Module 1- Organisational change and development

1. Concept, 2. Definition, 3. Importance of change in organisations, 4. Types and forms of

organisational change, 5. Forces of change, 6. Resistance to change, 7. Overcoming resistance to
change

Examples:

1. Cars in India from the 1990s, Maruti 800 vs Hindustan Ambassador [If you don’t change
and develop, you perish]
2. Change is necessary not only to compete, even to survive in the business. The original Amazon
website in 1995 vs Amazon website in 2021.
3. The horse is here to stay but the automobile is only a novelty – a fad.” — President of the
Michigan Savings Bank advising Henry Ford’s lawyer, Horace Rackham, not to invest in the
Ford Motor Company, 1903

Introduction:

“No man can step into the same river twice, for the second time the man and the river have changed”
– Heraclitus, Ancient Greek philosopher

• "The only constant in life is change"

1.Organizational change – concept:

• The situation where in an organization is able to change itself for the long term competitive
advantage is referred to as organizational change.

• Organization has to build a culture for positive response to this change.

• Organizational change is not a single phenomenon; it is a series as one change may require
various organizational variables to be changed.

• The organizational change is all inclusive i.e it covers all the areas o f an organization.

2. Definition:

• In the context of business, Cook, Philip and Coffee defines change as the “coping process of
moving from the present state to the desired state that individuals , groups and organizations
undertake in response to dynamic internal and external factors”

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 • Organizational change is the process by which organizations move from their present state
to some desired future state to increase their effectiveness.

• Examples of organizational change:

o Implementation of a new technology.

o Mergers & acquisitions.
o Change in leadership.
o Change in organizational culture.

3. Importance of change in organisations:

• Change in general indicates any act of making something different.

• For the present-day organizations, adaptability is essential for survival.
• In fact, adaptability has become the mantra for organizational survival, growth and
development today.
• Organizations should change in response to external influences, just as an amoeba
changes its shape and direction on the basis of external influences.
• Companies which have been around for years are those that are sensitive to the external
environment and know how to adapt and evolve to fit the ever-changing conditions.
• This question become more important as the life span of the products becomes shorter and
technological advances become faster.
• Business in adapted organizations cannot be conducted in the old-fashioned way where
there is rigid functional division and top-down decision making.
• In just a few months, the technology that an organization uses on an everyday basis may be
outdated and replaced.
• Ex: Zoom to MS Team/ WhatsApp to Telegram
• This means an organization needs to be responsive to advances in the technological
environment; its employees' work skills must evolve as technology evolves.
• Organizations that refuse to adapt are likely to be the ones that won't be around in a few
years.
• If an organization wants to survive and prosper, its managers must continuously innovate
and adapt to new situations.
• Every organization goes through periods of transformation that can cause stress and
uncertainty.
• To be successful, organizations must embrace many types of change.

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 • Businesses must develop:
• improved production technologies,
• create new products desired in the marketplace, implement new administrative systems,
• and upgrade employees' skills.
• Organizations that adapt successfully are both profitable and admired.

Reasons for adopting change:

Organizations need change for the following reasons:

• To respond to the rapidly changing environment

• To improve the overall performance of the company
• To rapidly respond to the customers’ demands
• To improve the effectiveness and efficiency
• To increase the employee performance
• To create the best practices inside the organization and setting standards for the industry
• To improve profitability and return on overall investment (ROI)

4. Types and forms of organizational changes:

A. Based on the Nature and Impact of change

B. Based on the Level of change
C. Based on the Planned and Unplanned efforts

A. Based on the Nature and Impact of change:

1. Evolution: The incremental changes slowly and steadily are evolutionary changes.

2. Revolution: The nature of change is big bang and aims for transformation. These changes are total
turn around changes.

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3. Adaptation: The nature of change is incremental and aims for realignment. The change is response
to environmental demand and is for sustainability.

4. Reconstruction: The nature of change is big bang and aims for total change of an organization.

Differences between evolutionary (first order change) and revolutionary (second order change):

Evolutionary change Revolutionary change

1 New state of things has same basic New state of things have completely different nature
nature as the old state from the old state
2 Reversible Irreversible
3 Minor adjustments Major reinvention of the organisation/radical change
process, with new vision and mission
4 Linear Multilevel
5 Uni-dimensional Multidimensional
6 Continuous Discontinuous
7 Ex. Toyota and other Japanese Ex. Merger or acquisitions, new leadership,
companies-TQM, Six Sigma change in business models

B. Based on the Level of change:

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Structural change: [ex: job design, communication pattern, hierarchy]

• The change in structure of an organization is structural change.

• The structural change includes change in job design, communication pattern or hierarchy o f
an organization. Job design includes change in the job description or job analysis or the way
the job is performed in an enhanced and better manner for increase in performance.

• Communication pattern or hierarchy is also related to structural change and the invent of new
technology has changed the traditional communication pattern. The
more flat structure or hierarchy is effective nowadays. The organization also focuses on self-
managing teams or virtual teams for enhanced performance.

Process oriented change:

Process oriented change: The change in process of an organization in demand with change in
environment is called as process oriented change. The change in process can be categorized in two
ways:

A. Techno processual change: This includes the change in technology which leads to change in
process of an organization. New technology can lead to less duration, faster production or less
manual efforts.
B. Human processual change: This includes the change in interpersonal relations or
communication pattern of an organization. The virtual teams, high use of technology for
communication, self-managing teams and interactive systems can be some of the examples of
human processual changes.

Employee related change:

Employee related change: The environment may also demand change in employee behaviour for
enhancing the performance of an organization and effective adaption of change. The employee related
change m ay include:

A) Individual change: which includes change in attitude, behaviour and perception of an

individual.
B) Team related change: The current global scenario demands the change in the functioning of
teams. The teams today are more self-managing, high performing and also the foundation of
successful organization. The change in functioning o f team can lead to enhanced performance.

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 C) Inter group change: The organizations are formed of various teams and these teams are
interdependent on each other. The relation between these teams can also change as per the
demand of an organizational change. The confrontation or negotiation between these teams can
help in improved and better performance.
C. Based on the Planned and Unplanned effort:

Goals of planned change:

Planned change: When organisations initiate change activities deliberately and consciously in order
to accomplish certain organisational goals, it is known as planned change or managed change. Planned
change can be either evolutionary or revolutionary

1. To enhance the ability of organisations to adapt themselves to the changes in the external
environment:

Ex. If competitors introduce innovative products, organisations may respond by initiating a

competing product. This initiation of a competing product may be supported by other activities like
encouraging employees to think creatively and introducing team culture and self-managed teams to
face tough competition. All these are deliberate activities undertaken by organisations to adapt to new
changes in the environment

2. To change the behaviour of employees:

Sometimes, organisations may have to take up change activities aimed at changing attitudes or
behaviour.

Ex. When organisations find that they have lost a business opportunity because of slow decision-
making resulting from their centralised structure, they may decentralise the structure and reduce

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red-tapism at various managerial levels. Such a step may also train its lower-level managers to
improve their decision-making skills and reduce their dependency on supervisors.

STEPS IN PLANNED/ MANAGED CHANGE:

❖ Need for change can be identified either through internal factors or through external forces that
may be in place. Once this need is identified, the following steps can be taken to implement
such change:

1. Develop new goals and objectives

2. Select an agent for change
3. Diagnose the problem
4. Select methodology
5. Develop a plan
6. Strategy for implementation of the plan
7. Implementation of the plan
8. Receive and evaluate feedback

Unplanned Change:

• Not all the forces for change are the results of strategic planning.

➢ Changing Employee Demographics (Internal Factor)

• It is easy to see, even within our own lifetimes, how the composition of the workforce has
changed. The percentage of women in the workforce is greater than ever before. Many of the
old retired employees from government and public sector are joining the private sector, thereby
changing the employee demographics. With the opening up of the economy and globalization,
the workforce is also continually becoming more diverse.

➢ Performance Gaps: (Internal Factor)

• If you have ever heard the phrase, “It isn’t broken, don’t fix it,” you already have a good idea
of one of the potent sources of unplanned internal changes in organizations – performance gaps.
A product line that isn’t moving, a vanishing profit margin, and a level of sales that is not up
to corporate expectations – these are examples of gaps between real and expected levels of
organizational performance. Indeed, several studies have shown that a performance gap is one
of the key factors providing an impetus for organizational innovations.

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➢ Government Regulation (External Factor):

• One of the most commonly witnessed unplanned organizational changes results from
government regulation. With the opening up of the economy and various laws passed by the
government about de-licensing, full or partial convertibility of the currency, etc., the ways in
which the organizations need to operate change swiftly. With more foreign players in the
competitive market, Indian industries have to find ways and mechanisms to safely and
profitably run their business.

➢ Economic Competition in the Global Arena (External Factor):

• A company must often fight to maintain their share of market, advertise more effectively, and
produce products more inexpensively. This kind of economic competition not only forces
organizations to change, but also demands that they change effectively if they are to survive.
On some occasions, competition can become so fierce that the parties involved would actually
be more effective if they buried the hatchet and joined forces. It was this ‘If you can’t beat
them, join them’ reasoning that was responsible for the announced alliance dubbed “the deal
of the decade” by one financial analyst.

5.Forces of change

There are many factors that propel change in organizations. These factors may be broadly classified as

A. People / employees
B. Technology
C. Information processing and communication
D. Competition
E. Social, political and economic changes
F. Explained and unexplained social phenomena
G. PESTEL

A. People / employees:

• Increase in globalization has widened the diversity of workforce

• Organizations have to accommodate people coming from various cultural backgrounds
• Employees differ in their attitude to work, expectations of reward and in interpersonal relations
at work

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 • Organizations are compelled to revise their HR policies to attract and retain talents as highly
enlightened, highly motivated and committed employees
• Managers have to overcome their prejudices to accommodate multicultural workforce
(stereotyping)
• Expectations of the customers from organizations have also increased
• The organizational structure, work relationships and job definitions are undergoing drastic
changes to keep pace with increasing and changing demands of the customers.
• Organizations are heavily investing in training their employees to upgrade their skills so as to
help them adapt to these changes
• Thus, training has become a major HR activity which goes on – day in and day out

B. Technology:

• Advancements in technology are reshaping the jobs and industries.

• Many manual operations are computerized.
• Emergence of technology that facilitates the transmission of voice, data and video over a
single transport network has reduced the gap between industries.
• Thus, industries that were considered to be distinct previously have converged now. Ex.
telecommunication and entertainment industries have converged to form multimedia
industry.
• Organizations that fail to keep up with the pace of developments in technology will lose
their customers to their competitors
• Organizations have to establish and maintain strong networks through which information
from various sources can be received quickly, processed and distributed to all the units of
the organization.
• This calls for a major structural and behavioral change in employees

C. Information processing and communication:

• Every new generation computers are designed to bring an additional increase in processing
power.
• Data transmission is done by satellite systems.
• Virtual organizations have become a reality bringing in new challenges for organizations
(How do you manage people whom you do not see?)

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 • The internet and developments in Information and Communication Technologies
(ICTs) have made it possible to build transparent systems that enable several firms to
come together and create value for themselves and their stakeholders.
• With this ICT revolution and internet, it is not just organizational boundaries that are
becoming fuzzy, national boundaries too are becoming less sacrosanct (most respected).

D. Competition:

• Competition is not new to organizations, but its nature and intensity have changed.
• A fall in costs of transport and communication, coupled with an increase of orientation to
exports have made markets global.
• Increased emphasis on global markets widens the scope of the company, but brings in new
competition
• Politico-economic developments and trade agreements like NAFTA (North American Free
Trade Agreement) and WTO have also changed the economic relationship between the
countries of the world.
• Organizations have to continuously look for new ways to produce newer, cheaper and
higher quality products than their competitors to succeed in international markets.
Organizations that are not willing to initiate or adopt changes will find it difficult to survive
in the long run.

E. Social, political and economic:

• Changes in economic, social and political conditions could also stimulate change in
organizations.

F. explained social phenomena:

• People become enlightened through the spread of mass education,

• changing taste of the customers, they demand high quality products at reasonable cost,
prompt delivery, customized products, effective after sales services,
• increasing women work force,
• changes in the social institutions like family, marriage etc.,
• migration to other places,
• divorces,
• increasing single parenthood.

G. PESTEL:

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6. Resistance to change:

Resistance to change goes hand-in-hand with change activities. The sources of resistance can be
classified into:

1. individual resistance
2. organizational resistance

1. individual resistance:
A. Forces of habit
B. Need for security
C. Economic factors
D. Fear of the unknown
E. Selective information processing

A. Forces of habit:

• Employees get used to certain habits over a period of time

• When change is implemented, they have to forgo or change their old habits
• Since changing one’s habits is a painful task, employees resist
• Ex. Transfer from busy life in the city to boring life in a rural branch

B. Need for security:

• Employees are generally concerned about their job security and resist any change that
threatens their safety and security (Maslow’s need hierarchy- safely needs, second level
needs) in the organisation.

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 • Ex: when a company introduces a new sophisticated machinery or equipment that are likely
to replace manual labour, its employees will feel insecure about their jobs and resist the
company’s automation efforts.

C. Economic factors:

• When the employees feel that the changes brought in may reduce their salary/income and
other earnings
• Ex. If an organisation undertakes restructuring and job redesigning, workers who are paid
piece rate wages, may resist it out of fear that it will decrease their productivity and affect
their remuneration

D. Fear of the unknown:

• People associate change with uncertainty

• They fear the unknown and the insecurity resulting form it
• They are anxious about their ability to adapt to the requirements of a new system
• Ex: when computers replaced manual systems many employees developed a negative
attitude towards computers, even taking out strikes

E. Selective information processing:

• Employees do not like to receive any information that contradicts their perception.
Therefore, they process information selectively to make it compatible with their perception.
They hear only that information which they like to hear and ignore the rest that contradicts
their perceptual world.
• Ex: employees may listen to their colleagues who tell them about the negative
consequences of automation but ignore what the managers talk about the benefits of
computerisation. This means employees perceive that automation is a threat to their jobs
and therefore accept only the information that support their perception.

2. Organisational structure:

1. Structural inertia
2. Limited focus on change (change in one subsystem may affect others, limited change
does not yield desired results)
3. Group inertia

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 4. Threat to expertise (GM does not want to delegate the decision making)
5. Threat to established power relationships (de-layering, participative decision
making takes away power and authority which they enjoyed in the bureaucratic system
by managers and supervisors)
6. Threat to established resource allocations

1. Structural inertia:

• Generally, organisations attempt to maintain a steady and balanced state that is conducive
to both employees and managers. They have inbuilt mechanisms in place, which is there
for long, to achieve a state of equilibrium. As a result, everyone in the organisation tends
to be in a state of complacency.
• They are satisfied with whatever achievements they have. Everything is in place, why
change? This inertia, lethargy which becomes inbuilt in the organisation’s structure is the
biggest threat for organisations to change and grow. Ex: government departments and
public sectors which works on bureaucratic patterns

2. Limited focus on change:

• An organisation consists of many subsystems that are inter-related and inter-dependent.

Due to its interdependency of subsystems, change in one subsystem will affect other sub
systems as well. Therefore, one cannot introduce change in a subsystem without
considering its impact on the rest of the system.
• Ex: dependence of departments on finance department for fund, any change brought in
finance department will have an impact on all other departments. Material procurement and
production, marketing and sales etc.

3. Group inertia:

• Group norms may prevent an employee from adopting change and work in the changed
environment.
• Ex: an employee may favour a proposal of change from the management, he may not accept
it until the union of which he is a member approves it.
• Trade unions play a major role in change management

4. Threat to expertise:

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 • The expertise of specialised groups may be threatened by changes in organisational
patterns.
• EX: GM may prefer to make crucial decisions himself rather than delegating them to his
subordinates due to the fear that decentralising the process of decision making would
threaten his expertise.

5. Threat to established power relationships:

• When an organisation initiates a redistribution of decision-making authority, by removing

the additional layers in the hierarchy and implementing participative decision making, it is
usually resisted by middle level managers and supervisors.
• This is because, such a change takes away the power and authority which they enjoyed in
the bureaucratic system

6. Threat to established resource allocations:

• An employee or a group of employees, who controls a significant amount of resources in

the organisation would generally consider any change as a threat.
• It is because of the fear that change will bring an adverse impact on the pattern of resource
allocation and will put him at a disadvantage

7. Overcoming Resistance to Change:

1. Education and communication:

• The management must attempt to educate the employees about the benefits of change.

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 • When the employees understands that change is not only inevitable, but also beneficial,
they will come to terms with it and can accept it more easily.
• Communication channels may also be improved to update employees about the latest
happenings in the organisation.

2. Negotiation:

• The management negotiates with the employees or their unions in the organisation by
providing additional concessions like better work environment in return for their
cooperation in change program

3.Manipulation and Co-optation:

• Management manipulates employee’s acceptance to change by distorting facts and

manipulating information. They do not give a complete picture of the change programs.
• The leaders of employee groups/unions are also given important roles in the change
implementation program to prevent them from resisting change. This is called co-optation

4.Employee involvement:

• Employees are also invited to participate in the planning and implementation of change
programs.
• Since employees themselves are involved in the change program, they will be committed
to the decisions taken and are unlikely to resist change.
• Participation instils a sense of confidence in employees. Thus, their involvement is likely
to make them more open to change.

5.Facilitation and Support:

• Organisations can take help from professional change agents and psychologists to train
employees in new skills as well as counsel them to overcome their fear and anxiety as a
result of change program.
• Since resistance is generally a result of anxiety, reduction in anxiety will enable employees
to accept change in a better way.

6.Coercion:

• Coercive measures such as threats of demotion, reduction in benefits or transfers, are

used as the last resort to get employees’ acceptance to change.

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 • Nevertheless, coercion may not always result in whole-hearted cooperation from
employees and their unions.
• Sama, Dana, Danda and Beda
• A great example of where these four techniques were used at the same time is in the
Mahabharata. When Krishna goes to the Kauravas to broker peace with the Pandavas and
to avoid war, Krishna uses all four techniques to convince Duryodhana, the eldest Kaurava

Conclusion:

• Clearly, to become more adaptable to ever-changing market conditions, companies must

rethink on how they set goals, organize work and manage employees.

Module 2 - Evolutionary and Revolutionary change in organization

Developments in Evolutionary Change: 1. Socio technical Systems Theory, 2. Total Quality

Management, 3. Flexible workers and Flexible work team.

1. Socio technical Systems Theory

• This theory was developed by Eric Trist, Fred Emery and others at the Tavistock Institute in
the 1950’s.
• According to this theory organizations are comprised of two interdependent systems, a social
system and a technical system any change in one system can affect the other system.
• To achieve high productivity and employee satisfaction, an organization must optimize both
systems. These optimization efforts have led foundation to efforts of work redesign and
organization restructuring.
• Sociotechnical systems (STS) is an approach to complex organizational work design that
recognizes the interaction between people, society and technology in workplaces.
• Sociotechnical systems pertain to theory regarding the social aspects of people/employees
and society and technical aspects of organizational structure and processes.

▪ An approach to understanding the relationship between technology, individuals, organizations

and society in work place design.

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 ▪ This systems-based approach includes (but is not limited to) the hardware, software
(technology), social, psychological, policy and legal systems that comprise the overall
organizational system.
▪ The term sociotechnical systems was coined by Eric Trist, Ken Bamforth and Fred Emery, in
the World War II era, based on their work with workers in English coal mines at the Tavistock
Institute in London.

▪ Sociotechnical theory is about joint optimization, with a shared emphasis on achievement

of both excellence in technical performance and quality in people's work lives.
▪ Sociotechnical theory, proposes a number of different ways of achieving joint optimization.
▪ They are usually based on designing different kinds of organization, ones in which the
relationships between social and technical elements lead to the emergence of
productivity and wellbeing.

STS - Application Stages:

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1. Sanctioning the design effort. At this step, workers receive the necessary sanction and support
to diagnose their work system and to create an appropriate work design. In many unionized situations,
top management and union officials jointly agree to suspend temporarily the existing work rules and
job classifications so that employees have the freedom to explore new ways of working. .

2. Diagnosing the work system. This step includes analyzing the work system to discover how it is
operating. Knowledge of existing operations (or of intended operations, in the case of a new work
system) is the basis for creating an appropriate work design. STS practitioners have devised diagnostic
models applicable to work systems that make products or deliver services. The models analyze a
system’s technical and social parts and assess how well the two fit each other.

3. Generating appropriate designs. Based on the diagnosis, the work system is redesigned to fit the
situation. Although this typically results in self-managed work teams, it is important to emphasize that
the diagnosis may reveal that tasks are not very interdependent and that an individual-job work design,
such as an enriched job, might be more appropriate. Two important STS principles guide the design
process.

The first principle, compatibility, suggests that the process of designing work should fit the values
and objectives underlying the approach. For example, the major goals of STS design are joint
optimization and boundary management. A work-design process compatible with those objectives
would be highly participative, involving those having a stake in the work design, such as employees,
managers, engineers, and staff experts.

The second design principle is called minimal critical specification. It suggests that STS designers
should specify only those critical features needed to implement the work design. All other features of
the design should be left free to vary with the circumstances. In most cases, minimal critical
specification identifies what is to be done, not how it will be accomplished. This allows employees
considerable freedom to choose work methods, task allocations, and job assignments to match
changing conditions.

4. Specifying support systems. As suggested above, organizational support systems may

have to be changed to support new work designs. When self-managed teams are designed, for example,
the basis for pay and measurement systems may need to change from individual to team performance
to facilitate necessary task interaction among workers.

5. Implementing and evaluating the work designs. This stage involves making necessary changes
to implement the work design and evaluating the results. For self-managing teams, implementation

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generally requires a great amount of training so that workers gain the necessary technical and social
skills to perform multiple tasks and to control task behaviours. It also may entail developing the team
through various team-building and process-consultation activities.

6. Continual change and improvement. This last step points out that STS designing never is complete
but rather continues as new things are learned and new conditions are encountered. Thus, the ability
to design and redesign work continually needs to be built into existing work designs. Members must
have the skills and knowledge to assess their work unit continually and to make necessary changes and
improvements.

2. Total Quality Management:

▪ The primary objective of TQM is to incorporate quality and integrity into all
functions at all levels of the organization
▪ Total Quality Management intends to implement a process that is long term to bring about
continuous improvement initiatives throughout the organization.

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 1. Gain Long-Term Senior Management Commitment.

This stage involves helping senior executives understand the importance of long-term commitment to
TQM. Their role in TQM implementation includes giving direction and support throughout the change
process. They need to clarify and communicate throughout the organization a totally new orientation
to producing and delivering products and services. Often systems are frozen in place by old policies
and norms that can interfere with the new approach. Senior managers have to confront those practices
and create new ones that support TQM and the organization’s strategic orientation.

2. Train Members in Quality Methods.

TQM implementation requires extensive training in the principles and tools of quality
improvement. Depending on the organization’s size and complexity, such training can be conducted
in a few weeks to more than two years. Members typically learn problem-solving skills and simple
statistical process control (SPC) techniques, usually referred to as the seven tools of quality.

3. Start Quality Improvement Projects.

In this phase of TQM implementation, individuals and work groups apply the quality methods to
identify the few projects that hold promise for the largest improvements in organizational processes.
They identify output variations, intervene to minimize deviations from quality standards, monitor
improvements, and repeat this quality improvement cycle indefinitely.

4. Measure Progress.

This stage of TQM implementation involves measuring organizational processes against quality
standards. For the longer term, such analytical efforts concentrate on identifying world-class
performance, regardless of industry, and creating stretch targets, also known as benchmarks.
Benchmarks represent the best in organizational achievements and practices for different processes
and generally are accepted as “world class.”

5. Rewarding Accomplishment.

In this final stage of TQM implementation, the organization links rewards to improvements in quality.
TQM does not monitor and reward outcomes that are normally tracked by traditional reward systems,
such as the number of units produced. Such measures do not necessarily reflect product quality and
can be difficult to replace because they are ingrained in the organization’s traditional way of doing
business. Rather, TQM rewards members for “process-oriented” improvements, such as increased on-
time delivery, gains in customers’ perceived satisfaction with product performance, and reductions in

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cycle time—the time it takes a product or service to be conceived, developed, produced, and sold.
Rewards usually are designed initially to promote finding solutions to the organization’s key problems.

3. Flexible workers and Flexible work team:

• A flexible workforce is a workforce that can perform a variety of different functions. In

other words, it is a group of multi-skilled workers.
• The term 'flexible workforce' may also refer to a workforce that grows and shrinks in size.
Specifically, it grows and shrinks in size according to the employer's needs.
• It is an example of employment enrichment.
• It gives workers more autonomy but, in a manner, different from job enrichment.

Why Flexible workers and Flexible work team is Important?

• The 2020 COVID-19 pandemic has placed flexible work arrangements, especially
telework (telecommuting/work from home/site/ field/ any remote work arrangement),
in the spotlight.
• With many states issuing stay-at-home orders and allowing only essential businesses to
keep their physical locations open, unprepared employers were forced to implement
flexible work options on the fly.
• Eventually, social distancing orders will be lifted, and businesses will reopen; however,
employee requests for flexible hours and remote-work arrangements may be part of the
new normal.
• Now that many employers have experienced how successful telecommuting can be for
their organization or how work hours that differ from the normal 9-to-5 can be adopted
without injury to productivity, offering flexible work arrangements may become even
more commonplace.
• Even in the absence of a pandemic, flexible work arrangements can improve
recruitment and retention efforts, augment(enhance) organizational diversity efforts,
encourage ethical behavior and help the organization's efforts to be socially responsible.
• Employers can experience cost savings, improved attendance and productivity, and an
increase in employee engagement.

Benefits of flexible work:

Supporting Working Parents

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 • Whether allowing for flexible work hours for employees with children at home during the
COVID-19 pandemic, or offering flexible work arrangements on an on-going basis,
supporting working parents is an employee engagement and satisfaction necessity.
• In addition to the more-traditional work, flex options employers may want to consider
creative options, such as 1. staggering (surprising) more customized employee shifts, 2.
rotating days, 3. telework, and 4. phasing in ‘return-to-work’ starting with a reduced
schedule and 5. transitioning back to full-time.

Weighing the Opportunities and Challenges:

• Many workers now consider work/life balance and flexibility to be the most important
factors in considering job offers. In fact, 80 percent of employees said, they would be more
loyal to their employers if they had flexible work options, according to a 2019 survey by
Flex Jobs.
• However, offering flexible work arrangements can involve a paradigm shift for
organizations, especially smaller ones that may not have the critical mass of technology,
budget, management and competitive flexibility necessary to make extensive use of flexible
work arrangements.

OPPORTUNITIES:

• Flexible work arrangements offer numerous benefits to both employers and

employees. Such benefits include:
• Assisting in recruiting efforts.
• Enhancing worker morale.
• Managing employee attendance and reducing absenteeism.
• Improving retention of good workers.
• Boosting productivity.
• Creating a better work/life balance for workers.
• Minimizing harmful impact on global ecology. Certain flexible work arrangements can
contribute to sustainability efforts by reducing carbon emissions and workplace
"footprints" in terms of creation of new office buildings.
• Allowing for business continuity during emergency circumstances such as a weather
disaster or pandemic.

A case study of Unilever:

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 • A companywide Unilever policy permits more than 100,000 employees—everyone except
factory production workers—to work anytime, anywhere, as long as they meet business needs.
Leadership identified the following benefits when making the business case for the policy:
• Travel. Conferencing technology like Skype would reduce travel expenses.
• Technology. Upgrading technology would help the company stay competitive and build
Unilever's brand as a best place to work. Costs of technology up gradation would be
offset/balanced by other savings.
• Real estate. Cubicles and offices would be converted to common facilities, thereby reducing
space requirements by 30 percent.
• Health. Onsite fitness facilities (gym) would increase employee satisfaction, help reduce
illness and cut insurance costs. It would reduce workplace stress claims.
• Work/life balance. Empowering workers would enhance work/life balance. Satisfaction
ratings would rise, and recruitment would become easier.
• Sustainability. Reducing travel, office energy costs and paperwork would decrease the
environmental footprint.
• Retention and engagement. Flexibility would enhance the ‘employer value proposition,’
improving retention and supporting diversity.

CHALLENGES:

• Managers tasked with implementing strategic goals related to flexible work

arrangements need to keep many things in mind:
• Keeping programs relevant to workers' real needs/wants.
• Focusing on the unique needs of specific groups of workers without creating a second class
of workers and without engaging in unlawful disparate (unequal) treatment or disparate
impact discrimination.
• Communicating broadly to achieve the benefits of flexible work arrangements.
• Exercising caution when eliminating a program that is not working or is no longer relevant
to enough workers. Any loss of a benefit can impair morale, even if only a few workers had
used it. Employers should consider phasing out unproductive programs over time.
• In addition, managing the change from a traditional work environment to one with more
flexible work arrangements can create or throw a spotlight on various managerial trouble
spots, such as:
o Upper management's resistance to change.
o Control issues, especially in terms of supervision of work.

[25]
 o Working as a team with far-flung members and highly variant schedules.
o Maintaining safety and security of personnel and data.

Scheduling Flexibility:

There are several ways of scheduling flexibility:

• Flextime.1
• Compressed workweek.2
• Shift work.3
• Part-time schedules.4
• Job-sharing.5
• Not all types are manageable or worthwhile for all sizes and types of organizations, so
every employer considering this arrangement should undertake an organizational
assessment to determine whether and what kind of flexible scheduling will meet its needs.
1. FLEXTIME:
• Flextime is a type of alternative schedule that gives a worker greater latitude in choosing
his or her particular hours of work, or freedom to change work schedules from one week to
the next depending on the employee's personal needs.
• Under a flextime arrangement, an employee might be required to work a standard number
of core hours within a specified period, allowing the employee greater flexibility in starting
and ending times.
2. COMPRESSED WORK WEEK:
• Compressed workweek is an alternative scheduling method that allows employees to work
a standard workweek of 40 hours over a period of fewer than five days in one week or 10
days in two weeks.
• For example, some employers implement a four-day workweek of 10-hour days.
Employers get the same number of working hours, but employees have a three-day
weekend every week. Another approach is the 9/80 schedule, in which employees work
80 hours in nine days and have one day off every other week.
• Among other demographics, employees whose family status involves child care or elder
care responsibilities may find a compressed workweek to be of particular value. Employees
save time and commuting expenses by reporting for duty on fewer days. Employers that
convert their entire operation to a four-day work week may save on the cost of utilities and
other overhead.

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3. SHIFT WORK:
• Shift work has traditionally been used in manufacturing environments to maximize
productivity from fixed resources and costs.
• More recently, shift work has become a feature of the 24/7 service economy and a
byproduct of globalization. For example, supermarkets and computer help desks are now
typically open 24 hours a day, seven days a week.
• Nowadays, a computer user calling for technical support during regular U.S. business hours
is likely to end up speaking with a technician working the "graveyard shift" in India(a work
shift that runs through the early morning hours, typically covering the period between
midnight and 8 a.m.) .
• Despite its extensive use in certain environments, shift work poses some practical
challenges for some employers.
4. PART-TIME JOBS:
• Part-time jobs are the most traditional of flexible scheduling options.
• This option is typically used when a job requires fewer than 40 hours of work per week.
Part-time work can be used to attract a workforce that includes students, parents of young
children, older workers and others who need or want to work but do not wish to work a
full-time schedule.
• Although more commonly associated with jobs in retail and food service, some employers
do have part-time professional employees. Part-time work can help organizations retain
professionals who otherwise would be lost.
5. JOB-SHARING:
• Job-sharing is the practice of having two different employees performing the tasks of one
full-time position.
• Each of the job-sharing partners works a part-time schedule, but together they are
accountable for the duties of one full-time position.
• Typically, they divide the responsibilities in a manner that meets both of their needs as well
as those of the employer.
• The practice allows for part-time schedules in positions that the employer would not
otherwise offer on a part-time basis. It requires a high degree of compatibility,
communication and cooperation between the job-sharing partners and with their
supervisor.
• Like part-time jobs, job-sharing arrangements may appeal particularly to students, parents
of young children and employees nearing retirement, helping them balance careers with

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 other needs. For employers, the practice may include retention of skilled employees,
increased employee loyalty and productivity, and a measure of flexibility that can occur
when two people fill one job slot.

Location Flexibility:

• Location flexibility refers to arrangements that make it possible for employees to work
remotely from the main worksite.
• There are several types of location flexibility. Telecommuting is the most common.
• Other practices include hoteling and so-called snowbird programs.
• Hoteling: Check In, Work, Check Out
• Another way to manage the flexible work environment is with hoteling. This means
employees can reserve a specific desk/workstation or any other type of space:
meeting/conference rooms, collaborative spaces, phone banks—whatever's available in the
office.
• Snowbird program: Snowbird program is a term used to describe a form of alternative
work arrangement whereby employees (typically retired individuals) move to warmer
climates in the winter months and return to work only during the Spring/summer months.

TELECOMMUTING:

• Telecommuting, also known as telework, involves the use of computers and

telecommunications technology to overcome the constraints of location or time on work
• In a global economy, physical location has become less important than efficiency of
operations. Telework may occur from home, a telework center, or on an airplane or bus.
• Telework is best suited for jobs that require independent work, little face-to-face
interaction, concentration, a measurable work product and output-based (instead of time-
based) monitoring. Nevertheless, telecommuting is not unknown in jobs—even HR
jobs—that do not fit this mold.
• Telework also may be offered as a reasonable accommodation under Disabilities Act.
• Telecommuting has become a widely accepted practice, and most organizations that do
permit it, develop metrics to track their return on investment.
• Telework often includes these three different types:
• Regular, recurring telework, such as an employee spending every workday or regularly
scheduled workdays working from a home office or other remote office.

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 • Brief, occasional telework, such as an employee writing a report or preparing a
spreadsheet from a home office after hours or on weekends, or just working from home to
avoid interruptions.
• Temporary or emergency work, such as working from home to ensure business continuity
during inclement (severe) weather, a natural disaster or an event such as a political
convention that causes significant traffic and parking disruptions.

Opportunities in telecommuting: Companies that give their workers the option of telecommuting
report its benefits in:

• greater productivity,
• lower costs,
• more options for finding and retaining qualified staff,
• and improved employee health

Challenges in telecommuting:

• Despite its utility in a variety of situations, telecommuting does present challenges to both
employers and employees.
• Among the possible negatives for employees are:
• Being out of the day-to-day flow of information.
• Being away from the hub of activity in terms of office politics, management and
intellectual ferment.
• A negative impact on career advancement and perception that employees away from the
office are not as available as those working in a traditional office setting.
• Distraction by spouse, children, pets and others in the workspace.
• A heightened feeling of being "owned" by the organization, in that the company now has
a virtual presence in the employee's home.
• An expectation to be available outside of "normal" business hours.

From the employer's standpoint, downsides or extra effort associated with telecommuting might
include:

• Establishing set expectations, trust and unique methods of evaluation to lead from a
distance.
• The need to adopt strategies and procedures attuned to management of telecommuting
workers.

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 • Increased technology costs and potential security vulnerability.
• Dealing with workers disgruntled because they are not permitted to telecommute.

Who benefits from flexible working?

Business Benefits

• Employees who avail of flexible working arrangements are provided with a greater sense
of control over their working day and are likelier to work harder and increase their
output, thus benefiting the business.

The disadvantages of requesting flexible working:

• Flexible working often means working from home. .

• Blurring the home / work balance. ...
• Procrastination. ...
• Communication difficulties. ...
• Flexible working requests can cause employee isolation. ...
• Reduced benefits. ...
• Possible lack of career progression. ...
• Being sidelined.

Module 3 - Developments of Revolutionary change

1. Re-engineering, 2. E-Engineering, 3. Restructuring, 4. Innovation.

Evolutionary v/s Revolutionary:

• Evolutionary or Incremental Change

Evolutionary change is incremental and takes place gradually, over time. Slow, gradual change often
takes place to ensure the survival of the organization. It’s incremental in that it happens step by step,
little by little. Organizations undergoing evolutionary change may have been prompted by outside
pressure, as in keeping up with technology or addressing the needs of stakeholders more effectively.
In other cases, evolutionary change may be spurred by competition.

• Revolutionary or Transformational Change

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By contrast, revolutionary or transformational change is profound. When we think of revolutionary
change, we envision complete overhaul, renovation, and reconstruction. Change is fundamental,
dramatic, and often irreversible. From an organizational perspective, revolutionary change reshapes
and realigns strategic goals and often leads to radical breakthroughs in beliefs or behaviors. When an
organization decides to engage in revolutionary change, radical transformations to products or services
often follow. In efforts to stay ahead of the curve and reach evolution, outstanding organizations often
pursue revolutionary change.

1. Re-engineering,

• Re-engineering is about rethinking and redesigning organisational processes in order to

achieve dramatic improvements in performance, including cost, quality, service and speed
(Hammer & Champy 1994).
• It is an intervention that focuses on dramatically redesigning core business processes.
• However, this can be impeded if those implementing BPR feel that they are constricted by
the existing framework within which the organisation is operating.
• This recent intervention radically redesigns the organization’s core work processes to
create tighter linkage and coordination among the different tasks.
• This workflow integration results in faster, more responsive task performance.
• Reengineering is often accomplished with new information technology that permits
employees to control and coordinate work processes more effectively. Reengineering often
fails if it ignores basic principles and processes of OD.

What is the concept of reengineering?

• Reengineering is most commonly defined as the redesign of business processes and the
associated systems and organizational structures to achieve a dramatic improvement in
business performance.

It is the examination and change of five components of the business:

1. strategy,
2. process,
3. technology,
4. organization, and
5. culture.

Business Process Reengineering Examples:

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 • BPR starts with a vision or idea.
• However, ideas only come from three sources - they can be copied from other companies
(benchmarking), bought (from an IT company or consultant), or they can be original ideas
(Thomas 1994).
• Benchmarking does not allow competitive advantage and buying the idea is expensive and
often results in the purchase of a 'solution' which is not relevant to the business to which it
is sold.
• While original ideas seem to be the only way to develop unique and relevant solutions, they
are often developed within existing and constricting frameworks to maximise the chances
of them being accepted.

BPR – Definition:

• Business process reengineering is the act of recreating a core business process with the goal
of improving product output, quality, or reducing costs. Typically, it involves the analysis
of company workflows, finding processes that are sub-par or inefficient, and figuring out
ways to get rid of them or change them to enhance efficiency and effectiveness in company’s
operations.

Business Process Reengineering - features:

1. Business Process Reengineering involves the radical redesign of core business processes to
achieve dramatic improvements in productivity, cycle times and quality. This revamping
process allows the management in any organization to rethink their existing process before
moving to a more advanced level to streamline and automate their enterprise processes via an
ERP implementation
2. They use technology to improve data dissemination and decision making.

Use of Re-engineering

• Business process reengineering (BPR) is the practice of rethinking and redesigning the way
work is done in organizations to :

1. better support an organization’s vision and mission and

2. reduce costs.

• Organizations reengineer two key areas of their businesses.

1. They use modern technology to enhance data dissemination and

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 2. to fasten decision-making processes.

Importance of reengineering for an organization:

• By reengineering, an organization can achieve radical changes in performance (as

measured by cost, cycle time, service and quality).
• It boosts competitiveness in the operations network through simpler, leaner and more
productive processes.
• Reengineering can be a game-changer to any business.
• If properly handled, business process reengineering can perform miracles on a failing or
stagnating company, increasing the profits and driving growth.
• Business process reengineering, however, is not an easy concept to grasp.
• It involves enforcing change in an organization – tearing down something people are used
to and creating something new.

Why is BPR required?

• The main reasons why the business process reengineering methodology is important:

1. businesses should be agile (responsive/active/swift) and flexible.

2. They should be organized in a manner that allows proper exploitation and optimization of
technology when managing business operations and determining growth routes.

Objectives of BPR:

BPR is typically pursued:

1. to improve processes,
2. to increase productivity,
3. to reduce costs,
4. to improve customer services, and
5. to provide a competitive advantage.

The Six Key Steps of Business Process Reengineering:

1. Define Business Processes.

2. Analyze Business Processes.
3. Identify and Analyze Improvement Opportunities.
4. Design Future State Processes.

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 5. Develop Future State Changes.
6. Implement Future State Changes.

2. e-engineering:

E-engineering describes the process of disaggregating the value chains and delivering them in
different ways using IT enabled services (web enabled), exploiting the increasing range of options
provided by IT (related to computing technology) advances along with the wide diffusion of internet
messaging.

Value chain in management

• The process or activities by which a company adds value to an article, including raw
material procurement, production, marketing, and the provision of after-sales service.
• A value chain is a business model that describes the full range of activities needed to create
a product or service. The purpose of a value-chain analysis is to increase production
efficiency so that a company can deliver maximum value for the least possible cost.

E-engineering describes the process of Disaggregating the value chains and delivering them in
different ways using IT enabled services (web enabled), exploiting the increasing range of options
provided by IT (related to computing technology) advances along with the wide diffusion of internet
messaging.

• e-Engineering is a technology that enables the integration of engineering activities and

engineering resources (engineering software packages, tools, machines, people, etc.) by
utilizing web-based technologies.

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 • It establishes environments that foster collaboration among engineering groups to support
integrated product development and problem solving.
• The Web-based engineering environment allows multidisciplinary engineering groups to
concurrently execute different activities throughout a product development process even if they
are in different organizations at geographically distant locations.

3. Restructuring:

• Restructuring: The Corporate Restructuring is the process of making changes in the

composition of a firm’s one or more business portfolios in order to have a more profitable
enterprise.
• Simply, reorganizing the structure of the organization to fetch more profits from its
operations or is best suited to the present situation.

The Corporate Restructuring takes place in two forms:

1. Financial Restructuring: The Financial Restructuring may take place due to a drastic fall
in the sales because of the adverse economic conditions. Here, the firm may change the
equity pattern, cross-holding pattern, debt-servicing schedule and the equity holdings. All
this is done to sustain the profitability of the firm and sustain in the market. Generally, the
financial or legal advisors are hired to assist the firms in the negotiations.
2. Organizational Restructuring: The Organizational Restructuring means changing the
structure of an organization, such as reducing the hierarchical levels, downsizing the
employees, redesigning the job positions and changing the reporting relationships. This is
done to cut the cost and pay off the outstanding debt to continue with the business
operations in some manner.
• The process of corporate restructuring essentially involves significant reorganization of assets
and liabilities of the organization so as to conduct the business operations in an efficient,
effective and competitive manner with the underlying objective of improving the quality and
quantity of the future cash flow.
• Restructuring involves reorganizing the legal, ownership, operational, or other structures of
a company for the purpose of making it more profitable, or better organized for its present
needs.
• Other reasons for restructuring include a change of ownership or ownership
structure, demerger, or a response to a crisis or major change in the business such

[35]
 as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate
restructuring, debt restructuring and financial restructuring.
• A demerger is when a company splits its assets. This is done by organizing whichever of the
assets it is splitting out under a subsidiary holding company and then distributing all of the
shares in that new company to existing shareholders in the parent company.
• In finance, a buyout is an investment transaction by which the ownership equity of a company,
or a majority share of the stock of the company is acquired. A buyout will often include the
purchasing of the target company's outstanding debt, which is referred to as "assumed debt" by
the purchaser.
• Repositioning involves changing the identity of the product, relative to the identity of
competing products in the collective minds of the target market. Examples: Airtel, Vodafone,
Maggie Noodles, etc.
• In the course of many market researches and surveys, the firm found that children were the
biggest consumers of Maggi noodles. Quickly they repositioned it towards the kids segment
with various tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs
which worked wonders for the brand

Case of Toshiba for restructuring:

• Toshiba was founded in 1939 as Tokyo Shibaura Denki K.K. (Tokyo Shibaura Electric
Co., Ltd) through the merger of Shibaura Seisaku-sho (founded in 1875) and Tokyo Denki
(founded in 1890).
• The company name was officially changed to Toshiba Corporation in 1978.
• Products: Electronics; Semiconductors
• Revenue: ¥3.693 trillion (2019)
• Industry: Conglomerate
• Number of employees: 141,256 (2019)
• An example of restructuring by a manufacturer is provided by Toshiba. An electronics
manufacturer, Toshiba was created in 1939.
• It was the first company to manufacture one-megabit memory chips (in 1985) and began
shipping laptop computers in 1986.
• Toshiba's willingness and success in creating joint ventures with companies such as
IBM and Apple make it one of the computer industry's strongest companies, despite the
Japanese recession and an ever-increasing competitive worldwide market.

[36]
 • Toshiba was losing market share in the notebook market, however, dropping from 30
percent of the market in 1996 to 20 percent in early 1998. The loss was attributed to
stiff competition from IBM and Compaq in price and technology, though Toshiba
hoped to reverse the trend during the 1998 fiscal year.

Types of restructuring (8)

The following are the common types of restructuring:

1. Mergers & Acquisitions: Integrating the administration, operations, technology and/or

products of two firms.
2. Legal: Changing the legal structure of a firm such as ownership structure. Ex: A business unit
may become its own legal entity.
3. Financial: A change in a firm’s capital structure such as debt restructuring designed to allow
a firm in financial distress to continue to operate.
4. Turnaround: Restructuring the administration, operations and products of an organization that
is performing poorly. Often requires new leadership and a change in strategy and culture.
5. Repositioning: a strategy designed to move a firm or business unit to a new business or
operational model (Maggie noodles).
6. Cost Restructuring: Cutting administrative and operational costs in response to a downturn or
anticipated down turn in revenue or margins.
7. Divestment: is the process of selling subsidiary assets, investments or divisions in order to
maximize the value of the parent company. Also known as divestiture, it is the opposite of an
investment and is usually done when that subsidiary asset or division is not performing up to
expectations.
8. Spin off: is the creation of an independent company through the sale or distribution of new
shares of an existing business or division of a parent company.

Spin-offs are divisions of companies or organizations that then become independent businesses with
assets, employees, intellectual property, technology, or existing products that are taken from the parent
company.

The spun-off companies are expected to be worth more as independent entities than as parts of a larger
business.

A company may conduct a spinoff so it can focus its resources and better manage the division that has
more long-term potential.

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4. Innovation:

• Corporate innovation refers to the intentional fostering of out-of-the-box thinking

within corporate environments.
• Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in
form of device or method". Innovation is also viewed as the application of better solutions
that meet new requirements, unarticulated needs, or existing market needs. The opposite
of innovation is ex-novation.
• The true test of an innovative company comes when it is growing faster than the market,
driven by the introduction of new products and services.
• Corporate innovation refers to the intentional fostering of out-of-the-box thinking within
corporate environments.
• Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in
form of device or method". Innovation is also viewed as the application of better solutions
that meet new requirements, unarticulated needs, or existing market needs. The opposite of
innovation is ex-novation.
• The true test of an innovative company comes when it is growing faster than the market,
driven by the introduction of new products and services.

Creativity and innovation:

• The main difference between creativity and innovation is the focus

• Creativity is about unleashing the potential of the mind to conceive new ideas
• Innovation is completely measurable. It is about introducing changes into relatively stable
systems

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Types of innovation:

1. Incremental: Incremental innovation is an improvement in an existing thing (e.g. product,

process or service).
2. Radical: Radical innovation is finding an entirely new way of doing something.
Examples of radical innovation include: the iPhone, which paved the way for the modern
smartphone market,
The merging of farming equipment with sensor technology that provides farmers with data
that is used to alter the farming industry.

Importance of innovation:

1. Effectively achieving business growth goals.

2. Increasing the productivity and thereby increasing the profitability.
3. Effectively responding to industry disrupters and increasing market share.
4. Quickly responding to the external challenges by developing human as well as
technological resources to do things differently.

APPLE IPHONE EVOLUTION TIMELINE 2007-2020 --- 13 YEAR HISTORY OF THE

RELEASES (Case)

[39]
At the Macworld convention in January 2007, Steve Jobs came on stage to announce they were about
to launch a phone, a few months later on June 29th, 2007 the original iPhone was born and released to
the public. The iPhone was the first touch screen phone to have a build in MP3 player (iPod) and a
fully working web browser, it really was a fantastic innovation. The iPhone sold over one billion
phones in the first 9 years and made up 53.89% of Apple’s revenue in 2019.

How to start Corporate Innovation:

• Consider creating a corporate innovation lab.

– This can be a very effective way to innovate. Removing barriers for employees to test
out their ideas is the key. Many employees of large companies are creative but cannot
execute their ideas because they already have a defined scope of work.

• Have a venture capital arm to your corporation.

– Young startups need investments and resources, which large companies can offer.
Startups, in return, often have innovative ideas that could possibly disrupt your industry.
Facebook, for example, bought Instagram early on, and it paid off. Otherwise, I believe
Instagram would have likely been a serious competitor to Facebook.
• Create an accelerator program.
– Accelerator programs are often limited-duration programs aimed at helping
entrepreneurs to define their ideas and build their first prototypes.
– Large companies can also innovate by housing startups in an accelerator program.
– Traditionally, organizers of such programs have resorted to business planning
approaches as organizing framework in order to structure the training and other services
they offer.
– However, as a response to the move away from business planning approaches, many
accelerators now adopt the lean startup methodology (Blank and Dorf, 2012, Ries,
2011), which focuses on iterative learning from potential customers (York and Danes,
2014).
– Thus, accelerator program is a short-term growth program that promotes a few years of
growth in the span of a few months.

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 Module 4 – Models of change

1. Kurt Lewin’s Three Step Change process, 2. Burke and Litwin’s model of Drivers of Change, 3.
J.P. Kotter’s eight stages, 4. Mckinsey 7-S Model, 5. ADKAR model, 6. Action Research, 7.
Organizational development.

1. Kurt Lewin’s Three step Change process:

1. Unfreeze
2. Movement to change
3. Refreeze

Change is a three-stage process

o Stage 1 - Unfreezing the old behaviour/ situation

o Stage 2 - Moving to a new level of behaviours
o Stage 3 - Refreezing the behaviour at the new level

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[42]
1.Unfreeze:

• Employees are educated about the external and internal factors that make change
imperative.
• Sometimes employees are content with the existing work environment, organizational rules
and procedures and therefore are unwilling to change.
• Such people or groups should be told about the benefits that change can bring so that their
level of satisfaction increases and level of satisfaction with the existing conditions
decreases.
• This will motivate the employees to welcome changes to enjoy the new benefits.

2.Movement to change:

• After the resisting employees are convinced or prepared for change, the actual change
process begins.
• This involves doing away with the old practices and adopting new methods.
• For ex. as part of the change program, advanced equipment is installed, production process
or layout is changed, or job duties are redefined.
• This stage involves implementing the change.

3.Refreeze:

• After change has been implemented, it has to be assimilated into the organizational
processes, realigning organizational systems and team dynamics with the desired changes
(New information system, new reward system, new performance appraisal system, new
organizational structure, physical lay outs etc.)
• The third step involves reinforcing change so that the organization does not revert to old
state of things.
• For ex. If the change process involves acquiring new skills, the new skills and behaviors
have to be made a permanent part of the organization.
• To achieve this, employees are asked to demonstrate their new skills before they return to
their jobs.
• They may also be asked to do role play and show how they would apply their new skills at
the workplace.
• However, most employees prefer to use their old methods when they return to the
workplace.

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 • Therefore, repetition and constant reinforcement of new work techniques is essential to
sustain change.

2. Burke and Litwin’s model of Drivers of Change:

Transactional change (First order change):

• This includes
o Evolutionary,
o adaptive,
o incremental, or continuous change
• Here, the features change but fundamental nature of organization remains the same
• OD interventions are directed towards changes in
o organization structure,
o Management practices &
o systems including policies & procedures

Transactional Factors:

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Organizational climate & Culture:

• Organizational climate is defined as people’s perceptions and attitudes about the organization
whether it is a good or bad place to work, friendly or unfriendly, hard-working or easy going,
and so forth. These perceptions are relatively easy to change because they are built on
employee’s reactions to current managerial and organization practices.

• On the other hand, organizational culture is defined as deep-seated assumptions, values, and
beliefs that are enduring, often unconscious, and difficult to change. Basically, organizational
culture is “how things are done here.” Every organization has a culture, and that culture
influences how executives, managers, and employees act in making organizational decisions.
Basically, organizational culture is “how things are done here.”

Transformational change (Second order change):

• This involves
o Revolutionary
o Radical,
o Discontinuous change
• In this type of change the nature of organization is fundamentally & substantially altered
• Here the OD interventions are directed towards revisiting mission & strategy, leadership &
organization culture

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 • The interventions help organizations to redefine its vision , mission & strategy

Transformational Factors:

There are two distinct sets of organizational dynamics:

1. Transactional leaders contribute to normal performance by guiding and motivating the

employees towards the goals.
2. Transformational leaders are capable of having a profound and extraordinary effect on the
employees. (Extraordinary performance from ordinary employees)

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How do I use Burke and Litwin’s model:

[47]
3. J.P. Kotter’s eight stages:

• John Kotter introduced the “Kotter's 8 Step Change Model” to improve an organization's
ability to change and to increase its chances of success. By following this step plan
organizations can avoid failure and become adept at implementing change

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4. Mckinsey 7-S Model:

• The McKinsey 7S Framework is a management model developed Robert H. Waterman, Jr.

and Tom Peters in the late 1970s, former consultants at McKinsey & Company.
• This was a strategic vision for groups: businesses, business units, and teams.
• The 7 Ss are structure, strategy, systems, skills, style, staff and shared values
• The McKinsey 7-S Model is a tool designed to help business owners and managers to
understand how aligned their organization is, and where it can be improved through
incorporating appropriate changes

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[50]
5. ADKAR Model:

• The ADKAR model is a change management tool to help identify why change is difficult
and why some changes succeed while others are unsuccessful.
• The name ADKAR is an acronym that is based on five building blocks that bring about
successful change
• The letters stand for Awareness, Desire, Knowledge, Ability and Reinforcement.
• The ADKAR model was developed by Jeff Hiatt in 2003 and it was introduced as a
practical tool by Prosci, a renowned change management consultancy and learning center.
• The ADKAR model is mainly intended to be a coaching and change management tool to
help and assist employees through the change process within organizations.

1. Awareness - Employees must be made aware of the need for change.

2. Desire - Employees must have the desire to participate and fully support the change.

3. Knowledge - By gathering knowledge about the change process the (ultimate) goal of the change
will become clear for the employees.

4. Ability - Because of the ability to learn new skills and by managing behavior, change is accepted.

5. Reinforcement - Reinforcement to sustain the change makes it clear for all employees that there is
no turning back.

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6. Action Research:

[52]
1.Diagnosis:

• Change agent attempts to determine the underlying causes of an organization’s problems.

• In other words, attempt is made to diagnose the problems of an organization.
• To diagnose the nature and magnitude of the problems, critical information about the
organization is collected by interviewing the employees, browsing through organizational
records, and listening to employees’ concerns.
• Action research is problem-centered, client-centered, and action-oriented

2.Analysis:

• The change agent analyses the information collected in the diagnostic stage.
• Through the analysis of the collected information, the change agent is able to sort out the
different and similar kinds of problems being faced by various employees

3.Feedback:

• An essential feature of action research is the constant involvement of the people who are
going to be affected by the change program in determining problems and finding solutions.
• Therefore, feedback results form an important part in the process. In this step, the change
agent shares his observations and conclusions from diagnosis and analysis of information.
• He, then, seeks their active participation in developing action plans for bringing the desired
change in the organization.

4.Action:

• In this stage, the employees and the change agent work together to implement the measures,
that they consider solutions to the organization’s problems.
• The actions are problem oriented and are aimed at correcting specific problems.

5.Evaluation:

• Finally, the change agent evaluates the effectiveness of the actions taken by measuring the
outcomes of those actions.
• If the outcome is found to be unsatisfactory, the above mentioned steps are repeated.
• The outcome is measured in terms of the initial data collected.
• The process is continued until a satisfactory outcome is obtained.

7. Organizational Development:

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Organizational Development (OD):

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve

organizational effectiveness and employee well-being.

Organizational Development-values:

• Respect for people

• Trust and support
• Power equalization
• Confrontation
• Participation

Module 5 – Management of Change

1. Diagnosing the organization, 2. Determining the desired future State, 3. Implementation Action, 4.
Evaluating the Action, 5. Tackling Challenges at different periods of Change.

1. Diagnosing the organization [Corporate diagnosis]

• Corporate diagnosis is a process that involves the three steps of publicly entering a human
system in the organization, collecting valid data about experiences, and feeding back into
the system towards promoting corporate performance (Zarei et al., 2014).
• An organizational diagnosis process is a powerful consciousness-raising activity in its
own right, its main usefulness lies in the action that it induces.
• The purpose of a diagnosis is to identify problems facing the organization and to
determine their causes so that management can plan solutions.
• Organizational Diagnosis is an effective way of looking at an organization to determine
gaps between current and desired performance and how it can achieve its goals.
• In recent years organizational diagnosis has evolved from a technique used as part of the
organizational development process to a major technique in its own right.
• Effective diagnosis should be an organic (dynamic) process in that as we start to look at an
organization and its structures and what it does and does not do, change starts, as change
progresses so does the ‘now’ performance and as such the diagnosis process also needs to
re-start.

[54]
 • The BIR (Business Improvement Review) methodology looks at taking a ‘snapshot’ on
time in a way that is quick and relatively unobtrusive. This allows decisions to be made,
plans developed and actions implemented rapidly. Then using the benchmarking facility
another snapshot of the organization can be made and new plans developed. A bit like the
old story of “how do you eat an elephant? one bite at a time. Developing an organization is
no different.

PURPOSE OF ORGANISATIONAL ANALYSIS:

1) Enhancing the general understanding of the functioning of organizations (i.e., educational or

research purposes.):

(The direct beneficiary is the researcher or the analyst rather than the organization). Such a study may
aim at enhancing the understanding of human behaviour through a study of it in an organisation, or to
enhance the understanding of the society as reflected in organizational life.

2) Planning for growth and diversification:

An analysis or a diagnostic study may be necessary for planning growth, diversification, expansion,
etc. The organizational analysis may reveal the strengths that could be used for growth and
diversification, weak spots that need to be removed in the new plans, the precautions to be taken,
structural dimensions to be kept in mind, etc. Several insights may be provided on structure, people,
systems, styles, technology, etc. that have implications for growth.

3) Improving Organisational Effectiveness or Planning General Improvements:

Organizational Analysis may be used also for improving the general efficiency of an organization. On
the basis of a diagnosis made out of the analysis action steps could be initiated in terms of toning up
administration, introducing new management systems and processes, reduction of wasteful
expenditure, introduction of time savers, change of personnel policies to enhance employee
motivation, restructuring of some parts, training, elimination of unwanted structures and teasers,
improvements in general health of the organisation etc.

4) Organizational Problem Solving:

Whenever some subsystems departments, units, etc. fall sick or start creating problems a diagnosis
may be undertaken with a view to identify the source of the problem and take corrective action. A sick
unit, a bottleneck, a communication block, a poor performing department, frequently occurring conflict
between two departments, repeated failures of a management system or an organizational process, a

[55]
frequent violation of an organizational norm, fall in discipline, reduction in output absenteeism,
increase in conflicts, etc. can all lead to the need for an organisational diagnosis of a part of the
organization or the entire organisation.

Types of Diagnosis:

A) Organisational Level Diagnosis:

At the organisational level, the diagnosis is done at the macro level. The organization as a system is
studied, particularly in the context of its interaction with its external environment. The external
matrices can be a source of problems. So, their effect is studied. Thereafter, the organization’s goals,
mission, policies, etc. are studied, which are broad framework, within which an organization function.
Sometimes, these cause structural level problems, which can hamper the functioning of the
organization.

B) Group Level:

The group level diagnosis studies the problems that arise when the groups of people work in an
organization. In every organization, there are teams, departments, which might have some inherent
structural adjustment problems. Quite often, the groups might function properly, but when they
interface with other groups, they might cause problems. The diagnosis would focus on how these
groups are functioning and what are the factors causing problems between them.

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C) Individual Level Diagnosis

At the individual level also, there can be problems. The individuals might not be able to function as
per the requirements, because they might have some inherent personality traits that hamper their
working. Alternatively, they might not be able to fit into the system.

METHODS OF ORGANISATIONAL ANALYSIS:

There are many ways of analysing and diagnosing organizations and their phenomena. The following
are the most frequently used methods:

1. Questionnaires
2. Interviews
3. Observation
4. Analysis of records, circulars, appraisal reports, and other organizational
literature
5. Analysis of hard data of organizations and various units
6. Task forces and task groups
7. Problem identification/problem-solving workshops
8. Seminars, symposia, and training program
9. Recording and examining critical incidents

Diagnosing the organization:

• Corporate diagnosis is a process that involves the steps of publicly entering a human
system in the organization, collecting valid data about experiences, and feeding back into
the system towards promoting corporate performance (Zarei et al., 2014).
• Diagnosis research often follows a general pattern and its stages are as follows:
1. Defining the diagnosis objectives and Problem Definition

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 2. Planning a diagnosis research design
3. Planning a sample
4. Collecting the data
5. Analysing the data
6. Formulating the conclusions and preparing the report

Stages of the diagnosis:

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Defining the Diagnosis Objectives and the Problem:

• Diagnosis objectives are the goals to be achieved by conducting research.

• Managers and researchers alike may not have a clear-cut understanding of the situation at
the outset of the research process. They may only be able to list symptoms that could
indicate a problem.
• For example, employee turnover is increasing, but management may not know the exact
nature of the problem.
• Thus, research objectives are the problem statement which is often made only in general
terms; what is to be investigated is not yet specifically identified.
• After the diagnosis objectives are framed, the Exploratory research is conducted to identify,
clarify and specify the nature of the problem.
• Exploratory research helps to transform general and ambiguous research objectives into
well-defined specific research problems.
• Exploratory research is preliminary research that narrows down the scope of the research
objectives
• Exploratory research includes a) Reviewing Secondary (historical) data, b) Previous
research c) Experience survey and d) Case study (or Pilot-study)

a) Reviewing Secondary (historical) data:

• As a general rule, researchers should first investigate previous research to see whether or not
others may have already addressed similar research problems.
• Initially, internal research reports should be searched within the company’s archives.
• In addition, some firms specialize in providing various types of research reports, such as
economic forecasts.
• The Census of Population and the Survey of Current Business are each example of previous
research conducted by an outside source.

b) Previous research

• The first-place researchers will likely look for Previous research today is online.
• The Internet and modern electronic search engines available through most university libraries
have made literature reviews simpler and faster to conduct.
• A literature review is a directed search of published works, including periodicals and books,
that discusses theory and presents empirical results that are relevant to the topic at hand.

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 • While a literature survey is common in applied research studies, it is a fundamental requirement
of a basic research report.

c) Experience survey:

• Researchers also discuss their problem with their colleagues and others who have enough
experience in the same area or in working on similar problems. This is quite often known as an
experience survey.
• Discussion concerning a problem often produces useful information. Various new ideas can be
developed through such an exercise.
• Hence, People with rich experience are in a position to enlighten the researcher on different
aspects of his proposed study and their advice and comments are usually invaluable to the
researcher. They help him sharpen his focus of attention on specific aspects within the field.
• Discussions with such persons should not only be confined to the formulation of the specific
problem at hand, but should also be concerned with the general approach to the given problem,
techniques that might be used, possible solutions, etc

d) Case study (or Pilot-study):

• Case study (or Pilot study) is a small-scale research project that collects data from respondents
similar to those that will be used in the full study.
• It can serve as a guide for a larger study or examine specific aspects of the research to see if
the selected procedures will actually work as intended.
• Case study (or Pilot study) are critical in refining survey questions and reducing the risk that
the full study will be fatally flawed.
• Focus group interviews are also sometimes used as a pilot study.

Planning the Diagnosis Research Design:

• A diagnosis research design is a master plan that specifies the methods and procedures for
collecting and analyzing the needed information.
• A research design provides a framework or plan of action for the research.
• Objectives of the study determined during the early stages of research are included in the
design to ensure that the information collected is appropriate for solving the problem.
• The researcher also must determine the sources of information, the design technique
(survey or experiment, for example), the sampling methodology, and the schedule and cost
of the research.

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Research design can be spilt into two major parts:

• The sampling design which deals with identifying the items/ respondents, the method of
selecting respondents and the size of the sample.
• the statistical design which concerns with how the data has to be collected and how many data
is required and how the information and data gathered are to be analysed.

Sample design:

• Sampling is the process of selecting a sufficient number of elements from the population.
• Sample respondents come from the Target item/ respondents on which the research is focused.
• PROBABILITY SAMPLING
o When elements in the population have a known chance of being chosen as subjects in
the sample, it is called a probability sampling design.
• NONPROBABILITY SAMPLING
o In nonprobability sampling designs, the elements in the population do not have any
probabilities attached to their being chosen as sample subjects.

Collection of data:

• The data gathering stage begins once the sampling plan has been formalized.
• Data gathering is the process of gathering or collecting information.
• Data may be gathered by human observers or interviewers, or they may be recorded by
machines as in the case of scanner data and Web-based surveys.
• If the data is to be gathered by humans, then it has to be decided by which medium is
to be used- face to face, online media, mail or telephone.

Data processing:

• After the fieldwork has been completed, the data must be converted into a format that will
answer the manager’s questions.
• Data processing generally begins with editing and coding the data.
• Editing involves checking the data collection forms for omissions, legibility, and
consistency in classification. The editing process corrects problems such as interviewer
errors (an answer recorded on the wrong portion of a questionnaire, for example) before
the data are transferred to the computer.
• Coding converts the data into symbols and small figures so that the data can be dealt with
in an easy manner.

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Data Analysis:

• Data analysis is the application of reasoning to understand the data that have been
gathered.
• In its simplest form, analysis may involve determining consistent patterns and summarizing
the relevant details revealed in the investigation.
• Statistical analysis may range from portraying a simple frequency distribution to more
complex multivariate analyses approaches, such as multiple regression.

Drawing Conclusions and Preparing a Report:

• The conclusions and report preparation stage consists of interpreting the research results,
describing the implications, and drawing the appropriate conclusions for managerial
decisions.
• These conclusions should fulfil the deliverables promised in the research objectives and
research proposal.
• Writing the report concisely, convincingly, and with clarity is perhaps as important, if not
more, than conducting a perfect research study. Hence, a well-thought-out written report
and oral presentation are critical.
• The written report enables the manager to weigh the facts and arguments presented therein,
and implement the acceptable recommendations.

2. Determining the desired future state:

• Think of this as a long-term ambition that sounds so impossible and so audacious, that
people would laugh if you were to tell them that’s what you’re solving for.
• Think, “To make the world’s information universally accessible for every human
(Google)”;
• “To enable people to live on other planets (SpaceX)”;
• “To make urban waste either a valuable resource or to eliminate it altogether.”

Ex: 1. Google – “To make the world’s information universally accessible for every human”

Ex: 2. SpaceX (Elon Musk) – “To enable people to live on other planets”

Ex:3 AN URBAN DEVDELOPMENT AUTHORITY – “To make urban waste either a valuable
resource or to eliminate it altogether.”

3. Implementation Action:

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Implementation of change

• Once a change is planned, it is important to have good communication about the roll-out
(release) and implementation of the change.
• A timeline should be made for the implementation and changes should be made in the order
of its impact on the process and the employees who manage that process.
• For ex., if the organization is upgrading its software program, employee training should be
done before the software is installed on their computers.
• An effective timeline will allow for all new equipment, supplies, or training to take place
before it is fully implemented.
• Implementing without a logical order can create frustration for those responsible for the
work process.

4. Evaluating the Action:

The measure and evaluation step is crucial to ensure that institutional change efforts produce
successful results in meeting goals.

To measure success, an evaluation is needed.

o Benefits of evaluation:

1. An effective evaluation provides a framework and information to support strategic

planning efforts.
2. It confirms that actions being taken are proving effective or are in need of adjustment
3. Identifies opportunities for new or increased improvement
4. Helps justify actions to others for validation, increased support, and future resources.

o How to Develop an Effective Evaluation

1. To develop an effective evaluation, we need to identify:

2. Outputs and outcomes
3. Baseline measurements (Ex. Pre-training and post training)
4. Control groups.

How to evaluate the effectiveness?

1. 1.Tracking whether change management activities conducted according to plan.

2. Training tests and effectiveness measures.
3. Training participation and attendance

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What, when, where, who and why of the following components of continuous improvement
process:

5. Tackling Challenges at different periods of Change:

Why does organizational failure occur at such a high rate?

• Organizational change does not come easy, however. Many organizational change efforts fail
to reach their objectives. Why? Here are the most common reasons why change fails, and why
company strategies don’t get successfully implemented.
1. Failure to make a compelling case for change – People need to make sense of the change
before they change
2. Not involving the employees – Leaders believe top-down still works
3. Ignoring current organizational culture – Failure to understand and shape the informal
organization
4. Real change happens at the bottom of the organization – It does not happen at the town
hall meeting (meeting in which politicians/govt. officials give answers to the public
queries) or through the intranet
5. Not dealing proactively with resistance
6. Failing to celebrate small wins – Change management is a dolphin, not a whale

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 Module 6 – Organizational Development

1. Concept, 2. Objectives and Importance of OD, 3. Foundations of OD, 4. Managing the OD

process, 5. OD techniques to promote change, 6. OD techniques to deal with resistance to change

1. Concept:

• OD is a unique organizational improvement strategy that emerged in the late 1950’s.

• OD has its base in the theories related to planned change and their application in the context of
organizations.
• OD deals with a range of “people’s problems” in organizations, such as poor morale, low
productivity, poor quality, interpersonal conflict, inter group conflict, poor team performance,
poor customer relations, poorly designed tasks, etc.
• Apart from this, OD helps individuals, teams, and organizations to realize their full potential
• Kurt Lewin played a crucial role in the development of OD.

OD Definition:

• According to Christopher Worley and Tom Cummings, “OD is a a system wide application
of behavioral science knowledge to the planned development and reinforcement of
organizational strategies, structures, and processes for improving an organization’s
effectiveness”

2. Objectives of OD:

1. The objective of OD is to improve the performance of individuals and groups in

organizations.
2. OD focuses on relationships-human, social and structural
3. OD targets organizational processes (How), rather than content (what)

Importance of OD:

1. It seeks to improve organizational climate and effectiveness

2. Organizational change and development have become imperative for external
dynamics and internal tensions and strains.
3. OD effectuate planned organizational change as a measure to meet the altered
situations in which modern organizations exist
4. OD embraces the entire culture of the organization with a view to bring about
planned change

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 5. OD changes all elements of organizational culture, involving beliefs, attitudes,
values, structures etc. to enable the organization to cope with the fast technological
and other changes occurring in its environment.
6. OD develops the entire organization, enabling it to respond to external changes
effectively and, while doing so, it embraces all the aspects of organizational culture.
7. OD efforts aim at developing the organization into an ‘organic system’ (dynamic)
as opposed to the ‘mechanical system’ (static).

3. Foundations of OD:

OD is a multidisciplinary field. Following are the Foundations of OD:

• Behavioral sciences such as:

1. Psychology, 5. Systems theory,
2. Social psychology, 6. Organizational behavior,
3. Sociology, 7. Organization theory and
4. Anthropology, 8. Management practice.

4. Managing the OD process -Organizational Development Process: [7 Steps]

Organizational Development Process: 7 Steps

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1. Initial Diagnosis of the problem:

• Corporate diagnosis is a process that involves the three steps of publicly entering a human
system in the organization, collecting valid data about experiences, and feeding back into the
system towards promoting corporate performance.
• An organizational diagnosis process is a powerful consciousness-raising activity in its own
right, its main usefulness lies in the action that it induces.
• The purpose of a diagnosis is to identify problems facing the organization and to determine
their causes so that management can plan solutions.

2. Data Collection:

There are many ways of analysing and diagnosing organizations and their phenomena. The following
are the most frequently used methods:

1. Questionnaires
2. Interviews
3. Observation
4. Analysis of records, circulars, appraisal reports, and other organizational literature
5. Analysis of hard data of organizations and various units
6. Task forces and task groups
7. Problem identification/problem-solving workshops
8. Seminars, symposia, and training program
9. Recording and examining critical incidents

3. Data Feedback and Confrontation:

• Perhaps the most important step in the diagnostic process is feeding back diagnostic
information to the client organization.
• Although the data may have been collected with the client’s help, the OD practitioner often
organizes and presents them to the client.
• Properly analysed and meaningful data can have an impact on organizational change only
if organization members can use the information to devise appropriate action plans.
• The data are analysed, feedback to organisation members, and used by them to diagnose
the organisation and to develop intervention to improve it.

4. Planning Strategy for Change:

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 • After data is gathered, it is presented to the managers with meaningful solutions.
• And feedback on the proposed solutions is obtained from the employees.
• Then strategy is planned for making a change in the organization.

5. Intervening in the System:

• Intervening in the system refers to implementation of the planned strategies during the
course of an OD programme.
• These planned strategies bring certain changes in the system which is the basic objective
of OD.
• There may be various methods through which external consultant intervenes in the system
such as education and laboratory training, process consultation, team development, etc.

6. Team Building:

• Team building refers to broad range of planned activities that help teams to improve the
way they accomplish task and also help the team members enhance their interpersonal &
problem-solving skills in the present context.
• In the complex environment team building interventions can be effective in improving
teamwork and team accomplishment to effectively implement the strategy.
• With the increased effect o f globalization, cross cultural teams are formed and team
building interventions can effectively solve issues in such teams and help in
implementation of strategies that solves the present problem.

7. Evaluation:

• After team building is done, they are put to work to solve the corporate problem.
• This step relates to evaluate the results of OD programme so that suitable actions may be
followed up.
• Since OD is a long process. There is an urgent need for careful monitoring to get precise
feedback regarding what is going on as soon as an OD programme starts.
• Systematic appraisal of change efforts and pre- and post-training behavioral pattern are
quite effective.
• This step again involves data gathering because such data will provide the basis for OD
efforts evaluation and suggest suitable modification or continuation of OD efforts in similar
direction.

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5. OD techniques to promote change:

OD techniques to promote change:

1. Sensitivity Training
2. Survey feedback
3. Team building interventions

1. Sensitivity Training

• Training groups (T-groups) that seek to change behaviour through unstructured group
interaction.
• Provides increased awareness of others and self.
o Increases empathy with others,
o improves listening skills,
o greater openness, and
o increased tolerance for others.

Sensitivity could be enhanced by adopting the following viewpoints:

• Everybody is entitled to their feelings no matter how illogical they are;.

• There is no such thing as ‘blame’... Everybody involved is equally at fault;
• A person should not attack, but express their feelings about others’ actions;
• Leaving a problem unresolved will make it worse with time;
• Nobody is perfect which includes one self.

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2. Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions; discussion follows
and remedies are suggested.

Survey feedback:

1. Data is collected systematically from a large sample of employees at all levels of the
organisation or an organisational unit.
2. Collection of data is usually in the form of attitude or organisational climate surveys, which
reveal critical information about the organisation and the problems faced by it.
3. The collected data is then fed back into the system ensuring that all participants of the
information collection process receive the data
4. Data feedback is usually done in feedback workshops which are attended by all the participants.
5. All participants are then asked to analyse and interpret the data and present their views on it
6. A meeting is conducted by the head of the organisation or the head of the unit with immediate
subordinates to discuss the details of the data

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 7. Both the head of the organisation or unit and the immediate subordinates interpret the data,
exchange their views and try to identify the areas that need change.
8. They also chalk out plans about the manner in which the change should be introduced
9. This is followed by the introduction of the data to the next level of employees for further
discussion
10. Generally, these meeting are conducted with the help of professional change agent
11. What is important in survey feedback is that it transfers the ownership of the data from the
change agent to the participants
12. The participants also play a key role in developing solutions to the problems

Limitations to survey feedback:

There are limitations to survey feedback that OD practitioners should be aware of. These include:

• Ambiguity of Purpose: There can be disagreement over how the data should be analyzed and
returned.
• Distrust: OD practitioners need to ensure participants that their contributions are confidential.
• Unacceptable Topics: Some firms have topics they do not want to explore, which constricts
the scope of the survey.
• Organisational Disturbance: This process may disturb the employees, and possibly the
whole firm.

3.Team building interventions:

• Used by O.D. practitioners to improve the performance of work teams.

• Team building interventions cover four substantive areas in the working of organizational
teams, namely,
1.problem diagnosis
2.task accomplishment
3.maintaining team relationships
4.improving team and organization process

6. OD techniques to deal with resistance to change:

1. Abad’s Model
2. Lippit’s Approach
3. Beekhard’s Approach

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1. Abad’s Model:

1. Motivating resisting employees for 4. Planning strategy for change

change 5. Intervening in the system
2. Data collection 6. Reinforcement and follow-up
3. Problem identification and 7. Monitoring and evaluation
diagnosis
2. Lippits OD model:

1. Development of a need for change, 6. Transformation of intentions into actual

2. Establishment of a change relationship, change efforts, and
3. Working toward change, 7. The generalization and stabilization of
4. The clarification or diagnosis of client change and achieving a terminal
systems problem, relationship.
5. The examination of alternative routes
and goals/establishing goals and
intentions of action,
3. Beckhard’s Approach:

1. Diagnosis 4. Consulting and Training

2. Strategy planning 5. Evaluation
3. Education

1. Diagnosis: This phase involves taking a comprehensive view of the organisation and
identifying whether there is any need for change
2. Strategy planning: If the above step confirms the need for change, the management chalks out
an action plan for change. It also formulates a strategy for the implementation of change. The

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 strategy includes the activities to be undertaken by the management in bringing the change,
the sequence in which change is to be introduced in the various units/departments of the
organisation and the resources to be allocated for the change program
3. Education: The managers attend lectures given by OD experts, participate in seminars, and
other training programs to equip themselves with the skills that would enable them to cope with
the change and improve the efficient working of the organisations
4. Consulting and Training: The management approaches an external consultant to discuss the
ways to improve the existing organisational practices or the introduction of the new practices
5. Evaluation: The change program is constantly assessed to know its impact on the organisation

7. Types of Interventions used in OD today:

Types of Interventions used in OD today

According to Worley & Cummings (2009) there are four types of Interventions used in OD today.
They are:

• Human process interventions,

• Human Resources management interventions,
• Techno structural interventions, and
• Strategic interventions.

Organization Development of change is affected through individual, groups and organization.

Module:7 OD Interventions

Definitions of OD interventions: -

• “OD intervention refers to the range of planned, programmatic activities client and
consultant participate in during the course of OD program. -French & Bell, Rober Zawacki
• “OD interventions are set of structured activities in which selected organizational units
(target groups or individuals) engage in a task or sequence o f tasks with the goals o f
organizational improvement and individual development.” -French & Bell
• “OD intervention is a sequence of activities actions and events intended to help organisation
improve its performance and effectiveness. -Cummings & Worley

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 • “OD interventions are structured activities used individually or in combination by the
members of client system to improve their social and task performance. –Wikipedia
• Thus, the researcher proposes the summary of OD interventions as:
“OD interventions are structured activities based on the diagnosis of a client system and
designed to enhance individual and organizational effectiveness in collaboration with a
consultant and client system.’

Types of OD interventions:

1. Human Process Interventions

2. Techno structural intervention
3. Human Resource Management
4. Strategic Intervention

Human Process Interventions:

• Human process issues which have to do with social processes occurring among
organization members, such as communication, decision making, leadership, and group
dynamics is called human process interventions;
• Human process interventions is aimed at the social processes occurring within
organizations.
• These are the oldest and most traditional interventions in OD.
• They represent attempts to improve people’s working relationships with one another.
• The interventions are aimed at helping members of groups assess their interactions and
devise more effective ways of working.

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Types of Human Process Interventions:

• Process consultation • Organization confrontation meeting

• Third party consultation • Inter group relation intervention
• Team building • Large group intervention

Process consultation:

• This intervention focuses on interpersonal relations and social dynamics occurring in work
groups.
• Typically, a process consultant helps group members diagnose group functioning and
devise appropriate solutions to process problems, such as dysfunctional conflict, poor
communication, and ineffective norms.
• The aim is to help members gain the skills and understanding necessary to identify and
solve interpersonal and group problems themselves.
• This technique is based on the assumption, that the organisational effectiveness depends
upon how well the people in an organization relate to one another.
• The help of an external consultant is taken as he is an outsider and is not likely to be biased.
His diagnosis of the organisational problems shall be more objective and effective in
solving the problems.
• Process consultation is used not only as a way of helping groups become effective but also
as a means whereby groups learn to diagnose and solve their own problems and continue
to develop their competence and maturity.

In this OD technique, the following stages are followed

• Initiating the contract - The external consultant initiates the contract with a client organization
to solve the problems.
• Define relationship - The consultant’s relationships with the organization are defined so that
there is no ambiguity in the extent of intervention that he is expected to make.
• Selection of methods - The consultant has to select the appropriate method to solve the
organisational problem. This calls for effective analysis of the problem to generate the
alternatives.
• Diagnosis - The diagnosis of the problem is made by collecting the required data. The
questionnaires, interviews, etc. can be used to collect the data and pin-point the exact
cause of problems.

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 • Administering intervention - The intervention is administered to the organization with the
help of the tools like agenda setting, feedback, coaching, structured interventions, etc.
• Termination - Once the objective of organisational development has been achieved, the
relationship with the external consultant must be terminated as his continued presence
might generate newer conflicts in the organization.

This technique helps in solving the inter-group problems faced by the organizations. It is
pertinent to mention that although this technique emphasizes the need for hiring an external
consultant, the organizations are the best means to help themselves.

Schein proposes ten principles to guide the process consultant’s actions:

• Always try to be helpful • Timing is crucial.

• Always stay in touch with the • Be constructively opportunistic
current reality. with confrontive interventions
• Access your ignorance. • Everything is information; errors
• Everything you do is an intervention will always occur and are the prime
• The client owns the problem and the • source for learning.
solution. • When in doubt, share the problem.
• Go with the flow
Third-party intervention:

• This change method is a form of process consultation aimed at dysfunctional interpersonal

relations in organizations.
• Interpersonal conflict may derive from substantive issues, such as disputes over work methods,
or from interpersonal issues, such as miscommunication.
• The third-party intervener helps people resolve conflicts through such methods as problem
solving, bargaining, and conciliation.
• The basic difference between process consultation and third-party intervention is that the latter
focuses on interpersonal dysfunctions in social relationships between two or more individuals
within the same organization and is targeted toward resolving direct conflict between those
individuals.
• In some cases, third-party intervention might be necessary to resolve these matters.
• Collective bargaining constitutes the negotiations between the management and the union with
the ultimate objective of settlement of the disputed issues.

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 • Collective bargaining is basically a give and take process involving proposals and counter
proposals.
• Meetings between management representatives and union leaders are conducted in an attempt
to arrive at an agreement or at the settlement of the dispute.
• Team building interventions are specially designed interventions to increase team performance.
• This intervention helps work groups become more effective in accomplishing tasks.
• Like process consultation, team building helps members diagnose group processes and devise
solutions to problems.
• It goes beyond group processes, however, to include examination of the group’s task, member
roles, and strategies for performing tasks.
• The OD practitioner also may function as a resource person offering expertise related to the
group’s task.
• This change method is a form of process consultation aimed at dysfunctional interpersonal
relations in organizations.
• Interpersonal conflict may derive from substantive issues, such as disputes over work methods,
or from interpersonal issues, such as miscommunication.
• The third-party intervener helps people resolve conflicts through such methods as problem
solving, bargaining, and conciliation.
• The basic difference between process consultation and third-party intervention is that the latter
focuses on interpersonal dysfunctions in social relationships between two or more individuals
within the same organization and is targeted toward resolving direct conflict between those
individuals.

Team building intervention process:

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Organization confrontation meeting:

• This change method mobilizes organization members to identify problems, set action targets,
and begin working on problems.
• It is usually applied when organizations are experiencing stress and when management needs
to organize resources for immediate problem solving.
• The intervention generally includes groupings of employees from various departments in an
organisation to identify and solve problems

Intergroup relations:

• These interventions are designed to improve interactions among different groups or

departments in organizations.
• The intervention involves a small number of people whose backgrounds closely match the
organizational problems being addressed.
• This group addresses the problems and develops means to solve them.
• The intergroup conflict model typically involves an OD practitioner helping two groups
understand the causes of their conflict and choosing appropriate solutions

Large group interventions:

• These interventions involve getting a broad variety of stakeholders into a large meeting to
clarify important values, to develop new ways of working, to articulate a new vision for the
organization, or to solve pressing organizational problems.
• Such meetings are powerful tools for creating awareness of organizational problems and
opportunities for specifying valued directions for future action.
• These interventions focus on issues that affect the whole organization or large segments of it,
such as developing new products or services, responding to environmental change, redesigning
the organization, or introducing new technology.

Techno structural interventions:

• Techno structural intervention focusses on an organization’s technology (e.g., task methods

and job design) and structure (e.g., division of labour and hierarchy).
• These change methods are receiving increasing attention in OD, especially in light of current
concerns about productivity and organizational effectiveness.

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 • They include approaches to employee involvement, as well as methods for structuring
organizations,
groups, and jobs.
• Technostructural interventions are rooted in the disciplines of engineering, sociology, and
psychology and in the applied fields of sociotechnical systems and organization design.
• Practitioners generally stress both productivity and human fulfilment and expect that
organization effectiveness will result from appropriate work designs and organization
structures.

Structural design:

• Structural design. This change process concerns the organization’s division of labour—how
tasks are subdivided into work units and how those units are coordinated for task completion.
• Interventions aimed at structural design include moving from more traditional ways of dividing
the organization’s overall work (such as functional, self-contained unit, and matrix structures)
to more integrative and flexible forms (such as process-based, customer-centric, and network-
based structures).
• Diagnostic guidelines exist to determine which structure is appropriate for particular
organizational environments, technologies, and conditions.

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Downsizing:

• This intervention reduces costs and bureaucracy by decreasing the size of the organization
through personnel layoffs, organization redesign, and outsourcing.
• Each of these downsizing methods must be planned with a clear understanding of the
organization’s strategy.

Reengineering:

• Reengineering. This intervention radically redesigns the organization’s core work processes to
create tighter linkage and coordination among the different tasks.
• This workflow integration results in faster, more responsive task performance.
• Reengineering is often accomplished with new information technology that permits employees
to control and coordinate work processes more effectively.
• Reengineering often fails if it ignores the basic principles and processes of OD.

Parallel structures:

• Parallel structures. This intervention involves organization members in resolving ill-defined,

complex problems.
• Parallel structures, such as cooperative union-management projects and quality circles, operate
in conjunction with the formal organization and provide members with an alternative setting in
which to address problems and propose solutions.
• Parallel structures interventions is for improving employee involvement.
• These interventions increase employee knowledge, power, information, and rewards
• Parallel structures provide members with an alternative setting in which to address problems
and to propose innovative solutions free from the existing, formal organization structure and
culture.

Total quality management:

• Total quality management. This intervention involves organization members in continuously

improving quality as part of normal work operations.
• It includes extensive training in total quality management knowledge and skills and the
constant application of that expertise to improve quality at work.

High-involvement organizations (HIOs):

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 • High-involvement organizations. This comprehensive intervention designs almost all features
of the organization to promote high levels of employee involvement.
• Changes in structure, work design, information and control systems, and human resource
practices jointly support employee involvement in relevant decision making throughout the
firm.
• Unlike parallel structures that do not alter the formal organization or TQM interventions that
tend to focus on particular processes, HIOs address almost all organization features.
• Structure, work design, information and control systems, physical layout, personnel policies,
and reward systems are designed jointly by management and workers to promote high levels
of involvement and performance.

Work Design:

• Approaches to work design. They include two OD interventions:

1. Job enrichment. Based on motivational principles, this intervention creates jobs that
employees are likely to experience as meaningful with high levels of autonomy and
feedback from performing the work. Job enrichment results in high job satisfaction
and performance quality, especially for those individuals who have needs for growth
and learning at work.

2. Self-managed work teams. This intervention designs work for teams performing
highly interrelated tasks that require real-time decision making. Self-managed work
teams are typically responsible for a complete product or service and members are
able to make decisions and control their own task behaviours without a lot of external
controls.

Module 8: OD Interventions

Human Resources Management Interventions:

• Human Resources Management Interventions focuses on interventions used to select, reward,

develop, and support people in organizations.
• These practices traditionally have been associated with the human resources function in
organizations.

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 • In recent years, interest has grown in integrating human resources management with OD.
• Human resources management interventions are rooted in labor relations and in the applied
practices of compensation and benefits, employee selection and placement, performance
appraisal, career development, and employee diversity and wellness.
• Practitioners in this area typically focus on the people in organizations, believing that
organizational effectiveness results from improved practices for integrating employees into
organizations.

Types of Human Resources Management Interventions:

• Goal setting, • management & Leadership

• Performance appraisal, development,
• Reward system, • Workforce diversity intervention,
• Coaching& mentoring, • Employee stress & wellness
• Career Planning and development intervention.
intervention,
Goal setting:

• This change program involves setting clear and challenging goals.

• It attempts to improve organization effectiveness by establishing a better fit between personal
and organizational objectives.

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 • Managers and subordinates periodically meet to plan work, review accomplishments, and solve
problems in achieving goals.
• Management by Objectives, is a special case of the goal-setting intervention

Performance appraisal:

• This intervention is a systematic process of jointly assessing work-related achievements,

strengths, and weaknesses.
• It is the primary human resources management intervention for providing performance
feedback to individuals and work groups.
• Performance appraisal represents an important link between goal-setting and reward systems.

Reward systems:

• This intervention involves the design of organizational rewards to improve employee

satisfaction and performance.
• It includes innovative approaches to pay, promotions, and fringe benefits.

Coaching and mentoring:

• This intervention helps executives and employees to clarify their goals, deal with potential
stumbling blocks, and improve their performance.
• It often involves a one-on-one relationship between the OD practitioner and the client and
focuses on personal learning that gets transferred into organizational results and more effective
leadership skills.

Management and leadership development:

• Among the oldest strategies for organizational change, training and development interventions
increase organization members’ skills and knowledge.
• The focus of these interventions is on building the competencies needed to lead the
organization in the future and includes traditional classroom lectures as well as simulations,
action learning, and case studies.

Career planning and development:

• This intervention helps people choose organizations and career paths and attain career
objectives.

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 • It generally focuses on managers and professional staff and is seen as a way to increase the
retention of valuable employees and to improve the quality of work life.

Managing workforce diversity:

• This change program makes human resources practices more responsive to a variety of
individual needs.
• Important trends, such as the increasing number of women, ethnic minorities, and physically
and mentally challenged people in the workforce, require a more flexible set of policies and
practices.

Employee stress and wellness:

• These interventions include employee assistance programs (EAPs) and stress management.
• EAPs are counselling programs that help employees deal with substance abuse and mental
health, marital, and financial problems that often are associated with poor work performance.
• Stress-management programs help employees cope with the negative consequences of stress at
work.
• They help people reduce specific sources of stress, such as role conflict and ambiguity, and
provide methods for reducing such stress symptoms as hypertension and anxiety.

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Strategic Change Interventions:

• Strategic Change Interventions links the internal functioning of the organization to the larger
environment and transform the organization to keep pace with changing conditions.
• These change programs are among the newest additions to OD.
• They are implemented organization-wide and bring about a fit between business strategy,
organization design, and the larger environment.
• The interventions derive from the disciplines of strategic management, organization theory,
economics, and anthropology.

Types of Strategic Change Interventions:

• Organization design, • Built to change organization,

• Integrated strategic change, • Mergers and Acquisitions Integration,
• Cultural Changes, • Strategic alliance intervention,
• Self-designing organization, • Network Interventions.
• Organizational Learning and
Knowledge Management,

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Organization design

• Organization design interventions address the different elements that comprise the
“architecture” of the organization, including structure, work design, human resources practices,
and management processes.
• In either domestic or worldwide settings, organization design aligns these components with the
organization’s strategy and with each other so they mutually direct behavior to execute the
strategy.

Integrated strategic change:

• This comprehensive OD intervention describes how planned change can make a value-added
contribution to strategic management.
• It argues that business strategies and organizational systems must be changed together in
response to external and internal disruptions.
• A strategic change plan helps members manage the transition between a current strategy and
organization design and the desired future strategy and design.

Culture change:

• This intervention helps an organization develop a culture (behaviors, values, beliefs, and
norms) appropriate to its strategy and competitive environment.
• It focuses on developing a strong organization culture to keep organization members pulling in
the same direction.

Dynamic strategy making:

• This intervention helps organizations build a strategic system that can adapt continually to
changing conditions.
• It involves both the content (the “what”) of strategy formulation and the process (the “how”
and “who”) of strategy implementation.

Self-designing organizations:

• This change program helps organizations gain the capacity to alter themselves fundamentally.
• It is a highly participative process involving multiple stakeholders in setting strategic directions
and designing and implementing appropriate structures and systems.
• Organizations learn how to design and implement their own strategic changes.

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Learning organizations:

• This intervention involves increasing the organization’s capability to acquire and develop new
knowledge, including how that knowledge can be organized and used to improve organization
performance.
• These changes enable organizations to move beyond solving existing problems to learn how to
improve themselves continuously.

Built-to-change organizations:

• This approach to continuous change challenges the traditional assumption that stability is the
key to organizational success.
• Built-to-change organizations, on the other hand, assume that the source of effectiveness is the
ability to change continuously.
• The features, skills and knowledge, and processes of leading and managing these adaptable
organizations are paramount here.

Mergers and acquisitions:

• This intervention describes how OD practitioners can assist two or more organizations to form
a new entity.
• Addressing key strategic, leadership, and cultural issues prior to the legal and financial
transaction helps to smooth subsequent operational integration of the organizations.

Alliances:

• This collaborative intervention helps two organizations pursue common goals through the
sharing of resources, including intellectual property, people, capital, technology, capabilities,
or physical assets.
• Effective alliance development generally follows a process of strategy formulation, partner
selection, alliance structuring and start-up, and alliance operation and adjustment.

Networks:

• This intervention helps to develop relationships among three or more organizations to perform
tasks or solve problems that are too complex for single organizations to resolve.
• It helps organizations recognize the need for partnerships and develop appropriate structures
for implementing them.
• It also addresses how to manage change within existing networks.

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