1. OD and Change Management
40 Hours 100 Marks
Sem IV Elective
Assessment
Internal 40%
Semester end 60%
2. SYLLABUS MMS
Sr.
No.
Content
1
Process of Change –
The Process of Change, Creativity & Innovation: Organizational Change.
Definition & Key Dimensions, Factors that Promote Change, Creativity & Innovation, Theories of Innovation and Levels & Types of
Innovation, The age of Creativity, Creativity & National prosperity, Creative Industries & potential for growth
2
The Internal Environment – Orchestrating Structure, Systems and Resources; The Balanced Score Card – Value Creation and
Performance management.
Organizational Structure – work specifications, departmentalization, chain of command, span of control, centralization and
decentralization, Formalization. Situational factors– Corporate Strategy, Organizational
Size and Environmental uncertainty.
Structural forms – Traditional and contemporary forms. Organizing for change, creativity and innovation -
Goal Setting an reward Systems. Evaluation. Resources – Sufficient 7resourcing. Systems of Communication.
3.
Organizational culture, Different Perspectives of Organizational culture, Can we manage Organizational culture? Culture as an
important ingredient of Organizational Creativity.
Norms that promote Creativity and Innovation, Norms that promote Implementation.
Principles of creativity and innovation. Do strong, cohesive cultures hinder innovation?
4.
Definitions, underlying assumptions and values of Organization Development
5.
Approaches to OD – Systems Approach, Action Research
6.
Organization Diagnosis & Diagnostic Data Collection & Analysis including Climate Understanding Organizational Roles.
Understanding Organizational Roles
OD Intervention theories and methods-
Large Systems,
Group and
Individual Techniques
7.
Monitoring Change in Organizations
Fundamentals of monitoring change,
steps of measuring change,
methodologies for measuring change
8.
Latest trends in OD and Change Management
9.
Case studies and Presentations
3. Text Books
1 Cummings, Thomas G, Worley, Christopher G.
Essentials of Organizational
Development and Change
2. Organisational Change and Development – Dipak
Kumar Bhattacharya – Oxford Publications
Reference Books
1.Organizational Development – French & Bell
2. Change Management by Andrew Pettigrew and
Richard Whipp Infinity Books
4. Definition
Organization change may be defined as the
adoption of a new idea or a behaviour by an
organization (Daft 1995).
It is a way of altering an existing organization to
increase organizational effectiveness for
achieving its objectives.
OC is primarily structural in character and it is
designed to bring about alterations in
organizational structure, methods and
processes.
5. What is Change Management?
•“Change management is the systematic
approach and application of knowledge, tools
and resources to leverage the benefits of
change…” moving a given function toward
greater efficiency so as to positively impact
performance.
6. Turbulent Times
The Changing Work Place
• Today’s organizations need to continuously adapt to new
situations if they are to survive and prosper
• One of the most dramatic elements is the shift to a
technology- driven workplace
• Ideas, information, and relationships are becoming
critically important
8. Change as a Transition State
Current
State
Transition
State
Desired
Future
State
9. Sustaining Momentum
• Provide Resources for Change
• Build a Support System for Change Agents
• Develop New Competencies and Skills
• Reinforce New Behaviors
• Stay the Course
10. The Strategic Role of Change
• Organizations must run fast to keep up with
changes taking place all around them
• Today’s organizations must keep themselves
open to continuous innovation to survive
• Three types of change:
– Episodic change
– Continuous change
– Disruptive change
• Change has become the norm today
13. Forces for Change
Forces of changes are of two types: internal and
external.
• Environmental Forces
– Customers
– Competitors
– Technology
– Economic (Business Scenario)
– International arena
16. Forces for Change
Internal Forces – activities and
decisions
• Changes in size of the
organization.
• Performance Gaps
• Employee needs and values.
• Changes in top management.
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
17. Levels of Organizational Change
• Levels of analysis:
– Structural change
– Group change
– Individual change
• Cross-culture variation in
restructuring
– U.S.
– Japan
– Germany
– China
– South Africa
18. External Change Factors
• Immediate
Environment
– Domestic Competition
– Population Trends
– Social Trends
– Government Actions
• General Environment
– Foreign Competition
– Social Movements
– Political-Economic
Movements
– Technology
– Professionalization
– Culture Contact
19. Need for Change
Performance gap = disparity between
existing and desired performance levels.
● Current procedures are not up to standard
● New idea or technology could improve
current performance
Based on external or internal forces
21. Technology Change
• Technology is a key driver of organizational change
• Change is easily embraced by organizations with
empowered employees
• Innovative organizations are flexible and free-flowing
without rigid work rules
• Mechanistic structures stifle innovation and focus on rules
and regulations
• https://www.ted.com/talks/jim_hemerling_5_ways_to_lea
d_in_an_era_of_constant_change?language=en
• https://videohub.oracle.com/media/Organizational+Chang
e+Management+for+Cloud+Applications+%7C+January+19
%2C+2022/1_fy8e67up
24. Techniques for Change Implementation
1. Establish a sense of urgency for change
2. Establish a coalition to guide the change
3. Create a vision and strategy for change
4. Find an idea that fits the need
5. Develop plans to overcome resistance
6. Create change teams
7. Foster idea champions
25. Techniques for Overcoming Resistance
1. Alignment with needs and goals of users
2. Communication and training
3. An environment with psychological safety
4. Participation and involvement
5. Forcing and coercion
26. Organizational Change
• Today’s successful organizations
simultaneously embrace two types of planned
change
● Incremental change = efforts to gradually improve
basic operational and work processes in different
parts of the company
● Transformational change = redesigning and
renewing the entire organization
29. Model of Change
Sequence of Events
Environmental
Forces
Internal
Forces
Need for
change
Initiate change Implement
change
Monitor global
competition, and other
factors
Consider plans,
goals, company
problems, and
needs
Evaluate problems
and opportunities,
define needed
changes in
technology
products, structure,
and culture
Facilitate search,
creativity, idea
champions, venture
teams, skunk works and
idea incubators
Use force field analysis,
tactics for overcoming
resistance
30. RESISTANCE TO
CHANGE
Resistance to change is the act
of opposing or struggling with
modifications or transformations
that alter the status quo in the
workplace
Employees can resist to:
Content of change: what is changed
Consequences of change: outcome of the change
Transition: the psychological process people go through to come to terms with the new situation
The process: how change is implemented
34. Force-Field Analysis
• The process of determining which forces drive
and which resist a proposed change
Restraining Forces (Barriers)
•Lack of resources
•Resistance from middle managers
•Inadequate employee skills
Driving Forces
•Thought of as problems
or opportunities that
provide motivation for
change
Kurt Lewin
37. Consequences of Resistance to
Change
– Withdrawal
– Decrements in performance
– Sabotage
– Acting out
– Work slowdown
– Loose of loyalty to the
organization
– Loose of motivation to work
– Increase in the number of
absenteeism
– Increase errors and
mistakes
– Lower levels of job
satisfaction
– Higher intentions to quit
– Results in politics or
political behavior
– Introduces costs and
delays into the change
process
– Cripple an organization
40. Tactics for Overcoming
Resistance to Change
• Negotiation
• Coercion
• Top management support
• Group has power over implementation;
will lose out in the change
• Crisis exists; initiators clearly have
power; other techniques have failed
• Involves multiple departments or
reallocation of resources; users doubt
legitimacy of change
Approach When to use
• Communication
• education
• Participation
• Change is technical; users need accurate
information & analysis
• Users need to feel involved; design
requires information from others; have
power to resist
41. Types of Organizational Change
Culture/People
Strategy
Structure
Technology Products
SOURCE: Based on Harold J. Leavitt, “Applied Organizational Change in Industry: Structural,
Technical, and Human Approaches,” In New Perspectives in Organization Research, ed.W.W. Cooper,
H.J. Leavitt, and Shelly II (New York: Wiley, 1964), 55-74.
43. Organizational Change
Technology: General rule = change is bottom up
New product:
· Horizontal linkage model emphasizes shared development of innovations
among several departments
· Time-based competition is based on the ability to deliver products and
services faster than competitors
Structure: Successful change = through a top-down approach
Culture/people:
· Training is the most frequently used tool for changing the organization’s
mind-set
44. Four Roles in Organizational Change
Inventor
· Develops and
understands
technical aspects of
ideas
· Does not know how
to win support for
the idea or make a
business of it
Sponsor
·High-level manager
who removes
organizational
barriers
·Approves and
protects idea
within
organization
Critic
· Provides reality
test
· Looks for short-
comings
· Defines hard-nosed
criteria that idea
must pass
Sources: Based on Harold L. Angle and Andrew H. Van de Ven, “Suggestions for Managing the Innovation Journey,” in Research in the Management of Innovation: The Minnesota
Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, “Designing the Innovating
Organization,” Organizational Dynamics (winter 1982) 5-25.
Champion
· Believes in idea
· Visualizes benefits
· Confronts
organization
realities of cost,
benefits
· Obtains financial &
political support
· Overcomes obstacles
Championing an idea successfully requires roles in organizations
45. Top Change Models
• Kurt Lewin’s Unfreeze-Change-Refreeze Model
•ADKAR Model
•Stephen Covey: 7 Habits Model
•Kubler-Ross: Stages of Change
•Kotter's 8-Step Model of Change
46. The “Calm Waters” Metaphor
Unfreezing Changing Refreezing
Lewin’s Three-Step Process
47. Planning for Change
Generate need (urgency)
•Determine OD Intervention Options
•Visualize future state & plan (mission, vision)
•Address human dynamics (social, political, emotional, etc.)
–Inclusion through collaboration, participation
Managing Change
Organize change champions (advocates and drivers)
•Get organizational stakeholders engaged, committed
•Obtain 360 feedback
•Acknowledge progress and drift
49. The ABCs of Innovation
Innovation = Creativity +
Commercialization
There is no doubt that creativity is the most important human resource of all. Without
creativity, there would be no progress, and we would be forever repeating the same patterns.
—Edward de Bono
50. What Is
Creativity?
• Combining new ideas in
unique ways or associating
ideas in unusual ways
What Is
Innovation?
• Turning creative ideas into
useful products, services,
or methods of operation
52. What is Creativity?
Definitions
Creativity3 is the mental and social process—fuelled by conscious or unconscious insight—of
generating ideas, concepts, and associations.4
Innovation5 is the successful6 exploitation of new ideas: it is a profitable outcome of the
creative process, which involves generating and applying in a specific context products,
services, procedures, and processes that are desirable and viable. Naturally, people who
create and people who innovate can have different attributes and perspectives.
According to social psychologist Teresa Amabile, there are three basic ingredients to
creativity:
•Domain skills - Domain skills are developed as one becomes an expert in a field. To be a
creative mechanical engineer, one must first master the fundamentals of the discipline.
•Creative thinking skills - Creative thinking skills include seeking novelty and diversity,
being independent, being persistent, and having high standards.
•Intrinsic motivation - Intrinsic motivation implies that the reasons for doing things come
from within - from passion and pleasure, not as a result of external demands, pressures, or
rewards.
–Everyday Creativity: Principles for Innovative Design. Dr. Larry G. Richards
53. The Challenge
It follows, then, that innovation begins with creativity. In the world of organizations,
be they private or public, lack of either leads to stagnation, and leaves an organization
unable to perform or meet change. However, creative thinking cannot be turned on
and off at the flick of a switch. And innovation does not occur in a vacuum; it requires
effective strategies and frameworks, among which incentives are paramount.
Creativity flourishes in organizations that support open ideas: these organizations
create environments that inspire personnel and maintain innovative workplaces; those
that fail are large organizations that stifle creativity with rules and provide no slack for
change. There is a role for management in the creative process: but it is not to
manage it; it is to manage for it. Why? Because creativity does not happen exclusively
and tacitly in a person’s head but in interaction with a social context wherein it may be
codified. For any organization, operating in an external environment, an interactionist
model of creativity and innovation needs to encompass organizational context,
organizational knowledge, and inter- and intraorganizational relationships, not
forgetting the (increasingly multicultural) creative makeup of the individuals
(antecedent conditions, cognitive style, ability, intrinsic motivation, knowledge,
personality) and teams (group composition, characteristics, and processes) who
operate in.
54. Innovation - What is it?
Innovation is the introduction of new ideas, goods, services, and
practices which are intended to be useful (though a number of
unsuccessful innovations can be found throughout history). The
main driver for innovation is often the courage and energy to
better the world. An essential element for innovation is its
application in a commercially successful way. Innovation has
punctuated and changed human history (consider the development
of electricity, steam engines, motor vehicles, et al).
en.wikipedia.org/wiki/Innovation
Definitions of Innovation
Innovation is a process of value creation, which consists in changing the composition of a
set of variables describing a system.
56. Types and Sources of Innovation
The main types of innovation are divided into product innovations, service
innovations, and organizational (procedural or process) innovations.10 The most
common are market-led or market-push innovation; others are technology-led
innovations (for which markets must be developed). All can be classified
depending on the degree of their impact, viz., incremental, radical, or systemic.
Peter Drucker11 identified seven sources of innovation: (i) unexpected occurrences,
(ii) incongruities of various kinds, (iii) process needs, (iv) changes in an industry or
market, (v) demographic changes, (vi) changes in perceptions, and (vii) new
knowledge. (These seven sources overlap, and the potential for innovation may lie in
more than one area at a time.) He explained that purposeful, systematic innovation
begins with the analysis of the sources of new opportunities.
However, he emphasized that in seeking opportunities, innovative organizations need
to look for simple, focused solutions to real problems. That takes diligence,
persistence, ingenuity, and knowledge.
57.
58. Table Market leaders in 2011
Table Nineteenth-century economic development fuelled by technological innovations
62. Types of innovation
In business and economics, innovation is often divided into five types:
1.Product innovation, which involves the introduction of a new good or service
that is substantially improved. This might include improvements in functional
characteristics, technical abilities, ease of use, or any other dimension.
2.Process innovation involves the implementation of a new or significantly
improved production or delivery method.
3.Marketing innovation is the development of new marketing methods with
improvement in product design or packaging, product promotion or pricing.
4. Organizational innovation (also referred to as social innovation) involves
the creation of new organizations, business practices, ways of running
organizations or new organizational behavior.
5. Business Model innovation involves changing the way business is done in
terms of capturing value e.g. Compaq vs. Dell.
–Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.A.
69. A Suggested Innovation Framework
Problem
and/or
Opportunity
•Do not be afraid to fail
•Take risks
•Move your idea forward
Just Do
It
• Seek novelty in design
• Diversify
• Stop looking for the right answer; look for many right answers
Seek
Novelty in
Design
• Define clearly your goals and objectives
Set Goals and
Objectives
• Challenge all assumptions
• Seek opportunities to innovate
Identify Problems
and/or Opportunities
• Open your mind
• Mental Floss
• Discover your creative rhythm
• Health Makes Wealth
Seek Opportunities
• Become an expert in a field you love
• Become passionate about your field
Find what you love to do
75. 4 THE CREATIVE ECONOMY
Creativity has become the mantra of regional economic development theory for the 21st century. Just
as technology and innovation were seen as drivers of economic growth in the 20th century, today
creativity plays a similar role in shaping the economic trajectories of city regions around the world.
While many see the emerging economy as one that is driven by knowledge, Richard Florida (2002)
suggests that it is instead driven by creativity.
According to Florida (2002) it is not simply the possession of knowledge and the creation of new
knowledge that drives economic growth, but more importantly, the creative ideas and products that
come out of such knowledge that drive continued prosperity. In other words, generating prosperity
through new economic activity is more about stimulating the flow of knowledge and creative ideas
found in a talented workforce than it is about simply attracting and retaining talent. The continual
churning of ideas and knowledge is what leads to the creation of new products and technology and
eventually new economic activity and growth. Simply attracting talent and employing it in activities
that have been replicated from elsewhere is not enough.
Within the creative economy, regional economic growth is powered by the Creative Class. It is in
attracting and retaining these creative workers that regions now compete. The Creative Class is one of
four occupational categories defined by Florida (2002) that he derives from unique occupational
groupings. According to Florida (2002), the Creative Class is characterized by workers who are not
only paid to think, but more importantly, to create.
Creative Class workers tend to prefer places in which to live and work that are diverse, tolerant and
open to new ideas. And these places will be the ones succeeding and growing within the emerging
creative economy. However, the Creative Capital theory differs from Human Capital theory in that
Creative Capital theory places more importance on the attraction and retention of a specific type of
applied human capital — people in creative occupations. This distinction is important because the
Creative Economy is more concerned with what people are paid to do than how many years
76. they have attended school. In addition to isolating Creative Capital as the driver of economic
growth, Creative Capital theory, unlike Human Capital theory, points to the fact that people
are active agents in making decisions about where they live and work as opposed to
suggesting that certain places are simply endowed with attractive amenities. In this sense,
Creative Capital theory suggests that creative workers do not follow jobs but instead make
decisions regarding where to live that are independent of where to work. As such, Florida
(2002) suggests the global economic hierarchy of the creative age will be determined not by
access to natural resources, but by which regions are able to successfully attract and retain
creative workers.
The Creative Class is often engaged in either complex problem solving, which requires a great
deal of independent judgment, or in the generation of new ideas, new technology and new
creative content (Florida, 2002). The Creative Class as an occupational grouping includes
people employed in management, finance, law, healthcare, science, engineering, architecture,
design, education, arts, music and entertainment. These workers also tend to share a common
set of values that include creativity, individuality, difference and merit (Florida, 2002). The
three other employment categories defined by Florida are the Service Class,2 the Working
Class,3 and people employed in Fishing, Farming and Forestry.4 Unlike those in the Creative
Class, who are paid to think and create, the primary function of individuals employed in the
Service or Working Class is to execute tasks according to a plan. The Creative Class also has a
great deal of autonomy over how they perform their job, whereas the Service Class and
Working Class are largely engaged in more repetitive and rudimentary tasks with less
autonomy.
77. THE 3TS OF ECONOMIC DEVELOPMENT IN INDIA’S CITIES
Tolerance is the first “T” of economic development. There is a growing
body of research (Florida, 2002; Florida, Mellander and Stolarick, 2008;
2010; 2011) that shows how Tolerance can give nations, regions,
provinces, states and cities an important economic boost as a result of
being open to diversity. When places are open to newcomers,
immigrants, minorities and gays and lesbians, they signal that their
community is open to all types of people. Places that display these signals
of openness and possess low barriers to entry for talented individuals
create an environment that is attractive to the best and brightest
individuals from around the world
78. Talent is the second “T” of economic development. Talented individuals are
responsible for generating the innovative ideas that result in newly developed
technologies that can stimulate economic growth and prosperity. While incubating
talent through investments in employee training and education is important, the
regions that can successfully attract and retain talent will ultimately be the most
competitive. Northern Cali-fornia is an incredibly prosperous region due to the
ability of Silicon Valley to attract talented workers from all over the world. These
workers have in turn created some of the most successful companies, increasing
the pull of this prosperous region.
Technology is the third “T” of economic development and a critical component for
any region that seeks to achieve economic growth and prosperity. The greater the
extent to which technology is part of a region raises the competitiveness of that
region by improving the ability of businesses to provide new goods and services and
acquire cost-saving advantages, often through productivity gains. Robert Solow
(1956) and Paul Romer (1990) have found technology to be a driving force behind
economic growth. Global city-regions like New York, London, Tokyo or Los Angeles
have highly sophisticated technology sectors and consumers. Success in the
creative age is determined by a region’s ability to gain first mover advantages and
market share. Regions that are able to introduce innovations more quickly, and that
have well-developed high-tech industrial sectors, are able to reap significant benefits
in the form of sustainable growth and the production of new wealth.
