Program- MBA 4th Semester

Module - 3
Course : (Organization Change and Development Management)
TOPIC: Planned Change: Introduction
LECTURE

SHORYA GUPTA
ASSITANT PROFESSOR

SCHOOL OF MANAGEMENT,
ITM UNIVERSITY
 Contents

1. Planned Changes

2. Process of planned changes

3. Action Research Model

2
 LEARNING OUTCOME

• Understand the concept and significance of planned changes in

organizations.
• Analyze the step-by-step process involved in implementing planned
changes.
• Apply the Action Research Model to diagnose and solve organizational
challenges.
• Evaluate the effectiveness of planned change initiatives using systematic
approaches.
 STARBUCKS DIGITAL INNOVATION
Background
Starbucks, a global coffeehouse chain, identified the need to enhance
customer experience and streamline operations through digital
transformation.
Planned Change
The company introduced mobile ordering and payment through its Starbucks
app, allowing customers to order and pay before arriving at the store. This
initiative aimed to reduce wait times, improve convenience, and increase
customer loyalty.
Implementation
1. Mobile App Development – Starbucks upgraded its app with mobile order
and pay features.
2. Store Process Optimization – Baristas were trained to handle mobile orders
efficiently.
3. Loyalty Program Integration – The system was linked to Starbucks Rewards
for personalized offers.
Outcomes
• Increased Sales: Mobile orders accounted for over 20% of transactions in
key markets.
• Improved Customer Experience: Reduced wait times and enhanced
convenience.
• Operational Efficiency: Streamlined order processing and better demand
forecasting.
Conclusion
• Starbucks’ digital innovation transformed its service model, setting a
benchmark for integrating technology in retail.
• The transformation wasn’t without resistance. Some senior employees
feared job losses due to automation. Understanding their concerns, she
ensured that upskilling programs were introduced, teaching them how to
work alongside new systems rather than be replaced by them. When they
saw their own productivity increase, many became advocates of the change
themselves.
• Two years later, FabWear was unrecognizable. Digital tools streamlined
operations, e-commerce became a significant revenue stream, and employee
morale was at an all-time high. What began as a hesitant shift had turned
into a cultural transformation.
• Nandita never saw herself as a change agent when she first stepped into
FabWear’s office. But through patience, persistence, and a deep
understanding of people, she had turned resistance into momentum, proving
that real change doesn’t come from authority alone—it comes from inspiring
others to believe in a better way.
• .
PLANNED CHANGES
A planned change is a change planned by the organization it does not
happen by itself. It is affected by the organization with the purpose of
achieving something that might otherwise by unattainable or attainable
with great difficulty. Through planned change, an organization can achieve
its goals rapidly. The basic reasons for planned change are .
• To improve the means for satisfying economic needs of members
• To increase profitability
• To promote human work for human beings
• To contribute to individual satisfaction and social well being.
The planned change process may comprise following three steps:
• a) Planning For Change:
• The first step in the process of change is to identify the area of changes as
to group cohesion, dedication, and loyalty to the organizations as well as
whether it is a strategic change, process oriented change or employee
oriented change. This need for change can be identified either through
internal factors or through external factors. Once this need is identified, the
following general steps can be taken.
• (i) Develop New Goals and Objectives: The manager must identify as to
what new outcomes they wish to achieve. This may be a modification of
previous goals due to changed internal and external environment or it may
be a new set of goals and objectives
(ii) Select an Agent of Change: The next step is that the management must
• decide as to who will initiate and oversee this change. One of the existing
managers may be assigned this duty or even sometimes specialists and
consultants can be brought in from outside to suggest the various methods
to bring in the change and monitor the change process.
(iii) Diagnose the Problem: The person who is appointed as the agent of
• change will then gather all relevant data regarding the area or the problem
where the change is needed. This data should be critically analyzed to
pinpoint the key issues. Then the solutions can be focused on those key
issues.
• (iv) Select Methodology: The next important step is selecting a
methodology for change which would be commonly acceptable and correct.
As the human tendency is to resist the change, employee’s emotions must
be taken into consideration when devising such methodology.
(v) Develop a Plan: After devising the methodology, the next step will be to
• put together a plan as to what is to be done. For example, if the
management wants to change the promotion policy, it must decide as to
what type of employees will be affected by it, whether to change the policy
for all the departments at once or to try it on a few selected departments
first.
• (vi) Strategy for Implementation of the Plan: In this stage, the
management must decide on the ‘when’, ‘where’ and ‘how’ of the plan.
This include the right time of putting the plan to work, how the plan will
be communicated to the employees’ in order to have the least
resistance and how the implementation will be monitored.
• b) Assessing Change Forces:
• The planned change does not come automatically rather there are many
forces in individuals, groups and organization which resist such change.
• The change process will never be successful unless the cooperation of
employees is ensured. Therefore, the management will have to create
an environment in which change will be amicably accepted by people.
Action Research Model

The Action Research Model (ARM) is a structured approach to organizational

change that emphasizes continuous problem-solving, data-driven decision-
making, and active participation of employees. It is a cyclical process where
organizations identify problems, develop and implement solutions, and evaluate
the effectiveness of those solutions. This model is widely used in organizational
development (OD) and is especially effective in improving workplace processes,
enhancing productivity, and fostering collaboration.

1 Problem identification: This stage usually begins when an executive in the

organization or someone with power and influence senses that the organization
has one or more problems that might be solved with the help of an OD
practitioner.

Example: A retail company observes that employee engagement is declining,

leading to high turnover rates.
2. Data gathering and preliminary diagnosis: This step is usually completed by
the OD practitioner, often in conjunction with organization members. It involves
gathering appropriate information and analyzing it to determine the underlying
causes of organizational problems.

The organization collects qualitative and quantitative data through surveys,

interviews, and observations to analyze the root causes of the problem.

Example: The HR team conducts employee satisfaction surveys and holds focus
group discussions to understand the reasons for disengagement.

3. Data Analysis and Feedback: The diagnostic data are fed back to the client,
usually in a group or work-team meeting.

The feedback step, in which members are given the information gathered by the
OD practitioner, helps them determine the strengths and weaknesses of the
organization or unit under study
• The collected data is analyzed to identify trends and patterns. The findings
are shared with key stakeholders.Example: Analysis reveals that lack of
career growth and ineffective leadership are major reasons for employee
disengagement.
4. Action Planning
• Based on the insights gained, the organization develops an action plan to
address the identified issues.
• Next, the OD practitioner and the client members jointly agree on further
actions to be taken.
• This is the beginning of the moving process (described in Lewin’s change
model), as the organization decides how best to reach a different quasi-
stationary equilibrium.
• At this stage, the specific action to be taken depends on the culture,
technology, and environment of the organization; the diagnosis of the
problem; and the time and expense of the intervention.
Example: The company decides to introduce mentorship programs, leadership
training, and a career progression framework.
5. Action. This stage involves the actual change from one organizational
state to another. It may include installing new methods and
procedures, reorganizing structures and work designs, and
reinforcing new behaviors. Such actions typically cannot be
implemented immediately but require a transition period as the
organization moves from the present to a desired future state.
• The planned interventions are executed, ensuring that all employees
are involved in the change process.Example: The company launches a
structured mentorship initiative where senior employees guide
junior staff, and a leadership training program for managers.
• Data gathering after action. Because action research is a cyclical process,
data must also be gathered after the action has been taken to measure and
determine the effects of the action and to feed the results back to the
organization.
• The effectiveness of the implemented changes is evaluated through follow-
up surveys, performance metrics, and feedback sessions.Example: After six
months, HR conducts another employee engagement survey and finds that
employee satisfaction scores have improved by 25%.