Organisational Change

Module 2
Organisational Change
Module 2
¨ Definition
¨ Nature
¨ Types
¨ Forces
¨ Models of organizational change
¨ Managerial approaches for implementing change
¨ Understanding the change process
¨ Change management: leading the change process,
dealing with individual and group resistances
"The things that will destroy us
are

¨ POLITICS WITHOUT PRINCIPLE

¨ PLEASURE WITHOUT CONSCIENCE
¨ WEALTH WITHOUT WORK
¨ KNOWLEDGE WITHOUT CHARACTER
¨ BUSINESS WITHOUT MORALITY
¨ SCIENCE WITHOUT HUMANITY
¨ AND WORSHIP WITHOUT SACRIFICE
What is change?
¨ Change alone is eternal, perpetual
Definition
“Organizational Change refers to processes of
growth, decline and transformation within
the organization”
OC takes different forms
¨ It involves change in strategy or purpose,
introducing new products or services,
change the way they produce or sell,
Change their technology, enter new market,
etc.
Nature
¨ Some of the notable changes are:
1. Globalization of market
2. Technological changes
3. Political realignment – free trade areas
4. Changing demographics – changing family mores
5. Changing customer preferences – less loyal
6. Organizational restructuring – M & A
Dimensions of organisational change
Types of Change
1. Happened Change
2. Reactive Change
3. Anticipatory Change
4. Planned Change
5. Incremental Change
6. Operational Change
7. Strategic Change
8. Directional Change
9. Fundamental change
10. Total change
11. Transformational Change
12. Revolutionary Change
13. Recreation
Forces of change
Models of organisational Change
¨ Force Field
¨ Kurt Lewin or Lewin’s Change Model
¨ Systems
¨ 7 Stage
¨ Contemporary Activities Research
FORCE
FIELD
ANALYSIS
Kurt Lewin [1890 - 1947]

Kurt Lewin was an

American psychologist and
having contributed to science
group dynamics & action
research, but perhaps he is
being well known for
developing force field
analysis
Lewin’s Change Model
Kurt Lewin provided this model.
According to him the level of behavior at any point
of time is the result of two sets of forces – one
striving to maintain status quo and other pushing
for the change.
When both these sets of forces are about equal
current level of behavior are maintained and this
he termed as ‘quasi stationary equilibrium’
Change can be planned by altering the existing state
either by increasing the forces pushing for change
or decreasing the forces maintaining the current
state.
 Understanding the Pressures for..
Favor & Against Change

Force Field Analysis is a useful technique for

looking at all the forces for and against a
decision. In effect, it is a specialized method
of weighing pros and cons.

By carrying out the analysis you can plan to

strengthen the forces supporting a decision,
and reduce the impact of opposition to it.
 Force-field Model of Change

Desired
state

Restraining forces

Status quo

Driving forces

Time
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
DIAGRAM
Force Field Diagram

A model built on this idea that forces - persons,

habits, customs, attitudes - both drive and restrain
change. It can be used at any level (personal,
project, organizational, network) to visualize the
forces that may work in favor and against change
initiatives. The diagram helps its user picture the
"tug-of-war" between forces around a given issue.
¨ The Force Field Analysis is a method to:

 Investigate the Balance of Power involved in issue

 Identify the most important player (Stake holder) & target group

for the campaign on the issue

 Identify opponents and Allies

 Identify how to influence each target group

HOW TO CONDUCT
1. Describe the current situation .
2. Describe the desired situation .
3. Identify where the current situation will go if no action is taken .

4. List all the forces driving change toward the desired situation .
5. List all the forces resisting change toward the desired situation .
6. Discuss and interrogate all of the forces: are they valid? Which are
the critical ones?

7. Allocate a score to each of the forces eg; 1-10

8. Chart the forces

9. Determine whether change is viable

10. Discuss how the can be affected by decreasing or increasing forces
 Lewin’s Change Model or 3 step
model
Organisational change can occur at three
levels:
1. Individual – change in an individual
attitude, values, skills and behavior
2. Structure and system : change in work
design, reporting relations, reward
systems.
3. Organizational climate: change in
leadership style, interpersonal relations,
etc.
Lewin’s process of change
¨ Unfreeze
¨ Freeze
¨ Refreeze
For all the three levels of change same
process will hold good.
The Planning model
Developed by Lippit, Watson and Westley (1958), Later
modified by Kolb and Frohman (1970).
This is based on the principle that information must be freely
and openly shared between the organization and the
change agent and this information should be able to turn
into action.
This model follows a seven-step process:
1. Scouting
2. Entry - relationship with change agent
3. Diagnosis
4. Planning – establishing plan of action
5. Action
6. Stabilization & Evaluation
7. Termination – relationship with consultant
ACTION RESEARCH
MODEL:
¨ Cummings and Huse – 1989
¨ Cyclical Process
¨ Research about the organization is
undertaken- provides requisite
information.
Steps:

1. Problem Identification.
Key executives sense the problem

2. Consultation with a behavioral expert.

Help of and OD expert is sought

3. Data Gathering and preliminary diagnosis.

through interviews, process observations,
questionnaires

4. Feed back to key client or group.

Consultant provides all relevant and useful
data.
5. Joint diagnosis of the problem.
Additional research needed ?

6. Joint action planning.

Both agree on problem solving methods.

7. Action.
Actual Change- new methods &
procedures, re organizing structures and
work designs, new behavior.

8. Data gathering after action.

cyclical- data gathering
INTEGRATIVE MODEL OF PLANNED
CHANGE: Bullock & Batten - 1985
Phases
• Exploration phase
 Need awareness - Search - Contracting
• Planning phase
 Diagnosis - Design - Decision
• Action phase
 Implementation - Evaluation
• Integration phase
 Stabilization – Diffusion - Renewal
 Exploration Phase
Need awareness

Searching Contracting

¨ Need Awareness- organizational members

¨ Searching- resources
¨ Contracting – OD expert
 Planning Phase
Diagnosis

Design Decision

¨ Diagnosis- Discover the source of the problem.

By Organizational Members and OD
Expert
¨ Design of an Action- to improve the organization
¨ Decision- Approval of key decision makers is
sought
 Action Phase
Implementation

Evaluation
¨ Implementation
Transitioning the organization- Current
state to Desired State
¨ Periodic evaluation
Need of modification and refinement
 Integration Phase
Stabilization

Diffusion Renewal

¨ Stabilization- Regular organizational

functioning.
¨ Diffusion-Gradual Termination of OD expert
¨ Renewal- regular feed back, incentives,
rewards.
Systems Model of change
 Summary

Models/theories of planned change provide a structured

(linear) view of change, a step by step guide.
Critical steps include:

(1) Understanding the change situation (diagnosis)

(2) Planning the scope/levels of change
(3) Implementing change
(4) Evaluating change (does intervention produce
desired outcomes?) and
(5) Institutionalizing change (making change part of day
to day business operations)
Managerial approaches for
implementing change
Top down approach
¨ Pushing the change down the hierarchy
¨ Coercion compliance phenomenon
¨ Charismatic
¨ Quick and speedy
Laissez faire approach
¨ People are rational beings
¨ Delegation of responsibility to employees

¨ Uneconomical and time consuming

Collaborative approach
¨ Jointly defining the problems and
developing solutions
Perspectives on change
John P Kotter’s eight steps to
successful change
1. Establish a sense of urgency
2. Obtain management and peer backing
3. Create a vision for change
4. Communicate the vision
5. Empower employees to implement change
6. Establish short term goals
7. Encourage additional changes
8. Reinforce changes made as permanent
Leading the change process
¨ This involves having a champion who sponsor
change.
¨ A change leader must master the processes for
accelerating change, manage time, energy and focus,
demonstrate personal competencies required for
change and articulate the different roles.
¨ There are different roles played by him namely:
1. A change sponsor role – legitimizes change
2. A change agent role – implements change
3. A change advocate – drives change
4. A change target – receives change.
A leader should understand each role.
 Facilitating the change
(Jick suggestions)
¨ Analyse the organization and its need for
change
¨ Create a shared vision and common direction
¨ Participative implementation process
¨ Separate from the past
¨ Create a sense of urgency
¨ A strong leader
¨ Line up political sponsorship – support of
key individuals and groups
¨ Craft an implementation plan
¨ Develop enabling structures – reward,
training and workshop
¨ Communicate, involve people and be
honest
¨ Reinforce and institutionalize change
Common pitfalls of change
implementation
¨ Change took more time than allocated
¨ Unforeseen problems surfaced
¨ Coordination of implementation activities
was ineffective
¨ Inadequate training
¨ External factors
¨ Inadequate support
¨ Absent of participative approach
Resistance to change
¨ Behaviour which is intended to protect an
individual from the effects of real or
imagined change
Individual resistance
Reasons
¨ Habit
¨ Security
¨ Economic factors
¨ Fear of the unknown
¨ Selective information processing
¨ Poor timing
¨ Lack of reward systems
Group Resistance
Reasons
¨ Group norms
¨ Group cohesiveness
¨ Group inertia
¨ Groupthink and escalation of commitment
Overcoming resistance to change
¨ Education and communication
¨ Participation
¨ Facilitation and support
¨ Negotiation
¨ Manipulation and cooptation
¨ Coercion
¨ Presentations
Reference
¨ CKM by Nandeshwar and Balakrishna, 2e