about organisation development

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2. 14-2
Organizational Change
 Organizational change is the process by which
organization move from their present state to some
desired future state to increase effectiveness.
 When an organization system is disturbed by some
internal or external forces change frequently occur or any
alteration which occur in the overall work environment of
an organization.

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Types of changes:

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CHARACTERSTICS OF O.C.
 Change happen for the pressure of both internal and
external forces in the organization.
 Change in any part of the organization affect the whole
organization.
 Change may affect people , structure, technology, and
other element of the organization.
 Change also affect the rate of speed and degree of
significance of the organization.
 Change may be reactive or proactive.

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The Evolution of Starbucks
Exploring Behavior in Action
In the beginning they had only just a shop that
sold some selected coffee beans.
As Starbucks grew, they realized that the
informal techniques were not sufficient and
needed to have a more formalized approach
with people and places.
Now Starbucks is the biggest coffee chain
network in the world with more than 15000
shops in over 44 countries.
They adopted the Italian culture and made some
important changes in organization.
Howard Schultz
Dave Olsen
Dawn Pinaud

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Change Forces
INTETRNAL FORCES
Work force
Managerial
personnel
Management
structure
Avoid developing
inertia
External Forces
Technology
Marketing
conditions
Social changes
Political forces
Change forces

7. 14-7
Internal Pressures for Change
Work force
Managerial
personnel
Avoid developing
inertia
Management
structure
These come from inside the organization

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External Pressures for Change
Technological
advances
Marketing
conditions
Social
changes
Political
Forces

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Managerial
Advice
Companies’ Responses
to Pressures for “Green”
Policies and Practices
Taking as it positive way:
It create a healthy image in customers.
It help in cost cutting.
Energy saving in the office.
Help in reducing carbon in environment.

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Change Agents
• Persons in organization responsible for
managing change activities.
• Can be managers or non managers, current
employees, newly hired employees or outside
consultants.

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Characteristics of successful
change agent:
• Homophily
• Empathy
• Linkage
• Proximity
• Structuring
• Capacity
• Openness
• Reward
• Energy
• Synergy

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Process of Planned Change
Unfreezing RefreezingChanging
• focus of this stage
is to create the
motivation to
change.
• individuals are
encouraged to
replace old
behaviours and
attitudes with
those desired by
management.
• change involves
learning and doing
things differently,
this stage involves
providing employees
with new info., new
behavioural models,
new processes or
procedures, new
technology, or new
ways of getting the
job done.
• goal of this stage is
to support and
reinforce the change
Kurt Lewin

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Experiencing
Strategic OB
Coca-Cola Is Finding a New Fizz
Neville Isdell Sandy Douglas
Coca-Cola is changing its culture,
and also enhance its product line
to better satisfy the demand of
customers.

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Speed of Change
Criteria to
Consider
Urgency
Degree of support
Amount and complexity of change
Competitive environment
Knowledge and skills available
Financial and other resources

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Resistance to Change
Factors
Organizational
Resistance
Group
Resistance
Effort to block new
ways of doing things
Individual
Resistance

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•Below are stated some reasons why people resists
changes. Some of these appear to be rational or
emotional. These reasons are:-
•Economic factors
•Habits
•Insecurity
•Lack of communication
•Extent of change
•Psychological factors
•Social factors

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Group Resistance
Most organizational changes
have impact on formal
groups in the organization
the main reason why the
groups resists change is
that they fear that their
cohesiveness or existence is
threatened by it.

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Organizational Resistance
Organizational resistance means the change is
resisted at the level of the organization itself.
Some organization are so designed that they resist
new ideas, this is specifically true in case of
organization which are conservative in nature. The
major reason for organizational resistance are:-
•Threat to power
•Group inertia
•Organizational structure
•Threat to specialization
•Resource constraints
•Sunk costs

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Communication • Highest priority and first
strategy for change
• Improves urgency to
change
• Reduces uncertainty
(fear of unknown)
• Problems -- time
consuming and costly
Minimizing Resistance to Change

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Communication • Provides new
knowledge and skills
• Includes coaching and
action learning
• Helps break old routines
and adopt new roles
• Problems -- potentially
time consuming and
costly
Minimizing Resistance to Change
Training

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Communication • Increases ownership of
change
• Helps saving face and
reducing fear of
unknown
• Includes task forces,
search conferences
• Problems -- time-
consuming, potential
conflict
Minimizing Resistance to Change
Training
Employee
Involvement

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Communication • When communication,
training, and
involvement do not
resolve stress
• Potential benefits
• More motivation to
change
• Less fear of unknown
• Fewer direct costs
• Problems -- time-
consuming, expensive,
doesn’t help everyone
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management

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Communication
• When people clearly
lose something and
won’t otherwise support
change
• Influence by exchange-
reduces direct costs
• Problems
• Expensive
• Increases compliance,
not commitment
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management
Negotiation

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Communication
• When all else fails
• Assertive influence
• Firing people -- radical
form of “unlearning”
• Problems
• Reduces trust
• May create more subtle
resistance
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management
Negotiation
Coercion

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Steps in managing change:
• Develop new goals and objectives
• Select an agenda for change
• Diagnose the problem
• Select methodology
• Develop a plan
• Strategy for implementation of pan
• Implementation of plan
• Receive and evaluate the feedback

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Organization Development (OD)
OD can be defined as a technique for bringing change
in the entire organization.
OD is a general strategy or approach to organizational
change that is employed to analyse and diagnose the
sources of organizational problems and to develop and
implement action plans for their solution

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Managing the OD Process
Three basic of OD programs:
Diagnosis Continuous collection of data
about total system, its
subunits, its processes, and
its culture
Action All activities and interventions
designed to improve the
organization’s functioning
Program
management
All activities designed to
ensure success of the
program

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Diagnosis – The Six-Box Model
Leadership
Purposes
Relationships
Helpful
Mechanisms
Rewards
Structure
Weisbord identifies six
critical areas where
things must go right if
organization is to be
successful. According
to him, the consultant
must attend to both
formal and informal
aspects of each box.
This model is still widely
used by OD practitioners
Marvin Weisbord

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Actions….
Interventions are the actions taken to produce desired changes.
Four conditions that give rise to the need for OD interventions:
1. The organisation has a problem
(corrective action – to fix it)
2. Organization sees an unrealized opportunity
(enabling action – to seize the opportunity)
3. Features of organization are out of alignment
(alignment action – to get things back ‘in sync’)
4. Yesterday’s vision is no longer good enough
(action for new vision – actions to build necessary
structures, processes and culture to make new vision a
reality)

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Program Management
Motivating Change
Creating a Vision
Developing Political Support
Managing the Transition
Sustaining Momentum
Effective Change
Management
Cummings and Worley identified 5 sets of activities required for effective
change management:

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Program Management Contd..
John P. Kotter
Kotter’s 8-stage process for managing organizational change:
Establishing a sense of urgency
Creating a guiding coalition
Developing a vision and strategy
Communicating the changed vision
Empowering a broad base of people to take action
Generating short term wins
Consolidating gains and producing even more change
Anchoring (institutionalizing) the new approaches into the culture
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HBR,Mar-Apr1995,p.61

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Team development:
• underlying aim of team development is to increase
trust among team members because people work
better together when there is open and honest sharing
about the problems and difficulties that they have with
one another. As such, at the initial level, the attempt
should be to develop such an environment where
such trust can be developed among the team
members

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Grid Organization Development:
• It developed by Blake and Mouton, is a
comprehensive and systematic OD Program. The
Program aims at individuals, groups and the
organization as a whole. It utilizes a considerable
number of instruments, enabling individuals and
groups to assess their own strength and
weaknesses. It also focuses on skills, knowledge
and processes necessary for effectiveness at the
individual, group and inter-group and total
organization levels.

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The change approaches:

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1.Education and Communication
Where there is a lack of information or
inaccurate information and analysis. One of
the best ways to overcome resistance to
change is to educate people about the
change effort beforehand. Up-front
communication and education helps
employees see the logic in the change
effort. this reduces unfounded and incorrect
rumors concerning the effects of change in
the organization

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2.Participation and
Involvement
Where the initiators do not have all the
information they need to design the change
and where others have considerable power
to resist. When employees are involved in
the change effort they are more likely to
buy into change rather than resist it. This
approach is likely to lower resistance and
those who merely acquiesce to change

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3.Facilitation and Support
Where people are resisting change due to
adjustment problems. Managers can head-off
potential resistance by being supportive of
employees during difficult times. Managerial
support helps employees deal with fear and
anxiety during a transition period. The basis of
resistance to change is likely to be the perception
that there some form of detrimental effect
occasioned by the change in the organization. This
approach is concerned with provision of special
training, counseling, time off work

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4.Negotiation and Agreement
Where someone or some group may lose out
in a change and where that individual or group
has considerable power to resist. Managers
can combat resistance by offering incentives
to employees not to resist change. This can be
done by allowing change resistors to veto
elements of change that are threatening, or
change resistors can be offered incentives to
leave the company through early buyouts or
retirements in order to avoid having to
experience the change effort. This approach
will be appropriate where those resisting
change are in a position of power.

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5.Manipulation and Co-option
Where other tactics will not work or are too expensive.
Kotter and Schlesinger suggest that an effective
manipulation technique is to co-opt with resisters. Co-
option involves the patronizing gesture in bringing a
person into a change management planning group for the
sake of appearances rather than their substantive
contribution. This often involves selecting leaders of the
resisters to participate in the change effort. These leaders
can be given a symbolic role in decision making without
threatening the change effort. Still, if these leaders feel
they are being tricked they are likely to push resistance
even further than if they were never included in the
change effort leadership.

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6.Explicit and Implicit Coercion
• Where speed is essential and to be used only as
last resort. Managers can explicitly or implicitly
force employees into accepting change by
making clear that resisting to change can lead
to losing jobs, firing, transferring or not
promoting employees.

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