ORGANISATION CHANGE AND
DEVELOPMENT
Organisational Change
• The process by which organizations redesign
their structures and cultures to move from
their present state to some desired future
state to increase their effectiveness.
• Organisation culture- The set of shared values
and norms that controls organisational
members’ interactions with each other and
with suppliers, customers, and other people
outside the organisation.
• Organizational design- The process by which
managers select and manage aspects of
structure and culture so that an organisation
can control the activities necessary to achieve
its goals.
Why is change important
• Dealing with contingencies
• Gaining competitive advantage
• Managing diversity
• Promoting efficiency, speed and innovation.
Forces for Change
• Nature of the Workforce
(Greater diversity)
TechnologyCHANGE AND DEVELOPMENTORGANISATION
•ORGANISATION
(Faster,AND
CHANGE cheaper, more mobile)
DEVELOPMENTORGANISATION CHANGE AND
• Economic ShocksDEVELOPMENT
• Competition
ORGANISATION CHANGE AND
(Global marketplace)
DEVELOPMENT
• Social Trends
• World Politics
Planned 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
Resistance to 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
SOURCES OF RESISTANCE TO CHANGE
Tactics for Overcoming Resistance to Change
• Education and Communication
– Show those effected 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
Lewin’s Three-Step Change Model
• Unfreezing
– Change efforts to overcome the pressures of both
individual resistance and group conformity
• Refreezing
– Stabilizing a change intervention by balancing
driving and restraining forces
Unfreeze Move Refreeze
Lewin: Unfreezing the Status Quo
• Driving Forces
– Forces that direct behavior away from the status quo
• Restraining Forces
– Forces that hinder movement from the existing
equilibrium
Kotter’s Eight-Step Plan
• Builds
l from Lewin’s Model
• To implement change:
1. Establish a sense of urgency
2. Form a coalition
Unfreezing
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term “wins” Movement
7. Consolidate, reassess, and adjust
8. Reinforce the changes Refreezing
Action Research
– 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
Organizational Development
• 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
– Confrontation
– Participation
Six OD Techniques
1. Sensitivity Training
– Training groups (T-groups) that seek to change behavior through
unstructured group interaction
– Provides increased awareness of others and self
– 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 OD Techniques (Continued)
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
• Discovery: Recalling the strengths of the organization
• Dreaming: Speculation on the future of the organization
• Design: Finding a common vision
• Destiny: Deciding how to fulfill the dream
Creating a Culture for Change: Innovation
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
• Slack resources
• Interunit communication
– Idea Champions: Individuals who actively
promote the innovation
Creating a Culture for Change: Learning
2. Learning Organization
– An organization that has developed the
continuous capacity to adapt and change
– Characteristics
• Holds a shared vision
• Discards old ways of thinking
• Views organization as system of relationships
• Communicates openly
• Works together to achieve shared vision
