Organisational Change - on OB

1. CHANGE

2. NATURE OF CHANGE
 Vital if a company were to avoid stagnation;
 a process and not an event;
 normal and constant;
 fast and is likely to increase further in the present competitive
business;
 ‘directive’, that is, implemented by ‘top down’ management or
‘participative’, that is, involving those parties impacted by change;
 is ‘natural’, that is, evolutionary or ‘adaptive’, that is, a reaction to
external circumstances and pressures;
 is ‘incremental’, that is continuous small changes or ‘step’, that is,
radical shift from current to new processes; and
 is interdependent on organizational environment or culture.

3. 16-3
FORCES THAT STIMULATE CHANGE

4. SOURCES OF
RESISTANCE TO CHANGE
Individual
 Habit
 Security
 Economic Factors
 Fear of the Unknown
 Selective Information
Processing
Organizational
 Limited Focus of Change
 Group Inertia
 Threat to Expertise
 Threat to Established
Power Relationships and
Resource Allocations
People tend to resist change, even in the face of
evidence of its benefits.

5. RESISTANCE TO CHANGE
 Fear of the unknown
 Fear of loss
 Fear of failure
 Disruption of interpersonal
relationships
 Personality conflicts
 Politics
 Cultural assumptions and
values

6. DEALING WITH
RESISTANCE TO CHANGE
 Communication
 details
 rationale
 Participation in the
process
 ownership
 commitment
 Empathy and
support

7. TACTICS FOR OVERCOMING RESISTANCE
TO CHANGE
 Education and Communication
 Show those effected the logic behind the change
 Participation
 Participation in the decision process lessens
resistance
 Building Support and Commitment
 Counseling, therapy, or new-skills training
 Implementing Change Fairly
 Be consistent and procedurally fair
 Manipulation and Cooptation
 “Spinning” the message to gain cooperation
 Selecting people who accept change
 Hire people who enjoy change in the first place
 Coercion
 Direct threats and force

8. SCOPE OF CHANGE
Incremental Change – change of a relatively
small scope, such as making small
improvements
Strategic Change – change of a larger scale,
such as organizational restructuring
Transformational Change – change in which
the organization moves to a radically different,
and sometimes unknown, future state

9. APPROACHES TO MANAGING
ORGANIZATIONAL CHANGE
 Lewin’s Three-Step Model of Change
 Kotter’s Eight-Step Model of the
Change Process
 Organizational Development

10. LEWIN’S THREE-STEP CHANGE MODEL
 Unfreezing
 Change efforts to overcome the pressures of both
individual resistance and group conformity by
increasing the driving force and decreasing the
restraining force
 Moving
 Moving from the status quo to the desired end state
 Refreezing
 Stabilizing a change intervention by balancing
driving and restraining forces
17-10
Unfreeze Move Refreeze

11. LEWIN’S THREE-STEP CHANGE MODEL
1. Unfreezing – involves encouraging individuals
to discard old behaviors by shaking up the
equilibrium state that maintains the status quo
2. Moving – new attitudes, values, and behaviors
are substituted for old ones
3. Refreezing – involves the establishment of
new attitudes, values, and behaviors as the
new status quo

12. KOTTER’S EIGHT-STEP PLAN
 A detailed approach to implementing change that
is built on Lewin’s three-step model
 To implement change:
1. Establish a sense of urgency
2. Form a coalition
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term “wins”
7. Consolidate, reassess, and adjust
8. Reinforce the changes
Unfreezing
Movement
Refreezing

13. ORGANIZATIONAL DEVELOPMENT
 Organizational Development (OD)
 A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being
 OD Values
 Respect for people
 Trust and support
 Power equalization
 Confrontation
 Participation

14. SIX OD TECHNIQUES
1. Sensitivity Training
 Training groups (T-groups) seek to change behavior
through unstructured group interaction
 Provides increased awareness of others and self
 Increases empathy with others, listening skills,
openness, and tolerance for others
2. Survey Feedback Approach
 The use of questionnaires to identify discrepancies
among member perceptions; a discussion follows and
remedies are suggested
3. 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.

15. SIX OD TECHNIQUES (CONTINUED)
4. Team Building
 High interaction among team members to increase
trust and openness
5. Intergroup Development
 OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
6. Appreciative Inquiry
 Instead of looking for problems to fix, appreciative
inquiry seeks to identify the unique qualities and
special strengths of an organization, which employees
can then build on to improve performance. This
process comprises of four steps:
 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

16. CREATING A CULTURE FOR CHANGE:
INNOVATION
1. Stimulating a Culture of Innovation
 Innovation: a new idea applied to initiating or
improving a product, process, or service
 Sources of Innovation:
 Structural variables: organic structures
 Long managerial tenure
 Slack resources
 High degree of interunit communication
 Idea Champions: Individuals who actively promote
the innovation

17. CREATING A CULTURE FOR CHANGE:
LEARNING
2. Learning Organization
 An organization that has developed the
continuous capacity to adapt and change
 Characteristics
 Holds a shared vision
 Discards old ways of thinking
 Views organization as a system of relationships
 Communicates openly
 Works together to achieve shared vision

18. CREATING A LEARNING ORGANIZATION
 Overcomes traditional organization problems
such as:
 Fragmentation
 Competition
 Reactiveness
 Manage Learning by:
 Establishing a strategy
 Redesigning the organization’s structure
 Flatten structure and increase cross-functional activities
 Reshaping the organization’s culture
 Reward risk-taking and intelligent mistakes