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Chapter 11
Organizational Change

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reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 TOPIC OVERVIEW
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 Organizational Change
• Movement of an organization away from its present
state and toward some desired future state to
increase its efficiency and effectiveness.

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 Figure 11.5 Organizational Control and
Change

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 Driving and Restraining Forces
Driving forces:
• Push organizations toward
change.
• External forces or leader’s
vision.
Restraining forces:
• Resistance to change.
• Employee behaviors block the
change process.
• Try to maintain status quo.

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 Force Field Analysis Model

Exhibit 15.1 Lewin’s Force Field Analysis Model

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 Figure 11.6 Lewin’s Force-Field Model of
Change

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 Figure 11.7 Four Steps in the
Organizational Change Process

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 i) Assessing the Need for Change
 Assessing the need for change calls for two important activities—recognizing
that there is a problem and identifying its source.
 Sometimes the need for change is obvious, but at other times, problems
develop gradually, making it more difficult to recognize that change is needed.
 Thus, during the first step in the change process, managers need to recognize
that there is a problem that requires change.
 To discover the source of organizational problems, managers need to look
both within and outside of the organization. Outside the organization, they
must examine how changing environmental forces may be creating
opportunities and threats that are affecting internal work relationships.
Managers also need to look within the organization to see whether its
structure is causing problems between departments.

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 ii) Deciding on the Change to Make

 Once managers have identified the source of the problem, they must
decide what they think the organization’s ideal future state would be and
plan how they are going to attain that state.
 This step also includes identifying obstacles or sources of resistance to
change.
 Improving communication and empowering employees by inviting them
to participate in the planning for change can help to overcome
resistance and allay fears.
 In addition, managers can sometimes overcome resistance by
emphasizing group or shared goals, such as organizational efficiency
and effectiveness.

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 iii) Implementing the Change
• Generally, managers introduce and manage change from the top down
or from the bottom up.
• Top-down change is implemented quickly where top managers
identify the need for change, decide what to do, and then move quickly to
implement the changes throughout the organization. With top-down change,
the emphasis is on making the changes quickly and dealing with problems as
they arise; it is revolutionary in nature.
• Bottom-up change is typically more gradual where top managers
consult with middle- and first-line managers, and then over time, managers at
all levels work to develop a detailed plan for change. A major advantage of
bottom-up change is that it can co-opt resistance to change from employees.
Because the emphasis in bottom-up change is on participation and on keeping
people informed about what is going on, uncertainty and resistance are
minimized.

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 iv) Evaluating the Change
 The last step in the change process is to evaluate how successful the
change effort has been in improving organizational performance.
 Using such measures as market share, profits, or the ability of managers
to meet their goals, managers can compare how well an organization is
performing after the change with its performance prior to the change.
 Managers can also use benchmarking, which is the comparison of one
company’s performance on specific dimensions with the performance of
high performing organizations, to decide how successful a change effort
has been. Benchmarking is a key tool in total quality management.

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 Implementing the Change 1

Top-down change:
• A fast, revolutionary approach to change in which top
managers identify what needs to be changed and then
move quickly to implement the changes throughout
the organization.

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 Implementing the Change 2

Bottom-up change:
• A gradual or evolutionary approach to change in which
managers at all levels work together to develop a
detailed plan for change.

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 Evaluating the Change
Benchmarking:
• The process of comparing one company’s
performance on specific dimensions with the
performance of other, high-performing organizations.
• Examples: Xerox benchmarking against L.L.Bean,
John Deere, and Proctor and Gamble.

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• © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.
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