CHAPTER SEVEN

ORGANIZATIONAL CHANGE AND DEVELOPMENT

 1. Organizational change
• Organizational change is defined as change that
has an impact on the way work is performed and
has significant effects on staff.
• Organizational change is the process by which
organization move from their present state to
some desired future state to increase effectiveness.
• Change is inevitable and permanent; managers
are responsible to manage change properly
 Characteristics of organizational change
 Change happen for the pressure of both internal
and external forces in the organization
 Change in any part of the organization affect the
whole organization
 Change may affect the people, structure,
technology and other elements of the organization
 Change may be reactive or proactive
 Change is a constant pressure
 Cont’d
• Change may be classified as gradual or
revolutionary, incremental or transformational, 1st
degree or 2nd degree, evolutionary or revolutionary
based on the magnitude of the change.
• Gradual, evolutionary, incremental and 1st degree
all have to do with changes that come in bits or
departmental or unit changes.
• Revolutionary, transformational and 2nd degree
have to do with big changes that is holistic and
involved all strategic units of an organization.
SOME BASIC FORMS OF CHANGE:
 SOME BASIC FORMS OF CHANGE:
Planned change
 It is a change resulting from a deliberate decision
to alter the organization.
 It is an intentional
 It is a goal – oriented activity.
Unplanned change
 It is imposed on the organization and is often
unforeseen.
 Forces of change (factors of changes)
1. Internal forces
 Work force- They can force to restructure the job,
compensation & benefit system
 Managerial personnel- managers develop ideas for
products & services, and take actions to enter a
niche in the marketplace
 Cont..

 Management structure- strict division of labor

leads to an increase/decrease in professional
managers, number of formal departments, &
number of levels in the hierarchy.
 Inertia/inactivity- unwillingness to do something
or diminishing demands of work
 Cont…
2. External forces
 Technological advances- can lead to
incremental or radical changes in how services
& products are designed, produced, &
delivered
 Marketing conditions (economic situation)-
economic depression or market failure can
bring a change on organizational product
 Cont…
 Social changes- changing values influence consumer
purchases.
 Political forces- political pressures (both national &
international) can influence organizational operations. Eg:
Government policies
 Changes in demographics- may cause alteration of internal
practices to ensure fair treatment for people of all races & ages
 Labor markets- fluctuation in labor market forces manager to
change
 Process of organizational change
o A process involving deliberate efforts to move
an organization or a unit from its current
undesirable state to a new, more desirable state
o Kurt Lewin’s phases in planned change
process:
Unfreezing Moving Refreezing
 Cont…
Phase 1: Unfreezing- A phase in the change process in
which founders help managers and associates move
beyond the past by:-
-providing a rationale for change,
- creating anxiety/worry/concern
- creating a sense of psychological safety concerning the
change
• Energizing, awakening
• It makes individuals ready for change. i.e create
motivation & readiness
 Cont…
Phase 2:Moving- A phase in the change process in which
leaders help to implement new approaches by:
- Providing information that supports proposed change
- Providing resources and training to bring about actual
shifts in behavior
• Mobilizing
• The phase where changes that have planned are actually
carried out
• Changes incorporated quickly without preparation
results resistance
 Cont…

Phase 3: Refreezing- A phase in the change process in which leaders lock in

new approaches by:
- Implementing evaluation systems that path expected behaviors
- Creating reward systems that reinforce/strengthen expected behaviors, and
- Ensuring that hiring and promotion systems support the new demands.
• Enabling, reinforcing
• Making changes culture
• Integrate the new behaviour in to the person’s personality & attitude. i.e
stabilization
• It takes place when the new behaviour is adopted in a normal way of life.
i.e new behaviour replace the old on permanent basis
 Resistance to change
o Dynamic forces are always at play and therefore individuals must adjust
to it and carryout change. If not change, society will be stagnant &
become hopeless
o Why does resistance to change occur?
a. Individual resistance:
• Fear of unknown- dislike of uncertainty, negative attitude towards new
program
• Habit- people are habituated to do their job in a particular way
• Security- fear of threatens their feelings of safety
• Economic factors- fear of lower pay (changes in jobs), etc
b. Organizational resistance:
• Lack of clear communication
• Lack of sufficient resources – sufficient time, staff, funds, etc
• Limited focus of change
 Overcoming resistance to change
How can we overcome resistance?
• Education & communication
• Participation
• Facilitation & support
• Negotiation
• Explicit & implicit coercion
 2. Organization Development
 Organizational development refers to a planned,
organization-wide, continuous process designed to
improve communication, problem solving, and
learning
 Involves the enhancement of structure, process,
quality of work life, quality of employees life and
other people aspect of the system
 The organizational development paradigm values
human and organizational growth, collaborative
and participative process and a spirit of enquiry
 Objectives of organizational development
 Broadly speaking, all organizational development
programs try to achieve the following objectives:
 Making individuals in the organization aware of the
vision of the organization. i.e help employees to align
with the vision of the organization.
 Encouraging employees to solve problems instead of
avoiding them.
 Strengthening inter-personnel trust, cooperation, &
communication for the successful achievement of
organizational goals.
 Features of organizational development
• Long term effort- it cannot be completed with in
short span of time
• It has been initiated & supported by top
management
• Its a visioning process- create a picture of the
desired future
• Its Learning process- where people continually
expand their capacity to achieve their desire
• Team based - revolve around teams
THANKS!