There is no permanent organizational chart for the world… It is of supreme importance to be ready at all times to take advantage of new opportunities and make change in your Organization.

1. 1
Organizational Change
Ch. Aitzaz Ahsan

2. 2
Learning Objectives
Define organizational change
Learn why managing change is an
important part of international
management
Understand the individual, group, and
structural levels of change
Know what internal and external factors
influence organizational change

3. 3
Learning Objectives (cont.)
Explain the role of national and organizational
culture on organizational stability and change
Understand the processes involved in
planning organizational change, including
sources of resistance to change and ways to
overcome them
Understand how macro level theories of
organizational change influence the
management of change

4. 4
Roberto C. Goizueta
Former Chairman and CEO
Coca-Cola Company
There is no permanent
organizational chart for the world…
It is of supreme importance to be
ready at all times to take advantage
of new opportunities.

5. 5
Organizational Change
Reconfigures components of an
organization to increase efficiency and
effectiveness
Including any alternations in people,
structure, or technology

6. Forces for ChangeForces for Change
Force Examples
Nature of the workforce More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computers
On-line music sharing
Deciphering of the human genetic code
Economic shocks Rise and fall of dot-com stocks
2000–02 stock market collapse
Record low interest rates
Competition Global competitors
Mergers and consolidations
Growth of e-commerce

7. Forces for ChangeForces for Change
Force Examples
Social trends Internet chat rooms
Retirement of Baby Boomers
Rise in discount and “big box” retailers
World politics Iraq–U.S. war
Opening of markets in China
War on terrorism following 9/11/01

8. Managing Planned ChangeManaging 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.
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.
Change
Making things different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume the
responsibility for managing
change activities.

9. Resistance to ChangeResistance 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

10. Sources of Individual Resistance to ChangeSources of Individual Resistance to Change

11. Sources of Organizational Resistance to
Change
Sources of Organizational Resistance to
Change

12. Overcoming Resistance to ChangeOvercoming Resistance to Change
Tactics for dealing with
resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion
Tactics for dealing with
resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion

13. 13
Levels of Organizational Change
Structural change
Group change
Individual change
Structural change
Group change
Individual change

14. 14
Internal Change Factors
Technical Production
Processes
Production
New Technologies
Quality
Political Processes
New Organizational Goals
Conflict
New Leadership
Organizational
Culture
Values
Norms
New Member
Socialization

15. 15
External Change Factors
Immediate
Environment
Domestic Competition
Population Trends
Social Trends
Government Actions
Immediate
Environment
Domestic Competition
Population Trends
Social Trends
Government Actions
General
Environment
Foreign Competition
Social Movements
Political-Economic
Movements
Technology
Professionalization
Culture Contact
General
Environment
Foreign Competition
Social Movements
Political-Economic
Movements
Technology
Professionalization
Culture Contact

16. 16
National Culture and
Organizational Change
Time Orientation:
Past
Present
Future
Short-term vs. long-
term oriented
Resistance to Change
Tradition
Habit
Resource Limitations
Power and Influence
Fear of the Unknown
Values

17. 17
Managing Change
Organization development
Lewin’s model of change
Managing resistance to change
Impact of cultural values
OD model
Consulting
Power versus employee participation

18. Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model
Unfreezing
Change efforts to overcome
the pressures of both
individual resistance and
group conformity.
Refreezing
Stabilizing a change
intervention by balancing
driving and restraining forces.
Driving Forces
Forces that direct behavior
away from the status quo.
Restraining Forces
Forces that hinder movement
from the existing equilibrium.

19. Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

20. Action ResearchAction Research
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
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.
Action research benefits:
Problem-focused rather
than solution-centered.
Heavy employee
involvement reduces
resistance to change.
Action Research
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicate.

21. Organizational DevelopmentOrganizational Development
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Participation
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Participation
Organizational Development (OD)
A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.

22. Organizational Development TechniquesOrganizational Development Techniques
Sensitivity Training
Training groups (T-groups) that
seek to change behavior through
unstructured group interaction.
Provides increased awareness of
others and self.
Increases empathy with others,
improves listening skills, greater
openess, and increased tolerance
for others.

23. Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Survey Feedback Approach
The use of questionnaires to identify
discrepancies among member perceptions;
discussion follows and remedies are suggested.

24. Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Process Consultation (PC)
A consultant gives a client insights into what is going
on around the client, within the client, and between the
client and other people; identifies processes that need
improvement.

25. Organizational Development Techniques
(cont’d)
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.
Team Building Activities:
• Goal and priority setting.
• Developing interpersonal relations.
• Role analysis to each member’s role and
responsibilities.
• Team process analysis.
Team Building
High interaction among team members to
increase trust and openness.

26. Organizational Development Techniques
(cont’d)
Organizational Development Techniques
(cont’d)
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other.

27. Organizational Development Techniques
(cont’d)
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.
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.
Appreciative Inquiry
Seeks to identify the unique qualities and special
strengths of an organization, which can then be built
on to improve performance.

28. Change Issues For Today’s ManagersChange Issues For Today’s Managers
 How are changes in technology affecting the
work lives of employees?
 What can managers do to help their organizations
become more innovative?
 How do managers create organizations that
continually learn and adapt?
 Is managing change culture-bound?