L-19 To 21 & 26

Organizational Change and

Development

14-1
 The Strategic Learning

1. Why do organizations need to make changes on a

regular basis? What are the major causes of these
changes?
2. Why is it so difficult for people to change their
behavior, even when they know it is important to do
so?
3. If you were in a managerial position and believed that a
major change in your unit’s structure was needed, what
actions would you take to ensure that the change was
made effectively?

14-2
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 Pressures for Change
Life-Cycle
Aspirations
Forces

Growing
Technological
International
Advances
Interdependence
Pressure for
Change
Introduction
or Removal of Changes in
Government Demographics
Regulations
Shifting
Changes in
Political
Societal Values
Dynamics

Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change 14-4
 Life-Cycle Forces
Natural and predictable pressures that build as an
organization grows and that must be addressed if
the organization is to continue to grow.

14-5
14-6
External Pressures for Change
Technological Shifting political
advances dynamics

Introduction and
Changes in
removal of government
demographics
regulations

Changes in Growing international

societal values interdependence

14-7
 Companies’ Responses
Managerial
to Pressures for “Green”
Advice
Policies and Practices
Are companies becoming more “green” for reasons other
than the “bottom-line”? Give some examples.
What is your organization doing to become more “green”?
What are you doing personally?
Should becoming “green” be a choice or is legislation
needed to make it happen?

14-8
 Aspiration-Performance
Discrepancies
• Gaps between what an individual, unit, or
organization wants to achieve and what it is
actually achieving.
• Three important factors in the role of
aspirations
• Past aspirations
• Past performance
• Comparison with others

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 Resistance to Change
Effort to block new
ways of doing things

Four Factors

Lack of Different
understanding assessments

Self-interest Low tolerance

for change

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14-24
 Speed of Change

Urgency
Degree of support

Criteria to Amount and complexity of change

Consider Competitive environment

Knowledge and skills available

Financial and other resources

14-25
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 Style of Change
Non-participatory – top down, leaders design the
change and plan its implementation

Participatory – change leaders seek the ideas and

advice of associates and then use many of those
ideas. Criteria for evaluating the degree to which
the participatory style should be used:

Referent and
Degree of
Urgency Expert Power
Support
of Leaders

14-30
The DADA syndrome
Denial – ignore possible or current change

Anger – individuals facing unwanted change

become angry about the change

Depression – individuals experience

emotional lows

Acceptance – individuals embrace the

reality of the situation and make the best of it

14-31
14-32
 Which strategy to follow
• Organizations do not pursue a single strategy.
• Depending upon-
Degree of resistance
Target population
The stakes involved
The time frame
Degree of expertise involved
Dependency
A mix of strategies are involved
14-33
 Strategies
• Proper timings- well begun is half done. Properly
planned and well timed change has much higher
probability of success.
• Education and communication- Lack of information,
communication and fear about uncertainties. Proper
education and communication help in eliminating
problems.
• Seek participation- Involvement in decision making
reduce communication gap, reduce fear about
uncertainties & help in change management.
• Facilitation and support- Counseling, training,
motivation help employees in change management

14-34
• Negotiations- Helps in accommodating different
views, reaching consensus or some acceptable
solution, helps in overcoming resistance.
Acceptable solution may not be always optimal & at
times negotiations may prove costly.
• Manipulation- Involves twisting of information,
hiding crucial information, presenting rosy picture,
hiding adverse impact, gradual release of
information. This may recoil on the management in
long run and can lead to mistrust in employees and
management.
• Cooperation- Manipulation + participation of
resisting group through buy off.
• Coercion- Use of threat. Affects congenial and
healthy working environment.
14-35
• Introducing incentive/rewards- Old age saying
“ Money makes the mare go” In the era of
materialism, rewards/incentives can motivate
employees and facilitate change management.
Some of the above steps help in successful
change management.

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People in Change Management
• Change Initiator- Who initiates request and will
confirm after completion.
• Change sponsor- Who gives business approval
for a change
• Change administrator- Can be one or more, do
initial categorization/assessment, monitor
progress through change owner and do closure
• Impact Assesor- Relevant people who assess
the impact of the change
• Change owner- The one who is allocated to a
change and who manages it through
acceptance and closure. 14-43
• Change Manager- Who manage overall change
process, acts as a point of escalation for CO,
exercise judgement in assessing requests,
escalates to change board. Drives emergency
changes or expedites changes through the
system.
• Task owners- The one who are assigned
specific task by change owner and owns them
through to completion.
• Change Board- Management board who reviews
the change process and specific changes as
and when required.

14-44
Leader plays a significant role in change

“Leadership is we, not me; mission,

not my show; vision, not division; and
community, not domicile.”

A leader as “… someone who can

take a group of people to a place
they don’t think they can go.”

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 Leadership Qualities
• Encourage-
Creativity
Better productivity
Collaboration rather competition
Training and coaching
Quality consciousness
Teamwork
• Improve-
Communication, participation of work force
• Help in creating proper culture for improvement,
problem solving, prevention 14-47
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 Sources of Failure

1. Managers and associates should not expect all

change activities to occur sequentially.
2. A team of change leaders, rather than a single
individual, should guide an organization through a
major change effort.
In addition to size, four factors to consider
when forming change teams:
Position Power Informal Credibility

Expertise Proven Leadership

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 Change Management Plan
• Empirical-Rational
People are rational beings and will follow their self-interest –once it is
revealed to them. Successful change is based on the communication
of information and the proffering of incentives.
Change strategy here centers on the balance of incentives and risk
management
• Normative-Reductive
People are social beings and will adhere to cultural norms and values.
Successful change is based on redefining and reinterpreting existing
norms and values, and developing commitments to new ones.
Change strategy here focuses squarely on culture – what people
believe about their world, their work and themselves and the ways in
which people behave so as to be consistent with these beliefs.
Ordinarily, culture doesn’t change quickly and certainly not overnight.
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• Power-Coercive
People are basically compliant and will generally do what
they are told or can be made to do. Successful change is
based on the exercise of authority and the imposition of
sanctions.
Two major factors influencing the choice of this strategy
are time and the seriousness of the threat faced.
• Environmental Adaptive
People oppose loss and disruption but they adapt readily to
new circumstances. Change is based on building a new
organization and gradually transferring people from the old
one to the new one
The major consideration here is the extent of the change.
This strategy is best suited for situations where radical,
transformative change is called for. For gradual or
incremental change, this is not the strategy of choice. 14-52
 Team Building Tips
Get the right people together for a large block of
uninterrupted time to work on high-priority
problems or opportunities that they have
identified and have them work in ways that are
structured to enhance the likelihood of realistic
solutions and action plans, which are then
implemented enthusiastically and followed up to
assess actual versus expected results.

14-53