Managing Change In

Organizations
 MANAGING CHANGE IN ORGANIZATIONS
1. Organizational Change – Concept, objectives and types of change- A.B-
2. Globalization and its implication. – A.B-
3. Organizations as open systems.-A.B-
4. Implications of change on culture and structure.- A.B-
5. Managing Conflict. –Prof BNG
6. Dealing with resistance to change. –A.B-
7. Overview and approaches to planned diagnosis – major techniques of
planned change – steps in OD, OD skills and competencies. - Prof BNG
8. Designing OD interventions: interpersonal, team, inter-group and systems,
evaluation of OD exercises. –Prof BNG
9. Case Study- Discussions-A.B
• Suggested Readings:
• French, W.L. and Bell, C.H. “ Organizational Development”, PHI
• Harigopal, K. “ Management of Organizational Change: Leveraging
Transformation”, Response Books
• Our Iceberg Is Melting, Managing Change By John Kotter,
 Introduction
1. My vaccination- initial days
2. My first day in school
3. My first day in college
4. My first day at work
5. My Marriage
6. My First Car, Or Flat, Or Gadget
7. The Farmers Agitation Near Delhi
8. The Introduction of the Four Labour Codes
9. Managing change in organizations. e.g. A new appraisal
system, Introducing a new Salary Structure, Productivity
Linked Incentive Scheme, Introducing a new Attendance
Recording System, Introducing SAP, Introducing Computers
10. Introducing A New Productivity Linked Incentive Scheme.
11. Introducing A Machine Or Computer At My Workplace
 Factors Affecting Change
• P = Political
• E= Environmental
• S= Sociological ( demographic)
• T= Technology
• L- Legal
• E= Economical
• The Iceberg Is Melting by John Kotter
 Why do Resist Change?

• Why Are We Apprehensive Of Change?

• Can We Remain In A State Of Constancy?
• Why Do We Have To Change ?
• Do We Resist All Changes Or Some Forms or
Types Of Change?
 Content
• Define Organizational Change
• What is there to Manage?
• Resistance to Change
• Managing Organizational Change
• More on Change Management
• Organizational Development
5 4
3
2
1 • Define Change
Management
 Change and Us

Past
• What is change ?
• What is organisational
change?
• What is the importance of
change in life?
• Do you have some
Future examples/example of
changes in your
life/work/Institution?
• What is your opinion about
those changes?
• Why do we need change?
 Impact of Change

Past
Present

A “journey” not an
“event”
Future
Involves
 Pain/ shock/ denial
 Desire to control or
adapt to the
circumstances
 Action to respond  Canit be managed?
to the change Can it be predicted?
How do people react to change?

• Here are some thoughts that

might be expressed by someone
passing through the "bad news"
curve:
• Oh no!
• It can't be true!
• You cannot be serious!!!
• Can we sort this out some other
way?
• That's it - after 20 years of
service they want me to...
• Am I going to be part of this?
• Yes, I can live with this - it's not
bad really.
 Paradigms…
Paradigms are rules, concepts, assumptions and
Mental boundaries ( Monkey and Ladder
example)
• Rules
• Assumptions…
• Concepts
• Practices….
Paradigm Paralysis- Refusal to change established
patterns of thought and feelings
WHAT IS CHANGE MANAGEMENT?
• Change management is a systematic approach
to dealing with the transition or
transformation of an organization's goals,
processes or technologies.
• The purpose of change management is to
implement strategies for effecting change,
controlling change and helping people to
adapt to change.
 OBJECTIVES OF MOC
• The objectives of change management typically revolve around successfully
implementing and managing changes within an organization. Here are some
common objectives of change management:
• Minimize resistance to change: One of the primary objectives of change
management is to minimize resistance to change among employees and
stakeholders. This involves understanding the concerns and challenges
faced by individuals and addressing them effectively to increase their
acceptance and support for the proposed changes.
• Facilitate smooth transitions: Change management aims to ensure that
transitions from current practices to new ones are as smooth as possible.
This includes providing the necessary resources, training, and support to
employees to adapt to the changes and maintain productivity during the
transition period.
• Reduce negative impacts: Change can sometimes lead to negative
consequences such as decreased morale, increased stress, or reduced
productivity. The objective of change management is to identify and
mitigate these potential negative impacts to minimize disruptions and
maintain a positive work environment.
Achieve desired outcomes: Change management is driven by the objective of
achieving the desired outcomes or goals of the change initiative. This could involve
improving operational efficiency, enhancing customer satisfaction, increasing
profitability, or implementing new technologies or processes

Enhance organizational agility: In a rapidly changing business environment,

organizations need to be agile and adaptable. Change management aims to foster
a culture of continuous improvement and innovation, enabling the organization to
respond effectively to future changes and remain competitive.

Foster effective communication: Effective communication is crucial during times

of change. Change management objectives include establishing clear and
transparent communication channels to ensure that all stakeholders are well-
informed about the changes, their purpose, and the expected impact.

Monitor and evaluate progress: Change management involves setting up

mechanisms to monitor and evaluate the progress of change initiatives. This helps
identify any issues or deviations from the planned objectives and allows for timely
adjustments or interventions to ensure successful implementation.
5 4
3
2 • Identify goals of
Change
Management
1
 Importance Of Change To Individual
When leaders or managers are planning to manage
change, there are five key principles that need to be
kept in mind:
Principle1- Different People React Differently To
Change
Principle2- Everyone Has Fundamental Needs
That Have To Be Met
Principle3- Change Often Involves A Loss, And
People Go Through The "Loss Curve“
Principle4- Expectations Need To Be Managed
Realistically
Principle5- Fears Have To Be Dealt With
5
4
3 Understand the need
to change

2
1
 Change & Change Management.

• Adoption of a new idea or behaviour by an

organization.
– Organizations need to continuously adapt to new
situations if they are to survive and prosper
– Constant change keeps organizations agile
– Indicative of “learning” organizations
 A Learning Organization
• A learning organization is one that seeks to
create its own future; that assumes learning is an
ongoing and creative process for its members;
and one that develops, adapts, and transforms
itself in response to the needs and aspirations of
people, both inside and outside itself .
• Employees are the organization's first line of
defence. Encouraging employees to speak up is
important in uncovering issues promptly and
effectively.  
 2.What are some of the key features
of a learning organization?
• To ensure that employees have the
opportunities to perform, that managers
support training activities and that the work
environment is conducive for continuous
learning, many companies are striving to
become learning organisations.
 Supportive Learning Environment

• One of the first thing to consider is with

regards to building a supportive learning
environment is to instill a culture of speaking
up. In most workplaces, people are keeping
quiet and going along with the flow rather
than speaking up about what’s bothering
them.
• According to Maxfield and Grenny’s research,
an employee’s failure to raise their concerns
about a project or workplace situation costs
an organization an average of $7,500 in lost
time and resources. Companies could pave
the way in promoting a “speak up” culture by
tapping on leaders to model the behaviour
themselves and also by rewarding employees
who ask questions.
 Consider Different Cultural
Perspectives.
• Diversity is reality as we work in a globally-
connected workplace and most companies have
a mixture of a racially diverse workforce. There
are many benefits when there is diversity in the
workplace as various cultures form the basis of a
rich resource of alternative ideas to do things and
the opportunity to learn from best practices of
other cultures. In particular, new perspectives
may be gleaned and this stimulates creativity in
problem solving in many work situations.
• While each of us come from different cultural
backgrounds and affects our responses to
others, we learn to be mindful of the beliefs
and assumptions of others. A positive learning
environment starts with supporting the
contributions and respecting the power and
influence of all cultures.
 Encouraging Risk-taking And
Innovation
• Greater consumer power and increased
competition means that companies need to
find new ways to attract and retain their
customers. In order for that to happen,
companies need to innovate and push the
limits of possibility. Risk-taking should not be
regarded as merely a process, but it should be
a behaviour that is adopted by employees in
the organization.
• Managers need to encourage a culture of
smart risk-taking through helping employees
to learn from mistakes and experimenting
with new ways of doing things.
• If managers are tolerant and supportive in
times of failure, they encourage an
 Learning Processes And Practices
• Knowledge creation, dissemination and
sharing are practised in a learning
organization. The ability to create new
knowledge puts the organization at a
competitive advantage over others.
• Before developing initiatives to develop
employees, there is a need to ensure that
systems are in place to support them. Systems
should be developed for creating, capturing
and sharing knowledge and information. For
instance, process documentation outlines the
steps for a task or procedure that makes it
easier for all employees to adhere to.
• In a customer service environment, a simple
process documentation includes how to answer a
call, responding to queries and ending the call in
a proper manner.
• Setting up online communities of practice
provides an opportunity for those who have
undergone training to exchange ideas or seek
advice from like-minded individuals. These
platforms support and enhance knowledge
retention and transfer of learning too.
 Managerial Support
• Managers need to play an active role in their
employee’s learning. Managers are most aware
of the learning needs of their direct reports and
are in a position to make a difference in their
work performance.
• Setting aside time to identify work issues and
problems, learning processes and conducting
post-training performance audits are some of the
ways managers can support employees in their
development.
• For example, managers could start by actively
listening to employees concerns and training
interests and prompt them to identify or plan
their career paths.
•  This step should not be done only during
performance appraisals, but throughout the
year.
 Training
• Training is merely a tool to impart
knowledge, hence the manager needs to
create opportunities for applying new skills
and behaviour at work.
• Being open to new ideas and suggestions on
how to improve productivity or enhance
better outcomes requires the manager to
adopt a flexible mindset.
• After all, learning is about sharing
information, experimenting with new ideas
and making mistakes.
• With managerial support, employees will
embrace development initiatives and take
active steps to be a learning organization.
 BUT when you say Change,
they say:
• “This is a waste of time.”
• “Why change if it was working just fine before?”
• “If it isn't broken, don't fix it.”
• “They never tell us what’s going on!”
• “How soon will this happen?”
• “How will this impact me?”
• “Will I receive new training?”
• “What’s in it for me.”
• “I doubt they are really serious about this.”
 Why Do Organizations Need
Change

2 To Improve
1 To Create what what is there
is not there through:
through: Driven Determined by
by Vision market forces
 Shifting
Demographics
World
Technology
Politics
Forces For
Change
Economic
Globalization
Shocks
Competition
 When Is Organizational Change
Inevitable?
Gliecher’s Equation
• Organisational dissatisfaction [D]
• Vision for the future [V]
• Possibility of immediate tactical action/ first
steps [F]
When D x V x F > Resistance to change,
Then, organisational change becomes
acceptable
 Change Management
• ... about “getting there’
• ... about “navigating the journey”
• planning and designing the components of the
change program
• managing the implementation of the program,
and the process of change, to minimise
disruption and maximise benefits
• continuously monitoring progress and fine-
tuning the change journey as required
 The Goal of Organizational Change
Management
• Reduce productivity loss
• Avoid employee turnover
• To eliminate any adverse impact of change on
the customers
• Achieve desired results
 Individual Change Management
Employees’ perspective:
• Focus on daily operations
– Don’t know all about the business issues
– Won’t know why changes are being made
• Not as accountable as managers are
Primary concern:
• To know how change will impact them
Perspectives of Change Management
• Individual Change Management:
– Bottom-up
– Employees’ perspective
• Organizational Change Management:
– Top-down
– Managers’ perspective
MYTHS OF CHANGE MANAGEMENT

Myth #3 - We can
control change.

Myth #2 -Planning
can fully prepare
us for change.

Myth #1 -
Things will
calm down
 What is Organizational Change

supporting
implementing
planning continuous
1 2 change  3 improvemen
for
change  t following
change 
 Coping with Change
Experiments conducted by Stanford psychologist Leon Festinger
show that people change their mindset only when:

They see the

purpose of
changing

They are
convinced about
the purpose
 Why Organisational Change fails
McCarthy's 6 reasons why organizational change fails

No regular
6 Training/employee
Lack of a focused Engagement activities
5
manager in team
4 Engagement isn’t
Individual agendas are
3 measured
ignored 2 Communication fails to
The role of managers is 1 win hearts and minds
disregarded
5
4 Understand Barriers to
change

3
2
1
 Barriers to
Change

•Rational •Personal
Barriers Barriers

•Individual
•Technology
• resistance
problems •Group
•Legal issues resistance
•Resource •External
availability resistance
problems

•
 Increment
al
Speed of
Change Radical
Types of
Change
Extent of Peripheral
Change

Core
 Change - Some terms

• Types of Change/Extent of Change

a)Incremental
b)Peripheral
c) Radical
d) Core
• Speed of Change
 Types of Change Vs. Environmental Factors
Moderate High
Radical Disturbance Disturbance
Low Risk High Risk

Incremental
Low
Extent of disturbance Moderate
Change Low Risk Disturbance
Moderate Risk
Peripheral

Core
Risk
Environmental Risk Factors al
“And the day came when the risk to
remain the same was greater than
the
risk to change …

It is, after all, the only hope for the

cocoon to become the butterfly.”
 COCOON TO BUTTERFLY: Planned
versus emergent change
Planned or
1 Emerging?

Episodic vs.
2 Continuous?
Transformational

Transitional

Developmental
 People’s Reactions to Change
“S/he really made the effort to help us
implement this change”

“This way is more effective”

“I’m not sure I know

what’s going on”

“This could be a better way of doing it”

Confidence

“I can handle this”

“Actually, things might get better”

“I feel overwhelmed”
“We can’t do this. It won’t work. We’re not allowed”

Time
 How Reactions Change…
To change their behavior, employees need to see the link
between

Their work and how they

do it The context in
which they do
their work

The information
they receive The needs of the
organisation
 The Change Cycle

Phase 4
Phase 1
Commitm
Denial
ent

Phase 2 Phase 3
Resistanc Explorati
e on
 Denial
• Everyone resists change
• Resistance is natural
• Attaining high on Resistance means, you:
– Are feeling insecure
– Doubt your abilities
– Feel embarrassed
– Think you lack power
– Don’t appreciate the change
 Denial
• Denial is running away from change
• People should be helped to recognize their Denial
behaviour
• Group Denial also impacts the organization
• People generally avoid exploring new areas
• Attaining high on Denial means you:
a) Don’t acknowledge the change
b) Are unaware of how the change affects you
c) See the change as temporary
 Learn tools and

5 4 techniques of
change
management

3
2
1
 Lewin’s 3-Step Change Process

Unfreeze: Change
Refreeze

• Let go of
•Adopt new ideas
restricting
or approaches
attitudes •Create new
• Increase
discomfort to communication/reporti
• Create new, perhaps permanent forms
raise anxiety ng channels
or guilt • Recruitment, induction, training,
•Provide training
rewards, promotions
 Lewin’s Model of Change
• Chaos
Undesired • Unpredicta Desired
Situation bility Situation
• No control
• Confusing
• Loss-
Attachment

Unfreeze Refreeze
Stability Unfreezing/ Stability
Change
 Programmed Change Management:
The Bullock and Batten Model

Exploration Phase Planning Phase Action Phase Integration Phase

Exploration
Phase

The organisation has to make

decision on the need for
change:
• Explore and decide on the
need for change
• Identify what changes are
required
• Identify resources required
Planning Phase

Understanding the problem:

• Diagnosis of the problem
• Clarify goals and objectives
• Identify specific activities
required to undertake change
• Agree changes with
stakeholders
• Identify supports required to
enable change to occur
Action Phase

• Changes identified are agreed and

implemented:
• Support for change is explicit
• Changes are monitored and
evaluated
• Results are communicated and
acted upon
• Adjustments and refinements are
made where necessary
Integration Phase
• Stabilising and embedding
change:
• Changes supported and reinforced
• Results and outcomes from
change communicated
throughout the organisation
• Continuous development of
employees through training,
education
• Ongoing monitoring and
evaluation
 A few stories on Management of
Organizational Change
1) The IBM Turnaround: In the 1990s, IBM was
struggling with financial losses, huge debts,
and declining market share due to the
emergence of new competitors.
2) IBM's new CEO, Louis Gerstner, initiated a
massive organizational change program
aimed at transforming the company's
culture, strategy, and structure.
• He emphasized the need for a customer-
focused approach, streamlined operations,
and investment in new technologies.
• The turnaround strategy paid off, as IBM
regained its dominance in the computing
industry and became one of the most
successful companies in the world.
 The Ford Motor Company
Restructuring:
• In 2006, the Ford Motor Company was facing
severe financial difficulties due to declining
sales and mounting losses.
• The company announced a major
restructuring plan aimed at reducing costs and
improving efficiency.
• The plan involved closing several factories,
cutting jobs, and restructuring the company's
overall operations.
• The change was met with resistance from
employees and union leaders, who feared job
losses and reduced benefits.
• However, the company managed to
successfully implement the change, and Ford
regained profitability in the following years.
 The Procter & Gamble Merger:
• In 2005, Procter & Gamble (P&G) merged with
Gillette, a company specializing in personal
grooming products.
• The merger was aimed at expanding P&G's
product portfolio and consolidating its
position as a global market leader.
• The merger involved significant changes to the
company's structure, culture, and operations.
• P&G faced several challenges in integrating
the two companies' cultures and managing
the transition.
• However, P&G successfully managed the
change, and the merger proved to be a
success, with the company achieving
significant growth and profitability in the
years that followed.
 The Coca-Cola Company:
• In the 1980s, Coca-Cola launched a new recipe
for their flagship Coca-Cola product.
• The change was met with strong negative
reactions from consumers, who preferred the
original recipe.
• The company had to quickly pivot and bring
back the original recipe and brand it as "Coca-
Cola Classic" to appease customers and
maintain market share.
• This experience taught Coca-Cola the
importance of understanding the needs and
preferences of their consumers before
implementing any major changes. 
 Nokia:
• In the early 2000s, Nokia was the world's largest
cell phone manufacturer.
• However, in the face of new competition from
Apple and Samsung, they were slow to adopt the
Smartphone trend.
• This reluctance ultimately led to the company's
decline, as they were unable to keep up with
changing technological trends and consumer
preferences.
• Nokia's management learned the hard way that
in a rapidly evolving industry, change is necessary
for survival.
 Air India
• The Tata Group took over the reins of the
beleaguered Air India from the government
over 15 months ago, and all the efforts to
turnaround the airline’s fortunes were
implemented without many hiccups.
• That is until it changed policies for its
workforce, or more specifically, the pilots.
 Issues with Contract
• The unions say that earlier the management
said the promotions will be based on merit,
but when the actual contracts were offered, it
was all based on seniority—offering pilots
with more than four years of experience,
management duties.
 Issues with Contract
• Protesting the new terms and conditions, the Indian
Commercial Pilots’ Association sent a legal notice
dated April 21 to Air India’s Chief Human Resources
Officer Suresh Dutt Tripathi.
• “Air India, in its proposed revised terms and conditions
of service, has ‘declared’ that all commanders with
merely 4 years seniority in Air India will be ‘promoted’
as ‘Senior Commanders’, which is an ‘Executive Role’,”
the notice said.
• The so-called ‘promotion’ is merely smokescreen to
remove the union’s members from the category of
‘workmen’, and consequently from the protection of
all labour law, and therefore, is utterly illegal and
cannot be foisted on them unilaterally, it said.
 Issues with Contract
• The union members feel they are being forcibly
promoted to management cadre, even if they
wish to retain the present designations and roles.
• “90% or nearly 900 pilots of the union qualify for
‘promotion’ to management duties, but there
aren’t as many roles available. This move is just
to ensure that you become part of the
management, so you can’t be a union member,”
the representative said.
• Air India did not respond to queries sent via
email, at the time of publishing this report.
 Lower Compensation
• The unions also highlighted that they will
essentially get lower compensation, as there
is no concept of getting paid when you are not
actually flying.
• While mst of the pilots were flying more than
70 hours a month just a few months ago, now
they are being guaranteed 40 hours of flying
with no assurance of what they will get over
and above it.
• “Every year, there are training sessions that pilots
must go through. What if that’s not counted under
flying or what about when I go on leave for 15 days
in a month, I’ll get only 20 hours to fly?” an Air India
pilot said, on the condition of anonymity.
• While Air India claims that hourly rates for above 40-
hour threshold have been increased, the rest of the
airlines continue to offer fixed flying hours, which are
higher than 40 and up to 70 hours—ensuring higher
pay for their pilots. 
• Even pilots working with Vistara, an airline
that is under the process of getting merged
with Air India, continue to enjoy better pay
structure than what’s being offered to Air
India pilots currently, a union member said,
on the condition of anonymity.
• According to the union representative, as a
result of this, many pilots are planning to
leave, with a few already having tendered
resignations. "Close to 50 pilots have tendered
resignation even at Vistara, fearing worse pay
once the merger goes through,” the union
representative said.
 The Management Style ? Change In
Approach?
• The Tata Group is looking to restore the glory
days of Air India over the next few years, but
the approach towards its pilots has come
under question.
• “Their attitude towards the people doesn’t
give impression of an Air India run by Tatas,
rather an airline run by Singapore Airlines.
 What is Globalization?
• Globalization is the word used to describe the
growing interdependence of the world's
economies, cultures, and populations, brought
about by cross-border trade in goods and
services, technology, and flows of investment,
people, and information
 What Is The Simple Meaning Of
Globalization?
•  Globalization Is The Spread Of Products,
Technology, Information, And Jobs Across
National Borders And Cultures.
• In Economic Terms, It Describes An
Interdependence Of Nations Around The
Globe Fostered Through Free Trade.
 What Are The 3 Types Of
Globalization?
•  Academic literature commonly
subdivides globalization into three major
areas:
a)economic globalization,
b)cultural globalization, and
c) political globalization 
 Why Is Globalization Important?
•  Globalization is about the
interconnectedness of people and businesses
across the world that eventually leads to
global cultural, political and economic
integration.
• Due to the increased demand in the high tech
industry around the world, business and
industry have potential for huge profits
working globally. 
 What Are Some Examples Of
Globalization?
 The following are common examples of globalization.
a) Trade. The exchange of goods and services between
nations.
b) Immigration. The ability to live, work or go to school in
a place other than the place where you happened to
be born.
c) Travel.
d) Communication.
e) Transportation.
f) Knowledge.
g) Media & Entertainment.
h) Culture 
 Globalization
Pre –Globalization
• Cost- Rs10, 000 Rs10, 000
• Taxes-Rs 2,000 Rs 18,000

• Total Rs12,000 Rs 28,000

 Globalization
Post –Globalization Post Globalization
Tribeni Glatz China
• Cost- Rs10, 000 Rs10, 000 8,000
• Taxes 2,000 Rs 2,000 1,600

• Total Rs12,000 Rs 12,000 9,600

 Globalization
Tribeni Glatz
• 2 Tears per Bobbin • 2 tears per 5 Bobbins
• 10 bobbins required per • 10 bobbins required per
machine per shift machine per shift
• 2x10= 20 tears • 2x2 = 4 Tears
• 20 x5mins = 100mins • 4x5 = 20 mins
downtime downtime
• 100- 20= 80 mins extra
production time
 What Is Meant By Business Cycle?
• "Business cycles are a type of fluctuation
found in the aggregate economic activity of
nations…
• A cycle consists of expansions occurring at
about the same time in many 
economic activities, followed by similarly
general recessions.
• This sequence of changes is recurrent but not
periodic."
 What Is a Business Cycle?
• The four stages of the economic cycle are also
referred to as the business cycle. These four stages are
expansion, peak, contraction, and trough. During the
expansion phase, the economy experiences relatively
rapid growth, interest rates tend to be low, production
increases, and inflationary pressures build.
• In essence, business cycles are marked by the
alternation of the phases of expansion and contraction
in economic activity of a Company or a Business or
even a sector of the economy.
• This gives rise to the co-movement among economic
variables in each phase of the cycle.
Business Life Cycles
 Business Life Cycles
• We’re born, we grow, we develop, we mature and in the
end, we die. Just like the circle of life, businesses have their
own stages of development on their way to success. 
• These are the basic stages.
• Business owners often believe they start near the peak of
the graph. Their only concern is with the numbers, and fail
to understand the process of growth and decline.
• When we talk about the growth of any business, they will
all go through these various stages of the business life cycle
and inevitably encounter challenges along the way.
• Each encounter will require different strategies when it
comes to extending the the Organization’s or Product’s Life
Cycle.
 Liberalization
• In simple words, liberalization refers to a relaxation of
government restrictions in the areas of social, political and
economic policies. In the context of economic policy,
liberalization refers to lessening of government regulations
and restrictions for greater participation by private entities.
• It is a process to removing controls systems in order to
encourage economic development.
• The economy is thrown open and the best goods and services
compete in the market and the consumer has a choice and
monopolies disappear.
• Trade liberalization is the removal or reduction of
restrictions or barriers on the free exchange of goods
between nations. These barriers include tariffs, such as
import duties and surcharges, and nontariff barriers, such as
licensing rules and quotas
 Privatization
• Privatization is the transfer of ownership,
property or business from the government to
the private sector.
• The government ceases to be the owner of
the entity or business.
• India went for privatization in the historic
reforms budget of 1991, also known as
'New Economic Policy or LPG policy'.
 What Is A System
• The definition of a system is a set of rules, an
arrangement of things, or a group of related things
that work toward a common goal.
• A System has an INPUT, An OUTPUT and a black
box where various activities are carried out
• An example of a system is the way someone
organizes their closet.
• An example of a system is all the organs that work
together for digestion
• An Organization with its various departments and
activities constitutes a SYSTEM
 Systems and Processes that (Hopefully) Are 
Aligned With Achieving the Goals
• Organizations have major subsystems, such as departments, 
programs, divisions, teams, etc.
• Each of these subsystems has a way of doing things to, along 
with other subsystems; achieve
the overall goals of the organization. Often, these systems an
d processes are define by plans, policies and procedures.
• How you interpret each of the above major parts of
an organization depends very much on
your values and your nature. 
• People can view organizations as machines, organisms, famil
ies, groups, etc. 
 Are Organizations Open Or Closed
Systems?
• Open systems refer to systems that interact
with other systems or the outside
environment, whereas closed systems refer
to systems having relatively little interaction
with other systems or the outside
environment.
• A closed-system perspective
views organizations as relatively independent
of environmental influences.
 Organizations as Open Systems

• A highly effective organization is regularly

exchanging feedback with its external
environment – it is an open system.
• Healthy organizations regularly try to
understand their environments through use of
environmental scanning, market research and
evaluations.
 What Is An Example Of A Closed
System Organization?
•  A production line is an example of a closed
system within an organization.
• The daily work that takes place on production
or assembly lines can be insulated from
outside factors such as day-to-day meetings
between upper-level executives, or
information from other similar, competing
production lines.
 What Is An Example Of An Open
System Organization?
•  A typical publicly traded corporation is a
perfect example of an organization that is
an open system.
• A corporation is in constant interaction with
its environment.
• The corporation also sends resources back
into the environment with its products,
investments, and other activities in the
community.
 What Is Open System Theory in
Organizations?
•  Open systems theory refers simply to the
concept that organizations are strongly
influenced by their environment.
• The environment consists of
other organizations that exert various forces of
an economic, political, or social nature.
• As a result, open systems theories come in
many flavours.
• E.g. Kodak, Nokia, Motorola, General Electric,
Jessops. Braithwaite, Hindustan Motors
 What Are The Features Of An Open
System?
• What are the common characteristics of "open" 
and "closed" systems of organization? How do open
 systems facilitate organizational development and c
hange?
• Common characteristics of an open system are that
they transform the energy available to them.
Another would be that they “export” some product
into the environment.
• Some characteristics of a closed system are that
they isolated from the environment.
 What Is an Open System?
• An open system is a system that regularly exchanges
feedback with its external environment.
• Open systems are systems, of course, so inputs,
processes, outputs, goals, assessment and evaluation,
and learning are all important.
• Aspects that are critically important to open systems
include the boundaries, external environment and
equi-finality.
• Healthy open systems continuously exchange feedback
with their environments, analyze that feedback, adjust
internal systems as needed to achieve the system’s
goals, and then transmit necessary information back
out to the environment.
 Boundaries
• All systems have boundaries, although the
boundaries can be difficult to identify because
systems can be very dynamic.
• Open systems have porous boundaries through
which useful feedback can readily be exchanged
and understood.
• Closed systems, unlike open systems, have hard
boundaries through which little information is
exchanged.
• Organizations that have closed boundaries often are
unhealthy. Examples include bureaucracies,
monopolies and stagnating systems.
 External Environment
• The external environment includes a wide variety of needs and
influences that can affect the organization, but which the organization
cannot directly control.
• Influences can be political, economic, ecological, societal and
technological in nature.
• A highly effective organization is regularly exchanging feedback with
its external environment – it is an open system.
• Healthy organizations regularly try to understand their environments
through use of environmental scanning, market research and
evaluations.
• These organizations often try to influence their external environment, as
well, for example, through use of public relations, advertising and
promotions, lobbying and advocacy, and educating industry and local
leaders.
 Equifinality (More Than One Way to
Accomplish the Same Result)
• Equifinality means that the same or similar
results can be achieved by using a variety of
different processes. For example, management
can achieve the same results by using different
inputs or by using different processes with the
same inputs. Equifinality suggests that there is
no one right way to accomplish important
results in an organization. In contrast, closed
systems have one right way to do things.
 Equifinality
• For example, in heavily bureaucratic organizations,
a person must finish the necessary procedures
regardless of how useful an intended result will be
for the organization – the focus is on doing things
right, rather than doing the right things.
• The concept of equifinality explains why there is no
one right way to lead or manage organizations.
• It explains why there is no one right way to guide
organizational change. You should keep this in
mind when adopting various solutions-based best
practices, diagnostic models and assessment tools.
 The Three Cs

• Change ( Mutate and Improve furiously)

• Costs ( Remain competitive through
eliminating wasteful expenditure)
• Customer Delight
Kotter’s 8 Steps for Managing Change
Managing Change
Establish a sense of urgency
Create a guiding coalition
Develop a vision and
strategy
Communicate the change vision
Empower employees
Generate short-term wins
Anchor new approaches

Consolidate gains for more

change
 Building Commitment to Change

Stages of Individual Behaviour “This is the way we do things here”

Change Internalisation
of new behaviour
e nt “OK, I’m ready to do it the
new way”
ti m
m m Commitment
Co“I know how we need to do to personal change
si ng
re a our jobs differently”

In c Translation Significant
to the work setting involvement
“I understand where we
need to go” needed
Understanding
of change direction
“Yeah, I saw the memo”

Awareness Information with some

of desired change
involvement sufficient here
 Managing Change: Some Challenges

Sustaining change

Not walking the 7

talk!
6 The task isn’t
have no relevant!
5
help! 4
Redesigning and 3
rethinking change 2 don’t have
Initiating change
1
1 time for this
task!
 Involve Others in the Change
• Everyone contributes to the change
• Build a strong unified team
• Provide others with varied opportunities to
shape the change
• Handle resistance effectively
• Give people time to accept and adapt to the
changes
More About Change
Management
 ORGANIZING FOR CHANGE…

Doing the right things

Leadership
How you achieve Who is responsible
your goals for what
Structure
Strategy
Purpose
shared vision/
values/goals Organizat
ion Ongoing
Underlying Culture processes
systems
assumptions
that drive behavior
Workforce

Capacity and capabilities of

the people who do the work
 Four Roles in Organizational
Change- AGENTS

Inventor Champion Sponsor Critic

· Develops and · Believes in idea ·High-level · Provides reality
understands · Visualizes manager test
technical aspects benefits who removes · Looks for short-
of ideas · Confronts organizational comings
· Does not know organization barriers · Defines hard-
how realities of cost, ·Approves and nosed
to win support for benefits protects idea criteria that
the idea or make · Obtains financial within idea
a and political organization must pass
business of it support
· Overcomes
obstacles
Types of Changes:
1) Planned 2) Accidental

Organizational
Change

Planned Changes Accidental Changes

• Changes in products and • Changing employee
services demographics
• Changes in administrative • Performance gaps
systems • Governmental regulations
• Changes in organizational size • Economic competition in the
or structure global arena
• Introduction of new
technologies
• Advances in information
processing and
communication
 Types of Planned Changes
Two Types

Operational Change
based on efforts to improve basic work and
organizational processes

Transformational Change
involves redesign and renewal of the
total organization
HUMAN SIDE OF IT
• Change Is Fundamentally About
Feelings. It Needs People’s Heads And
Hearts Together.
• “Winning Attitudes” Do Make A
Difference, And It Is Important To
Market New Ideas And Approaches
Within The Organization Very
Carefully.
 Lewin’s Force Field Analysis
Restraining
Desired Forces
Conditions

Restraining
Forces Driving
Forces
Restraining
Forces

Current Driving
Conditions Forces
Driving
Forces

Before During After

Change Change Change
 Lewin’s Force Field Analysis-
Resistance to Change
Direct Costs

Saving Face

Fear of the Unknown

Forces for
Change Breaking Routines

Incongruent Systems

Incongruent Team Dynamics

Lewin’s Force Field Analysis
 Lewin’s 3 Step Change
Process.

Unfreezing Changing Refreezing

Unfreezing Old Behavior Creates Motivation to Learn.

 Lewin’s Three-Step Process
• The first step, “unfreeze” involves the process of
letting go of certain restricting attitudes during the
initial stages of a change process. 
• The second step, "change" involves alteration of self-
conceptions, ways of doing things and ways of
thinking during the experience.
• The third step, "refreeze" involves solidifying or
crystallizing the changes into a new, permanent form
for the individual and the organization.
Unfreezing Techniques
People are taken from a state of being unready
to change to being ready and willing to take the
first step.
1. Burning platform: Expose or create a crisis.
2. Challenge: Inspire them to achieve remarkable
things.
3. Evidence: Cold, hard data is difficult to ignore.
4. Education: Provide Learning for them to
change.
5. Management by Objectives (MBO): Tell people
what to do, but not how to do.
6. Visioning: Form Visions. Visions work to create
change.
Burning Platform
• Show how staying where you are is not an option,
and that doing nothing will result in disaster.
• Look for a crisis that you can highlight. They are
often lurking nearby, forlorn and unnoticed.
• You can also engineer your own
crisis that forces change.
Challenge
• Stimulate people into change by challenging them to
achieve something remarkable. Show confidence in
their ability to get out of their comfort zone and do
what has not been done before.
• Once the group has bought the challenge, then they
will bounce off each other to make it happen.
 Evidence
• Find evidence that supports the need for change.
• Use data and statistics to create impressive graphs
and charts.
• Cold, hard evidence is a good way of changing minds
as counter-arguments require better data.
 Education
• Teach people about the need for change and how
embracing change is a far more effective life/
organizational strategy than staying where they are
or resisting.
• Teach people the methods of change, about how to
be logical and creative in improving processes and
organizations.
 Vision
• Create a motivating vision of the future.
• Share it with others.
• Live it until it comes true.
• Visions work only when they act to motivate and
inspire the large numbers of people that are
needed to make the change happen.
• For the vision to be motivating, then it must be
memorable.
• For it to be memorable, it must be exciting and
short.
• To be believed, it must be a regular part of the
conversation of senior people.
 Changing Techniques
Once you have unfrozen the people, the next
question is how you keep them going.

• Coaching: Psychological support for executives.

• Facilitation: Use a facilitator to guide team
meetings.
• First steps: Make it easy to get going.
• Involvement: Give them an important role.
• Open Space: People talk about what concerns
them.
• Step wise change: Break the work into smaller
and easily achievable packages.
Coaching

• When you have individual people who are

having difficulty in managing to adapt to
change, be a Coach to them.
• Coaching helps explore deeper motivations
and beliefs about other people, and find
practical ways to change these.
Facilitation
• Use skilled facilitators (HR) to support change
activities.
• Facilitators can be used to guide various group
events, from brainstorming and planning to
improvement projects and change activities.
• Facilitators can also act as team coaches,
helping people to improve within themselves
and work together in better ways.
First Steps
• Actually starting something is often the
hardest thing. The Greek poet Horace said,
‘He has half the deed done who has made a
beginning.’
• Make the first steps of change particularly
easy. Make them the most obvious thing to
do.
• Then make the next steps easy so that it takes
away all reasonable objections to enacting it.
Involvement
• Get them involved in the change.
• Invite them to participate in discussions.
• Give them things to do.
• When people are a part of something, they
bond with it, making it a part of their identity.
• Quality Circle
Open space
• 'Open Space' (or, more fully, Open Space
Technology, or OST) is a simple but very useful way
of getting people to openly discuss issues that are of
concern to them.
• It started when Harrison Owen was running
conferences and found that people preferred talking
to others during the breaks than listening to
speakers. He then began running conferences
without speakers.
 Open space
• The underlying philosophy is that trying to
control a naturally chaotic universe just makes
things worse.
• If you want people to collaborate, the basic
principle is to bring them together and then get
out of the way.
• For managers and facilitators this can be a very
difficult part of the Open Space process.
• Yet the most successful Open Spaces are
managed with a very light touch.
 Open space
• In change, it is useful to getting people to talk
together. For example, you can use it to get
people to talk about their fears and concerns.
Stepwise Change
• Have clear steps in the change. Break the
work into distinct packages and talk about
each separately.
• Communicate about the change not as a
single, but as a set of activities, each of which
gains specific value.
• Celebrate the Milestones.
Refreezing techniques
people are taken from a state of being in transition and
moved to a stable and productive state
1. Burning bridges: Ensure there is no way back.
2. Evidence stream: Show them time and again
that the change is real.
3. Institutionalization: Building change into the
formal systems and structures.
4. Reward alignment: Align rewards with
desired behaviors.
5. Socializing: Build it into the social fabric
Burning the Bridges
• When changes are instituted, it is not uncommon for
people to seek ways to go back to the old way of
working, hence ensure that there is no way back to
previous ways of working.
• 'Burning bridges' is a deliberate way of preventing
any backsliding by removing any method by which
people can go back.
• Managers who may be not fully committed to the
change are now strongly motivated/compelled to
continue.
Evidence Stream

• Get people to accept that a change is real by

providing a steady stream of evidence to
demonstrate that the change has happened and is
successful.
• Communicate through a range of media. Get people
who have been involved to stand up and tell their
stories of challenge and overcoming adversity.
 Evidence Stream
• Evidence is a powerful tool for persuasion,
particularly when people are doubtful whether
something is real/possible. This is particularly
powerful when presented by people who are trusted
by the audience for the information.
• A steady stream of evidence is needed because
people are not always convinced by a few pieces of
early evidence.
Institutionalization
• Make changes stick by building them into the formal
fabric of the organization.
• Make them an organizational standard, building
them into the systems of standards.
• Put them or aspects of them into the primary
strategic plan.
 Institutionalization
• Build them into peoples’ personal objectives.
• Ensure people are assessed against them in
personal reviews.
• The formal systems and structures within the
organization are those which are not
optional. People do them because they are
'business as usual‘.
Reward Alignment.
• When you make a change, ensure that
you align the reward system with the
changes that you want to happen.
• The saying 'Show me how I'm paid and
I'll show you how I behave' is surprisingly
common.
Socialize.
• Seal changes by building them into the social
structures and creating ownership of the
change.
• Give social leaders prominent positions in the
change. When they feel ownership for it, they
will talk about it and sell it to others.
 Organizational Change Management

• It is not uncommon for an organization to choose to

conduct a project that will have impact on the
organization itself. Examples:

– New Time and Attendance System

– New email system
– Transition from paper to electronic Requisitions
– Change from primarily print to primarily electronic
media
– Introduction of a new technology (e.g. ERP/SAP)
– Distribution of workers in new office space
 Organizational Change Management
• Upper Management undertakes these projects
because they believe that there is sufficient gain
to the organization to warrant the expense.
• Upper Management usually moves forward on
the basis that since it is in everyone’s best
interest, those individuals affected will of
course endorse the project and work to make it
a success.
• And all too often Upper Management receives a
rude shock.
 Organizational Change Management
• It can be very difficult to introduce change to
an organization. Failure to recognize and deal
with this fact has been the cause of many
project failures.
– Folger & Skarlicki (1999) - "organizational
change can generate skepticism and
resistance in employees, making it
sometimes difficult or impossible to
implement organizational improvements"
(p. 25).
 Organizational Change Management
• As the Management Team, you must be aware
of the extent to which your projects may
introduce organizational change, and then you
must deal with this issue.
– Coetzee (1999) states "management's
ability to achieve maximum benefits from
change depends in part on how effectively
they create and maintain a climate that
minimizes resistant behavior and
encourages acceptance and support“.
 Organizational Change Management
• How prevalent is Resistance to Change?
– It is generally acknowledged that in an average
organization, when the intention for change is
announced:
• 15% of the workforce are eager to accept it

• 15% of the workforce are dead set against it

• 35% are sitting on the fence, waiting to see

what happens
• 35% are not convinced, hand holding is required

• This 70% can be swung over to support the

cahange.
 Organizational Change Management
• How can I best accomplish Organization-wide
Change?
– Since our interest here is in Management of
Organizational-wide Change, it can be helpful
to re-define Resistance to Change as
“employees are not wholeheartedly
embracing a change that management wants
to implement" (Dent & Goldberg, 1999)
– This allows us to focus on gaining acceptance
(a positive) rather than on breaking down
resistance (a negative).
 Organizational Change Management
• How can I best accomplish Organization-wide
Change? The high-level view:
– Get senior management agreement (i.e.
conflicting goals can kill the project!)
– Identify a champion who can articulate the
reasons for and advantages of the change
– Translate the vision for change into a realistic plan
and then carry out the plan
– Involve people from every area of the
organization
– Communicate. Communicate. Educate. Educate.
– Get organizational buy-in to the change
– Modify organizational structures so that they will
sustain the change
Nine Stages of Change
 LEVEL 1: EFFECTIVENESS - DOING THE RIGHT
THINGS. 
• The easiest change to make is to learn the
basics - what are the right things to do
and how to immediately change enough
to become effective in a new job.
• The Pareto Principle states that 20% of
the things being done actually yield 80%
of the total payoff. To maximize
effectiveness, energy must be shifted to
and focused on doing that 20% (the right
things).
 LEVEL 2: EFFICIENCY - DOING THINGS
RIGHT.

• Level 2 change requires a thorough understanding

of all the aspects of the new job or business activity
in order to identify and then focus on doing very
well those things which have the most important
impact and make the largest contribution.
• Level 2 changes are based largely on personally
adjusting to new standards and procedures, and
involve coaching or explanations by others familiar
with the job or business activity. 
 LEVEL 3: IMPROVING - DOING THINGS BETTER

• Change at this level involves thinking about

ways to improve or fine-tune -- ways to speed
things up, shorten delivery time, increase
functionality, reduce downtime.
• Level 3 change makes something more
effective, more efficient, more productive, and
more value-adding - frequently with customer
input.
 LEVEL 4: CUTTING - DOING AWAY WITH
Inconsequential THINGS
• This level of change involves analysis of core
functions and applies the Pareto Principle to
focus on stopping doing things - cutting out the
80% of things that only yield 20% of the value.
• In the simplest case, change at Level 4 focuses
on eliminating waste. If this can be done
systemically while keeping all organizational
interrelationships and subsystems in
perspective, major company-wide results can
be achieved.
 LEVEL 5: COPYING - DOING THINGS OTHER
PEOPLE ARE DOING

• Level 5 marks the transition from incremental

to fundamental change. Copying, learning from,
and "reverse engineering" can dramatically
boost innovation at significantly lower costs
than starting from scratch.
• Benchmarking how other organizations are
doing things and then enhancing upon their
processes is the hallmark of the successful
innovator.
 LEVEL 6: DIFFERENT - DOING THINGS NO ONE
ELSE IS DOING

• Change at Level 6 is about either doing something very

different or doing something very differently - and transitions
into degrees of novelty which not only move an organization
"out-of-the-box", they move the organization into areas
where nobody else is doing it.
• Level 6 is a shift into a different thinking. Such trailblazing and
greater degrees of risk-taking can bring about genuinely new
things, often by synthesizing seemingly unconnected concepts
and technologies - or by totally shifting perspective around the
possible uses of a product.
 LEVEL 7: IMPOSSIBLE - DOING THINGS THAT
CAN'T BE DONE. 

• "What is today impossible, but if it were possible it

would fundamentally change the way you do
business?" Joel Barker's famous question reframes
thinking extremely well for Level 7. Market
constraints, resource limitations, or company
culture are too often seen as insurmountable
barriers.
• As a result, discoveries at Level 7 frequently build
on major mind shifts connected with exploratory
thrusts into the unknown - bold, significant and
long-term visions and change so different that it
cannot be compared to anything else known at the
time.
LEVEL 8: Being forewarned is being forearmed.

• You must have all heard of story of the frog

in boiling water. If the temperature of the
water is suddenly increased, the frog
realizes it and jumps out of the water.
• But if the temperature is very slowly
increased, one degree at a time, the frog
does not realize it till it boils to death.
Develop your own early warning system,
which warns you of changes and calls your
attention to it.
• In the case of change, being forewarned is
being forearmed. 
 LEVEL 9 :decide upon what you will never
change - your core values

• Take your time to decide what they are, but once

you do, do not compromise on them for any
reason.
• Integrity is one such value. Playing to win is not
the same as cutting corners. When you play to
win, you stretch yourself to your maximum and
use all your potential.
• It also helps you to concentrate your energy on
what you can influence instead of getting bogged
down with the worry of what you cannot change.
• Do your best and leave the rest. 
 Respect yourself
• The world will reward you on your successes.
Success requires no explanation and failure
permits none. But you need to respect yourself
enough so that your self-confidence remains
intact whether you succeed or fail. If you succeed
90 percent of the time, you are doing fine.
• If you are succeeding all the time, you should ask
yourself if you are taking enough risks. If you do
not take enough risks, you may also be losing out
on many opportunities. Think through but take
the plunge. If some things do go wrong, learn
from them.
 Two types of change
(1) Step change
• Dramatic or radical change in one fell swoop
• Radical alternation in the organization
• Gets it over with quickly
• May require some coercion
• (2) Incremental change
• Ongoing piecemeal change which takes place as
part of an organization’s evolution and
development
• Tends to more inclusive
Step v incremental change
 Techniques to help implement
change
• Teams building across units
• Internal communication
• Negotiation
• Action planning
• Change agents or champions of change
• And a certain amount of compulsion
manipulation and coercion
 Change agents
• Managers should be able to act as change
agents:
• To identify need for change
• Be open to goods ideas for change
• To able to successfully implement change
Advantages Of Using A Change
Agent:
• Forces through change
• Becomes the personification of the process
• Responsibility for change is delegated thus
freeing up senior managers to focus on
future strategy
 Remember this…

TELL ME I will forget

SHOW ME I might remember

INVOLVE ME I will never forget

 Lewin’s Force Field Analysis
Restraining
Desired Forces
Conditions

Restraining
Forces Driving
Forces
Restraining
Forces

Current Driving
Conditions Forces
Driving
Forces

Before During After

Change Change Change
 Resistance to Change
Direct Costs

Saving Face

Fear of the Unknown

Forces for
Change Breaking Routines

Incongruent Systems

Incongruent Team Dynamics

Managing Organizational Conflict
• We spend Millions in trying to resolve or manage
conflicts.
• Pain leads to change.
• Under Developed Ego., Ego , Inflated Ego- Ego
Must be in the Healthy Zone
• Straight and Tall Trees Fall First
• Conflict Styles
• Conflict Is BAD? An Organization that does not
have conflict can be very unproductive. Conflict
on ISSUES. Conflict on Personality.
• Vanilla Ice Cream Problem
• Left Brain vs. Right Brain. Do not get captured by
the left Brain.
 Managing Organizational Conflict
• Organizational conflict, or workplace conflict, is a
state of discord caused by the actual or perceived
opposition of needs, values and interests
between people working together. Conflict takes
many forms in organizations.
• Conflict will inevitably arise in your organization,
as such is the nature of all human interactions.
• In order to avoid finding yourself stuck in a
situation where you don’t have any options, you
need to craft policies and ways of managing
conflict beforehand.
 Managing Organizational Conflict
• You also need to genuinely self-reflect and
encourage your team to do so as well.
• Ultimately the best conflict resolution strategies
are the ones that manage to get your team back
on track.
• So how do you handle conflict in your
organization, no matter what the size?
• Are there tips you can begin to implement
straightaway?
• As it turns out, there are some that you can use
to help with your organizational conflict
management.
 Evaluate and Understand the
Emotional Responses of People
• Whenever someone has a strong emotional response
to something, they typically fall back to their default
setting, which is to seek a fight or flight response.
• They won’t be able to reason in the heat of the
moment and so their actions may not be rational and
they may utter words they don’t mean at all and are
likely to regret later.
• The last thing you want to do in such a situation is to
try and argue with such a person.
• You should wait for the anger or other strong emotion
to first dissipate before you can try to communicate
with them.
• Emotionally triggered people aren’t very easy to
reason with.
 Self-Awareness Is Key
• What kind of person are you when a conflict arises?
• Do you tend to avoid conflict or are you the aggressive
type that takes the bull by the horns?
• It’s important to have a very good understanding of
how you deal with conflict. Not everyone will respond
especially well to your conflict resolution style.
• Sometimes you can use your method on the right
people and at other times you need to take a step back
and either adapt your style to the person and the
situation or call in a different person who is better
equipped to deal with the situation.
• Either way, understanding yourself is the first step to
understanding others.
Conflict Resolution Style
Listen to Everyone Involved and Hear
Their Views
• No one likes to be wrong and so no one ever
wants to hear someone else telling them that
they are wrong.
• Of course, you can argue on the one hand that
people should be gracious enough to accept
that they will not always be right.
• However, on the other hand, you also cannot
expect everyone to be as enlightened about
the intricacies of conflict resolution as you.
Listen to Everyone Involved and Hear
Their Views
• One of the things that cause conflicts is when
one party explicitly tells the other party that
they are wrong and the accused party gets
defensive.
• If you feel like this is the situation in your
organization then you need to nip it in the
bud.
• Get to hear everyone’s side of the story
without judging, and then resolve the issue
objectively, with a good understanding of
where everyone is coming from.
 Solve the Issue From its Roots
• Sometimes the conflict you see on the surface
isn’t really what’s wrong.
• Sometimes there is a deeper issue simmering
beneath the surface, either on the ground or
on the management level.
• Try to find out what is really going on in a
situation and take steps to solve that problem.
 Accept People for Everything They Are
(and Are Not)
• People are different, and so they will retain,
interpret, and process information in very
different ways.
• Similarly, they will typically use very different
decision-making processes to arrive at their
decisions.
• Knowing how your team members work is very
important to knowing how to assign duties to
them in such a way that their strengths are
useful.
• You will also be more enlightened and less likely
to discount their habits or work styles.
Don’t Forget About Regular Feedback
• Conflict typically happens when an issue isn’t
addressed while it is still small. It festers like a
wound and grows too big and complicated to be
solved quickly.
• To avoid this from happening, you can hold
regular meetings where the whole team gives
feedback about what is working and what isn’t
and brainstorms on what to do going forward.
• That way, you deal with issues while they are still
minor.
Collaborate With the Team to Create
Conflict Resolution Protocols
• People tend to cooperate with rules when
they had a hand in creating the rules.
• You can ask your team to get together and
come up with some conflict resolution
protocols that they are buying into.
• Whatever they come up with, it is likely to
work in the long term because everyone had a
hand in creating it.
Collaborate With the Team to Create
Guidelines for Communication
• Not all kinds of communication are helpful or
productive in an organization.
• It could be that much of the conflict in your
organization is caused by people communicating
in the wrong way.
• You can, therefore, invite your team to come up
with some guidelines for the kinds of
communication that are allowed in the
workplace.
• They should be guidelines that everyone buys
into, just like the conflict resolution protocols.
Collaborate With the Team to Create
Guidelines for Communication
• You should also be part of this exercise
because you might be communicating with
your team in the wrong way.
• Either they find your tone overbearing and
dismissive or they find that it discourages
them from openly communicating themselves.
• This may be a cause for much of the conflict
in your organization and should, therefore, be
dealt with.
Enforce the Measures Adopted by the
Team
• No one likes to be the disciplinarian that has
to reprimand people or resolve conflict.
• However, you and your team got together and
developed some guidelines for how you will
communicate with each other and some
protocols to resolve conflicts with.
• These may all be good on paper, but they will
never mean anything if they are not
implemented.
Enforce the Measures Adopted by the
Team
• It is, therefore, your duty to ensure the
strategies your team came up with are
implemented and to monitor them to make
sure they are being followed.
• If you figure some employees are simply being
stubborn, even after there are such clear
protocols for dealing with things, then you
may need to take disciplinary measures
against them to show that you are serious
about adopting these protocols.
Styles & Stages in Conflict
Development
 Ensure That You Have the Right
People
• One of the most effective ways of managing
conflict in an organization is to make sure you
have the right person to begin with.
• Sometimes it’s not about the conflict. Sometimes
the issue isn’t the issue; the person is the issue.
• You may have tried everything you know to deal
with conflict and even got the team to come
together and contribute ideas to deal with
conflict, but find that one or more employees are
always at the center of major conflicts.
• They are either constantly aggrieved or
constantly the aggressor.
 Ensure That You Have the Right
People
• In such situations, you should evaluate
whether the skills of that particular employee
would be better suited in a different team or
department altogether.
• Perhaps you should consider giving them a
different position within the company.
 Ensure That You Have the Right
People
• If you find that they don’t fit anywhere, even
when you consider putting them in a different
position or team, then you should think about
whether that person is the right match for
your organization.
• Losing an employee is an expensive affair for
a business and should be the last option.
• However, sometimes, the benefits of letting
an employee go can far outweigh the costs.
 How to Handle Conflict in the
Workplace
1. Talk with the other person. ...
2. Focus on behavior and events, not on
personalities.
3. Listen carefully. Not only to the words but also
the body language.
4. Identify points of agreement and disagreement.
5. Prioritize the areas of conflict.
6. Develop a plan to work on each conflict.
7. Follow through on your plan.
8. Build on your success.
 Prep Check
1. What is “Planned Change”? Briefly elaborate. How is it different from
unplanned change?
2. How is change managed? Why does it need to be managed? What
happens when you do not or cannot manage change?
3. How does change in one sub-system in the organization affect the other
subsystems of the organization? How does the organization deal with
such changes?
4. Elaborate on the two models of change as propounded by Kurt Lewin.
5. Why is there resistance to change? Why does resistance vary with the
degree of change? How can an organization overcome resistance to
change?
6. Describe John Kotter’s 8 Step model of management of change.
7. What do we mean by Organizational Development? What are the
objectives of organizational development?
8. Describe the evolution of the concept of Organizational Development.
9. In what ways do organizational development interventions differ from
other change initiatives (e.g. Technical Change? Project Management?).
Why is this so?
10. Elaborate on the steps in Appreciative Enquiry.
 Prep Check
1. What do you mean by Sensitivity Training?
2. What are the main steps in Action Research?
3. How can the above change initiatives enhance the
effectiveness of organizations?
4. Discuss the Action Research Model of planned change.
5. What is change? Briefly discuss the sources and reasons
for resistance to change.
6. What is an OD intervention? Describe the factors which
are required to be considered while designing an OD
intervention.
7. What are the tools and techniques used to diagnose and
analyze the status of an organization for implementing
OD?
8. Provide an overview of the role of change agents and
identify the skills required for an effective change agent.
 Prep Check
1. How can I best accomplish Organization-wide
Change?
2. How can we assist individuals, groups, and
organizations in successfully dealing with change?
3. Globalization has brought in its wake a number of
opportunities and threats for businesses and countries
across the world.  How do companies and nations
respond to this type of change? How did India
respond to globalization?
4. Discuss about 'Boundaries' in an organization. How
does it impact on an Organization?
5. Discuss about the different types of "Orientation to
Change'?
 Prep Check
• Write short notes on :
a) Appreciative enquiry
b)Sensitivity Training
c) Action Research
d)Survey Feedback
e) Team Building
f) Force Field Analysis
g) Change Management Models
h)Internal and External Change Agents
i) Learning Organization