UNIT X

ORGANIZATIONAL CHANGE
& DEVELOPMENT
BY-PROF.RASHMI GUPTA

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 NOTHING IS PERMANENT IN THIS WORLD BUT

“change”

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 WHAT IS CHANGE?
To survive, organizations must train their managers &
work force to cope with new demands,new problems and
new challenges.

 Change can be either a) planned or b)routine.

 Planned change reflects

• Change in goals & operating philosophy to improve the
ability of the organization to adapt to the changes in the
environment.

•Involves new policy implementation to change

employee behavior.
BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All
rights reserved.
 ORGANISATIONAL CHANGE

Organizational change is the process by which organizations

move from their present state to some desired future state to
improve their effectiveness. Characteristically change is-
• Vital
• Process not an event
• Fast and is likely to increase further
• Directive or participative
• Natural or adaptive
• Interdependent on organizational environment

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Types of Organizational Change
– Anticipatory changes: planned changes based on
expected situations.

– Reactive changes: changes made in response to

unexpected situations.

– Incremental changes: subsystem adjustments

required to keep the organization on course.

– Strategic changes: altering the overall shape or

direction of the organization.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 LEVELS OF CHANGE

• Individual level change

• Group level change
• Organizational level change

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 FACTORS LEADING TO CHANGE.
competition

Nature of work
Force.

technology

Economic
factors

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Forces of Change

Workforce
World
Technology
Politics
Forces For
Change
Social Economic
Trends Shocks
Competition

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Forces of Change

External Forces Internal Forces

Competition Laws and Strategy modifications
regulations
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and benefits

Labor surpluses and shortages

Employee attitude

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 THE CHANGE PROCESS

• Becoming aware of the pressure for change

• Recognizing the need for change
• Diagnosing the problem
• Planning the change
• Implementing the change
• Following upon the change

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 SOURCES OF RESISTANCE TO
CHANGE

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Why Do Employees
Resist Change?
• Surprise
– Unannounced significant changes threaten employees’ sense of
balance in the workplace.
• Inertia
– Employees have a desire to maintain a safe, secure, and
predictable status quo.
• Misunderstanding and lack of skills
– Without introductory or remedial training, change may be
perceived negatively.
• Poor Timing
– Other events can conspire to create resentment about a
particular change.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Why Do Employees Resist Change? (cont’d)
• Emotional Side Effects
– Forced acceptance of change can create a sense of
powerlessness, anger, and passive resistance to change.
• Lack of Trust
– Promises of improvement mean nothing if employees do not
trust management.
• Fear of Failure
– Employees are intimidated by change and doubt their abilities to
meet new challenges.
• Personality Conflicts
– Managers who are disliked by their managers are poor conduits
for change.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Why Do Employees Resist Change? (cont’d)
• Threat to Job Status/Security
– Employees worry that any change may threaten their
job or security.
• Breakup of Work Group
– Changes can tear apart established on-the-job social
relationships.
• Competing Commitments
– Change can disrupt employees in their pursuit of
other goals.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 TACTICS FOR OVERCOMING RESISTANCE TO CHANGE

• Education and Communication

– Show those effected the logic behind the change
• Participation
– Participation in the decision process lessens resistance
• Building Support and Commitment
– Counseling, therapy, or new-skills training
• Implementing Change Fairly
– Be consistent and procedurally fair
• Manipulation and Cooptation
– “Spinning” the message to gain cooperation
• Selecting people who accept change
– Hire people who enjoy change in the first place
• Coercion
– Direct threats and force
BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All
rights reserved.
 LEWIN’S FORCEFIELD THEORY OF
CHANGE

• Unfreezing
– Change efforts to overcome the pressures of both
individual resistance and group conformity

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 • Movement
A change process that transform s the organisation from
the status quo to a desired end state.
• Refreezing
– Stabilizing a change intervention by balancing driving and
restraining forces

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Lewin:
Lewin: Unfreezing
Unfreezing the
the Status
Status Quo
Quo
• Driving Forces
– Forces that direct behavior away from the status
quo
• Restraining Forces
– Forces that hinder movement from the existing
equilibrium

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 Dominos Effect

• The Domino Effect is a chain reaction that

occurs when a small change causes a similar
change nearby, which then will cause another
similar change and so on in a linear sequence.
• It typically refers to a linked sequence of events
where the time between successive events is
relatively small.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 ORGANIZATIONAL DEVELOPMENT

• Organizational Development (OD)

– A collection of planned interventions, built on
humanistic-democratic values, that seeks to
improve organizational effectiveness and employee
well-being
• OD Values
– Respect for people
– Trust and support
– Power equalization
– Confrontation
– Participation
BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All
rights reserved.
 Characteristics of OD

• Planned change
• Comprehensive change
• Emphasis upon work group
• Long range change
• Participation of change agent
• Emphasis on intervention.
• Collaborative environment
• Action research.

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 PRE-REQUISITE FOR OD

• Participation of work team, including the formal leader.

• An open, educational philosophy about the theory of OD
• Development of internal OD resources and facultative
skills
• Effective management of the OD process and
stabilization of changes
• Monitoring the process and measuring of results
• Involvement of personal and industrial relations
• Initial top level involvement
• The introduction of OD into the system as behavioral
science consultant

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 6 OD TECHNIQUES

1. Sensitivity Training
– Training groups (T-groups) that seek to change behavior through
unstructured group interaction
– Provides increased awareness of others and self
– Increases empathy with others, listening skills, openness, and
tolerance for others

2. Survey Feedback Approach

– The use of questionnaires to identify discrepancies among member
perceptions; discussion follows and remedies are suggested

3. Process Consultation (PC)

– A consultant gives a client insights into what is going on around the
client, within the client, and between the client and other people;
identifies processes that need improvement.
BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All
rights reserved.
 6 OD TECHNIQUES
4. Team Building
– High interaction among team members to increase trust and openness

5. Intergroup Development
– OD efforts to change the attitudes, stereotypes, and perceptions that
groups have of each other

6. Appreciative Inquiry
– Seeks to identify the unique qualities and special strengths of an
organization, which can then be built on to improve performance
– Discovery: Recalling the strengths of the organization
– Dreaming: Speculation on the future of the organization
– Design: Finding a common vision
– Destiny: Deciding how to fulfill the dream

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.
 THANK YOU!!!!

BY-PROF.RASHMI GUPTACopyright © Houghton Mifflin Company. All

rights reserved.