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UNIT-3 Strategic Change Process 1

UNIT Strategic Change


3 Process

Syllabus
Hopson’s Change Curve-Virginia Satir Change Model-Noer’s Redundancy Intervention
Model-Change Path Diagnostics-Reactive and Proactive Change Path-Nabisco’s Renewal Path-
Diagnostic Models for Organizational Change-Methods for Dealing with Resistance to Change-
Enablers and Barriers to Change-Model of Cognitive, Effective and Behavioral Responses to
Change-Five Stages of Planned Change.

Learning Objectives
After studying this unit, one would be able to understand,
v Concept of Strategic Change Process.
v Hopson’s Change Curve.
v Virginia Satir Change Model and Noer’s Redundancy Intervention Model.
v Change Path Diagnostics and Types of Change Paths – Reactive and Proactive Change Path.
v Nabisco’s Renewal Path.
v Diagnostic Models for Organizational Change
v Meaning of Resistance to Change and Methods for Dealing with Resistance to Change.
v Enablers and Barriers to Change.
v Model of Cognitive, Effective and Behavioral Responses.
v Five Stages of Planned Change.

introduction
Strategic change process is a structured and intentional approach that organizations use to respond
to internal or external triggers for change. It involves analyzing the market, evaluating customer
and stakeholders relationship and assessing the organizations capabilities.
The Hopson’s change curve is a model that describes the emotional stages that individuals go through
when faced with change. This model was developed by clinical and management researchers Adams,
Hayes, and Hopson, who built upon the work of Elisabeth Kubler Ross’s five-stage model of grief.
Resistance to change refers to the psychological or emotional response of individuals or groups
when faced with changes in their environment, such as changes in organizational structure,
processes or procedures. Eventhough change is very essential in the organization, there are some
factor like stress, discomfort or dislocation which motivates the employees to resist change.
Renewal path is a strategy that companies use to adapt to changes in the market. It involves making
changes to a few elements of the organization to meet market demands. This strategy is suitable when
the company can reduce resistance to change and the scope of change is limited. The goal of this
strategy is to reduce the force of change by meeting the demands of the market.
Planned organizational change is defined as the process of changing the whole organizational
functioning or some of its important parts for bringing improved effectiveness. It is a type of
developmental change which is taken by the firms for enhancing their present operating conditions.
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2 Leadership and Change Management

3.1 Change
Q1. What do you mean by Change? Discuss its importance.

Answer :

Change
Change is an unavoidable characteristic and reality of life which is managed by the individuals, groups
and organizations regularly so as to survive. It is a managing process and involves shifting from the existing
state to a desired state of an individual group or organization which arises in response to active internal and
external factors which change the present realities.
Change can also affect the time and the time may lose its significance in the absence of change. Change
displays itself in various ways, hence it does not hold the same perspective towards people, situations, contexts
etc.
Importance of Change
The importance of change can be explained with help of the following points,
1. Objective Setting and Competitive Advantage
Change plays an important role towards setting objectives of a company. In order to survive in the ever
changing environment, the organizational goals should be framed according to the existing environmental
conditions of the market. Change is important for effective objective setting and suitable strategy formulation.
In addition to this, it also helps in attaining competitive advantage over the organizations competitors.
2. Environmental Study
Organizations need to study and understand the external environmental conditions to built healthy
relationships with customers, government and the society. Change management helps the organizations in
obtaining a better understanding of the environment. It helps the managers in initiating suitable programmes
or campaigns and undertake other appropriate measures for establishing strong relationships with the society
and government.
3. Employees Training and Performance
Change affects the entire organization from top to bottom. It requires the employees ‘working at various
levels to adapt the change. The employees are trained to be able to enhance their performance during the
change. Thus change helps the organization to become reliable, improve performance and enhance the skills
and abilities of employees.
4. Globalization
Change which occurs at international level has an impact on various countries of the world. The
decision-making of the organizations relies upon the social and economic factors prevailing at global level.
The economic conditions and social issues of the globe effect the business activities of the organization. Being
aware of the changes at global level helps the organizations to conduct business by taking global interest into
consideration.
5. Technological Change
The development in the field of technology has change the methods of conducting business to a great
extent. The changes in technology primarily enhance the application and output levels of the organization. The
top level management is always keen to acquire new technology and integrate it in the production process,
organizational structure and business strategy. Moreover, adapting to technological change helps an organization
to increase the productivity and leads to high performance.
Thus, it can be concluded that change and adapting to change is beneficial and essential for successful
running and functioning of an organization.’
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UNIT-3 Strategic Change Process 3

3.2 Strategic change Process


Q2. What is strategic change process? Discuss various aspects involved in strategic change process.
Answer :
Strategic Change Process
Strategic change process is a structured and intentional approach that organizations use to respond to
internal or external triggers for change. It involves analyzing the market, evaluating customer and stakeholders
relationship and assessing the organization’s capabilities. The goal of this approach is to develop a new vision
mission and values, as well as specific goals, strategies, structures, processes and culture to achieve the desired
future state. The process includes planning, execution, evaluation and adaption with the aim of enhancing the
organizations long-term viability and competitiveness.
Important Aspects of Strategic Change Process
The strategic change process is a comprehensive approach for addressing issues within an organization.
It involves making significant changes to various aspects of the firm which are as follows,
1. Firm Structure
The need to reorganize the structure of the firm arises due to various reasons, such as cost-cutting,
downsizing, decentralization, change in strategy or merger/acquisition. However, restructuring should only
be carried out as a result of a change in strategy and should have a clear objective.
2. Commercial Approach
Mergers and acquisitions are common approach to achieve growth and expand the portfolio of the firm.
This approach can be motivated by reasons such as immediate growth, synergy, diversification, integration or
as a defensive measure.
3. Organizational Culture
Organization culture is the pattern of basic assumptions that a given group has invented to cope with
external adaption and internal integration. The organizational culture should be aligned with the strategic
goals of the firm and be taught to new members as the correct way to perceive, think and feel in relation to
the firm’s problems.
4. Relevant Processes
Information technology has because an integral part of organizations and firms are increassingly
investing in IT-based changes. These changes aim to achieve flexible responsive production of customized
goals, segment the market place in innovative ways, serve customers through developing, access with the help
of the internet and establish new types of firms and partnerships.
5. Other Important Aspects
The following are the important aspects of strategic change process,
(i) Alignment
“Alignment” is one of the significant characteristics of a change initiative. It is related to ensuring that
all the components of the change plan are aligned. It indicates that the components possess internal
integrity and are linked to the entire firm.
(ii) Attunement
This is related to examining the preferred firm’s culture and making sure that all the various aspects of
change are performed as per the values of the firm.
(iii) Critical Mass
As the objective of change process is to establish momentum and sustainability, this can be achieved
by aligning the critical mass of people as per the directions of senior management.
(iv) Establishing Organizational Capacity, Capability and Readiness
There is a difference between the capacity and capability of change management within firms. According
to this aspect, it is necessary to develop the capability within the people of the firm, as this will be useful
in the easy adoption of change process.
(v) Encouraging Individual Team and Organizational Learning
There is a need for the change managers to be well trained, as this will make them successful. The
process of monitoring, reviewing and feedback mechanisms facilitates the process and also help in the
establishment of existing change capability.
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4 Leadership and Change Management
The strategic change process of an organization is shown below,
Internal or external Learning
drivers for change review
cycle
Market industry analysis

Customer analysis
Experience
Stakeholder analysis

Organizational analysis
Firms and management capability and capacity building

Creating and defining


v Vision
v Mission Review
v Values/culture

Change management plan

Implementing the Managing the


changes changes Develop

Change initiatives

Alignment Attunement

Critical mass Integrate

More change

Figure: Strategic Change Process


Q3. Explain the significance of strategic change process and state its models.
Answer :  May-14, Q4(a)
Significance of Strategic Change Process
The significance of strategic change process can be understand from the following points,
1. New Vision, Mission and Values
It provides new vision, mission and values to the people in an organization, which can trigger cultural
transformation.
2. Analysis of Customer and Stakeholder Relationship
It helps in analyzing the customer and stakeholder relationship, which is crucial for understands the
needs and preferences of customers and stakeholders.
3. Organizational Changes
It brings many changes in the firm. such as reorganization of the firms, structure changes in the
organizational culture, IT based changes etc.
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UNIT-3 Strategic Change Process 5
4. Competitive Advantages understand and manage the emotional impact of
It is adopted by organizations to gain change and provides guidance on how to effectively
competitive advantage over competitors and navigate the change process.
to increase profitability levels. 2. Virginia Satir Change Model
5. Strengthening Capabilities The virginia Satir model was proposed by
It helps the organization in strengthening its Virginia Satir who was a family pyschologist. She
existing capabilities and in developing new developed this model after observing that all the
competencies required to face the dynamic individuals and families experience a number of
environmental changes. changes throughout their lives. The model includes
several stages and two important events that disrupt
Strategic Change Process Models
or change an individual’s experiences. These events
The various strategic change process models are generally referred to as a “Foreign element” and
are as follows, a “Transforming idea”.
1. Hopson’s Change Curve 3. Noer’s Redundancy Intervention Model
The Hopson’s change curve is a model that Noer’s Redundancy Intervention Model
describes the emotional stages that individuals go Involves Interventions occurring at four different
through when faced with change. This model was levels when tackling redundancy in an organizational
developed by clinical and management researchers context. Noer advises managers to work with their
Adams, Hayes, and Hopson, who built upon the people at all the four levels, rather than restricting
work of Elisabeth Kubler Ross’s five-stage model of their focus to only the first level.
grief. This model helps individuals and organizations

3.3 Hopson’s Change Curve


Q5. Discuss hopson’s change curve. 1. Relief
OR In this stage, individuals may feel a sense of
Explain the stages of hopson’s change relief that they now understand what is happening
curve. and that their suspicions were not unfounded. They
Jan.-12, Q4(a) may feel reassured that their concerns were not being
dismissed or ignored.
(Refer Only Topics: Stages of Hopson’s Change
Curve) 2. Shock and/or Surprise
OR This stage is characterized by a sense of
disbelief or surprise about the change. Individuals may
What are the features of Hopson’s change
feel shocked that the change is actually happening and
curve?
may struggle to accept it as reality.
(Refer Only Topics: Stages of Hopson’s Change
3. Denial
Curve)
At this stage, individual may deny or minimize
Answer : Dec.-14, Q4(b) the change, believing that it is not really happening
Hospon’s Change Curve or that it will go away if they ignore it. They may
The Hopson’s change curve is a model that refuse to acknowledge the change or may minimize
describes the emotional stages that individuals go its impact.
through when faced with change. This model was 4. Anger
developed by clinical and management researchers In this stage, individuals may become angry or
Adams, Hayes, and Hopson, who built upon the frustrated about the change, feeling a sense of injustice
work of Elisabeth Kubler Ross’s five-stage model of or betrayal. They may blame others for the change and
grief. This model helps individuals and organizations feel powerless to control their emotions.
understand and manage the emotional impact of
5. Bargaining
change and provides guidance on how to effectively
navigate the change process. At this stage, individuals may try to find ways
to cope with the change, bargaining with themselves
Stages of Hopson’s Change Curve or others to try to minimize its impact. They may try
The various stages involved in the Hopson’s to negotiate a different outcome or find ways to work
change curve are as follows, around the change.
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6 Leadership and Change Management
6. Depression
In this stage, individuals may experience feeling of sadness, loss or hopelessness about the change.
They may feel overwhelmed by the situation and struggle to find meaning or purpose.
7. Acceptance
At this stage, individuals come to accept the change as reality. They may begin to see opportunities for
growth or learning in the situation and feel a sense of peace or resolution.
8. Experimentation
After accepting the change, individuals may begin to explore new ways of doing things or experimenting
with different approaches. They may seek out new opportunities or try to learn new skills to adapt to the change.
9. Discovery
In this final stage, individuals may discover new ways of working or new opporutnities that they had not previously
considered. They may find that the change has opened up new possibilities that they had not imagined before.
l
nia

n
An

Integratio
de

Discovery
ge
k
oc

n
entat io
Ba
Sh

e Experim
rga

nc
pta
in

cce
ing

A
Depression

Figure: Adams, Hayes and Hopsons Change Curve

3.4 Virginia Satir change Model


Q6. Discuss about Virginia Satir Change model.  May/June-18, Q4(b)
OR
Discuss the process of Virgina Satir Change Model.
(Refer Only Topic: Process of Virgina Satir Model)
Answer :  May/June-12, Q4(a)
Virginia Satir Model
The virginia Satir model was proposed by Virginia Satir who was a family pyschologist. She developed this
model after observing that all the individuals and families experience a number of changes throughout their lives.
The model includes several stages and two important events that disrupt or change an individual’s
experiences. These events are generally referred to as a “Foreign element” and a “Transforming idea”.
Process of Virgina Satir Model
Following are the stages involved in Virginia Satir model,
1. Old Status Quo
In this stage, an individual experiences a life where the day-to-day activities continue as in the past and
obviously in the future. If the organization in which the individual is working is mature with good profits and
does not require or need a little change, then the individual continues to do what it has does in the past and
receives the same what he received earlier i.e., a state of equilibrium is established where all the parts of the
system are in relative harmony and the individual is satisfied with this existing situation.
2. Introduction of Foreign Element
The status quo may change when a foreign element i.e., a previously unknown factor is introduced
into the system. This foreign element could take the form of life crisis, tragedy, therapeutic intervention,
intervention of illness or due to the appointment of Chief Executive Officer (CEO) interested in restructuring.
The innovation or change that is being planned also acts as a foreign element and whatever may be the
nature of the foreign element, it has its own effect on the status quo.
3. Chaos
When a foreign element is introduced into the system, then it results in chaos. These chaos results in
changing the behaviours and feelings of the individuals as they are uncomfortable with the changes due to
entry of foreign element.
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Due to the chaos, an individual may attain the state of disbelief, contradiction or may not be able to talk,
he does not know what to think or how to act and he cannot digest the thought that existing things are going
to change. During at this stage, an individual may become agitated, scared, panicked, depressed and loose
interest in his work. These individuals increase their efforts to reestablish the status quo but never support the
system in adapting to changes. They are even be willing to destroy new and upcoming ideas.
4. Transforming Idea
Once an individual adapts to the changes and accepts them, he may develop a little hope. However,
he must work hard continuously to become accustomed to the new situation and overcome any difficulty by
implementing a transforming idea.
5. Integration and Practice
When the system provides meaningful information related to changes, the individual must follow it
and practice accurately to perform the required activities. Hence, integration involves incorporating the new
world order into the individual’s own world.
6. New Status Quo
As the change is initiated, the individual initially follows it, then experiments with it, explores it, and
eventally accepts his new role and continues with his new routine. Over time, this results in restructuring of
the organizations roles, responsibilities, objectives etc., leading to the establishment of a new status quo.
New
status Quo
Performance

Late
status quo
Foreign
element

Time

Practice and
integration

Transforming
Chaos idea

Graph: Satir’s Model

3.5 Noer’s redundancy Intervention Model


Q7. Describe Noer’s redundancy intervention model.
Answer :  June-13, Q5(a)
Noer’s Redundancy Intervention Model involves Interventions occurring at four different levels when
tackling redundancy in an organizational context. Noer advises managers to work with their people at all the
four levels, rather than restricting their focus to only the first level.
The four levels of Noer’s redundancy intervention model is shown in the following figure,
Level one
(getting the process right)

Level four Level two


(Embedding the changes) (Dealing with emotions)

Level three
(Focusing on the future)

Figure: Noer’s Four Level Redundancy Intervention Model


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8 Leadership and Change Management
Level One: Getting the Implementation Process Right
The interventions at this level are concerned with obtaining the process of change in the correct way.
This requires an effective and efficient management, good communication strategy and a process that follows
the organizational values. Noer advises that decisions related to effecting redundancies should be made
clearly and with kindness which in turn requires open communication that follows the principle that “over
communication is better than under communication” – honesty, true and genuine. Even though it is just the
first level, it is quite difficult to attain correctly.
Level Two: Dealing with Emotions
Once the task process is obtained correctly, the next level includes obtaining the emotional process
correctly. This includes tackling with disclosed and undisclosed feeling, which are mentioned below. Generally
people are not very good at this. They feel very uncomfortable when asked to reveal about their emotions and
negative thoughts about the situation. In order to manage this situation, a manager requires a little support and
a significant amount of self-awareness. They carry out this process by conducting either one-to-one meetings
or team meetings. Hence, we can conclude that this level emphasizes on furnishing time to express feelings
regarding situations, suggestions for the future and future thoughts to move forward.
The disclosed and undisclosed feelings about redundancy are shown below,
Feelings Disclosed Undisclosed
Held in Panic, nervousness, unpredictable. It is Depressed, unhappiness and culpable. It is not
easy to recognize and locate in each and accepted frequently and the lack of acceptance
every redundancy situation. is often hidden behind the groups confidence.
Acted out Partial, disloyalty, misbelief. Individuals Irritation, dissatisfaction and annoyance.
act by blaming others and request Individuals never express openly but adopt
information frequently. some other ways to reveal.
Table: Disclosed and Undisclosed Feeling About Redundancy
Level Three: Focusing on the Future
The next task of an organization after accomplishing levels one and two is to emphasize individuals
who are continuing redundancy so that they can regain their sense of self control, authority and self-esteem.
Individuals who have already undergone redundancy should put their efforts into obtaining their self-
value and emphasizing on their strengths. All individuals who are left over can do the same, but it requires
many organizational essentials. If any organization has effective production, cost efficiency, culture, merger,
then it would not try to change unless, there is a clear need to do so. The more individuals are involved,
engaged, dedicated, obligated towards the organization restructuring, the higher the chance of success.
Level Four: Embedding the Changes
The interventions at this level arrive at a whole system level. Sometimes the organization fail to correct
or rectify the situation. This may be due to, rejection of foreign elements, including foreign elements in its
old model or failure of the transformed old model to receive foreign elements.
These options may result in a situation where changes are not constant. Hence, Noer advises fixing the
changes which are working in a new way which includes, developing structural systems and processes to avoid
survivor system syndrome, explicitly elucidating new contract between employer and employee, approving
and expressing the objectives of new culture and confirming that all HR practices and management styles are
in accordance with culture values.
3.6 Change Path Diagnostics – Reactive and Proactive
Change Path
Q8. What is change path diagnostics and change paths? What are the types of change paths?
Answer : 
Change Path Diagnostics
Change path diagnostics is a problem-solving approach that helps organizations and individuals to
diagnose and solve problems related to organizational change. In other words, it is a process that helps
organizations identify the root causes of problems or challenges related to organizational change and develop
effective solutions. It involves analyzing the current state of the organization, identifying areas that need
improvement and developing a plan for implementing changes.

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UNIT-3 Strategic Change Process 9
Change Paths Ascertain the direction
Change paths are the ways or approaches in
which organization navigate through the process of Share possible outcomes of a journey
change.
Start from where you are
Types of Change Paths
There are two types of change paths which are Take one step at a time
as follows,
Change Paths Prepare for the journey

Be prepared for reversals


Reactive Change Path Proactive Change Path
Develop internal expertise
Figure: Types of Change Paths
1. Reactive Change Path Continue moving
Reactive change path refers to a specific
Possess a compass and speedometer
approach that manage reactive change in the
organization. In other words, it refers to change Figure: Steps Involved in Proactive Action Strategy
that are initiated in response to external pressures Step-1: Ascertain the Direction
or unforeseen circumstances. It involves a focus An organization should have a clear idea about
on addressing the symptoms of the problems rather the position which it wants to attain. Apart from
than the underlying causes. Reactive change can take elucidating its direction in terms of particular systems
many forms, such as crisis management, downsizing, such as performance feedback, potential appraisal,
restructuring or turnaround. counselling, career planning, etc., it should also
Reactive change path can be challenging as elucidate in terms of process movement. For instance,
it involves responding to unexpected events and towards increased openness, increased cooperative
dealing with uncertainty and ambiguity. However, action and consulting each other. An open discussion
it is essential for organizations to be able to respond regarding the psychological preparation should be
quickly and effectively to unforeseen events to made so as to undertake the system and the ideas for
minimize their impact and protect their reputation. new directions should be shared to a vast extent.
2. Proactive Change Path Step-2: Share Possible Outcomes of the Journey
Proactive change path refers to a strategic Beginning of human appraisal system is similar
approach that manage proactive change. In other to beginning a new journey, and it is a known fact
words, it is an approach to change management that that journey is not so delightful, it should be known
involves a deliberate effort to anticipate and prepare from the starting and should be understood clearly.
for changes in the external environment or to take Generally, the consultants who are responsible for
advantage of emerging opportunities. Proactive the beginning of such system, will communicate it
change can take many forms, such as incremental verbally to the clients and also clearly puts the possible
change, transformational change, developmental outcomes in their written reports.
change and transitional change. It can involve change For instance, it should be made aware and
in strategy, structure, processes, systems, culture or should be clearly communicated that the appraisal
technology. system would lead to the increased dissatisfaction as
the individuals may express certain difficulties when
The proactive approach to change management system becomes open. Here, it should be understood
requires organizations to be proactive in their approach that processes constitute a part of the “teething
to change. This means that they need to be able to problems” faced in beginning of the system.
anticipate and respond to changes before they happen. If the organization does not discuss or
Proactive change management involves a systematic understand such type of problem, then it may be
and structured approach to change that emphasize excessively distressed when it faces them. Hence,
collaboration, communication and engagement. rather than considering these problems as an essential
Q9. Discuss the steps involved in proactive part of beginning of the system, they can be considered
action strategy. as indications of failure and the system may be left
Answer : behind. The organizations which are beginning a new
Following are the steps involved in the system should clearly predict such type of problems
proactive action strategy. and should be ready to face them.
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10 Leadership and Change Management
Step-3: Start From Where You Are Step-7: Develop Internal Expertise
Each and every organization has got its own When an organization designs and executes its
tradition and certain elementary form of specific system, then it should make sure that it has sufficient
system and the design of new system would be internal expertise so that its system can be developed.
differing for each organization. A system cannot be executed with the help
The organization should ascertain its direction of only external expertise because, they may be
in such a way, that it will be aware of where it has to helpful only in the initial or later stages when some
move and also to understand and start from the level dimensions require attention but cannot fulfill the
where it stands in terms of system development. continuous works. Hence, attention should not be
Step-4: Take One Step at a Time emphasized completely on developing external
Organizations should carefully devise a plan expertise but it should be emphasized on developing
to launch different steps, because different elements internal expertise also, so as to be successful.
of a system cannot be launched concurrently.
Step-8: Continue Moving
For instance, while launching an appraisal
system, initially a simple appraisal form is launched, Continuity in the execution of the system
then after the form is vividly understood and used, a is significant for different sequences, with certain
counselling and feedback system may be launched. reverses and also for phasing the system This
This is followed by the evaluation of critical attributes continuity would be possible only if the organization
of different jobs and a system of analyzing these is capable of preparing a long term plan and recognize
attributes. In the later stages a complete appraisal one person or a small group of persons to participate
system is launched. in the launching of a system and its execution.
Step-5: Prepare for the Journey The primary responsibility of these people is
The launching of a system needs preparation, to undertake required preventive measures to tackle
and the system requires changes in the orientation and with the problem and avoid their entry in the final
attitudes of the people belonging to the organization execution of the system.
and also the skills to execute and use the system and Step-9: Possess a Compass and a Speedometer
the system would not attain its success in the absence It is essential to monitor the mechanisms in
of all the above. the execution of the system and at each step, required
Different obstacles and difficulties may arise information regarding the system’s progress and its
in the system if it does not posses enough skills and direction are gathered by an individual or small group
capabilities to execute itself and if the required training of persons.
does not power the way for launching a system. Hence, it can be concluded that, proactive
If any organization dissents that it would launch strategy needs planned and continuous work, the past
the system if only certain conditions are fulfilled, then experiences of failure and problems in executing some
it would required to wait forever and this may be the system assure these needs.
excuse for them for not launching the system.
The activities which furnish such type of 3.7 Nabisco’s Renewal Path
preparation are required and the preparation can also
be phased. This can be done not only at the initial Q10. Write a detailed note on Nabisco’s
stages but also at the various stages of launching. renewal path.
Step-6: Be Prepared for Reversals Answer : 
The launching of a new system would generate Renewal path is a strategy that companies use
certain changes and may lead to confusion, create to adapt to changes in the market. It involves making
doubts, generate doubts and may proceed to increased changes to a few elements of the organization to meet
problems of communication. This will require part market demands. This strategy is suitable when the
of a change, which is occasionally smooth, easy and company can reduce resistance to change and the
satisfied. scope of change is limited.
A change which intervenes the culture of an
organization cause disturbances and at various stages Nabisco is an example of a company that
it appears as if experimental work is required and the successfully used renewal path strategy to overcome
organization is back to “square one”. This type of competition and regain its reputation. The goal of this
reverses occurs specifically when the progress is not strategy is to reduce the force of change by meeting the
as per the schedule. The organization should be aware demands of the market. The recovery of Nabisco from
of when these reverses will take place and should be incurring losses by adopting renewal path strategy is
ready to face them and go forward. shown below,
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UNIT-3 Strategic Change Process 11
Background advertised as “the moistest, chewiest, most perfectly
baked cookies the world has ever tasted well, almost”.
Conclusion Competition
Nabisco’s Renewal Path
and Response Nabisco spent $ 25 million on promotional measures
to market its new product line.
Outcome
3. Outcome
Figure: Nabisco’s Renewal Path Nabisco’s renewal path was successful and
1. Background it regained its reputation. Frito-lay and proctor and
National Biscuit Company (Nabisco) was a gamble’s market shares were impacted, with Frito-
dominat player in the US cookie market for a century lay’s share value decreasing to 8 percent and proctor
with a turnouver of $ 2.2 million. However, in 1980, and Gamble’s share value decreasing to 20 percent.
Procter and Gamble and Frito-Lay entered the market, Nablsco conquered about 35 percent of the soft cookie
disrupting nabisco dominance. Procter and gamble segment by improving its warehousing, distribution
launched Duncan Hines new soft and chewy chololate and sales strengths.
chip cookies, while frito-lay launched grandma’s 4. Conclusion
cookies, which resembled homemade cookies. Nabisco’s renewal path was effective in
2. Competition and Response overcoming competition in the soft cookie segment.
Initially, Nabisco responded by adding more The change force was focused on product development
chocolate chips to its chips Ahoy cookies, buy this and marketing and the scope of change was restricted
was not well-received by stock analysts on wall street. to competition for chewy cookies. Nabisco weakened
In order to regain its reputation, Nabisco initiated a the change force by meeting the market demand and
cookie development project to renew its product line. regaining its reputation. Thus, Renewal can by an
Sixteen months later, Nabisco launched “Almost effective strategy for companies to adapt to a changing
Home,” a line of fifteen different cookie varieties market and overcome competition.

3.8 diagnostic Models for Organizational change


Q11. Explain diagnostic models for organizational change.  June-13, Q5(b)
OR
Write a note on diagnostic models for organizational change.
Answer :  Dec.-15, Q4(b)
The diagnostic models are the conceptual framework which is used by the Organization Development
(OD) practitioners. This is basically used for the purpose of evaluating the organization and it also plays a
crucial role in development program of a firm. The different diagnostic models are as follows,
1. Six-box Organizational Model 2. 7-S Framework
3. Star Model 4. Congruence Model 5. Burke-Litwin Model
1. Six-box Organizational Model
Six-box model is one of the powerful diagnostic tool of OD. This model acts as a tool for identifying
the organizational issues for OD practitioners. Six-box model was introduced by Marvin Weisboard in the
year 1976 as a diagnostic tool.
The following figure shows the six critical areas of six-box organizational model,

Purposes: What
business are we in?

Relationship: How do we Structure: How


manage conflict among do we divide up
people? With technolgoie? the work?

Leadership: Does
someone keep the
boxes in balance?

Helpful mechanism: Have Rewards: Do all


we adequate Coordinating needed tasks have
technologies? incentives?

Environment

Figure: The Six-box Organizational Model

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12 Leadership and Change Management
Practitioners use this model as a cognitive map, identifying and determining the problem areas in
the organization. Six critical areas must be properly used in the organization to avoid major problems in the
organization.
This model consists of two dimensions formal and informal dimensions,
(a) Formal System
The formal system defines the official ways in which things are ‘supposed to happen’.
(b) Informal System
The informal system defines the ways in which things really happen.
The formal and informal system of the organization must be properly designed in order to improve
the performance and effectiveness of the organization by focusing upon each element of the six-box model.
Weisboard suggested to diagnose the six critical areas in the organization which would help in selecting
interventions. These elements forms the basis for an effective functioning of the organization.
2. 7-S Framework
7-S framework model was developed by Mc.Kinsey and the consultants of the company, Robert
Waterman Jr., Tom Peters and Julien Phillips. This model is based on two basic proposals,
(a) The effectiveness of the organization is derived from the interaction of multiple factors.
(b) Success can be attained by emphasizing on the relationship between variables.
The factors are classified into seven types which are as follows,
Structure
Structure

Strategy
Strategy Systems
Systems

Super
Super
ordiante
ordinate
goals
goals

Skills
Skills Style
Style

Staff
Staff

Figure: The 7-S Framework


(i) Structure
Structure indicates the formal organizational design.
(ii) Strategy
Strategy indicates “the route adopted by the company to achieve the competitive success”.
(iii) Systems
System refers to the various methods adopted by the organization in areas like IT to carry out its day
to day activities.
(iv) Style
Style refers to the behaviour of manager and others towards a particular situation in an organization.
(v) Staff
Skills refers to the “crucial attributes” and the “dominating capabilities” in various areas like customer
service, quality control and innovation, which differentiates it from the competitors.
(vi) Skills
Staff indicates the methods adopted to develop human resources in the organization.
(vii) Super Ordinate Goals
Super ordinate goals refers to the organizations “vision”.
Waterman underlines that the model’s visual representation is aimed at focussing on the interconnectedness
of variables. To focus on the factors “which are soft, informal, or below the range of top management interest
(example, style) is the heart of their aim, and it can be at least as significant as strategy and structure in arranging
major change”.
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3. Star Model
Jay Galbriath argues that any organization can be effective only when “the five major components of
organization design” are associated with each other.
The five major components of star model are as follows,

Strategy
Vision direction,
competitive advantage

People Practices Structure


Staffing and selection, Power and authority,
performance feedback, reporting relationships,
learning and development organizational roles

Processes and Lateral


Reward Systems
Capability
Goals, score cards and metrics,
Networks processes, teams
values and behaviour,
integrative roles, matrix
compensation, rewards.
structures.

Figure: Star Model


(i) Strategy
Strategy is referred as “cornerstone” of the model, because if it is not formulated clearly, other design
decisions cannot be made due to the lack of other criteria to be based.
(ii) Structure
Structure includes the relationships among the formal authorities and activity grouping as depicted in
an organizational chart.
(iii) Processes and Lateral Capability
Processes and lateral capability includes the processes of formal or informal nature, which organizes
the activities throughout the organization.
(iv) Reward Systems
Reward system involves associating the individual’s actions with the organizational objectives.
(v) People Practices
People practices are the blend of human resource practices (Example, selection, development,
performance management) of the organization. If any of the these factors are misaligned, then it will
generate suboptimal performance.
4. Congruence Model
Nadler and Tushman introduced a model called the “Congruence Model” for organizations to gain
effectiveness through the integration of different elements of the organization. The model comprises four
elements which are as follows,
(i) Informal Organization
The informal organization refers to the beliefs, values, attitudes, and social relationships among
employees in the organization that may not be explicitly stated in formal policies or procedures. It
includes informal communication channels, social networks, and culture that shape the behavior and
attitudes of employees.

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14 Leadership and Change Management
(ii) Task (i) First Order Change (Transactional Change)
The task element refers to the activities that The first order change is a change in which
need to be performed in the organization to only some of the organizational features are
achieve its goals. It includes the design of jobs, changed. The fundamental/basic nature of the
work processes, and procedures that specify organizational is not changed in the first order
how tasks are performed. change. It is a continuous change and is adaptive,
(iii) Individuals evolutionary and incremental in nature.
The individuals element refers to the knowledge, Management
practices
skills, abilities, and needs of the employees in
Systems
the organization. It includes their personalities, Structure (policies and
values, attitudes, and motivation, as well as procedures)
their training, education, and experience. Work unit
(iv) Formal Organization Arrangements climate
The formal organization arrangements refer to the
formal policies, procedures, and structures that
govern how the organization operates. It includes
the organizational structure, governance, policies, Motivation
procedures, and systems that are put in place to Task Individual
requirements
achieve the organization’s goals. and skills
needs and
values
5. Burke-Litwin Model
Warner Burke and George Litwin developed Individual and
organizational
the developed the Burke-Litwin model of individual performance
and organizational performance. This model helps
in examining the organizational change and its Figure: Factors Involved in Transactional Change
performance. (ii) Second Order Change (Transformational
The significance of Burke-Litwin change Change)
model is being explained with the help of the The second order change is a change which
following points, completely transforms the organization. Second
1. This model can be used as an effective order change is also called as transformational,
intervention tool which basically focuses upon revolutionary, radical or discontinuous change.
leadership, firms, mission, strategy and culture Organizational development programs focuses
in order to bring about revolutionary changes on both first order and second order change but
in the organization. it stresses more on second order change which
2. This model helps in changing the organizational is a transformational change.
climate by targeting management practices and External
environment
internal systems.
3. This model is significantly modern when
compared to the other change model which
basically aims at bringing in the planned
(desired) change.
4. This model is not a process or a manual Leadership
model. It links the different variables of the
organization and helps in bringing about the Mission and Organization
strategy culture
desired change in the organization.
5. This model clearly explains the fact that Individual and
organizational
organizational change is directly influenced performance
by the external factors, leadership, corporate
mission and so on more than any other factors. Figure: Factors Involved in Transformational Change
The Burke-Litwin’s model exhibits the ways in 6. Four Frame Model
which the first order change and second order change Lee Bolman and Jerry deal argue that, when
is created in an organization. The first order change is the managers analyze and evaluate the organization
also called as transactional change and the second order from the perspectives of four different “frames” or
change is also known as transformational change. “lenses” then only he can be benefited.
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These frames explains how the organizations (iii) Political Frame
functions in different angles and if the manager is not It proposes that organization is a place,
capable of using these multiple frames, then he may where participants interact and strive for
view the world in one preferred way. achieving wide range of objectives which
The four frames are, may be common differing, complementing,
(i) Structural frame or conflicting to them. An important feature
(ii) Human resource frame of this frame is it does not represent political
(iii) Political frame as equal to bad or underhand.
(iv) Symbolic frame. Even where the superordinate goals like
(i) Structural Frame organization’s mission are shared, then that
It considers organizations as machines, which mission is achieved by an anxious completion
converts inputs into outputs efficiently. Based between the individuals where they consider
on this perspective, they focus on achieving themselves as serving the best interests of the
the exact formal design as on the organization organization.
chart, rules and procedural manuals. It follows (iv) Symbolic Frame
the principle that, “if there is any problem, It suggests that the heart of an organization does
restructure”. not exist in its formal structure and processes
(ii) Human Resource Frame but it exists in its culture, which includes the
It focuses on the relationship between the fields of symbols, beliefs, values, rituals, and
organization and the people who constitutes meanings.
it and it based on the principle that, if the “What is most important is not what happens
relationship between the organizational needs but what it means”.
and the peoples wants is apt, then both the
parties will be benefited and viceversa.

3.9 Methods for Dealing with Resistance to Change


Q12. What do you mean by resistance to change. Why people resist to change. What are the
methods to manage resistance to change?
OR
What is resistance to change? How can it be dealt with? Write briefly the methods available.
(Refer Only Topic: Resistance to Change, Methods/Measures to Manage Resistance to Change)
Dec.-12/Jan.-13, Q4(a)
OR
What do you understand by resistance to change? What are the methods available for
dealing with resistance to change?  Dec.-13, Q4(a)
(Refer Only Topic: Resistance to Change, Methods/Measures to Manage Resistance to Change)
OR
Why do people resist? Suggest suitable measures to overcome such problems.
 May-14, Q4(b)
(Refer Only Topics: Reasons/Factors/Causes for Resistance to Change Methods/Measures to Manage
Resistance to Change)
OR
Discuss how to manage resistance to change.  Jan.-12, Q4(b)
(Refer Only Topic: Methods/Measures to Manage Resistance to Change)
OR
Why people resist change? How do you manage when there is resistance?
(Refer Only Topic: Reasons/Factors/Causes for Resistance to Change, Methods/Measurement to Manage
Resistance to Change)
Answer :  May/June-12, Q4(b)
Resistance to Change
According to Zaltman and Duncan “Resistance is any conduct that serves to maintain the status quo in
the face of pressure to alter the status quo”.
According Bridges “Resistance is an incomplete transition in response to change.
According to to Kotter “Resistance is the obstacle in the organization’s structure”.
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16 Leadership and Change Management
Resistance to change refers to the psychological 1. Education and Communication
or emotional response of individuals or groups when When the people are educated, then they can
faced with changes in their environment, such as forecast the reasons for change its design and its
changes in organizational structure, processes or outcome.
procedures. Eventhough change is very essential in
the organization, there are some factor like stress, When this change outcomes are considered
discomfort or dislocation which motivates the as positive, then the communication is required in a
employees to resist change. As change mainly deals substantial range to reduce the peoples apprehension,
with learning new methods for carrying out their to ensure them about what is happening, what is
tasks, employees think that new learning will make expected from them and how they are assisted to adapt
them incompetent and they may lose their jobs or to the change.
positions. Resistance by the employees is the natural 2. Participation and Involvement
phenomenon. For effectively implementing change in
When the people involved are motivated, then
the organization, it is very important for a leader to
they help in designing and implementing the changes
understand the reasons why employees are resisting
by revealing their ideas and obligations.
change.
Whereas, participation enhances understanding,
Reasons/Factors/Causes for Resistance to
improves the feeling of control, decreases uncertainty
Change
and fosters the feeling of ownership.
The following are the common reasons or
causes for people to resist change, When the people bring about the change by
themselves then it cannot be resisted.
1. It causes due to loss of status and power.
3. Facilitation and Support
2. It causes due to the uncertainty.
When the people who are affected by change
3. It causes due to the lack of confidence about are encouraged, supported, trained, counselled
change. and provided with resources, they can easily adapt
4. It causes due to the belief that change is not themselves to the new environment.
needed. Managers can obtain the respect and
5. It causes due to the lack of trust. commitment from the people when their worries are
6. It causes due to the economic threats. considered as genuine and motivates them to adapt
7. It causes due to the fear of being manipulated. changes.
8. It causes due to the high cost. 4. Negotiation and Agreement
Methods/Measures to Manage Resistance to When people agree to change then, bargaining
can be done to offer incentives and this technique
Change
is very essential in case of powerful resistant like
When the resistance to change occurs due to bargaining units.
strikes, slowdowns and complaints then that resistance
At times particular things may be exchanged in
can be easily recognized. But when the change is
return for change and bonus may be offered to make
resisted due to reasons like low motivation levels and
the change process in an easier way.
loyalty, errors, absenteeism, foot dragging etc., then it
is difficult to recognize and manage such resistance. 5. Manipulation and Co-optation
When once the resistance is recognized it Manipulation is the act of formulating and
should not be knocked out then and there itself because using selective information and make out incentives
it is beneficial in certain cases like, when timely to increase the acceptance of the people.
response is not so important for success, it fosters Co-optation involves motivating the resistant
the functional disputes and debates which are in turn parties to support the change they are provided with
encouraged by evaluating the alternatives and their their desired benefits and can play non-influential role
outcomes. But sometimes over resistance may also in the process.
stop the program particularly, when the competitors 6. Explicit and Implicit Coercion
are improving fastly. Managers may sometimes utilize their authority
There are six methods to overcome the to force the people to accept the change by threatening
resistance to change and it is the responsibility of the them with negative incentives and if the people does
manager to choose the best approach which suits the not accept the changes, management may decide to
demands of change situation, thereby reducing the shut down the organization, reduce salaries or remove
disturbance. people from their jobs.
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Q13. Discuss the causes for resistance to 6. Economic Threats
change. Change may benefit the organization, but
Answer :  May-15, Q4(b) individuals resist change as it causes loss of income,
The following are some of the common reasons benefits and security. Downsizing and lay-offs create
or factors or causes which may contribute resistance personal threats to the employees and increases their
to change in organization, resistance towards new strategies. So, leaders must
1. Loss of Status and Power consider those employees whose values are affected
by change and helps them to overcome it.
In an organization, employees always protect
their self-interest, power and position which is one 7. Fear of Being Manipulated
of the most common reason for resisting change. If Many individuals do not want to be controlled
change is initiated in the organization by proceeding by others so they resist change. Forcing to change will
towards a new strategy, then it will lead to changes create a feeling of aggressiveness and amenity among
in the power structure and position of the individuals the employees. So, it is very important for a leader to
in the organization. Employees do not want to lose reduce resistance in the employees by helping them
their power and position, so they resist change. Fear to understand the need and importance of change.
of losing their job and position is one of the most 8. High Cost
important reason for resisting and opposing change
As change provides number of benefits to the
in the organization.
organization, it requires very high cost. For implementing
2. Uncertainty change in the organization, new resources are needed.
Uncertainty mainly deals with risk of future Change also need new methods and procedures, so
events or change initiative. Change helps the new methods are learned and new procedures are
employees to learn new skills, but the employees implemented. Hence, high cost is also one of the reason
do not have adequate knowledge about the way this for resisting change in the organization.
change will affect them. They are uncertain about the Thus, above mentioned were the reasons, why
future. So, they have fear that they will not be able individuals resist change in the organization. For
to meet the demands of a new task or procedure. So, effectively implementing change in the organizations,
because of uncertain future, many employees resist leaders should help their employees in overcoming
change in the organization.
such type of resistance.
3. Lack of Confidence about Change
Change helps in transforming the organization. 3.10 enablers and barriers
After the problem is identified and the need for change to change
is analyzed, lack of confidence that change will Q14. What do you mean by enablers to change?
become successful creates resistance to change. The What are the various enablers to change.
past failures may also develop the feelings of doubt
Answer :
and suspicion about the future change.
Enablers to Change
4. Belief that Change is not Needed
Enablers to change refers to the factors, tools
It is very important for a leader to create a
or resources that facilitate and support successful
real need and urgency for change in the organization.
Individuals mostly resist change if they feel that the implementation of change initiative. These enablers
current ways of doing things have been successful in can increase the chances of success by providing
the past and there is no need for a change in the future. the necessary support and resources to drive change
So, leaders should persuade the employees about the effectively.
need for change as it becomes very difficult when a Enablers to change play a critical role in
problem is identified and there is need to do something creating an environment that is supportive of change,
different for solving the problem. ensuring that everyone is informed, engaged and
5. Lack of Trust motivated to support the change initiative. They help
To build any relationship, trust is an important to reduce the resistance to change and increase the
element. One of the important reason for resisting chances of achieving the desired outcomes.
change is the lack of trust among the parties. Various Enablers to Change
Employees mostly resist change if they feel that there The various enablers to change are as follows,
are some hidden motives which the management is 1. Vision and Purpose
not disclosing. On the basis of trust only, change can A clear vision and purpose for the change provide
be implemented successfully in the organization. So, direction and motivation for everyone involved. It
it is very important in leadership that the followers ensures that everyone understands what the change is
should have trust in their leaders. about, why it is necessary and what it will achieve.
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18 Leadership and Change Management
2. Leadership Barriers to change can be categorized into two.
Effective leadership is crucial in driving They are,
successful change initiatives. Leaders who have 1. Individual barriers
necessary skills, knowledge and experience can create 2. Organizational barriers.
a sense of direction and purpose, built trust and inspire 1. Individual Barriers
others to accept the change.
The various barriers to change management at
3. Communication
the individual level are as follows,
Effective communication is vital in facilitating
(i) Fear
change clear and consistent communication ensures
that everyone is informed, engaged and motivated Employees may get fear as soon they receive
to support the change. It can also help to manage the news of change. They may feel afraid of
resistance, address concerns and issues and provide not able to fulfill the changes that are going to
feedback on progress. be implemented at the work place. They may
have doubts for future prospects of their jobs
4. Training and Development
because of this , they may get discomfort at
Providing training and development work place.
opportunities for employees can help them acquire
(ii) Lack of Input into the Change
new skills and knowledge than can be applied to
support change initiatives. This enabler ensures that When individuals do not take play any part in
everyone has the necessary skills and knowledge to the change, they may resist to change. Thus,
drive and manage change effectively. the idea of not knowing of change may cause
5. Culture differences between the management and
A positive organizational culture can support employees.
change initiatives. A culture that values innovation, 2. Organizational Barriers
continuous improvement and learning creates an The various barriers to change management at
environment which is benefical to the successful the organizational level are as follows,
implementation of change initiatives. (i) Undefined Objectives and Goals
6. Collaboration It is important for the organizations to
Collaboration and teamwork can help to continually define objectives and goals, outline
create a shared sense of purpose and commitment to roles and specify performance standards.
change. When people work together, they can utilize (ii) Financial and Environmental factors
their collective knowledge, skills and resources to
Organizations may not able to introduce
overcome obstacles and achieve the desired outcome.
necessary changes that may give them
7. Flexibility competitive advantage because of lack of
Change initiatives often require flexibility and working capital. There are various factors that
adaptability, as new challenges and opportunities cause lack of finance such as decline in market
arise. This means being willing to make adjustments demand, high competition, or crisis in market
and course corrections as needed ensures that the place such as 9/11 world trade disaster which
change initiative stays on track and achieves its had significant impact on business around the
desired outcomes. world.
Q15. Explain about various barriers to change. (iii) Bad Resource Allocation
How do you overcome them.
This may occur when managers make bad
Answer :  Dec.-14, Q4(a) decisions in allocating resources such as time,
Barriers to Change money, staff and machinery.
Barriers to change refer to obstacles or (iv) Structural
challenge that hinder the successful implementation The organizations which have traditional
of a change initiative with an organization. Effective hierarchical structure may resist more as
change management involves identifying and compared to the organizations that have flat
addressing various barriers to change. If the barriers structure. Under the traditional hierarchical
are not property addressed, the change initiative may structure, the main reason for causing
not be fully adopted, which can result in delays, differences between the management and
increased costs and ultimately, the failure of the employees is poor communication between
change management effort. head of departments and employees.
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UNIT-3 Strategic Change Process 19
(v) Bad Leadership (iv) Overcoming of Structural Problems
It is necessary to have strong leadership in In many large organizations, employees may
organizational in order to direct the change wish to elect a spokes person on their behalf to
management process. Bad leaders may not convey any barriers directly to management. In
able to inspire the employees to move ahead. order to help the employees, the management
(vi) Lack of Preparation for New Roles can conduct surveys and results should
Many organizations lack planning phase. be analyzed. The small organizations can
Resistance may arise for the organization encourage the employees to approach directly
which fail to prepare and define the new to them if there any conflict arises.
roles that need to be satisfied at the time of (v) Overcoming of Bad Leadership
implementing change. Leaders should lead the way and set an example
Overcoming of Barriers to Change for their followers. They should actively work
Overcoming of barriers to change management along with their employees in order to motivate
at individual level and organization level are as and encourage them.
follows, (vi) Overcoming of Lack of Preparation for
1. Individual Level New Roles
When there is a change process in an The management should emphasis more on the
organization, employees should directly involved in it. importance of planning. The managers should
This helps in reducing resistance and motivate them to explain concisely to their respective employees
become a part of a change process. The management about their new roles before implementing
should also provide extra incentives to employees the change. This helps in avoiding fear or
in order to encourage and reward compliance. The resistance among the employees.
management should setup support network as a way
to reinforce the change theory. The organizations 3.11 M o d e l of Cognitive,
should focus on invoking a sense of belonging among E f f e c t i v e a n d
employees towards the organization. This can be Behavioural Responses
achieve by the organizations by informing, involving
to Change
and sharing the success with their employees.
Q16. What are the various responses to change
2. Organizational Level
of an individual. Explain the model of
Overcoming of various organizational barriers cognitive, affective and behavioural
are as follows, response to change.
(i) Overcoming of Undefined Goals and Answer :
Objectives
Types of Responses to Change
The management should frequently redefine
the goals and objectives and the same should The various responses to change of an
be conveyed to all employees. This helps in individual can be classified into three categories, They
avoiding any misunderstanding or conflicts. are as follows,
(ii) O v e r c o m i n g o f F i n a n c i a l a n d Types of Responses to Change
Environment Factors
It is useful for organizations to maintain a
contingency fund in order to cater the changes Cognitive Affective Behavioral
in demand or build strong relationship with Responses Responses Responses
their banks if there is a need to borrow money
at difficult times. When there is an increase 1. Cognitive Responses
in demand, the suppliers should be able to Cognitive responses refer to the ways in which
meet the demand. Thus, benchmarking of individuals process information related to the change.
suppliers aids in determining the best supplier. This includes their beliefs, attitudes and perceptions of
The corporate should have flexible business the change. Some people may view change positively
strategies in order to face any sudden changes. and considered it as an opportunity to learn and grow,
(iii) Overcoming of Bad Allocation while others may see it negatively and view it as a
Managers can use their imagination to avoid threat to their job security. Therefore, their cognitive
any conflicts that may arises while allocation responses to change may vary depending on their
resources. perception of the situation.
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20 Leadership and Change Management
2. Affective Responses in nature. It is also seen that the cognitive responses
are also impacted by the affective responses of the
Affective responses refer to the emotional
organizational members. The model can be applied
reactions that individuals have to the change. Change
to initiate and understand a number of different
can be stressful and it may cause feelings such as
changes, which are undertaken by organizations.
anxiety, fear and frustration. On the other hand,
However, the employees response to similarity of
some individuals may feel positive emotions, such as
change may vary from one organization to another.
excitement and anticipation, when they see the change
This is because employees in different organizations
as opportunity to try something new.
display a difference in cognitive responses.
3. Behavioral Responses
Cognitive response may be of the following
Behavioral responses refer to the actions that types,
individuals take in response to the change. This
may include resistance, compliance or proactive (a) Positive Response
participation. Some employees may resist the change When an employee perceives the change to be
because they feel it threatens their job security, while beneficial to him/her and to the other stakeholders,
others may comply with the change to avoid negative they display positive responses and emotions. Such
consequences. On the other hand, some employees positive emotions may range from mere enthusiasm
may pro-actively participate in the change by offering to bursting with joy and exhileration.
suggestions and ideas to improve the process.
On the organizational level, positive responses
Model of Cognitive, Affective and Behavioral may lead employees to display positive behaviours,
Response to Change such as showing initiative, loyality, attempt to exceed
Change is an indispensable part of any performance expectations and so on.
organization. It may be in the form of downsizing, (b) Negative Responses
restructuring, reengineering, expansion and so on.
Organizational members (employees) react differently Employees may experience and display
to these changes. For instance, some employees may negative responses if they see the change that would
readily embrace change whereas, other may resist it. adversely influence them. For example, a proposal
All these different responses to change can be easily to reduce the employee lunch time from one hour to
understood through the models of cognitive, affect thirty minutes, may elicite a negative response from
and behavioural responses to change. employees. This may cause the employees to face
strong cognitive reactions and negative emotions
Cognitive, effective and Behavioural response like fear, frustration, anger, hatred etc. Thus,
behavioural response, Positive/negative/
with respect to mixed/neutral negative responses may lead the employees towards
Actual change events
dysfunctional behaviour which are targeted towards
Employees
specific organizational member, whom they believe
Emotional intelligence,
Cognitive appraisal of
are responsible for the change.
stress, outside work,
the change Cognitive evaluation
previous change,
1. Favourability of outcome of individual behavioural
(c) Neutral Responses
experience others
2. Perception of justice response
3. Scale of changes An employee’s response to a change maybe
Managers 4. Speed and time of change neutral if they perceive that the change does not have
Trustworthiness,
leadership qualities,
any impact on them. They also would not experience
emotional intelligence any emotional arousal and are likely to be submissive/
Effective response
Cognitive responses Positive/negative/ collaborative.
Organization Positive/negative/ mixed/neutral
Organizational culture, mixed/neutral (d) Mixed Responses
organizational change
Sometimes, an employee may display a mixed
Figure: Model of Cognitive, Affective and Behavioural response reaction to organizational change. It maybe
Response to Change a combination of positive cognition and negative
emotion, positive cognition and neutral emotion or
Explanation of the Model any other combination of the three elements. Example,
The diagramatic representation of the model an employee may perceive an extended workshift
shows the cognitive responses that employees may good for the customer but may not like working in
display with respect to organizational changes. These inconvenient workshifts. Thus, this model helps to
response may be positive, negative, neutral or mixed clearly understand individual responses to change.
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UNIT-3 Strategic Change Process 21
1. Outcome
3.12 Planned Change – Five
It is the first element of planned change. Change
Stages of Planned Change can be considered as facilitation or realization of
Q17. What is Planned Change? State its outcomes. Initiators at the beginning of the process
features and elements. may have some idea of outcome which they are going
Answer : to achieve, even though there are chances of change
Planned Change during the change process.
Planned organizational change is defined as 2. History
the process of changing the whole organizational It is the second element of planned change. It
functioning or some of its important parts for bringing is mainly considered as the starting point, because
improved effectiveness. It is a type of developmental
an organization seeks change due to an event taken
change which is taken by the firms for enhancing their
place in the past. It is necessary for change agent
present operating conditions. This type of change is
to determine this cause by analyzing the context,
a calculated change which helps the firm in attaining
triggers and philosophies around the history of the
a desired output or performance and makes the firm
organization. Therefore, all these factors influence
responsive towards external and internal demands.
the change idea.
Planned change includes, improving the
communication skills of the employees, building teams, 3. Actor
organizational restructuring, introducing new technologies, It is the third element of planned change. Actors
new products and services, chaining the incentive play an important role during the course of a change
system, enhancing the employees welfare measures etc. process. Some of the roles played by actors are,
Features of Planned Change initiator, sponsor, supporter, champion, implementer
The features of planned change are as follows, or change victim.
1. It is considered as a planned, systematic and 4. Phases
organized process. It is the fourth element of planned change.
2. Most of the organizations use planned change A long term change process can be divided into
at differing rate and levels of importance. some manageable parts and the phases begin with
3. Each and every department of organization diagnosis to development of a change strategy. After
initiate planned change. this, it continues with the intervention planning and
4. It facilitates current activities of an organization then followed by various interventions. The number
that in turn leads to new position for organization. and order of interventions are defined under the
5. It has both positive and negative effect. When intervention plan.
employees accept and deploy change happily 5. Communication
then it is considered as positive effect and when It is the fifth element of planned change. In
employees view change as adverse and oppose it order to carry out the change phases, the change agent
strongly then it is considered as negative effect. must utilize the communication and sense making
6. It mainly emphasizes on organization’s element.
technology, products, markets, processes, 6. Steering
people and so on. It is the final element of planned changed.
7. Usually, these changes are expensive, time Steering keeps the change process on a right track by
consuming and complex. making someone to monitor the results and progress
Elements of Planed change of the intervention. The most important aspect of
The main elements of planned change are steering is feedback.
depicted in the following figure. Q18. What are the various types of planned
Outcome change? Explain.
Steering History
Answer :
Planned change is broadly classified into four
Elements of Planned Change types. They are as follows,
1. Structural change
Communication Actors 2. Redesigning tasks
Phases
3. Technology change
Figure: Elements of Planned Change 4. Culture/people change.
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22 Leadership and Change Management
1. Structural Change 4. Culture/People Change
The main purpose of structural change is to People or cultural change mainly focus on
enhance organizational effectiveness by making enhancing organizational effectiveness by modifying
changes in present organizational structure. The competencies and other values of organization members.
various attempts for structural changes are as follows, This changes are introduced by manager when
(i) Modifying the levels of organization. performance differences takes place because of
(ii) Change in the standard of management. employee related issues. To create positive changes
in the attitudes of employees, certain aspects such as,
(iii) Shifting from one position of department to
competitive wages, performance-based bonus, creating
another position. promotional avenues, offering training programmes
(iv) Effectively modifying the line and staff and etc., are introduced. In general, OD (Organizational
functional authority. Development) interventions are initiated to modify
(v) Adopting other rules and processes to enhance people and enhance their working relationships.
standardization and so on. Q19. What do you understand by ‘planned
In the process of structural change, manager’s change’? Discuss about five stages of
strategy mainly focuses on reorganization. It is planned change.  Dec.-12/Jan.-13, Q4(b)
considered as most effective and considerably used OR
strategy during complex problems. What is planned change? Write about five
2. Redesigning Tasks stages of planned change.  Dec.-13, Q4(b)
In redesigning, changes mainly focus on OR
enhancing the scope or depth of job. Job scope is a Describe the five stages of planned change.
wide range of functions executed by the job holder (Refer Only Topic: Five Stages of Planned Change)
and also the standard of the operation of the job cycle. Answer :  Dec.-15, Q4(a)
A systematic procedure of upgrading, enlarging and Planned Change
enriching a job is known as vertical job loading or job Planned organizational change is defined as
enrichment. Vertical job loading involves redesigning the process of changing the whole organizational
jobs to provide more authority, freedom and a sense functioning or some of its important parts for bringing
of challenge and accomplishments to the job holder. improved effectiveness. It is a type of developmental
Sometimes, change agents may even change job change which is taken by the firms for enhancing their
descriptions, initiate flexible working hours, modify present operating conditions. This type of change is
compensation system, adopt performance based a calculated change which helps the firm in attaining
rewards system and so on. a desired output or performance and makes the firm
3. Technology Change responsive towards external and internal demands.
A technology change mainly focuses on Planned change includes, improving the
performance of organization and analyzes the communication skills of the employees, building
organization’s production process. Generally, teams, organizational restructuring, introducing new
competitive forces persuades managers to develop technologies, new products and services, chaining the
new equipments, tools or operating techniques. incentive system, enhancing the employees welfare
Recently in India, most of the steel plants have
measures etc.
substantially advanced their plants to compete with
Five Stages of Planned Change
greater effectiveness. For the purpose of eliminating
cost per tonne of steel, many companies initiated The five stages of planned change that comprise
efficient handling equipment, furnaces and presses. the practice regarding the five tracks are as follows,
Due to the computerization and automation the whole
face of automobile manufacturers, process industries
and others has been changed. The technology oriented
changes include,
(i) Change in the process of problem-solving and
decision-making.
(ii) To enhance managerial planning and control
by initiating computers.
(iii) Changing the technology from unit production
to mass production.
(iv) Establishment of advanced management
information system. Figure: The Five Stages of Planned Change
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UNIT-3 Strategic Change Process 23
An organization can be successful, when After arranging the plan of action, managers,
the various programs integrated to enhance the members and consultant efficiently work towards
organizational performance provide required time and implementation of this stage. There are five tracks in
efforts to complete each stage. Continuous recycling this stage. They are as follows,
of all five stages without considering success may (i) Culture track
lead to organization down and it is essential to stop (ii) Management skills track
the entire change program. When commitment and (iii) Team-building track
learning are not likely to develop then the entire (iv) Strategy structure track
program should be terminated. (v) Reward system track.
Stage-1: Initiating the Program Culture track is an effective way to initiate the
In this stage manager discuss the problem with program.
advisers and if they do not conclude with specific The management skills track urges that
solution then, the manager will look for an outside managers can learn new skills and can manage the
assistance like consultants. The three aspects to be work place more effectively. The team-building track
considered for initiating the program are as follows, initiates integration of managers and subordinates with
the purpose of working together to solve problems. It
(i) When the organization is truly devoted for is difficult to start the strategy structure track as the
change and is clear regarding the integrated organizations, old cultures and competencies as they
program. may work to reinforce the security provided by the old
(ii) When the organization do not trust outsiders structures. The reward system should not be initiated
and is not agreeing about the existing problems. except when the new directions of the firm and the
(iii) When the organization contacts consultant for corresponding structures are effectively in place.
political reasons. Stage-4: Implementing the Tracks
In the process of implementation, managers
Stage-2: Diagnosing the Problems
and consultants have to enhance the expectations
In this phase, consultants provide guidance and from the change to the other people involved. The
in this aspect they have to be sure that the diagnosis implementation stage is considered to be complete
is completely based on their assessment without when both consultant and managers believe that
concerning the initial factors that gave them entry organization can deal with its issues on its own basis.
into the organization. To identify the organizational While executing the strategy various activities
problems, consultant with the assistance of manager and requests are performed like counselling sessions,
create a plan. The views and commitments of members feedback sessions for staff meetings, additional culture
presented in the top management are considered as sessions, more management skills training and so on. It is
crucial to the program. the responsibility of managers and consultant to respond
The consultants organize a report which is to the request based on their objectives and what will
firstly provided to the top managers and in certain work more effectively. Sometime requests are listened
cases top managers may oppose the report. Once the and sometimes they are rejected.
entire diagnosis is provided by the consultants to the Stage-5: Evaluating the Results
top management then it becomes essential to share This stage evaluates the changes occurred
these whole findings with all the members. They during the program. The additional activities are
can be informed about the consultant’s diagnostic scheduled and implemented for more than one track
report either through memo with the complete report and also the cycle of planned change continues and
attached to it or during employee meetings in which are based on several evaluations.
everyone can hear and discuss the results collectively. Q20. Discuss various criticisms against the
Stage-3: Scheduling the Tracks implementation of planned change.
Answer :
The two major aspects that are involved in this
stage are as follows, Though the models and practices of planned
change are continuously improved, they are still
(i) Choosing the right technique that will develop in a growing stage of development and have to be
each of the five tracks to solve the problems improved significantly. The OD reviewers have
recognized in the diagnostic stage. identified a number of problems with the way
(ii) For the purpose of the supporting effective the planned change has been conceptualized and
learning and change, arranging the five tracks practiced. The following are the criticisms against
into a specific sequence. the implementation of planned change,
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24 Leadership and Change Management
1. Conceptualizing of Planned Change Successful implementation of change relies
To develop an organization effectively, planned mainly on careful diagnosis of organizational
change involves sequential activities which has to be functions which needs lot of time and money. But,
implemented. Though the current models of planned many firms do not want to make these investments
change describe the general steps to be followed, more and depend on the preconceptions about the problem
information is required for guiding and directing the and appoint consultants having appropriate skills for
way in which these steps should be carried out in solving that problem. The factors like poor reward
practices and job enrichment makes the consultants
certain situations. Poran and Robertson had reviewed
dissatisfied which may in turn lead to inaccurate
and found that planned change activities must be
diagnosis.
guided by the following information,
(i) The information about the changed In some situations, organizations wants to solve
organizational features. their problems quickly, but planned changes cannot
be practised because it requires a lot of time and
(ii) The information about the planned results
willingness towards modifying and refining changes.
obtained from making those changes.
(iii) The information about the methods or 3.12.1 Models of Planned Change
process with which those results were
Q21. What is Planned Change? What are the
attained.
models of planned change.
(iv) The information about the contingencies
on which the successful changes rely. Answer : Dec.-14, Q6(b)
They found that the organizations can bring Planned Change
successful changes only by changing the behaviour
of each organizational member. Most of the planned Planned organizational change is defined as
stage models only outline the general set of steps the process of changing the whole organizational
which are applied to most change efforts and do not functioning or some of its important parts for bringing
provide any information about the ways in which improved effectiveness. It is a type of developmental
these stages of planned change differ in various change which is taken by the firms for enhancing their
situations. Therefore, significant efforts are required present operating conditions. This type of change is
for recognizing situational factors which may need a calculated change which helps the firm in attaining
modifications of general stages of planned change. a desired output or performance and makes the firm
responsive towards external and internal demands.
Planned change is considered as a rationally
controlled orderly process which according to OD critics Planned change includes, improving the
is seriously misguiding. According to them, a planned communication skills of the employees, building
change has disordered or disorganized quality as it teams, organizational restructuring, introducing new
deals with discontinuous activities, surprising events, technologies, new products and services, chaining the
unexpected combination of changes and shift goals. incentive system, enhancing the employees welfare
The planned change models doesn’t show the measures etc.
relationship between planned change, organizational Models of Planned Change
performance and effectiveness. It is also very difficult
to evaluate OD efforts due to the complexity of change The various models or theories of planned
situation, absence of sophisticated analysis and long change has helped in the better understanding of
time periods for producing results. what happens and how it happens in planned change.
2. Practice of Planned Change The following are the few models that provide a
OD critics have identified a number of framework for thinking about planned change.
problems with the way planned change is practiced. 1. Kurt Lewin’s Change Model
These problems are related with the way the change
takes place and with the qualifications and activities For answer refer Unit-III, Page No. _, Q.No. 22.
of OD practitioners. 2. Burke Litwin Model
OD practitioners have learned skills in certain
For answer refer Unit-III, Page No. _, Q.No. 11,
techniques like team building, total quality management,
Topic: Burke-Litwin Model.
large group interventions, gain sharing etc. These
practitioners opt only for certain techniques and do not 3. General Model of Planned Change
pay attention towards other strategies which may be more
suitable for leading the organizational problems. For answer refer Unit-III, Page No. _, Q.No. 23.
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UNIT-3 Strategic Change Process 25
Q22. E x p l a i n t h e K u r t - L e w i n m o d e l o f Stage-1: Unfreezing
Organizational Change. Change requires adding of new forces and
Answer : removal of existing forces that are leading to
perpetual behaviour. Change will not take place
Kurt Lewin has developed one of the principal till the individuals feel comfortable in giving up of
model of planned change. He proposed two ideas old behaviour and acquiring new behaviours. The
about change. They are as follows, following three things which helps in motivating and
1. The status quo which states that whatever is developing willingness towards change in individuals.
happening in the present is due to the forces (i) Disconfirmation/lack of confirmation
driving in the opposite directions.
(ii) Development of guilt or anxiety and
2. His second idea was the model of change (iii) Providing psychological safety.
process which consists of three stages –
unfreezing, moving and refreezing. Disconfirmation causes pain and discomfort
which in turn gives rise to guilt and anxiety among the
According to Lewin, present behaviour individuals and motivates them towards change. For
is maintained, when both the forces are equal. replacing the old behaviours with the new behaviours
He labelled this situation as “quasi-stationary it is very essential for the individuals to develop a
equilibrium”. For changing the state of equilibrium, sense of psychological safety among themselves.
the forces driving towards change must be increased
Stage-2: Moving
and the forces maintaining the current state should be
decreased or a combination of both can be used. When there is a sufficient dissatisfaction with
the current conditions and a real desire to make some
Lewin’s second idea was a planned change changes, it is necessary to identify exactly what needs
model consisting of three stage process which to be changed. In this stage, the individuals go through
involves ‘unfreezing’ the old behaviour ‘moving’ ‘cognitive restructuring’. The behaviour of the
towards new level of behaviour and ‘refreezing’ the organization, department or individual is shifted to a
behaviour at the new level. Change mainly involves new level in this stage. This step helps the individuals,
changing from one equilibrium position to the other organizations or departments to view, feel and judge
position. things differently on the basis of the new point by,
Example (i) Associating with new role model, mentor
If a person wants to change himself from a etc., and
smoker to non-smoker, he should firstly unfreeze (ii) Examining the environment for new
his present behaviour of smoking by believing information.
that smoking is bad for health. He should have Stage-3: Refreezing
a strong determination towards changing his
Refreezing is the final stage of the planned
behaviour from smoker to non-smoker. In the
change model in which the new behaviour becomes
final step, he should stick to non-smoking
the habit and included in the personality and attitudes
behaviour and make it as permanent change in
of an individual. This stage helps in stabilizing the
his life. Thus, this permanent change behaviour
organization at a new equilibrium state.
becomes the new behaviour.
The new organizational state may get strength by
Lewin’s three stage model of planned using the supporting mechanisms like organizational
change is regarded as the powerful tool which culture, norms, policies and structures.
helps in understanding and learning the change
situation. Thus in this way, Lewin’s model helps in
providing a general structure for understanding
Unfreezing organizational change.
Q23. Discuss General Model of planned change
in detail.
Moving
Answer :
The general model of planned change outlines
Refreezing the four important activities which the practitioners
and organizational members perform collaboratively
Figure: Stages of Kurt-Lewin Model for developing the organization.
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26 Leadership and Change Management
gathers information about the positive qualities of
Entering and
contracting the organization. It is regarded as one of the most
essential activities in organization development as it
helps in selecting a suitable model for understanding
the organization, collecting, examining and giving
Diagnosing
feedback to the managers and organization members
about the problems or opportunities which takes place.
Diagnostic models examine the problems by
Planning and
Implementing investigating three levels of activities organizational
change issues, group level issues and individual level issues.
Organizational issues are related with the analysis
of total system. Group level issues are related with
Evaluating and the department and group effectiveness. Individual
Institutionalizing
change level issues deals with the way the jobs are outlined
and carried-out. Collecting, examining and giving
Figure: General Model of Planned Change feedback are the most important change activities in
In the above figure, it is a clear that the arrows diagnosis.
joining various activities in the model display the 3. Planning and Implementing Change
sequence of events from entering and contracting
to diagnosing, to planning and executing change, to In this stage of planned change, the
evaluating and institutionalizing change, the lines organizational members and practitioners work
joining various activities indicates that organizational collaborately for planning and executing OD
change is not a simple process, but involves substantial interventions. They develop interventions for attaining
overlap and feedback among these activities. The the organizations vision or objectives and develop
following are the four important activities involved plans for executing them. Interventions are designed
in the general model of planned change. on the basis of the various criteria such as willingness
of the organization for change, its existing change
1. Entering and Contracting capability, its culture, distribution of power and the
Entering and contracting are the first set skills and abilities of change agents. On the basis
of activities involved in a planned change. These of the results of diagnosis, the OD interventions are
activities help the managers to take the decision with classified into four types which are as follows,
respect to enrolling in a planned change program (i) Human process interventions at the individual
further and to employ resources to such process. group and total system levels.
Entering an organization mainly deals with collecting (ii) Interventions which change the structure and
the initial data for understanding the problems faced technology of an organization.
by the organization or to find out the positive areas of
inquiry. After collecting the information, the mangers (iii) Human resource interventions which help in
and organizational members discuss the problems or enhancing the performance of the members.
opportunities for creating a contract or agreement to (iv) Strategic interventions which deals with
enroll in a planned change. The contract specifies managing the relationship of the organization
the future change activities, the resources that are with its external environment and internal
required in the process and the activities which the structure and process needed to support a
OD practitioners and organization members have business strategy.
to perform. Sometimes, many organizations do not
4. Evaluating and Institutionalizing Change
go beyond this early stage of planned change due to
the uavailability of resources, disagreements about This is the final stage of the planned change in
the need for change or feasibility of other change which the impact of interventions are evaluated and
methods. institutionalization of effective change programs are
managed. By giving feedback to the organizational
2. Diagnosing members about the intervention results, the information
Diagnosing is the second stage of planned whether to continue, modify or suspend change can
change in which the client system is examined carefully. be obtained. Institutionalizing effective changes deals
This stage concentrates mainly on understanding the with strengthening the changes by giving feedback,
organizational problems, their causes, results and rewards and training.

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UNIT-3 Strategic Change Process 27

Short Questions and answers


Q1. Strategic Change.
Answer : May-15, Q1(c)
Strategic change refers to the process of making significant modifications to an organization’s mission, vision
and long term goals. Strategic change is often required when an organization is facing challenges in the external
environment, such as change in market conditions, technology advancements or shifts in consumer preferences.
Strategic change is a complex process that requires careful planning and execution to ensure that the
organization objectives are met. It involves a range of activities, such as analyzing the internal and external
environment, identifying areas for improvement, defining new goals and strategies and implementing changes
to the organization’s structure, processes or culture. Thus, organizations that are able to adapt to changing
market conditions and implement successful strategic change are better positioned to remain competitive and
achieve long-term success.
Q2. Reactive Change.
Answer : (Jan.-12, Q1(d) | Dec.-13, Q1(c))
Reactive change is the change in response to an event or activity. People will react to the unplanned and
unexpected actions which creates disturbances to their routine works that may leads to change in organization.
Reactive change is essential. For example, Implementation of welfare benefits system in an organization in
response to the demands of the employees is said to be a reactive change.
Firms have to change with the unexpected events like shifts in economy, changes in customer’s
preferences and needs, competition etc. Reactive change is a risky method to manage change. As change is
inevitable and also essential to improve the quality of life and business, it is necessary to plan for the change
and avoid reactive change.
Q3. Proactive Change.
Answer : (May/June-12, Q1(d) | Dec.-12/Jan.-13, Q1(e))
Proactive change refers to change introduced by the organization in response to estimated future
environment or organizational situation. It is easy to manage any situation if it is planned. Proactive change
path occurs with a prior planning for change in the organization. One has to assess the conditions and establish
a path for successful accomplishment of set goals and objectives. Proactive change in the organization members
can be created through establishing an innovative and creative vision for future.
For example, a company actively tracks market trends and customer feedback in order to identify opportunities
for growth or product development. The company then develops a strategic plan to leverage these necessary changes
to its operations or business model. This approach is an instance of proactive change management, as the company
is pro-actively seeking out and planning for potential changes that could impact its business.
Q4. Planned Change.
Answer : (June-12, Q1(e) | June-13, Q1(f) | May/June-16, Q1(e))
Planned organizational change is defined as the process of changing the whole organizational functioning
or some of its important parts for bringing improved effectiveness. It is a type of developmental change which
is taken by the firms for enhancing their present operating conditions. This type of change is a calculated
change which helps the firm in attaining a desired output or performance and makes the firm responsive
towards external and internal demands.
Planned change includes, improving the communication skills of the employees, building teams,
organizational restructuring, introducing new technologies, new products and services, chaining the incentive
system, enhancing the employees welfare measures etc.
The features of planned change are as follows,
1. It is considered as a planned, systematic and organized process.
2. Most of the organizations use planned change at differing rate and levels of importance.
3. Each and every department of organization initiate planned change.
4. It facilitates current activities of an organization that in turn leads to new position for organization.
5. It has both positive and negative effect. When employees accept and deploy change happily then it is
considered as positive effect and when employees view change as adverse and oppose it strongly then
it is considered as negative effect.

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28 Leadership and Change Management
Q5. Hopson’s change curve.  Dec.-12 | Jan-13, Q1(f)
OR
Change Curve.
Answer : (May-14, Q1(g) | Dec.-15, Q1(e))

The Hopson’s change curve is a model that describes the emotional stages that individuals go through
when faced with change. This model was developed by clinical and management researchers Adams, Hayes,
and Hopson, who built upon the work of Elisabeth Kubler Ross’s five-stage model of grief. This model helps
individuals and organizations understand and manage the emotional impact of change and provides guidance
on how to effectively navigate the change process.
The various stages involved in the Hopson’s change curve are as follows,
l
nia

tion
An

y Integra
de

Discover
ge
k
oc

on
entat i
Ba
Sh

e r im
ce Exp
rga

tan
in

ce p
ing

Ac
Depression

Figure: Adams, Hayes and Hopsons Change Curve


Q6. Resistance to Change.
Answer : Dec.-14, Q1(g)
According to Zaltman and Duncan “Resistance is any conduct that serves to maintain the status quo in
the face of pressure to alter the status quo”.
According Bridges “Resistance is an incomplete transition in response to change.
According to to Kotter “Resistance is the obstacle in the organization’s structure”.
Resistance to change refers to the psychological or emotional response of individuals or groups when
faced with changes in their environment, such as changes in organizational structure, processes or procedures.
Eventhough change is very essential in the organization, there are some factor like stress, discomfort or
dislocation which motivates the employees to resist change. As change mainly deals with learning new methods
for carrying out their tasks, employees think that new learning will make them incompetent and they may lose
their jobs or positions. Resistance by the employees is the natural phenomenon. For effectively implementing
change in the organization, it is very important for a leader to understand the reasons why employees are
resisting change.
Q7. Behavioral response to change.
Answer : (Dec.-13, Q1(f) | May-14, Q1(h))

Behavioral responses refer to the actions that individuals take in response to the change. This may
include resistance, compliance or proactive participation. Some employees may resist the change because they
feel it threatens their job security, while others may comply with the change to avoid negative consequences.
On the other hand, some employees may pro-actively participate in the change by offering suggestions and
ideas to improve the process.
For example, if a company introduces a new software system, some employees may feel overwhelmed
or frustrated with the new technology and may resist learning how to use it. This resistance may display in
behavioral such as decreased productivity, absenteeism or passive-aggressive behavior to wards management
or colleagues. these behavioral responses can be a result of fear of the unknown, lack of training or support
or concerns about the impact of the change on their job security or workload.

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UNIT-3 Strategic Change Process 29
Q8. Renewal Path  Dec.-15, Q1(f)
OR
Nabisco’s Renewal Path.
Answer :  June-13, Q1(e)
Renewal path is a strategy that companies use to adapt to changes in the market. It involves making
changes to a few elements of the organization to meet market demands.
Nabisco is an example of a company that successfully used renewal path strategy to overcome competition
and regain its reputation. This strategy is suitable when the company can reduce resistance to change and the scope
of change is limited. The goal of this strategy is to reduce the force of change by meeting the demands of the market.
The Recovery of Nabisco from incurring losses by adopting renewal path strategy is shown below,
Background

Competition and
Conclusion Nabisco’s Renewal Path Response

Outcome
Figure: Nabisco’s Renewal Path
Q9. Barriers to change
Answer : May-15, Q1(j)
Barriers to change refer to obstacles or challenge that hinder the successful implementation of a change
initiative with an organization. Effective change management involves identifying and addressing various
barriers to change. If the barriers are not property addressed, the change initiative may not be fully adopted,
which can result in delays, increased costs and ultimately, the failure of the change management effort.
Barriers to change can be categorized into two. They are as follows,
1. Individual Barriers
The various barriers to change management at the individual level are,
(i) Fear
(ii) Lack of input into the change.
2. Organizational Barriers
The various barriers to change management at the organizational level are,
(i) Undefined objectives and goals
(ii) Financial and environmental factors
(iii) Bad resource allocation
(iv) Structural
(v) Bad leadership
(vi) Lack of preparation for new roles.
Q10. Redundancy  May/June-16, Q1(f)
OR
Noer’s redundancy intervention model
Answer : 
Redundancy refers to unnecessary repetition of data. Noer’s Redundancy Intervention Model involves
Interventions occurring at four different levels when tackling redundancy in an organizational context. Noer advises
managers to work with their people at all the four levels, rather than restricting their focus to only the first level.
The four levels of Noer’s redundancy intervention model is shown in the following figure,
Level one
(getting the process right)

Level four Level two


(Embedding the changes) (Dealing with emotions)

Level three
(Focusing on the future)

Figure: Noer’s Four Level Redundancy Intervention Model

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30 Leadership and Change Management

Frequently Asked Questions and Important Questions

Essay Questions
Q1. What is strategic change process? Discuss various aspects involved in strategic change
process.
Answer : Important Question
For answer refer Unit-III, Page No. _, Q.No. 3.
Q2. Discuss hopson’s change curve.

REPEATED
Answer : (Jan.-12, Q4(a) | Dec.-14, Q4(b)) 2
For answer refer Unit-III, Page No. _, Q.No. 5. TIMES

Q3. Discuss about Virginia Satir Change Model.

REPEATED
Answer : (May/June-18, Q4(b) | May/June-12, Q4(a)) 2
TIMES
For answer refer Unit-III, Page No. _, Q.No. 6.
Q4. Write a detailed note on Nabisco’s renewal path.
Answer : Important Question
For answer refer Unit-III, Page No. _, Q.No. 10.
Q5. Explain diagnostic models for organizational change. 

REPEATED
Answer : (June-13, Q5(b) | Dec.-15, Q4(b)) 2
For answer refer Unit-III, Page No. _, Q.No. 11. TIMES

Q6. What do you mean by resistance to change? Why people resist to change? What are the
methods to manage resistance to change?

REPEATED
Answer : (Dec.-12/Jan.-13, Q4(a) | Dec.-13, Q4(a) | May-14, Q4(b) | May/June-12, Q4(b) Jan.-12, Q4(b)) 5
TIMES
For answer refer Unit-III, Page No. _, Q.No. 12.
Q7. What do you understand by ‘planned change’? Discuss about five stages of

REPEATED
planned change. 3
Answer : (Dec.-12/Jan.-13, Q4(b) | Dec.-13, Q4(b) | Dec.-15, Q4(a)) TIMES
For answer refer Unit-III, Page No. _, Q.No. 19.
Q8. What is Planned Change? What are the models of planned change.
Answer : (Important Question | Dec.-14, Q6(b))
For answer refer Unit-III, Page No. _, Q.No. 21.
Short Questions
REPEATED

Q1. Reactive Change. 


Answer : (Jan.-12, Q1(d) | Dec.-13, Q1(c))
2
TIMES
For answer refer Unit-III, Page No. _, Q.No. 2.
Q2. Proactive Change. 
REPEATED

Answer : (May/June-12, Q1(d) | Dec.-12/Jan.-13, Q1(e)) 3


For answer refer Unit-III, Page No. _, Q.No. 3. TIMES

Q3. Planned Change. 


REPEATED

Answer : (June-12, Q1(e) | June-13, Q1(f) | May/June-16, Q1(e)) 3


For answer refer Unit-III, Page No. _, Q.No. 4. TIMES

Q4. Discuss hopson’s change curve.


REPEATED

Answer : (Jan.-12, Q4(a) | Dec.-14, Q4(b)) 2


For answer refer Unit-III, Page No. _, Q.No. 5. TIMES

Q5. Behavioral response to change. 


REPEATED

Answer : (Dec.-13, Q1(f) | May-14, Q1(h)) 2


For answer refer Unit-III, Page No. _, Q.No. 7. TIMES

Q6. Renewal Path 


REPEATED

Answer : (Dec.-15, Q1(f) | June-13, Q1(e)) 2


For answer refer Unit-III, Page No. _, Q.No. 9. TIMES

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UNIT-3 Strategic Change Process 31

internal Assessment
I. Multiple Choice
1. How many levels are discussed in Noer’s redundancy intervention model  [ ]
(a) Three (b) Four
(c) Five (d) Six
2. Which of the following method is used in situations where other methods are not applicable or involves
too much cost [ ]
(a) Manipulation and co-optation (b) Explicit coercion
(c) Implicit coercion (d) Participation and involvement
3. Who proposed 7-S framework  [ ]
(a) Mc.Kensey and consultants (b) Virginia Satir
(c) Grieves (d) French Bell
4. Who proposed “the star model”  [ ]
(a) Michael Beer (b) Burke-Litwin
(c) Jay Galbraith (d) Kurt Lewin’s
5. Which of the following model assist managers in differentiating organizational culture from
organizational climate [ ]
(a) Lewin’s model (b) Burke-Litwin model
(c) Satir model (d) Star model
6. ________ refers to change initiated by an organization as a result of its assessment of the anticipated
future environment or organizational situation [ ]
(a) Reactive change (b) Normative change
(c) Proactive change (d) Both (a) and (c)
7. Factors or forces influencing organizal change classified into __________.  [ ]
(a) 1 (b) 2
(c) 3 (d) 4
8. ________ change is under the control of the firm. [ ]
(a) Planned (b) Unplanned
(c) Both (a) and (b) (d) None of the above
9. ________ is the first stage of planned change. [ ]
(a) Diagnosing the problem (b) Scheduling the tracks
(c) Evaluating the results (d) Initiating the program
10. __________ is a type of planned change.  [ ]
(a) Structural change (b) Technology change
(c) Cultural people change (d) All the above
II. Fill in the Blanks
1. ________ takes place as a response to dynamic internal and external factors that changes the current situation.
2. NABISCO stands for ____________ .
3. The 7S’s in the 7-S framework are, structure, strategy, systems, style, staff, ________ and ________.
4. Six-box model was introduced by ____________ .
5. The four frame model was proposed by ____________ .
6. ____________ frame suggests that the heart of an organization does not exist in its formal structure and
processes but, it exists in its culture which comprises of symbols, rituals, beliefs, values and meanings.
7. The six stages in the Virginia Satir model are, old status quo, introduction of foreign element,
____________, transforming idea, integration and practice and new status quo.
8. ____________ is a type of developmental change which is taken up by the firms for enhancing
their present operating conditions.
9. Kurt Lewin’s second idea was change process model. This model comprises of three stages. They
are, ____________ and refreezing.

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32 Leadership and Change Management

KEY
I. Multiple Choice
1. (b) 2. (a) 3. (a) 4. (c) 5. (b)
6. (c) 7. (b) 8. (a) 9. (d) 10. (d)

II. Fill in the Blanks


1. Change 6. Symbolic
2. National Biscuit Company 7. Chaos
3. Skills, super goals 8. Planned change
4. Marvin Weisboard 9. Unfreezing, moving
5. Lee Bolman 10. Transactional change
III. Very Short Questions and Answers
Q1. What is strategic Change Process?

Answer :

Strategic change process is a structured and intentional approach that organizations use to respond to
internal or external triggers for change. It involves analyzing the market, evaluating customer and stakeholders
relationship and assessing the organizations capabilities.
Q2. Write a short note on hopson’s change curve.

Answer :

The Hopson’s change curve is a model that describes the emotional stages that individuals go through
when faced with change. This model was developed by clinical and management researchers Adams, Hayes,
and Hopson, who built upon the work of Elisabeth Kubler Ross’s five-stage model of grief.
Q3. What is resistance to change?

Answer :
Resistance to change refers to the psychological or emotional response of individuals or groups when
faced with changes in their environment, such as changes in organizational structure, processes or procedures.
Eventhough change is very essential in the organization, there are some factor like stress, discomfort or
dislocation which motivates the employees to resist change.
Q4. What do you mean by renewal path?
Answer :

Renewal path is a strategy that companies use to adapt to changes in the market. It involves making
changes to a few elements of the organization to meet market demands. This strategy is suitable when the
company can reduce resistance to change and the scope of change is limited. The goal of this strategy is to
reduce the force of change by meeting the demands of the market.
Q5. What is planned change?
Answer :

Planned organizational change is defined as the process of changing the whole organizational functioning
or some of its important parts for bringing improved effectiveness. It is a type of developmental change which
is taken by the firms for enhancing their present operating conditions.

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