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ORGANIZATIONAL CHANGE
Shilpi Arora
MEANING AND IMPLICATION
• Refers to modification or transformation of the organization’s structure, processes
or goods.
• Organizational change - is the movement of an organization away from its present
state and toward some desired future state to increase its efficiency and
effectiveness.
• It is the alteration of an organization’s structure, culture, technology, or people.
TYPES OF CHANGE
• 1. Planned Change: is change resulting from a deliberate decision to alter the
organization. It is an intentional, goal – oriented activity.
• 2. Unplanned Change: is imposed on the organization and is often unforeseen.
FORCES OF CHANGE
• EXTERNAL FORCES:
• Technological change
• Globalization
• Social & Political changes
• Workforce diversity
• INTERNAL FORCES:
• Changes in managerial personnel
• Declining effectiveness
• Changes in work climate
• Deficiencies in existing system
• Crisis
• Employee expectation
LEVELS OF CHANGE
• (a) Individual Level Change – Job assignment, physical Move, Change in maturity
of a person – Not significant on organization, but significant on group
• b) Group Level Changes – Major effect because organizational activities are done
in groups like departments or informal groups.
• (c) Organization Level Changes-– involves major programs that affect both
individuals and groups – Decisions regarding these changes are generally made by
senior management and are seldom implemented by only a single manager
TYPES OF CHANGE
• a) Strategic Change – Change in the mission (when acquired)
• b) Structural Change – Decentralization
• c) Process-oriented Change – In manufacturing operations
• d) People-oriented Change – Self – actualization (Motivation, Loyalty, Training,
STEPS IN MANAGED CHANGE
• 1. Develop new goals and objectives
• 2. Select an agent for change
• 3. Diagnose the problem
• 4. Select methodology
• 5. Develop a plan
• 6. Strategy for implementation of the plan
• 7. Implementation of the plan
• 8. Receive and evaluate feedback
RESISTANCE TO CHANGE
1) Individual Resistance :reside in basic human characteristics such as perceptions, personalities
& needs.
• Reasons of Individual Resistance:
• Economic Reason
• Fear of Loss
• Security
• Peer pressure
• Status quo- change may pose disturbance to the existing comforts of status quo.
• Disruption of Interpersonal Relation
RESISTANCE TO CHANGE
2) Organizational Resistance:
Resource constraint-
Structural inertia-in bureaucratic structure where jobs are narrowly defined & lines of
authority are clearly spelled out, change would be difficult.
Sunk cost -Some organization invest a huge amount of capital in fixed assets.
Threat to expertise-Change in organizational pattern may threaten the expertise of
specialized groups
Politics-
RESISTANCE TO CHANGE-SOURCES
• Rational resistance – occurs when people do not have the proper knowledge or
information to evaluate the change.
• Emotional resistance-– involves the psychological problems of fear, anxiety,
suspicion, insecurity.
• These feelings are evoked because of people’s perception of how the change will
affect them.
SYMPTOMS OF RESISTANCE
• Hostility or aggression is the immediate reaction
• Apathy towards his work
• Absenteeism and tardiness
• Anxiety and tension
• Signs of resistance (strikes, “restriction of output”)
BENEFITS OF RESISTANCE
– Encourage the management to re-examine its change proposals
– Identify specific problem areas where change is likely to cause difficulties
– Encouraged to do a better job of communicating the change
– Resistance also gives management information about the intensity of employee
emotions on an issue
– Encourage employee to think and talk more about a change
KURT LEWIN’S MODEL OF CHANGE MANAGEMENT
PRACTICAL STEPS FOR USING THE LEWIN'S CHANGE
MANAGEMENT MODEL
1) Steps for Unfreeze Stage:
Must determine that what needs to change
Make it sure there is strong support from top level management
Develop the need for change
Manage and understand the concerns and doubts about change
2) Steps for Change Stage:
• Communicate throughout the organization
• Empower action
3) Steps for Refreeze Stage:
• Anchor the changes into the culture
• Develop ways to sustain the change
• Provide support and training to staff
LEWIN’S FORCE FIELD ANALYSIS
METHODS OF INTRODUCING CHANGE
• Kotter and Schlisinger have suggested six methods of introducing change –
• 1. Education + Communication
• 2. Participation + involvement
• 3. Facilitation+ Support
• 4. Negotiation + Agreement
• 5. Manipulation + cooptation(to assimilate, take, or win over into a larger or
established group)

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Organizational change

  • 2. MEANING AND IMPLICATION • Refers to modification or transformation of the organization’s structure, processes or goods. • Organizational change - is the movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness. • It is the alteration of an organization’s structure, culture, technology, or people.
  • 3. TYPES OF CHANGE • 1. Planned Change: is change resulting from a deliberate decision to alter the organization. It is an intentional, goal – oriented activity. • 2. Unplanned Change: is imposed on the organization and is often unforeseen.
  • 4. FORCES OF CHANGE • EXTERNAL FORCES: • Technological change • Globalization • Social & Political changes • Workforce diversity • INTERNAL FORCES: • Changes in managerial personnel • Declining effectiveness • Changes in work climate • Deficiencies in existing system • Crisis • Employee expectation
  • 5. LEVELS OF CHANGE • (a) Individual Level Change – Job assignment, physical Move, Change in maturity of a person – Not significant on organization, but significant on group • b) Group Level Changes – Major effect because organizational activities are done in groups like departments or informal groups. • (c) Organization Level Changes-– involves major programs that affect both individuals and groups – Decisions regarding these changes are generally made by senior management and are seldom implemented by only a single manager
  • 6. TYPES OF CHANGE • a) Strategic Change – Change in the mission (when acquired) • b) Structural Change – Decentralization • c) Process-oriented Change – In manufacturing operations • d) People-oriented Change – Self – actualization (Motivation, Loyalty, Training,
  • 7. STEPS IN MANAGED CHANGE • 1. Develop new goals and objectives • 2. Select an agent for change • 3. Diagnose the problem • 4. Select methodology • 5. Develop a plan • 6. Strategy for implementation of the plan • 7. Implementation of the plan • 8. Receive and evaluate feedback
  • 8. RESISTANCE TO CHANGE 1) Individual Resistance :reside in basic human characteristics such as perceptions, personalities & needs. • Reasons of Individual Resistance: • Economic Reason • Fear of Loss • Security • Peer pressure • Status quo- change may pose disturbance to the existing comforts of status quo. • Disruption of Interpersonal Relation
  • 9. RESISTANCE TO CHANGE 2) Organizational Resistance: Resource constraint- Structural inertia-in bureaucratic structure where jobs are narrowly defined & lines of authority are clearly spelled out, change would be difficult. Sunk cost -Some organization invest a huge amount of capital in fixed assets. Threat to expertise-Change in organizational pattern may threaten the expertise of specialized groups Politics-
  • 10. RESISTANCE TO CHANGE-SOURCES • Rational resistance – occurs when people do not have the proper knowledge or information to evaluate the change. • Emotional resistance-– involves the psychological problems of fear, anxiety, suspicion, insecurity. • These feelings are evoked because of people’s perception of how the change will affect them.
  • 11. SYMPTOMS OF RESISTANCE • Hostility or aggression is the immediate reaction • Apathy towards his work • Absenteeism and tardiness • Anxiety and tension • Signs of resistance (strikes, “restriction of output”)
  • 12. BENEFITS OF RESISTANCE – Encourage the management to re-examine its change proposals – Identify specific problem areas where change is likely to cause difficulties – Encouraged to do a better job of communicating the change – Resistance also gives management information about the intensity of employee emotions on an issue – Encourage employee to think and talk more about a change
  • 13. KURT LEWIN’S MODEL OF CHANGE MANAGEMENT
  • 14. PRACTICAL STEPS FOR USING THE LEWIN'S CHANGE MANAGEMENT MODEL 1) Steps for Unfreeze Stage: Must determine that what needs to change Make it sure there is strong support from top level management Develop the need for change Manage and understand the concerns and doubts about change
  • 15. 2) Steps for Change Stage: • Communicate throughout the organization • Empower action 3) Steps for Refreeze Stage: • Anchor the changes into the culture • Develop ways to sustain the change • Provide support and training to staff
  • 17. METHODS OF INTRODUCING CHANGE • Kotter and Schlisinger have suggested six methods of introducing change – • 1. Education + Communication • 2. Participation + involvement • 3. Facilitation+ Support • 4. Negotiation + Agreement • 5. Manipulation + cooptation(to assimilate, take, or win over into a larger or established group)