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Organisational Change
Organisational Change
• Change refers to any alteration that occurs in
total work environment
• OC involves disequilibrium in the situation and
environment in which the people and the
group exist
© 2003 Prentice Hall Inc. All
rights reserved.
19–3
Managing Planned Change
Goals of Planned Change:
Improving the ability of the
organization to adapt to
changes in its environment.
Changing the behavior of
individuals and groups in
the organization.
Nature and characteristics or OC
• Change disturbs the old equilibrium
• Change affects the whole organisation
• Change is a continuous process
• Change be reactive or proactive
• Change is perceptual and bahavioral
• Change affects individuals in the multiple roles
• Change is natural as is death
• Change may be planned or unplanned
• Change may be incremental or transformational
• Change may originate in response to internal needs
• Initiation of change efforts
Importance
• Changes in the environment
• Changes in managerial level-human resources
• Deficiency in present organisation
• Check the growth of inflexibility
Stability Vs change
Stability Change
Org. want to improve, innovate, grow,
make more profit, develop, establish will
go for change
Org. concentrates more on safety,
stability, risk averse will not go for change
Proactive Vs Reaction Change
Proactive change Reactive Change
Creation
Improvement
Migration
Modification
Correction
Variation
Expansion
Re-configuration
Forces of change
• External forces
– Technology
– Marketing conditions
– Social changes
– Political forces
• Internal forces
– Changes in managerial personnel
– Changes in operative personnel
– Deficiencies in existing structure
Change process
• Problem recognition
• Identifying the causes of problems
• Implementing change
• Generating motivation for change
• Managing the transition state
• Supporting the change
• Evaluating the change
• Identify the need for change
• Diagnose the problem
• Plan the change
• Implement the change
• Follow-up and feedback
Steps in the Organizational Change Process
Figure 11.6
Lewin’s three step model of change
process
• Unfreesing:- the first of Kurt Lewin’s three related
conditions or states that result in behavioural
change- the state in which individuals experience
a need to learn new behaviours
• Changing:- it is the phase where new learning
occurs.
• Refreesing:- the individual internalise the new
beliefs, feelings and bahaviour learned in the
changing phase. Individual’s experimentally
performed behaviours become part of the
person.
© 2003 Prentice Hall Inc. All
rights reserved.
19–13
Lewin’s Three-Step Change Model
© 2003 Prentice Hall Inc. All
rights reserved.
19–14
Lewin’s Three-Step Change Model
E X H I B I T 19-5
© 2003 Prentice Hall Inc. All
rights reserved.
19–15
Unfreezing the Status Quo
E X H I B I T 19-6
Unfreesing change (move) Re - freesing
Planned change
• Change that is designed and implemented in
an orderly and timely fashion in anticipation
of future events
• A new scientific way of viewing change is “the
planned alteration in the existing
organisational system”
Features of planned change
• It is deliberate, systematic and intentionally undertaken
• It takes place in all organisations at varying speeds and degrees of
importance
• It takes place in all parts of an organisation
• It challenges the status quo and sets the organisation on a new path
• It can have positive as well as negative impacts. When viewed
positively, employees accept and undertake change enthusiastically.
If employees look at it in an unfavourable way, they tend to oppose
it vehemently
• Planned change may focus on organisation’s technology, products,
markets, processes, people, etc.
• Planned changes are difficult to bring about, costly and time
consuming
Process of planned change
• According to Kurt Lewin every behaviour is the
result of an equilibrium between driving and
restraining forces. The driving forces push one
way; the restraining forces push the other.
• Force field analysis:- is the process of finding
which forces drive and which resist a
proposed change.
Phases of change/need for change
• Creativity
• Direction
• Delegation
• Co-ordination
• collaboration
Approaches to organisational change
• Structural approach
• Technological approach
• Task approach
• People approach
Human response to change
• Resistance
• Indifference
• Acceptance
Resistance to change
• Economic reasons
– Fear of economic loss (reduced work, unemployment, reduced
wages/incentives etc.)
– Obsolescence of skills (what they have been doing so long might be under
threat)
• Personal Reasons
– Fear of unknown
– Status quo ( habit)
– Self-interest and ego-defensiveness (perceived loss of power)
• Social Reasons
– Social displacement (breaking of informal groups)
– Peer pressure
• Organisational Issues
– Threat to power and influence
– Organisation structure
– Resource constraints
– Sunk costs
© 2003 Prentice Hall Inc. All
rights reserved.
19–24
Resistance to Change
• Forms of Resistance to Change
– Overt and immediate
• Voicing complaints, engaging in job actions
– Implicit and deferred
• Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism
© 2003 Prentice Hall Inc. All
rights reserved.
19–25
Sources of Individual Resistance to
Change
E X H I B I T 19-2
© 2003 Prentice Hall Inc. All
rights reserved.
19–26
Sources of Organizational Resistance
to Change
E X H I B I T 19-40
Overcoming resistance to change
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and cooptation (selectively
withhold undesirable information, create false
rumours, distort facts to get potential resisters
accept the change.
• Coercion
• Group dynamics
Managing change
• Effective planning for change
• Introduce/implement the change
• Overcome the resistance to change
• Feedback
© 2003 Prentice Hall Inc. All
rights reserved.
19–29
Action Research
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.
© 2003 Prentice Hall Inc. All
rights reserved.
19–30
Organizational Development
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
OD values, assumption and beliefs
• Values, assumption and beliefs are
integral to a human being and also to an
organization. OD values tend to be
humanistic, optimistic and democratic.
The values, assumptions and beliefs of an
organization shape the goals and methods
in the case of OD.
The following are the values in
OD efforts
• Respect People: People are the raison d'etre
of organisation and they are responsible for
creating opportunities for growth. ...
• Confidence and Support: ...
• Confrontation: ...
• Employee Participation: ...
• Expression: ...
• Seeking Cooperation:
OD process Model
© 2003 Prentice Hall Inc. All
rights reserved.
19–37
Organizational Development
Techniques (cont’d)
© 2003 Prentice Hall Inc. All
rights reserved.
19–38
Organizational Development
Techniques
© 2003 Prentice Hall Inc. All
rights reserved.
19–39
Organizational Development
Techniques (cont’d)
© 2003 Prentice Hall Inc. All
rights reserved.
19–40
Organizational Development
Techniques (cont’d)
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal
relations.
• Role analysis to each
member’s role and
responsibilities.
• Team process analysis.
© 2003 Prentice Hall Inc. All
rights reserved.
19–41
Organizational Development
Techniques (cont’d)
Intergroup Problem
Solving:
• Groups independently
develop lists of
perceptions.
• Share and discuss lists.
• Look for causes of
misperceptions.
• Work to develop
integrative solutions.
© 2003 Prentice Hall Inc. All
rights reserved.
19–42
Organizational Development
Techniques (cont’d)
Appreciative Inquiry (AI):
• Discovery: recalling the
strengths of the
organization.
• Dreaming: speculation
on the future of the
organization.
• Design: finding a
common vision.
• Destiny: deciding how to
fulfill the dream.
• https://www.youtube.com/watch?v=rrH90zd9
uco
• https://www.youtube.com/watch?v=BdsVdFn
UfCU&list=RDCMUCM64sHTH3EUbhhD0ewz8
YkA&index=1 ( monkey and banana story)
End of 1st Module

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Module 1.pptx

  • 2. Organisational Change • Change refers to any alteration that occurs in total work environment • OC involves disequilibrium in the situation and environment in which the people and the group exist
  • 3. © 2003 Prentice Hall Inc. All rights reserved. 19–3 Managing Planned Change Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization.
  • 4. Nature and characteristics or OC • Change disturbs the old equilibrium • Change affects the whole organisation • Change is a continuous process • Change be reactive or proactive • Change is perceptual and bahavioral • Change affects individuals in the multiple roles • Change is natural as is death • Change may be planned or unplanned • Change may be incremental or transformational • Change may originate in response to internal needs • Initiation of change efforts
  • 5. Importance • Changes in the environment • Changes in managerial level-human resources • Deficiency in present organisation • Check the growth of inflexibility
  • 6. Stability Vs change Stability Change Org. want to improve, innovate, grow, make more profit, develop, establish will go for change Org. concentrates more on safety, stability, risk averse will not go for change
  • 7. Proactive Vs Reaction Change Proactive change Reactive Change Creation Improvement Migration Modification Correction Variation Expansion Re-configuration
  • 8. Forces of change • External forces – Technology – Marketing conditions – Social changes – Political forces • Internal forces – Changes in managerial personnel – Changes in operative personnel – Deficiencies in existing structure
  • 9. Change process • Problem recognition • Identifying the causes of problems • Implementing change • Generating motivation for change • Managing the transition state • Supporting the change • Evaluating the change
  • 10. • Identify the need for change • Diagnose the problem • Plan the change • Implement the change • Follow-up and feedback
  • 11. Steps in the Organizational Change Process Figure 11.6
  • 12. Lewin’s three step model of change process • Unfreesing:- the first of Kurt Lewin’s three related conditions or states that result in behavioural change- the state in which individuals experience a need to learn new behaviours • Changing:- it is the phase where new learning occurs. • Refreesing:- the individual internalise the new beliefs, feelings and bahaviour learned in the changing phase. Individual’s experimentally performed behaviours become part of the person.
  • 13. © 2003 Prentice Hall Inc. All rights reserved. 19–13 Lewin’s Three-Step Change Model
  • 14. © 2003 Prentice Hall Inc. All rights reserved. 19–14 Lewin’s Three-Step Change Model E X H I B I T 19-5
  • 15. © 2003 Prentice Hall Inc. All rights reserved. 19–15 Unfreezing the Status Quo E X H I B I T 19-6
  • 16. Unfreesing change (move) Re - freesing
  • 17. Planned change • Change that is designed and implemented in an orderly and timely fashion in anticipation of future events • A new scientific way of viewing change is “the planned alteration in the existing organisational system”
  • 18. Features of planned change • It is deliberate, systematic and intentionally undertaken • It takes place in all organisations at varying speeds and degrees of importance • It takes place in all parts of an organisation • It challenges the status quo and sets the organisation on a new path • It can have positive as well as negative impacts. When viewed positively, employees accept and undertake change enthusiastically. If employees look at it in an unfavourable way, they tend to oppose it vehemently • Planned change may focus on organisation’s technology, products, markets, processes, people, etc. • Planned changes are difficult to bring about, costly and time consuming
  • 19. Process of planned change • According to Kurt Lewin every behaviour is the result of an equilibrium between driving and restraining forces. The driving forces push one way; the restraining forces push the other. • Force field analysis:- is the process of finding which forces drive and which resist a proposed change.
  • 20. Phases of change/need for change • Creativity • Direction • Delegation • Co-ordination • collaboration
  • 21. Approaches to organisational change • Structural approach • Technological approach • Task approach • People approach
  • 22. Human response to change • Resistance • Indifference • Acceptance
  • 23. Resistance to change • Economic reasons – Fear of economic loss (reduced work, unemployment, reduced wages/incentives etc.) – Obsolescence of skills (what they have been doing so long might be under threat) • Personal Reasons – Fear of unknown – Status quo ( habit) – Self-interest and ego-defensiveness (perceived loss of power) • Social Reasons – Social displacement (breaking of informal groups) – Peer pressure • Organisational Issues – Threat to power and influence – Organisation structure – Resource constraints – Sunk costs
  • 24. © 2003 Prentice Hall Inc. All rights reserved. 19–24 Resistance to Change • Forms of Resistance to Change – Overt and immediate • Voicing complaints, engaging in job actions – Implicit and deferred • Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
  • 25. © 2003 Prentice Hall Inc. All rights reserved. 19–25 Sources of Individual Resistance to Change E X H I B I T 19-2
  • 26. © 2003 Prentice Hall Inc. All rights reserved. 19–26 Sources of Organizational Resistance to Change E X H I B I T 19-40
  • 27. Overcoming resistance to change • Education and communication • Participation and involvement • Facilitation and support • Negotiation and agreement • Manipulation and cooptation (selectively withhold undesirable information, create false rumours, distort facts to get potential resisters accept the change. • Coercion • Group dynamics
  • 28. Managing change • Effective planning for change • Introduce/implement the change • Overcome the resistance to change • Feedback
  • 29. © 2003 Prentice Hall Inc. All rights reserved. 19–29 Action Research 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.
  • 30. © 2003 Prentice Hall Inc. All rights reserved. 19–30 Organizational Development OD Values: 1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation
  • 31. OD values, assumption and beliefs • Values, assumption and beliefs are integral to a human being and also to an organization. OD values tend to be humanistic, optimistic and democratic. The values, assumptions and beliefs of an organization shape the goals and methods in the case of OD.
  • 32. The following are the values in OD efforts • Respect People: People are the raison d'etre of organisation and they are responsible for creating opportunities for growth. ... • Confidence and Support: ... • Confrontation: ... • Employee Participation: ... • Expression: ... • Seeking Cooperation:
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  • 37. © 2003 Prentice Hall Inc. All rights reserved. 19–37 Organizational Development Techniques (cont’d)
  • 38. © 2003 Prentice Hall Inc. All rights reserved. 19–38 Organizational Development Techniques
  • 39. © 2003 Prentice Hall Inc. All rights reserved. 19–39 Organizational Development Techniques (cont’d)
  • 40. © 2003 Prentice Hall Inc. All rights reserved. 19–40 Organizational Development Techniques (cont’d) Team Building Activities: • Goal and priority setting. • Developing interpersonal relations. • Role analysis to each member’s role and responsibilities. • Team process analysis.
  • 41. © 2003 Prentice Hall Inc. All rights reserved. 19–41 Organizational Development Techniques (cont’d) Intergroup Problem Solving: • Groups independently develop lists of perceptions. • Share and discuss lists. • Look for causes of misperceptions. • Work to develop integrative solutions.
  • 42. © 2003 Prentice Hall Inc. All rights reserved. 19–42 Organizational Development Techniques (cont’d) Appreciative Inquiry (AI): • Discovery: recalling the strengths of the organization. • Dreaming: speculation on the future of the organization. • Design: finding a common vision. • Destiny: deciding how to fulfill the dream.
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  • 46. End of 1st Module