Organizational change involves moving an organization from its current state to a desired future state to increase effectiveness. It targets improvements at four levels: human resources, functional resources, technological capabilities, and organizational capabilities. There are two main types of change - evolutionary, which is gradual and incremental, and revolutionary, which is sudden and drastic. Managing change involves understanding the forces for and resisting change, and using techniques like action research, organizational development, and addressing resistance and promoting acceptance of change.

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Types and Forms
of Organizational
Change

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What is Organizational Change?
 Organizational change: the process by
which organizations move from their
present state to some desired future state
to increase their effectiveness
 Goal is to find improved ways of using
resources and capabilities in order to increase
an organization’s ability to create value
 Targets of change include improving
effectiveness at four different levels
 Human resources
 Functional resources
 Technological capabilities
 Organizational capabilities

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Targets of Change
 Human Resource changes include:
 Investment in training and development
 Socializing employees into the
organizational culture
 Changing organizational norms and
values to motivate a multicultural and
diverse workforce
 Promotion and reward systems
 Changing the composition of the top-
management team

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Targets of Change
 Functional Resources changes Include:
 Transferring resources to the functions
where the most value can be created in
response to environmental change
 An organization can improve the value that
its functions create by changing its
structure, culture, and technology

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Targets of Change
Technological capabilities changes
include:
 Efforts intended to give an organization
the capacity to change itself in order to
exploit market opportunities
 Adoption and use of new technologies
 Development of new products/
technologies and the changing of existing
one’s
 Technological capabilities are a core
competence
5

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Targets of Change
 Organizational capabilities changes
include:
 Changing organizational design
 Culture and structure
 Changing strategy
 Changes that permeate entire
organization

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Figure 10.1: Forces for and
Resistances to Change

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Levin's Force-Field
Theory of Change
 Argues that two sets of opposing forces within an
organization determine how change will take place
 Forces for change and forces making organizations
resistant to change
 When forces for and against change are equal, the
organization is in a state of inertia
 To change an organization, managers must increase
forces for change and/or decrease forces resisting change

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Types of Change in Organizations
 Evolutionary change: change that
is gradual, incremental, and narrowly
focused
 Revolutionary change: change
that is sudden, drastic, and broadly
focused

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Developments in
Evolutionary Change
 Sociotechnical systems theory: a theory
that proposes the importance of changing
role and task or technical relationships to
increase organizational effectiveness
 Total quality management (TQM): an
ongoing and constant effort by all of an
organization’s functions to find new ways to
improve the quality of the organization’s
goods and services
 Flexible workers and Flexible work
teams

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Developments in
Revolutionary Change
 Reengineering: the process by which
managers redesign how tasks are bundled
into roles and functions to improve
organizational effectiveness
 Focuses on business processes versus functions
 Deliberately ignores the existing arrangement of
tasks, roles, and work activities
 E-engineering: refers to companies’
attempts to use information systems to
improve their performance

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Developments in
Revolutionary Change (cont.)
 Restructuring: changing task and authority
relationships and redesigning organizational
structure and culture to improve organizational
effectiveness
 Downsizing: the process of streamlining the
organizational hierarchy and laying off managers
and workers to reduce bureaucratic costs
 Innovation: the process by which organizations
use their skills and resources to:
 Create new technologies
 Develop new goods and services
 Better respond to the needs of their customers
 One of the most difficult instruments of change to manage

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Figure 10.2: Levin's Force-Field
Theory of Change

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Figure 10.5: Levin's Three-Step
Change Process

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Managing Change:
Action Research
 Action research: a
strategy for generating
and acquiring
knowledge that
managers can use to
define an
organization’s desired
future state
 Used to plan a change
program that allows the
organization to reach
that state
 Helps in the unfreezing,
changing, and refreezing
process

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Organizational Development (OD)
Organizational development (OD):
a series of techniques and methods
that managers can use in their action
research program to increase the
adaptability of their organization
 Goal is to improve organizational
effectiveness and to help people in
organizations reach their potential and
realize their goals and objectives
 Can be used to unfreeze, change, and
refreeze attitudes and behaviors

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Organizational Development
(cont.)
OD techniques to deal with resistance
to change
 Education and communication: inform
workers about change and how they will
be affected
 Participation and empowerment:
involve workers in change
 Facilitation: help employees with change
 Bargaining and negotiation
 Manipulation: change the situation to
secure acceptance
 Coercion: force workers to accept change

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Organizational Development
(cont.)
OD techniques to promote
change
 Counseling, Sensitivity training, and
Process consultation
 Team building, Intergroup training,
and Organizational mirroring
 Total organizational interventions
 Organizational confrontation meeting