Organizational change is defined as changes that impact how work is performed and significantly affect staff. Major types of organizational change include organization-wide vs subsystem change, transformational vs incremental change, and planned vs unplanned change. Factors driving organizational change include globalization, competition, technology, and customer needs. Resistance to change stems from individual fears and organizational barriers. Kotter's 8-stage process provides steps for creating successful organizational change through establishing urgency, building guiding teams, communicating vision, empowering employees, and anchoring changes in culture.

1. CHANGE
MANAGEMENT
Presented By:
Neha Thakur
Ruhi Beri
Sukhman Mann
Vidushi Thareja

2. Topics for Discussion
Change
Organisational Change
Factors affecting Change
Resistance to Change
Need for Change
Process for creating Change

3. The Only Thing Which Is Permanent In
This World………
CHANGE!!!

4. Organisational change is defined as change that
has an impact on the way that work is performed and
has significant effects on staff. This could include
changes:
- In the structure of an organisation
- To organisational operation and size of a workforce
- To working hours or practices
- In the way roles are carried out
- To the scope of a role that results in a change to
the working situation, structure, terms and
conditions or environment.

5. Major Types of
Organizational Change

6. Organization-wide Versus Subsystem Change
Organizations undertake organization-wide change to
evolve to a different level in their life cycle. E.g.
Major restructuring, collaboration or rightsizing.
 Subsystem change might include addition or removal
of a product or service, reorganization of a certain
department, or implementation of a new process to
deliver products or services.

7. Transformational Versus Incremental Change
Transformational change or quantum change might
be changing an organization's structure and culture
from the traditional top-down, hierarchical structure
to a large amount of self-directing teams.
Incremental change might include continuous
improvement as a quality management process or
implementation of new computer system to increase
efficiencies.

8. Remedial Versus Developmental Change
Change can be intended to remedy current
situations. E.g. To improve the poor performance of a
product, reduce burnout in the workplace or address
large budget deficits.
Change can also be developmental to make a
successful situation even more successful. E.g. Expand
the amount of customers served, or duplicate
successful products or services.

9. Unplanned Versus Planned Change
Unplanned change usually occurs because of a major,
sudden surprise to the organization, which causes its
members to respond in a highly reactive and
disorganized fashion.
Planned change occurs when leaders in the
organization recognize the need for a major change
and proactively organize a plan to accomplish the
change.

10. Factors affecting
Organisational Change
External factors Internal factors
Globalization Managerial and
Increased Competition administrative processes
Government Policies Individual and group
Economic Factors expectations
Political Factors Deficiency in existing
Changing Customer organization
needs and preferences Developing inertia
Technological Changes Nature of workforce

11. Resistance to Change
INDIVIDUAL ORGANISATIONAL
BARRIERS BARRIERS
Economic Fears Structural inertia
Fear of the unknown Work group norms
Fear of social Threat to existing
disruptions balance of power
Effort History of change
Fear of loss of power efforts gone wrong
and autonomy Boards of directors
Commitment to the old
position.

12. Minimizing Resistance to
Change
Communication
Learning
Employee Involvement
Stress Management
Negotiation
Coercion

13. Need for Change
Change is used as a survival tactic in today’s
business environment. If the organisation
does not keep a pace with changing
technology, consumer demands and effective
business processes, they will lose their
competitive edge.

14. KOTTER’S EIGHT-STAGE
PROCESS FOR CREATING
CHANGE

15. 1.Establishing a Sense of Urgency
Examining the market and competitive
realities (SWOT matrix)
Help others see the need for change and
the importance of acting immediately

16. 2.Creating the Guiding Coalition
 Building teams and forming influential guiding
coalitions , one with leadership skills, bias for action,
credibility, communication skills, authority and
analytical skills for motivating change.

17. 3.Developing a Vision and Strategy

18. 4.Communicating the Change Vision
Make sure as many others as possible
understand and accept the vision and the
strategy

19. 5.Empowering Broad-Based Action
Develop a shared sense of purpose
Break the change up into smaller projects and allow
people to add to the process
Give small groups specific projects to do that will
help contribute towards the change.

20. 6.Generate Short-Term Wins
Make sure you make time to acknowledge and
celebrate the wins. Don’t keep looking up the mountain.
Provide positive feedback to further builds morale
and motivation.

21. 7.Consolidating Gains and Producing More
Change
 Not letting up after the first success,
consolidating improvements and sustain the
momentum for change
Hiring, promoting and developing people who can
implement the change vision

22. 8.Anchoring New Approaches in the Culture
Articulating the connections between new
behaviours and organisational success and holding on
to the new ways until they become a part of the very
culture of the group
Endeavour to:
 Create better performance
Encourage better leadership
Inculcate effective management