Organizational Change and its
approaches
Aamir Ansari
Ahmad Atif Abdullah
Organizational changeis both the process in
which an organization changes its structure,
strategies, operational methods, technologies,
or organizational culture to affect change within
the organizationandthe effects of these
changes on the organization.
Organizational Change
Why do managers need Organizational
Change?
Nature of the Workforce
Greater diversity
Technology
Faster, cheaper, more mobile
Economic Shocks
Mortgage meltdown
Competition
Global marketplace
Social Trends
Baby boom retirements
World Politics
Iraq War and the opening of China
Forces for Change
Change
Making things different
Planned Change
Activities that are proactive and purposeful: an
intentional, goal-oriented activity
Goals of Planned Change
Improving the ability of the organization to adapt to
changes in its environment
Changing employee behavior
Change Agents
Persons who act as catalysts and assume the
responsibility for managing change activities
Planned Change
Resistance to change appears to be a natural and
positive state
Forms of Resistance to Change:
Overt and Immediate
Voicing complaints, engaging in job actions
Implicit and Deferred
Loss of employee loyalty and motivation,
increased errors or mistakes, increased
absenteeism
Deferred resistance clouds the link between
source and reaction
Resistance to Change
Individual
Habit, security, economic factors, fear of the
unknown, and selective information processing
Organizational
Structural inertia, limited focus of change, group
inertia, threat to expertise, threat to established
power relationships and resource allocations
Sources of Resistance to Change
Education and Communication
Show those affected the logic behind the change
Participation
Participation in the decision process lessens
resistance
Building Support and Commitment
Counseling, therapy, or new-skills training
Implementing Change Fairly
Be consistent and procedurally fair
Manipulation and Cooptation
Spinning the message to gain cooperation
Selecting people who accept change
Hire people who enjoy change in the first place
Coercion
Direct threats and force
Tactics for Overcoming Resistance to Change
Impetus for change is likely to come from outside
change agents, new employees, or managers outside
the main power structure.
Internal change agents are most threatened by their
loss of status in the organization.
Long-time power holders tend to implement
incremental but not radical change.
The outcomes of power struggles in the organization
will determine the speed and quality of change.
The Politics of Change
Unfreezing
Change efforts to overcome the pressures of both
individual resistance and group conformity
Movement
Make the changes
Refreezing
Stabilizing a change intervention by balancing
driving and restraining forces
Lewins Three-Step Change Model
Driving Forces
Forces that direct behavior away from the status
quo
Restraining Forces
Forces that hinder movement from the existing
equilibrium
Lewin: Unfreezing the Status Quo
Builds from Lewins Model
To implement change:
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency
Form a coalition
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term wins
Consolidate, reassess, and adjust
Reinforce the changes
Kotters Eight-Step Plan
Unfreezing
Movement
Refreezing
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicates
Process steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
. Problem-focused rather than solution-centered
. Heavy employee involvement reduces resistance to
change
Action Research
What is change in organization and how to
make change?
Organizational Development (OD)
A collection of planned interventions, built on
humanistic-democratic values, that seeks to
improve organizational effectiveness and employee
well-being
OD Values
Respect for people
Trust and support
Power equalization
Participation
Organizational Development
1. Sensitivity Training
Increases empathy with others, listening skills,
openness, and tolerance for others
2. Survey Feedback Approach
The use of questionnaires to identify discrepancies
among member perceptions; discussion follows and
remedies are suggested
3. Process Consultation (PC)
A consultant gives a client insights into what is
going on around the client, within the client, and
between the client and other people; identifies
processes that need improvement.
Six Organizational Development Techniques
4. Team Building
High interaction among team members to increase
trust and openness
5. Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
6. Appreciative Inquiry
Seeks to identify the unique qualities and special
strengths of an organization, which can then be built
on to improve performance.
Six Organizational Development Techniques
(Continued)
1. Stimulating a Culture of Innovation
Innovation: a new idea applied to initiating or
improving a product, process, or service
Sources of Innovation:
Structural variables: organic structures
Long-tenured management
communication
Idea Champions: Individuals who actively promote
the innovation
Creating a Culture for Change: Innovation
2. Learning Organization
An organization that has developed the continuous
capacity to adapt and change
Learning Types
Single-Loop: errors are corrected using past
routines
Double-Loop: errors are corrected by modifying
routines
Characteristics
Discards old ways of thinking
Communicates openly
Works together to achieve shared vision
Creating a Culture for Change: Learning
Overcomes traditional organization problems:
Fragmentation
Competition
Reactiveness
Manage Learning by:
Establishing a strategy
Redesigning the organizations structure
Reshaping the organizations culture
Reward risk-taking and intelligent mistakes
Creating a Learning Organization
Transact Insurance Corporation - case
Jim, is the new vice- president, introduced to improve
company system. One of the most pronounced symbols of
change was the Claims Management Credo that outlines
every claims manager would follow. After evaluation, the
result was bad.
Overview
Some managers and employees had disputes.
Two managers quit.
Three managers asked to put down their position.
Many managers felt bad because their individual
comments were shared.
Symptoms
Authoritative top down management.
Walls between managers and employees.
Jim did not keep his promise to managers.
Jim did not prepare the solutions for the outcome.
Root Causes
Introducing and intervention- incremental change
Sharing a strategic vision
Make a culture.
Evaluate both employees and managers.
Individual privacy right & self esteem.
Reward/incentive system for both.
Solutions and Suggestions
Thank you..
