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(7)Organizational Change
By: Dr. Nabhan AlHarrasi
Definition
• “making things different”
• Ellis and Dick (2000) describe it as a method and
procedure to change the organization in any way
that enables it to meet its agreed objectives
Pressure for Change: Internal
• Need to change the traditional methods of work
• Change the structure of organization
• Change the process of services to increase the
capacity of products
• Need to change the organizational culture
(behaviour, attitude, and thinking of people).
• Enhance personal skills
Pressure for Change: External
Source of Change Example
Market demand Decline/increase in demand for particular
products/services
Economic Overall fall in retail companies
Global competitors
Growth of e-commerce
Social Changes in taste, interest, information
seeking behaviour (libraries)
Technological Increased availability of new production
technologies and information systems
Political Change in leadership of local authority or
government
Chance Earthquake, Fire, food, storm
Resistance to Change
Source of Resistance to Change
Individual Source Organizational Source
Habit
Security
Economic Factors
Fear of the unknown
Lack of
understanding
Organizational Structure
Limited focus of change
Group norms (OC)
Economic factors
Social Factors
Overcoming Resistance to Change
• Education and Communication
• Participation
• Building Support and Commitment
• Negotiation, communication and collaboration
• Selecting people who accept change
Managing Organizational Change
Phase 1
Unfreezing
____________________
Recognize the
need for
change
Resistance to
change
Phase 2
Transforming
____________________
Transform
people, tasks,
structure,
technology
Phase 3
Refreezing
____________________
Assess results
Make needed
modifications
Phase 1: Unfreezing
• Unfreezing starts when an organization feels that
its work is inadequate in some way, receives
feedback from customers telling them that their
services are insufficient, and/or wishes to
integrate information technology and keep pace
with their changing environment
• Sometimes difficulties and conflicts occur before
a decision of change is taken
• Resistance to change arises during the early
stage of a change process as a result of inter-
group conflict
• listed of contextual features which should be
given much attention when designing change
1. Time: Identify to what extent the change is
needed; and how long an organization has to
achieve change.
2. Scope: What level of change is needed? Does an
organization require a depth of the change or
the physical spread of the change? Do divisions
of an organization need to be involved in the
change process or can it be limited to a small
department?
• 3. Diversity: Is there a high level of diversity that
can affect the change path? The theory is based
on “a programme that emphasizes tightly
prescribed behavior which may be hard to
introduce across diverse national groups”
• 4. Capability: A set of capabilities is required to
deliver success and continue change, such as
money, people, and equipment. Moreover, the
necessary skills and abilities to manage the
change should be given much attention before
moving to the real process.
• 5. Capacity: Organizations should make clear how many
resources can be invested in the change initiative.
Capacity includes three main areas: cash, time, and staff.
• 6. Readiness for change: This feature means examining to
what extent the staff are prepared to change.
• 7. Power: This can be considered from two perspectives:
the power of individuals or groups of people within the
organisation and the power of an organisation to
establish its own future change.
Phase 2: transforming
• In this stage an organisation begins to implement
the planned change
• The planned change may affect the entire
organisation, and therefore the organisational
structure would be changed or a traditional
system would be replaced by a new one
• the change agents may face some challenges
such as an inadequate budget for continued
change
• the goals and visions of organisations conflict
with each other again
Phase 3: refreezing
• enabling the change to stabilize and continue as
part of ongoing organisational processes
• During refreezing new behaviour and attitudes
emerge and combine into everyday
organisational processes and procedures
• organizations enhance their cooperation and
communication to encourage greater
collaboration. Leaders and members gain
experience that makes them usually learn not to
fear change but to accept it

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Organizational Change Process in 3 Phases

  • 2. Definition • “making things different” • Ellis and Dick (2000) describe it as a method and procedure to change the organization in any way that enables it to meet its agreed objectives
  • 3. Pressure for Change: Internal • Need to change the traditional methods of work • Change the structure of organization • Change the process of services to increase the capacity of products • Need to change the organizational culture (behaviour, attitude, and thinking of people). • Enhance personal skills
  • 4. Pressure for Change: External Source of Change Example Market demand Decline/increase in demand for particular products/services Economic Overall fall in retail companies Global competitors Growth of e-commerce Social Changes in taste, interest, information seeking behaviour (libraries) Technological Increased availability of new production technologies and information systems Political Change in leadership of local authority or government Chance Earthquake, Fire, food, storm
  • 5. Resistance to Change Source of Resistance to Change Individual Source Organizational Source Habit Security Economic Factors Fear of the unknown Lack of understanding Organizational Structure Limited focus of change Group norms (OC) Economic factors Social Factors
  • 6. Overcoming Resistance to Change • Education and Communication • Participation • Building Support and Commitment • Negotiation, communication and collaboration • Selecting people who accept change
  • 7. Managing Organizational Change Phase 1 Unfreezing ____________________ Recognize the need for change Resistance to change Phase 2 Transforming ____________________ Transform people, tasks, structure, technology Phase 3 Refreezing ____________________ Assess results Make needed modifications
  • 8. Phase 1: Unfreezing • Unfreezing starts when an organization feels that its work is inadequate in some way, receives feedback from customers telling them that their services are insufficient, and/or wishes to integrate information technology and keep pace with their changing environment • Sometimes difficulties and conflicts occur before a decision of change is taken • Resistance to change arises during the early stage of a change process as a result of inter- group conflict
  • 9. • listed of contextual features which should be given much attention when designing change 1. Time: Identify to what extent the change is needed; and how long an organization has to achieve change. 2. Scope: What level of change is needed? Does an organization require a depth of the change or the physical spread of the change? Do divisions of an organization need to be involved in the change process or can it be limited to a small department?
  • 10. • 3. Diversity: Is there a high level of diversity that can affect the change path? The theory is based on “a programme that emphasizes tightly prescribed behavior which may be hard to introduce across diverse national groups” • 4. Capability: A set of capabilities is required to deliver success and continue change, such as money, people, and equipment. Moreover, the necessary skills and abilities to manage the change should be given much attention before moving to the real process.
  • 11. • 5. Capacity: Organizations should make clear how many resources can be invested in the change initiative. Capacity includes three main areas: cash, time, and staff. • 6. Readiness for change: This feature means examining to what extent the staff are prepared to change. • 7. Power: This can be considered from two perspectives: the power of individuals or groups of people within the organisation and the power of an organisation to establish its own future change.
  • 12. Phase 2: transforming • In this stage an organisation begins to implement the planned change • The planned change may affect the entire organisation, and therefore the organisational structure would be changed or a traditional system would be replaced by a new one • the change agents may face some challenges such as an inadequate budget for continued change • the goals and visions of organisations conflict with each other again
  • 13. Phase 3: refreezing • enabling the change to stabilize and continue as part of ongoing organisational processes • During refreezing new behaviour and attitudes emerge and combine into everyday organisational processes and procedures • organizations enhance their cooperation and communication to encourage greater collaboration. Leaders and members gain experience that makes them usually learn not to fear change but to accept it