Organizational change occurs when business strategies or major sections of an organization are altered. It is defined as a change that has significant effects on the way work is performed in an organization.

1. Organizational Change
Module 1 – MG University

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Contents
• Organizational Change: Meaning- Necessity for Change-
Classification of change-factors affecting change.
• Model of Organizational change- Kurt Lewin Three Stage
Model and Force Field Analysis- Systems theory, 7 Stage
models, Burke-Litwin model, Porras and Robbortson.
• Change Agent-Role and Skills of a change Agent.HR Role
as change agent.
• Resistance to Change and minimizing the resistance.
• Impact of change on Human Resources Planning.
• Quality consciousness as an emerging catalyst for
change.

4. Continuous Change at Nokia
• Nokia has continually adapted
to its changing environment.
• The Finnish company began
as a pulp and paper mill in
1865, then moved into rubber,
cable wiring, and computer
monitors.
• In the 1980s, Nokia executives
sensed an emerging market for
wireless communication.
• Today, Nokia is a world leader
in cellular telephones.

5. Organizational Change: An International
Phenomenon
0 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
Percentage of Respondents by Country
International
expansion
Reduction in
employment
Mergers,
divestitures,
acquisitions
Major
restructuring
Hungary
Mexico
S. Korea
Germany
United States
Japan
(Source: Kanten, R., 1991.)

6. Organizational Change
• Organizational change
occurs when business
strategies or major
sections of an
organization are altered.
• It is defined as a change
that has significant
effects on the way work
is performed in an
organization.

7. Organizational Change
• Organizational change may
be apparent when there is
a gap between how the
work area is operating and
how it should be operating
to ensure successful future
growth.
• Organizational change may
be a result of the work
area identifying goals that
they want to achieve.

8. Change management
• Change management is a
structured approach to
shifting individuals, teams
and organisations from a
current state to a desired
future state.
• It is an organisational process
aimed at helping employees
to accept and embrace
changes in their current
business environment.

9. Change management
• 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.

10. 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

11. Characteristics of OC
• 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.

12. Forms of change

13. Planned change
• It is a change resulting from a
deliberate decision to alter
the organization.
• Companies that wish to move
from a traditional hierarchical
structure to one that
facilitates self-managed
teams must use a proactive,
carefully orchestrated
approach.
• Not all changes are planned.

14. Unplanned change
• It is imposed on the organization
and is often unforeseen.
• Changes in government
regulations and changes in the
economy, for example, are often
unplanned.
• Responsiveness to unplanned
change requires tremendous
flexibility and adaptability on the
part of the organizations.
• Managers must be prepared to
handle both planned and
unplanned forms of change in
organizations.

15. Radical Change
• It is a process by which firms
regain competitive advantage
after it has been lost or
threatened significantly.
• The type and extent of change
undertaken depends upon the
firm’s resources and
capabilities; its competitive
environment; and its
leadership.
• Radical change is divergent,
meant to fundamentally
change the firm’s processes,
systems, structures, strategies,
and core values.”

16. Transformational change
• Transformational change
occurs when organizations
incur drastic changes and
must essentially transform
themselves.
• This can occur when an
organization faces different
technologies, significant
changes in supply and
demand, unexpected
losses etc.

17. Change agents
• Change agents are responsible
for managing change
activities.
• They see a future for the
organization, which others
have not identified, and they
are able to motivate, invent
and implement this vision.
• Change agents can be
managers or non-managers,
current or new employees, or
outside consultants.

18. Change agents
• Jim Canterucci defines change
leaders on five levels.
• Although he mainly focuses on
leadership capabilities and
qualifications, his system can
easily be transferred to change
projects with varying
importance.
• The leader of an organization-
wide restructuring project will
need different capabilities than
the one who is responsible for
clearly defined project on
departmental level.

19. Change agents
• Level I - Accepts the need
for change, communicates
and defends the need for
change throughout the
organization, creates an
open and receptive
environment.
• à small change initiatives
with clear direction

20. Change agents
• Level II - Defines and
initiates change,
identifies leverage
points for change in
processes and work
habits
• à change projects at
local level

21. Change agents
• Level III - Leads change,
translate the vision of the
organization into the context
of a specific change initiative
and bring this message to the
entire organization, redirects
approaches in the face of new
opportunities
• à transformation of a central
vision into change initiatives
and organization-wide
communication

22. Change agents
• Level IV - Manages complex
change, understands the
cultural dynamics of the
current state of an
organization, creates a strategic
practical course, balancing the
current reality with the need
for rapid adoption of the
desired future reality
• à generates change with a high
degree of transformation

23. Change agents
• Level V - Champions
change, challenges the
status quo by comparing it
to an ideal or a vision of
change, causes crisis in
order to support dramatic
actions and change efforts,
transforms the
organization
• à Ability to revolutionize
organizations

24. Forces for change
• Given a choice, most organizations
prefer stability to change because
the more predictable and routine
activities are, the higher the level
of efficiency that can be obtained.
Thus, the status quo is preferred in
many cases.
• But organizations are not static;
they are continuously changing in
response to a variety of forces
coming from both inside and
outside. For leaders, the challenge
is to anticipate and direct change
processes so that the performance
is improved.

25. Forces for change
FORCES
FOR
CHANGE
EXTERNAL FORCES
INTERNAL FORCES

26. 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.

27. External forces
• 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. The State
Bank of India did the same when
it started a zero-balance bank
account program for villagers.

28. 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.
• Some companies react by
instituting layoffs and massive
cost – cutting programs,
whereas others look at the
bigger picture, view the loss as
symptomatic of an underlying
problem, and seek the cause of
the problem.

29. Internal forces
• A crisis situation also may stimulate
change in an organization.
• Strikes or walkouts may lead
management to change the wage
structure.
• The resignation of a key decision-maker
is one crisis that causes the company to
rethink the composition of its
management team and its role in the
organization.
• A much-publicized crisis that led to
change with Exxon was the oil spill
accident with Exxon’s Valdez oil tanker.
The accident brought about many
changes in Exxon’s environmental
policies.

30. Internal forces
• 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.
• This symptom is common in
organizations that have experienced
layoffs.
• Workers who have escaped a layoff
may grieve for those who have lost
their jobs and may find it hard to
continue to be productive.
• They may fear that they will be laid off
as well, and many feel insecure in their
jobs.

31. 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 growing, they realized that the informal
techniques were not sufficient and needed to have a more
formalized with people and places.
Now Starbucks was the biggest coffee chain network in
the world with more than 15000 shops in over 44
countries. And they grown too fast.
They adopting the Italian culture and make some
important changes in organization.
Howard Schultz
Dave Olsen
Dawn Pinaud

32. 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.

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

34. Individual Resistance
• Individual sources of resistance to
change reside in basic human
characteristics such as perceptions,
personalities & needs.
• Reasons of individual resistance:
• Economic Reason –The
economic reason of resistance to
change usually focus on:
• Fear of technological
unemployment.
• Fear of reduced work hours &
consequently less pay.
• Fear of demotion & thus reduced
pay.

35. Individual Resistance
• Fear of Loss- When a change is
impending, some employees may
fear losing their jobs, status
particularly when an advanced
technology is introduced.
• Security – people with a high
need for security are likely to
resist change because it threatens
their feeling of safety.
• Status quo- change may pose
disturbance to the existing
comforts of status quo.

36. Individual Resistance
• Peer Pressure- individual
employees may be prepared to
accept change but refuse to accept it
for the sake of the group.
• Disruption of Interpersonal
Relation- employees may resist
change that threatens to limit
meaningful interpersonal
relationships on the job.
• Social Displacement- Introduction
of change often results in
disturbance of the existing social
relationships. Change may also
result in breaking up of work groups.

37. Group Resistance
• Organizations, by their very nature
are conservative. They actively resist
change. Reason of organizational
resistance
• Resource constraint: resources
are major constraints for many
organizations. The necessary
financial , material & human
resources may not be available to
the organization to make the
needed changes.

38. Group Resistance
• Structural inertia – some
organizational structures have in-
built mechanism for resistance to
change. Eg in bureaucratic
structure where jobs are
narrowly defined & lines of
authority are clearly spelled
out, change would be difficult.

39. 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.
• Majority of the business firm are
also resistance to changes.

40. Organizational Resistance
• The major reason for organizational
resistance are:-
• Threat to power
• Group inertia
• Organizational structure
• Threat to specialization
• Resource constants
• Sunk costs

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. APPROACHES TO MANAGING
ORGANISATIONAL CHANGE

48. Three stage model
• One of the cornerstone models
for understanding organizational
change was developed by Kurt
Lewin back in the 1940s, and still
holds true today.
• His model is known as Unfreeze –
Change – Refreeze, refers to the
three-stage process of change he
describes.
• Kurt Lewin, a physicist as well as
social scientist, explained
organizational change using the
analogy of changing the shape of
a block of ice.

49. Three stage model
Unfreezing RefreezingMoving
• Provide rationale
for change
• Create minor
levels of
guilt/anxiety about
not changing
• Create sense of
psychological
safety concerning
change
• Provide information
that suspects
proposed changes
• Bring about actual
shifts in behavior
• Implement new
evaluation systems
• Implement new
hiring and promotion
systems
Kurt Lewin

50. Three stage model

51. Three stage model
• Unfreezing is the process which
involves finding a method of making it
possible for people to let go of an old
pattern that was counterproductive in
some way.
• Unfreezing is necessary to overcome
the strains of individual resistance and
group conformity.
• 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.

52. Three stage model
• Movement stage involves a process of
change in thoughts, feeling, behavior, or
all three, that is in some way more
liberating or more productive.
• Once team members have opened up
their minds, change can start. The change
process can be dynamic and, if it is to be
effective, it will probably take some time
and involve a transition period.
• In order to gain efficiency, people will
have to take on new tasks and
responsibilities, which entail a learning
curve that will at first slow the
organization down.
• A change process has to be viewed as an
investment, both in terms of time and
the allocation of resources: after the new
organization and processes have been
rolled out.

53. Three stage model
• 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.

54. Changing People: Some Basic
Steps
Recognizing the
need for change
Attempting to
create a new state
of affairs
Incorporating the changes,
creating and maintaining a
new organizational system
Step 1: Unfreezing
Step 3: Refreezing
Step 2: Changing

55. Case study
• The oil company had three
divisional offices in the West,
located in Seattle, San
Francisco, and Los Angeles.
• The decision was made to
consolidate the divisions in
to a single regional office to
be located in San Francisco.
• The reorganization meant
transferring over 150
employees, eliminating some
duplicate managerial
positions, and instituting a
new hierarchy of command

56. UNFREEZING
• The status quo can be considered to
be an equilibrium state. To move
from this equilibrium to overcome
the pressures of both individual
resistance and group conformity
unfreezing is necessary. It can be
achieved in one of three ways.
• The driving forces, which direct
behavior away from the status quo,
can be increased.
• The restraining forces, which hinder
movement from the existing
equilibrium, can be decreased.
• A third alternative is to combine the
first two approaches.

57. Movement
• The oil company’s management
could expect employee resistance
to the consolidation. To deal with
that resistance, management could
use positive incentive to encourage
employees to accept the change,
such as these;
• Increase in pay can be offered to
those who accept the transfer.
• The company can pay liberal
moving expenses.
• Management might offer low cost
mortgage funds to allow
employees to buy new homes in
San Francisco.

58. Movement
• Employees could be counseled individually.
Each employee’s concerns and
apprehensions could be heard and
specifically clarified.
• Assuming that most of the fears are
unjustified, the counselor could assure the
employees that there was nothing to fear
and then demonstrate, through tangible
evidence, that restraining forces are
unwarranted.
• If resistance is extremely high, management
mat have to resort to both reducing
resistance and increasing the attractiveness
of the alternative if the unfreezing is to be
successful.
• To be effective, change has to happen
quickly. Organizations that build up to
change do less well than those that get to
and through the movement stage quickly.

59. Refreezing
• Once the consolidation change
has been implemented, if it is to
be successful, the new situation
needs to be refrozen so that it
can be sustained over time.
• Unless this last step is taken,
there is a very high chance that
the change will be short lived
and that employees will attempt
to revert to the previous
equilibrium state.
• The objective of refreezing, then,
is to stabilize the new situation
by balancing the driving and
restraining forces.

60. Force Field Analysis
• It provides a framework for
looking at the factors (forces)
that influence a situation,
originally social situations.
• It looks at forces that are either
driving movement toward a goal
(helping forces) or blocking
movement toward a goal
(hindering forces).
• The principle, developed by Kurt
Lewin.

62. Force Field Analysis
• 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.

63. Force Field Analysis
• 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.

64. Force Field Analysis
• 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.

65. Desired
Conditions
Current
Conditions
Before
Change
After
Change
Driving
Forces
Restraining
Forces
Force Field Analysis
During
Change
Driving
Forces
Restraining
Forces Driving
Forces
Restraining
Forces

66. KOTTER’S EIGHT STEP MODEL
• 30 years of research by leadership
guru Dr. John Kotter have proven that
70% of all major change efforts in
organizations fail.
• Why do they fail?
• Because organizations often do not take
the holistic approach required to see
the change through.
• However, by following the 8 Step
Process outlined by Professor Kotter,
organizations can avoid failure and
become adept at change. By improving
their ability to change, organizations
can increase their chances of success,
both today and in the future.

67. KOTTER’S EIGHT STEP MODEL
• In “Leading Change” (1996), Dr. John Kotter
outlined an 8-Stage Process to Creating Major
Change:

68. Step 1: Create Urgency
• Develop a sense of urgency around
the need for change. This may help
you spark the initial motivation to
get things moving.
• Open an honest and convincing
dialogue about what's happening
in the marketplace and with your
competition.
• What you can do:
– Identify potential threats, and
develop scenarios showing what
could happen in the future.
– Examine opportunities that should
be, or could be, exploited.
– Start honest discussions, and give
dynamic and convincing reasons to
get people talking and thinking.

69. Step 2: Form a Powerful Coalition
• Bring together a coalition, or
team, of influential people whose
power comes from a variety of
sources, including job title, status,
expertise, and political
importance.
• Once formed, your "change
coalition" needs to work as a
team.
• What you can do:
– Identify the true leaders in your
organization.
– Ask for an emotional commitment
from these key people.
– Work on team building within your
change coalition.
– Check your team for weak areas.

70. Step 3: Create a Vision for Change
• Link ideas and concepts to an
overall vision.
• A clear vision can help everyone
understand why you're asking
them to do something.
• What you can do:
– Determine the values that are
central to the change.
– Develop a short summary (one or
two sentences) that captures what
you "see" as the future of your
organization.
– Create a strategy to execute that
vision.

71. Step 4: Communicate the Vision
• Communicate the vision more
frequently and powerfully, and
embed it within everything that you
do.
• Use the vision daily to make
decisions and solve problems.
When you keep it fresh on
everyone's minds, they'll remember
it and respond to it.
• What you can do:
– Talk often about your change vision.
– Openly and honestly address
peoples' concerns and anxieties.
– Apply your vision to all aspects of
operations – from training to
performance reviews.
– Tie everything back to the vision.

72. Step 5: Remove Obstacles
• Put in place the structure for
change, and continually check for
barriers to it.
• Removing obstacles can
empower the people you need to
execute your vision, and it can
help the change move forward.
• What you can do:
– Identify, or hire, change leaders
whose main roles are to deliver
the change.
– Recognize and reward people for
making change happen.
- Identify people who are resisting
the change.
– Take action to quickly remove
barriers (human or otherwise).

73. Step 6: Create Short-term Wins
• Create short-term targets –
not just one long-term goal.
• Each "win" that you produce
can further motivate the
entire staff.
• What you can do:
– Look for sure-fire projects
that you can implement
without help from any strong
critics of the change.
– Don't choose early targets
that are expensive.
– Reward the people who help
you meet the targets.

74. Step 7: Build on the Change
• Each success provides an
opportunity to build on what
went right and identify what
you can improve.
• What you can do:
– After every win, analyze what
went right and what needs
improving.
– Set goals to continue building
on the momentum you've
achieved.
– Keep ideas fresh by bringing in
new change agents and
leaders for your change
coalition.

75. Step 8: Anchor the Changes in
Corporate Culture
• Make continuous efforts to ensure that the change
is seen in every aspect of your organization.
• It's also important that your company's leaders
continue to support the change. This includes
existing staff and new leaders who are brought in.
• What you can do:
– Talk about progress every chance you get.
- Include the change ideals and values when
hiring and training new staff.
– Create plans to replace key leaders of change
as they move on. This will help ensure that
their legacy is not lost or forgotten.

76. Systems Theory
• Systems Theory was first
introduced by Van
Bertalanffy (1950) and was
introduced into the
organisational setting by
Kataz and Khan (1966).
• Systems theory is an
approach to organisations
which likens the enterprise
to an organism with
interdependent parts, each
with its own specific
function and interrelated
responsibilities.

77. Systems Theory
• The system may be the
whole organisation, a
division, department or
team; but whether the
whole or a part, it is
important for the OD
practitioner to
understand how the
system operates, and the
relationship the parts of
the organisation have.

78. Systems Theory
• The emphasis in OD is that that
real systems are open to, and
interact with, their
environments, and it is possible
to acquire new properties
through emergence, resulting
in continual evolution.
• Rather than reducing an
organisation to the properties
of its parts or elements,
systems theory focuses on the
arrangement of and relations
between the parts which
connect them into a whole.

79. Systems Theory
• The organization is an open system, which
interacts with the environment and is
continually adapting and improving.
• The organisation influences and is
influenced by the environment in which it
operates
• If an organisation is to be effective it must
pay attention to the external
environment, and take steps to adjust
itself to accommodate the changes in
order to remain relevant
• All part of the organisation are
interconnected and interdependent
• If one part of the system is affected, all
parts are.
• It is not possible to know everything
about the system, but if you look hard
enough there are plenty of clues.

80. Burke-Litwin change model
• The Burke-Litwin change
model revolves around
defining and establishing a
cause-and-effect relationship
between 12 organizational
dimensions that are key to
organizational change.
• Let’s take a look at how this
change model can make the
process easier.

82. Burke-Litwin change model
• External Environment: The key
external factors that have an
impact on the organization must
be identified and their direct and
indirect impact on the
organization should be clearly
established.
• Mission and Strategy: the vision,
mission and the strategy of the
organization, as defined by the
top management should be
examined in terms of the
employees’ point-of-view about
them.

83. Burke-Litwin change model
• Leadership: A study of the
leadership structure of the
organization should be carried
out, which clearly identifies the
chief role models in the
organization.
• Organizational Culture: An
organizational culture study
should seek information on the
explicit as well as the implied
rules, regulations, customs,
principles and values that
influence the organizational
behavior.

84. Burke-Litwin change model
• Structure: The study of
structure should not be
confined to hierarchical
structure; rather it should be a
function based structure
focusing on the responsibiliity ,
authority, communication,
decision making and control
structure that exists between
the people of the organization.
• Systems: Systems includes all
types of policies and procedures
with regards to both the people
and the operations of the
organization.

85. Burke-Litwin change model
• Management Practices: This
would entail a study of how well
the mangers conform to the
organization’s strategy when
dealing with employees and the
resources.
• Work Unit Climate: It is a
collective study of how the
employees think, feel and what
do they expect. The kind of
relationships the employees
share with their team members
and members of other teams is
also an important aspect of
work unit climate.

86. Burke-Litwin change model
• Tasks and Skills: This involves
understanding what a specific job
position demands and the kind of
skills and knowledge that an
employee must have in order to fulfill
the task responsibilities of that job
position. It’s important to see how
well jobs and employees have been
matched.
• Individual Values and Needs: This
dimension seeks to explore the
employee’s opinion about their work
so as to identify the quality factors
that will result in job enrichment and
better job satisfaction.

87. Burke-Litwin change model
• Motivation Level: Identifying the
motivation level of the employees
will make it easier to determine
how willingly they would put in
their efforts to achieve
organizational goals. This would
also involve identifying
motivational triggers.
• Individual and Overall
Performance: This dimension takes
into account the level of
performance, on individual and
organizational levels, in key areas
like productivity, quality, efficiency,
budget and customer satisfaction
etc.

88. Porras & Robertson Model
• Porras & Robertson outline four types of
organizational change based on the category
of change (planned or unplanned) and its
order (first or second).

89. Porras & Robertson Model
• Planned change originates with a
decision made by the organization
itself with the deliberate purpose of
improving its functioning.
• It is also common to engage an
outside resource to help in the
processes of making these
improvements.
• Planned change is typically initiated
to respond to new external
demands imposed upon the
organization.
• Planned change will often affect
many unforeseen segments of the
organization.

90. Porras & Robertson Model
• Unplanned change is change
that originates outside of the
organizational system and to
which the organization must
respond.
• This adaptive response is often
focused on the alteration of
relatively clearly defined and
narrow segments of the
organization.
• It is spontaneous, evolutionary,
fortuitous, or accidental.

91. Porras & Robertson Model
• First-order change, linear and
continuous in nature, involves
alterations in system
characteristics without any
shift in either fundamental
assumptions about key
organizational cause-and-
effect relationships or in the
basic paradigm used by the
system to guide its
functioning.

92. Porras & Robertson Model
• Second-order change is a
multi-dimensional, multi-
level, qualitative,
discontinuous, radical
organizational change
involving a paradigmatic
shift.

93. Factors constituting an organizational
work setting

94. Impact of change on
Human Resources Planning
• Human resources planning
are a process that identifies
current and future human
resources needs for an
organization to achieve its
goals.
• Human resources planning
should serve as a link
between human resources
management and the overall
strategic plan of an
organization.

95. Impact of change on
Human Resources Planning
• Aging worker
populations in most
western countries and
growing demands for
qualified workers in
developing economies
have underscored the
importance of effective
Human Resources
Planning.

97. Quality consciousness
• The term “quality
consciousness” was first
used n a 1947 keynote
by C.R. Sheaffer to the
first convention of the
American Society for
Quality Control (ASQC),
the predecessor to ASQ.

98. Quality consciousness
• Quality consciousness can be
summed up by the “3 A’s” –
Awareness, Alignment, and
Attention.
• Quality consciousness implies
awareness of yourself and the
environment around you
(including what constitutes
quality and high performance
for people, processes and
products – most importantly,
YOU).

99. Quality consciousness
• It also suggests that you
must achieve alignment of
your consciousness with the
consciousness of the
organization, which will aid
in full activity and
engagement of the senses.
• Your attention must be
selectively focused onto
what you can accomplish in
the present moment
according to that alignment

100. Case study
Strategic Change Management

101. Scenario #1: “Greener Telco”
Scenario #1 refers to Bell
Canada’s Zero Waste
program, which successfully
changed wasteful employee
behaviours by altering the
causes of those behaviours.
Courtesy of Bell Canada

102. Bell Canada’s Change Strategy
Courtesy of Bell Canada
Relied on the MARS model to alter
behaviour:
Motivation -- employee involvement,
respected steering committee
Ability -- taught paper reduction, email,
food disposal
Role perc. -- communicated importance
of reducing waste
Situation -- Created barriers to wasteful
behaviour, eg. removed garbage bins

103. Courtesy of Continental Airlines
Scenario #2: “Go Forward Airline”
Scenario #2 refers to
Continental Airline’s “Go
Forward” change strategy,
which catapulted the
company “from worst to first”
within a couple of years.

104. Continental Airlines’ Change Strategy
 Communicate, communicate,
communicate
 Introduced 15 performance
measures
 Established stretch goals (repainting
planes in 6 months)
 Replaced 50 of 61 executives
 Rewarded new goals (on-time
arrival, stock price)
 Customers as drivers of change
Courtesy of Continental Airlines