This document discusses organizational change and its management. It defines organizational change and identifies internal and external pressures that drive change. It also examines sources of resistance to change and strategies for overcoming resistance, such as communication and participation. The document outlines a three-phase model for managing organizational change: unfreezing, transforming, and refreezing. Unfreezing involves recognizing the need for change and addressing resistance. Transforming is the implementation of planned changes. Refreezing stabilizes changes and integrates them into ongoing organizational processes.
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