Organizational Change

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What is Organizational
Change?
Organizational Change
Present state Desired future
state
to increase the effectiveness

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Forces for Change
Competitive forces
Attempt to match or exceed its
competitors on at least one of the
following dimensions:
 Efficiency
 Quality
 Innovation

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Forces for Change
Economic, political, and global
forces
affects by changing how and where they
produce goods and services

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Forces for Change
Demographic and social forces:

changes in the composition of the

workforce and the increasing diversity of
employees has presented many
challenges for organizations
 Increased need to manage diversity

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Forces for Change
Ethical forces
important for an organization to take
steps to promote ethical behavior

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Resistances to Change
Organizational inertia that maintains the
status quo

 lowers an organization’s effectiveness

and
 reduces its chances of survival

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Resistances to Change
Individual-level resistance to change
stems from:
 Uncertainty and insecurity
 Selective perception and retention
 Habit
 Rule of 20-30-50
 Is resistance really a bad thing?
 Clear communication
 Trust, Transperancy

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Resistances to Change
Group-level resistance to change stems
from:
 Group norms
 Group cohesiveness
 Groupthink and escalation of
commitment

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Resistances to Change
Organization-level resistance to change
stems from:
 Power and conflict
 When change causes power struggle and
conflicts, there is resistance
 Differences in functional orientation
 Structure

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 Levin's Force-Field Theory of
Change
Two sets of opposing forces within an
organization determine how change will
take place
 Forces for change and forces making
organizations resistant to change
 When forces for and against change are
equal, the organization is in a state or
inertia
 To change an organization, managers
must increase forces for change and
decrease forces resisting change

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Levin's Force-Field Theory of
Change

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Evolutionary and Revolutionary
Change in Organizations
 Evolutionary change: change that
is gradual, incremental, and narrowly
focused
 Revolutionary change: change
that is sudden, drastic, and broadly
focused

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Evolutionary Change
 Sociotechnical systems theory
Explains the fact that the structure of the work
process affects the way people and groups
behave
 Fit between organization’s technology and
social systems
 Total quality management (TQM)
ongoing and constant effort by all of an
organization’s functions to find new ways to
improve the quality of the organization’s
goods and services
 Case Study
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 Revolutionary Change
 Reengineering:
 Instead of focusing on an organization’s
functions, the managers of a
reengineered organization focus on
business processes
 Innovation: the process by which organizations use
their skills and resources to:
 Create new technologies

 Develop new goods and services

 Better respond to the needs of their customers

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Managing Change
 Action research:
Used to plan a change program that allows
the organization to reach that desired state

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Levin's Three-Step Change
Process

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Steps in Action Research

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Thank You

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