2. ORGANISATIONAL CHANGE 29–2
LEARNING OBJECTIVES
TO UNDERSTAND WHAT
ORGANISATIONAL CHANGE IS ABOUT
TO REALISE THAT ALL
ORGANISATIONAL NEED TO CHANGE
IN ORDER TO SURVIVE
UNDERSTAND THE ORGANISATIONAL
CHANGE IS DIFFICULT
3. ORGANISATIONAL CHANGE 29–3
ORGANISATIONAL CHANGE IS :
ORGANISATIONS ARE SOCIAL ENTITIES
FORMED TO ACHIEVE COLLECTIVE
GOALS
ORGANISATIONS PERFORM TASKS
THROUGH ROUTINE PROCESS THRIVING
FOR EFFICIENCY
ORGANISATIONAL CHANGE MEANS
PERMANENTLY ALTERING PATTERNS OF
ORGANISATIONAL BEHAVIOUR
4. JOHN KOTTER (1996) “LEADING CHANGE” : ONLY
30% OF TRANSFORMATION PROGRAM
SUCCEED
McKINSEY (2008) SURVEY OF 3199 EXECUTIVES
: ONLY ONE TRANSFORMATION IN THREE
SUCCEED
AVERAGE LIFE EXPECTANCY FOR A COMPANY
IS 13 YEARS (E. DE ROOIJ,1996)
AVERAGE TIME COMPANIES STAY ON THE
FORTUNE 500 LIST IS 40 YEARS ( STANGLER
AND ABLESMAN)
SOURCES : KOTTERS(1996) ALKEN &
KELER(2009),DE ROOIJ {1996}
ORGANISATIONAL CHANGE IS DIFFICULT
7. ORGANISATIONAL CHANGE 29–7
SOURCES OF RESISTANCE TO CHANGE
• INDIVIDUAL SOURCES :
– HABIT
– SECURITY
– ECONOMIC FACTORS
– FEAR OF UNKNOWN
• ORGANISATIONAL SOURCES :
– STRUCTURED INTERTIA
– NARROW FOCUS OF
CHANGE
– GROUP INERTIA
– THREATENED EXPERTISE
– THREATENED POWER
RELATIONSHIP
8. ORGANISATIONAL CHANGE 29–8
OVERCOMING RESISTANCE TO CHANGE
• EDUCTAION AND COMMUNICATION
• PARTICIPATION
• BUILDING SUPPORT AND COMMITMENT
• DEVELOP POSITIVE RELATIONSHIPS
• IMPLEMENTING CHANGES FAIRLY
• SELECTING PEOPLE WHO ACCEPT CHANGES
• COERCION
10. LEWIN’S THREE-STEP MODEL
ORGANISATIONAL CHANGE 29–10
SUCCESSFUL IMPLEMENTATION OF CHANGE REQUIRES KNOWLEDGE
ABOUT THE CHANGE PROCESS
THE CHANGE PROCESS, PROPOUNDED BY KURT LEWIN, CONSISTS OF
3 STAGES:
• UNFREEZING
– CHANGING TO OVERCOME THE PRESSURES OF
BOTH INDIVIDUAL RESISTANCE AND GROUP
CONFORMITY
• CHANGE
– A CHANGE PROCESS THAT TRANSFORMS THE
ORGANSATION FROM THE STATUS QUO TO A
DESIRED END STATE.
• REFREEZING
– STABILIZING A CHANGE INTERVENTION BY
BALANCING DRIVING AND RESTRAINING FORCES.
11. LEWIN’S THREE-STEP MODEL
UNFREEZING CHANGING REFREEZING
RECOGNISING THE
NEED FOR CHANGE,
CASTING ASIDE OLD
VALUES, BEHAVIOUR,
OR ORGANISATIONAL
STRUCTURES.
NEW VALUES,
BEHAVIOURS AND
STRUCTURE
REPLACE OLD
PNES. ACTION
ORIENTED
MAKING CHANGE
PERMANENT.
PRACTICE WHAT
WAS LEARNT IN THE
SECOND STAGE
ORGANISATIONAL CHANGE 29–11
13. ORGANISATIONAL CHANGE 29–13
KOTTER’S EIGHT-STEP PLAN FOR
IMPLEMENTING CHANGES
TO IMPLEMENT CHANGE:
1. ESTABLISH A SENSE OF URGENCY
2. FORM A COALITION
3. CREATE A NEW VISION
4. COMMUNICATE THE VISION
5. EMPOWER OTHERS BY REMOVING BARRIERS
6. CREATE AND REWARD SHORT-TERM “WINS”
7. CONSOLIDATE, REASSESS, AND ADJUST
8. REINFORCE THE CHANGES
UNFREEZING
MOVEMENT
REFREEZING
14. ACTION RESEARCH
A CHANGE PROCESS BASED ON SYSTEMATIC COLLECTION OF
DATA AND THEN SELECTION OF A CHANGE ACTION BASED
ON WHAT THE ANALYZED DATA INDICATES
• 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
ORGANISATIONAL CHANGE 29–14
16. CREATING A CULTURE FOR CHANGE:
INNOVATION
1. STIMULATING A CULTURE OF INNOVATION
– INNOVATION : A NEW IDEA APPLIED TO INITIATING OR
IMPROVING A PRODUCT, PROCESS OR SERVICE
– SOURCES OF INNOVATION:
• STRUCTURAL VARIABLES: ORGANIC STRUCTURES
• LONG-TENURED MANAGEMENT
• SLACK RESOURCES
• INTERUNIT COMMUNICATION
– IDEA CHAMPIONS: INDIVIDUALS WHO ACTIVELY
PROMOTE THE INNOVATION .
ORGANISATIONAL CHANGE 29–16
17. CREATING A CULTURE FOR CHANGE:
LEARNING
2. LEARNING ORGANISATION
– AN ORGANISATION THAT HAS DEVELOPED THE CONTINUOUS
CAPACITY TO ADAPT AND CHANGE
– LEARNING TYPES
• SINGLE-LOOP : ERRORS ARE CORRECTED USING PAST
ROUTINES
• DOUBLE-LOOP : ERRORS ARE CORRECTED BY MODIFYING
ROUTINES
– CHARACTERISTICS
• HOLDS A SHARED VISION
• DISCARDS OLD WAY OF THINKING
• VIEWS ORGANISATION AS SYSTEM OF RELATIONSHIPS
• COMMUNICATES OPENLY
• WORKS TOGETHER TO ACHIEVE SHARED VISION
ORGANISATIONAL CHANGE 29–17
18. CREATING A LEARNING ORGANISATION
• OVERCOMES TRADITIONAL ORGANISATION
PROBLEMS:
– FRAGMENTATION
– COMPETITION
– REACTIVENESS
• MANAGE LEARNING BY :
– ESTABLISHING A STRATEGY
– REDESIGNING THE ORGANISATIONAL’S STRUCTURE
• FLATTEN STRUCTURE AND INCREASE CROSS-
FUNCTIONAL ACTIVITIES
– RESHAPING THE ORGANISATION’S CULTURE
• REWARD RISK-TAKING AND INTELLIGENT MISTAKES
ORGANISATIONAL CHANGE 29–18