Chapter Seven

Organizational Change and Development

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 Guiding Questions

• What is change? And change

management?
• Why change?
• How to manage change?

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 1. Definition of Change
• Change is the process of alteration or transformation
that individuals, groups and organizations undergo in
response to internal and external factors.
• Organizational Change refers to "the movement of an
organization away from its present state towards
some desired future state to increase its
effectiveness” (Broome: 1998).

Present How? Future

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 1.1. Definition of Change Management
• Change management is the process of planning,
directing and controlling all activities involved in a
state of change to ensure that change programs
meet preset objectives and goals.
• Change management is an important issue in all
industries and organizations. It is of relevance to a
wide range of situations at all levels from individual,
team and organization to leadership.

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 1.2. Purpose of Change

Why change is necessary or important to

organizations?
• Environmental change: to adapt to
environmental change, organizations must
develop new products, services, modify their
structure, introduce new technology, or change
work methods and change employee’s behavior
• To meet changing customer needs
• To meet changing market conditions
• To respond to internal pressures
• To take advantages of new opportunities 5
 [Link] of Change

Not all changes are actually effective. Some changes

may fail.
Effectiveness of change is going to be seen when the
following points are achieved.
Change is achieved when the organization is moved
from a less desired state to a more desired one; and
the indicators for this are:
• Organization meets planned expectation
• No undue costs to the organization
• No undue costs to the individuals

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 1.4. Why Change programs fail?
• Change programs are common but research
indicates that two-thirds of all organizational
changes fail
• Several of the most common reasons for failed
change programs include:
– lack of commitment from the top
– change overload
– lack of incentives tied to the change initiative
– lack of training

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Cont’d…
 Communication breakdown
 lack of space and support

 unclear objectives

 lack of performance measures, and

 underestimating emotions

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1.5. Targets for Organizational Change

• The five major areas of change include:

– Strategy – develop new visions, missions,
strategic plans
– Structure – add a new department or division,
or consolidate two existing ones
– People – replace a person or change
knowledge, skills, attitudes, or behaviors
– Technology – upgrade a data processing system
– Management –encourage participation by
those involved in solution of problems
 1.6. Approaches or Strategies for
Organization Change
• The planned changes are sought through the
following three Strategies/Approaches:
– Structural changes
– Technological changes
– Value centered changes
 2. Models of Change
• Kurt Lewin has proposed two models of
change in 1951. These are:
- Force field analysis
- A three step change process
2.1. Force field analysis
• By force field analysis, we have three step
change process which involves an interplay
of multiple opposing forces.

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 Models of Change…
• These forces are driving forces, restraining forces and
the role of change manager in the interaction
between these two forces (interaction management).

Driving Forces
Forces Interaction Restraining
Mgt.

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 Models of Change…

The steps of change as put forward in the Force field analysis are:
•The first step is identifying and analyzing driving & restraining
forces.
• The second step is assessing which forces are critical.
- Not all forces are equally important in driving or holding the
change back.
•The third and foremost important step is increasing the critical
driving forces and decreasing the critical restraining forces.

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 Models of Change…
• Force field analysis: Example

Driving Forces Restraining forces

e.g., e.g.,
• Experienced • Fear of unknown
workforce (fear of loss of job)
• Committed work • Unskilled, obsolete
force human resource
• Flexible • Loss of influence
organizational (may be from top
culture management)

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 Models of Change…
2. 2 Three phases (steps) of change theory
• This theory is about unfreezing, changing and
refreezing.
• What do we unfreeze? What do we change? What
do we refreeze?
• Lewin thinks that any change suffers from three
problems.
1) unwillingness to change
2) Inability to change
3) Inability to sustain the change

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 Models of Change…
• Lewins 3 Phases Change Theory

Unfreeze Change Refreeze

•Behavior
Raised State of •Change
advocated and stabilized
Tension
implementation
Climate adapted •Desired
begins
to minimize Attitudes
resistance Changes tested
•Values
Dissatisfaction and adapted for
internalized
with status quo desired results
& reinforced

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 Models of Change…
Illustration

A Awareness of the need for change

Desire to support and participate in
D change

K Knowledge of how to change

A Ability to implement change

R Reinforcement to sustain change

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2.3 Kotter’s Eight Step Change Model
Build a
Create
guiding
urgency
team

Make Create a
change vision for
stick change

Don’t let Remove obstacles /

up communicate

Create
Empower
short-
action
term wins
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 1

CREATE URGENCY

Helping others see the need for change &

the importance of acting quickly

Slide 19
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 2

BUILD A GUIDING TEAM

Ensuring there is a powerful group, with the appropriate leadership skills, credibility & authority to guide the change process

Slide 20
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 3

CREATE A VISION FOR CHANGE

Creating a picture of the future & how it

will be different from the past

Slide 21
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 4

COMMUNICATE THE CHANGE VISION

Ensuring everyone understands

& accepts the vision

Slide 22
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 5

REMOVE OBSTACLES

Removing the barriers to making change successful

Slide 23
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 6

CREATE ‘SHORT TERM WINS’

Create clear, visible success stories early in the process

Slide 24
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 7

CONSOLIDATE GAINS &

PRODUCE MORE CHANGE – DON’T LET UP

Recognise more change opportunities following the

‘quick wins’ to take full advantage of the momentum for change

Slide 25
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 8

ANCHOR THE NEW APPROACHES

IN THE CULTURE

Ensure the new ways of behaving are recognised & rewarded to embed the change into the organisational culture

Slide 26
 [Link] Resistance to Change
Some of the techniques/strategies used to overcome
resistance to change are:
Education and communication: educating and
communicating people who resist change using one- to
one discussion, conference, broachers and reports
Participation and involvement: involving those who
resist change in designing and implementation of change
Facilitation and support: facilitating grounds for change
by providing training, counseling so that barriers to
change can be prevented
Negotiation and agreement: when necessary
management offer incentives ( bonus, wage, salary and
recognition) for cooperation with the change
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 cont’d
Manipulation and cooptation: giving an informal group
leader a desirable role in the designing and
implementation of a potential change. It is a tactic of
neutralizing or wining over a minority by assimilating
them in to established groups
Explicit and implicit coercion: applying punishment to
those who resist change.

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 Minimizing Resistance to Change

Communication
Coercion

Training
Manipulation &co-operation Minimizing
Resistance
to Change Employee
Involvement
Negotiation
Stress
Management

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4. Overview of Organizational Development

• Organization- two or more people

working together toward one or more
shared goals.

• Development in this context is the notion that

an organization may become more effective
over time at achieving its goals.

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 4.1 Definitions of OD
 OD is an effort:
1. planned,
2. organization wide, and
3. managed from the top, to
4. increase organization effectiveness and health
through planned intervention in the
organizations “processes,” using behavioral-
science knowledge.

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OD definitions cont’d …

• OD is a response to change, a complex

educational strategy intended to
– change the beliefs, attitudes, values, and
structure of organizations
– so that they can better adapt to new
technologies, markets, and challenges…

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4.2 OD Objectives and values
• The OD paradigm values human and
organizational growth, collaborative and
participative processes, and a spirit of inquiry.
• The change agent may be directive in OD;
however, there is a strong emphasis on
collaboration.
• Concepts such as power, authority, control,
conflict, and coercion are held in relatively low
esteem among OD change agents.
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OD Objectives and values cont’d …

The following briefly identifies the underlying

 
values in most OD efforts.
• Respect for people. Individuals are perceived as
being responsible, conscientious, and caring.
They should be treated with dignity and respect.
• Trust and support. The effective and healthy
organization is characterized by trust,
authenticity, openness, and a supportive climate.

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OD Objectives and values cont’d …

• Power equalization. Effective organizations

deemphasize hierarchical authority and control.

• Confrontation. Problems shouldn't be swept

under the rug. They should be openly confronted.

• Participation. The more that people who will be

affected by a change are involved in the decisions
surrounding that change, the more they will be
committed to implementing those decisions.
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4.3 Primary Distinguishing Characteristics of OD

• OD focuses on culture and processes

• Specifically, OD encourages collaboration between
organization leaders and members in managing
culture and processes
• Teams of all kinds are particularly important for
accomplishing tasks and are targets for OD
activities.
• OD focuses on the human and social side of the
organization and in so doing also intervenes in the
technological and structural sides.
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Primary distinguishing cont’d …

• Participation and involvement in problem

solving and decision making by all levels of the
organization are hallmark of OD
• OD focuses on total system change and views
organizations as complex social systems.
• OD practitioners are facilitators,
collaborators, and co-learners with the client
system.

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Primary distinguishing Cont’d …

• An overarching goal is to make the client

system able to solve its problems on its own by
teaching the skills and knowledge of continuous
learning through self-analytical methods.

• OD views organization improvement as an

ongoing process in the context of a
constantly changing environment.

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Primary distinguishing cont’d …

• OD rely on an action research model with

extensive participation by client system
members.

• OD takes a development view that seeks the

betterment of both individual and the
organization. Attempting to create “win-win”
solutions are standard practice in OD programs.

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The End !!

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