employees set into motion the specific actions to correct the problems that were identified. •Evaluation:is the final step to assess the action plan’s effectiveness. Using the initial data gathered as a benchmark, any subsequent changes can be compared and evaluated.
  • 25. Specific benefits for an organization  Action research provides at least two specific benefits for an organization. ◦ First, it is problem-focused. The change agent objectively looks for problems and the type of problem determines the type of change of action. ◦ Second, resistance to change is reduced. Once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own.
  • 26. APPROACHES TO MANAGING ORGANISATIONAL CHANGE: ORGANIZATIONAL DEVELOPMENT  Organizational development (OD) is a term used to encompass a collection of planned-change interventions built on humanistic- democratic values that seek to improve organizational effectiveness and employee well-being.  The OD paradigm values human and organizational growth, collaborative and participative processes, and a spirit of inquiry.  The underlying values in most OD efforts: ◦ Respect for people ◦ Trust and support ◦ Power equalization ◦ Confrontation ◦ Participation
  • 27. OD techniques or interventions for bringing about change:  1. Sensitivity Training:  Specific results sought include increased ability to empathize with others, improved listening skills, greater openness, increased tolerance of individual resolution skill.differences, and improved conflict  2.Survey Feedback: • group discussion in the survey feedback approach should result in members identifying possible implications of the questionnaire’s findings.
  • 28. 3.Process Consultation: The consultant works with the client in jointly diagnosing what processes need improvement By having the client actively participate in both the diagnosis and the development of alternatives, there will be greater understanding of the process and the remedy and less resistance to the action plan chosen. 4.Team Building: Team building can also address itself to clarifying each member’s role on the team. It utilizes high-interaction group activities to increase trust and openness among team members. 5.Intergroup Development: It seeks to change the attitudes, stereotypes, and perceptions that groups have of each other Once the causes of the difficulty have been identified, the groups can move to the integration phase—working to develop solutions that will improve relations between the groups.
  • 29. 6.Appreciative Inquiry. They identify a problem or set of problems, then look for a solution. Appreciative inquiry seeks to identify the unique qualities and special strengths of an organization. Discovery. • The idea is to find out what people think are the strengths of the organization. Dreaming • The information from the discovery phase is used to speculate on possible futures for the organization. Design • Based on the dream articulation, participants focus on finding a common vision of how the organization will look and agree on its unique qualities. Destiny • In this final step, participants discuss how the organization is going to fulfill its dream.
  • 30. CREATING A CULTURE FOR CHANGE  Change: refers to making things different. Innovation is a more specialized kind of change.  There is no guaranteed formula with which an organization can become innovative; certain characteristics surface again and again. They are grouped into structural, cultural, and human resource categories. Innovation is a new idea applied to initiating or improving a product, process, or service. All innovations involve change, but not all changes necessarily involve new ideas or lead to significant improvements. Innovations in organizations can range from small incremental improvements to significant change efforts.