After studying this chapter, you should be able to describe:

- Forces that act as stimulants to change.

- Models of organizational change

- How to cope up with change

Chapter Summary

This chapter describes environmental forces that persuades a manager to identify a change and
implemented. It also focuses on why organization and its employees often resist to such changes. It also
explains the Lewin’s three step change model.
 Organizational change

Organizational change is an action that results in a shift in direction or process that can change the
way an organization works. Changes are planned and are deliberate and goal oriented and takes place
within the organization or change can originate outside the organization and be beyond its control.

Factors in Organizational Change

1. Resistance is a natural and inevitable reaction in an organization.

2. Resistance at times is hidden, so one needs to find it
3. It is important to understand the reason for resistance
4. To understand the reason, one needs to be with the people.

Sources of Resistance to Change

1. Individual Sources

a) Habit

b) Security

c) Economic Factors

d) Fear Of The Unknown

e) Selective Information Processing

2. Organizational Sources

a) Structural Inertia

b) Limited Focus Of Change

c) Group Inertia

d) Threat To Expertis

e) Threat To Established Power Relationship

f) Threat To Established Resource Allocation

Lewin’s Three Step Change Model : The model, also known as Unfreeze-Change-Refreeze,
comprises a three-stage process of 1) unfreezing, 2) changing and 3) re-freezing.

1. Unfreezing: This stage involves creating the right conditions for change to occur. By
resisting change, people often attach a sense of identity to their environment. In this state,
alternatives, even beneficial ones, will initially cause discomfort. The challenge is to
move people from this 'frozen' state to a 'change ready' or 'unfrozen' state.
 2. Movement: The transitional 'journey' is central to Lewin's model and at the psychological
level it is typically a period of confusion. People are aware that the old ways are being
challenged, but there is no clear understanding of the new ways which will replace them.
As roles change, a reduced state of efficiency is created, where goals are significantly
lowered. Good leadership is important, and coaching, counselling or psychological
support may be needed. The end goal of this stage is to get people to the 'unfrozen' state
and keep them there.

3. Refreezing: The end goal of the model is to achieve a 'refreeze', re-establishing a new
place of stability and elevate comfort levels by reconnecting people back into their safe,
familiar environment. Refreezing takes people from a period of low productivity in the
transitional state to a stable and productive state.

Model of Change:

1. Establishing a sense of urgency

2. Developing a guiding group
3. Creating a new vision
4. Communicating new vision
5. Removing obstacles to the new vision
6. Creating short term successes
7. Declaring victory
8. Implementing the change

Establishing a sense of urgency: - when within company, group of employee start to think about
financial performance, technology upgradation, company’s position in market, competition in market
and problems. They have done healthy discussion about company’s profit, company position in
market and how to tackle the problems of company.

Developing a guiding group: - when an initiative is taken by few employees. Some senior employees
also join that group for the success of that group. Because the senior employees may lead and direct
the group and they will form the core guiding group.

Creating a new vision: - The guiding group comes with a vision. The vision should be easy to
communicate. The guiding group also develops a strategy for achieving the vision.

Communicating new vision: - Communication of vision should come both in words and deeds. It is
very necessary that it is clearly understood by employee.

Removing obstacles to the new vision: - The group is only successful when employee being work
according to vision and also apply the new ways to do the work, only then they can free serious from
obstacles along with the work. So it is duties of senior management to remove the obstacle on work.

Creating short term successes: - When the group not gets the long term success, than the company
celebrates the short term success so that moment is not lost.
Declaring victory:- change initiator and resister both should take time to declare change programme
in organization successfully until they sink deeply into organizational culture. As in the new way of
working are sensitive so the process can take five to ten years. So the company should resist
temptation to declare victory after few improvement and clear performance of the new programme.

Implementing the change: - Change become successful in an organization when new behavior
becomes incorporated in social norms and shared values, that is, new behavior has to be implemented.