Chapter – 10

Organizational Change and Development

10.1 Concept of Organizational Change (OC):

In general words, change is the process of shifting from one
state to another situation. It makes things different.

It refers to any change which occurs in over all work

environment of an organization due to change in external and
internal environment.

It is the concept of conversion from current state of the

organization to desired state.
A B C
Current state Transition State Desired future
Of the Org. state of the Org.

Organizational change is the process of modifying in

organizational structure, technology, work process,
rules, regulation, strategy, goals, plans, values, norms,
system, methods and physical conditions for the
development and growth of organization.
It is the process of learning and behaving
differently, in order to achieve new and better
outcomes by reordering the system structure
that drive behaviour.

OC occurs when business strategies or major

sections of an organization are altered

Organizational change is defined as change that

has an impact on the way work is performed
and has significant effects on staffs.
All other things in the universe are temporary but change is
permanent.

According to this statement change is a natural process which

makes things different.

It is not optional, it happens and it is universal. It is complex and

multi dimensional. Change is not overnight success of any
company it takes series of improvements.

Change management is collective term for all approaches to

preparing and supporting individuals, terms and
organizations in making organizational change.
- Wikipedia 2018
Organizational change is any substantive modification
to some part of the organization
- Ricky W Griffin (2014)

It is the process of moving from the present state to a

desired state that individuals, groups and organization
undertake in response to dynamic internal and
external factors that alter current realities.
- Kavita Sing (2010)

-
It is a framework for managing the effect of new
business process, change in organizational structure
or cultural changes within an enterprise.

From above definition it is clear that organizational

change refers to the modification on organizational
element (people, structure and technology) and
process to as to make easy to achieve the
predetermined goals.
10.2. Forces of Change:
A) External Forces (General Environment)
1) Political Forces- political parties, political
philosophy, formation of government, role of
opposition parties, political system, constitution,
political institutions etc.

2) Economic Forces- Economic system, economic

policies, exchange rate, privatization, globalization,
regional and international groups, purchasing
capacity, income level, inflation etc.
3) Legal Forces- Legal system, Decision of court, Law,
Act, rules and regulation etc

4) Socio- cultural Forces- social norms, values,

costumes, population, density, education, language,
size of family, lifestyle, age of people, ethnicity,
expenditure, behaviour, attitude, beliefs etc.

5) Technological Forces: Level of technology, pace of

technology, Transfer of technology, Research and
development etc.
B) External Forces (Task Environment):
1) Customers- need, desires, purchasing power,
types of customers.
2) Competitors- price, discount, warranty, guaranty,
after sales services of competitors
3) Suppliers- Behaviour of wholesaler, Retailer,
Agent, Mediator etc.
4) Labour Forces-
5) Pressure Groups- Human Rights Group, Women
Empowerment Group, Students Groups,
Consumer Rights Protection Group etc.
C) Internal Forces
1) Organizational Goal and Strategy
2) Organizational Culture
3) Organizational Structure
4) Nature of the Workers
5) Availability of Resources
6) Workforce Diversity
7) Working Environment
10. 3 Resistance to Change
Organizational change is not an easy or one day task. It
is difficult and costly act.

With the rate of technological growth and the global

economy the change is becoming normal state of
business.

It is human nature at first people reject change. They

create resist with new changing environment. it
makes uncertainty. Therefore, the resistance factors
are given below:
A) Individual Resistances: Due to the individual attitudes,
values, beliefs and desires of the employees they create
resistance to the change. They are give below:
1) Habit
2) Security
3) Economic factors
4) Fear of unknown
5) Personality
6) Perception
7) Threats to the power
B) Organizational Resistances: Due to organizational
structure, culture, strategies, policies can be create
resistance in to the organizational change. Some
organizational resistances are given below:
1) Organizational structure
2) Organizational culture
3) Threat of experts
4) Threat to established power relationship
5) Threat to established resource allocation
6) Group idleness
7) Limited focus to change
10.4. Approaches to Managing Organizational Change
Many psychologists and specialists explained various types of
concept to managing organizational change. Among them
three special approaches are explained as below:

1) Lewin's Three Step Model of Change:

This approach was developed by Psychologist Kurt Lewin in 1951.
This model helps to understanding how to manage a change.
For this, he purposed following three steps for managing
change successfully.
Start Transition Continuity
Unfreezing Movement Refreezing
1) Unfreezing: It is the situation in which manager
prepares the condition for change. It helps to
breakdown overcome the individual resistance and
group conformity (traditional values) to move from
status quo -oyfjl:ylt_
It means it is the stage of changing human beliefs,
values, attitudes and behaviour . It is prepares to
dismantle the existing situation.
Unfreezing stage occurs when the driving forces are
stronger than the resisting forces. Unfreezing is
possible by following three ways:
i) Increasing driving forces: The forces that directed to
the employees towards change are called driving forces. An
organization can increase driving force by selection of
qualified human resources, formation of new goal, use of
modern technology, increase in competition, and higher
amount of standard etc. .
ii) Decreasing Restraining forces: The forces that created
obstacles to the change are known as restraining forces.
Management can decrease restraining forces by new
reward system, new learning system, change in
environment and motivation to the employees. .
iii) Mixed forces: change can be possible by both increasing
of the driving forces and decreasing of restraining forces.
2) Movement (Moving/Changing):
Movement is the condition which is transforms the
organization from the status quo to a desired end
state.
During this phase, driving forces start overcoming
restraining forces and organization moves from
previous state to the desired state with change.
It involves developing new behaviours, values and
attitudes through change in organizational structures
and processes.
People start to believe and act in ways that support the
new direction.
This stage involves action to bring change or to
modify in terms of changing task structure,
people and technology in an organization.

The change agent work for organizational

change. It is the stage of a change procedure
that coverts the organization from the standing
position to a desired finish form.
3) Refreezing
This is more permanent stage in which change is
stabilized and employees have accepted and
implemented the change.
In this stage the organization attain the changed
state and it establish the position of change.
Organization starts to work in normalization after
change.
. It is integrates new behaviour into the person's
personality and attitude.
It creates a sense of stability, confidence and
comfortless in the new working setting.
2) Kotter's Eight Step Plan for Implementing Chang e:
This approach was developed by Professor of
Harvard Business School John P. Kotter in
1996 on the basis of Lewin's Three Step
Model. He purposed following eight steps
for managing change.

1) Increasing Urgency: This step is establish a

sense of urgency by creating a compelling
(forceful) reason for why change is needed.
2) Build the Guiding Team (Coalition): This step is
concern with form a coalition with enough
power to lead the change.

3) Get the Right Vision: It is the step of creating a new

vision to direct the change and strategies for achieving
the vision.

4) Communication of Vision: It is the step of

transmitting and exchanging the vision frequently
and powerfully to the organization.
5) Empowerment: In this step the
organization empower others to act on the
vision by removing barriers to change and
encouraging risk taking an creating problem
solving.

6) Create Short Term wins (Reward): In

this step organization plan for, create and
reward short term wins that move the
organization toward the new vision.
7) Don't Let Up (Consolidation) In this step
the organization consolidate improvement
reconsider changes and make necessary
adjustment in the new program

8) Make it Stick (Reinforcement): The

organization reinforce the changes by
demonstrating the relationship between
new behaviour and organizational success.
3) Action Research:
This approach is concerned with continuous gathering and
analyzing of research data during normal ongoing
operations of an organization. It is one of the most
effective research which diagnosis the problem issues,
collects information and evaluates the information to
suggest best way to handle the change. This change
process consists of following five steps:

Diagnosis Analysis Feedback Action Evaluation

1) Diagnosis : This is the first step of action research
whereas identifies actual problem.
The change agent consults outside and begins gathering
information about the problem. In this process the
agent asks questions, reviews records and make
interview with employees and listens to their
concerns.
From this step, organization ensures the area of change
required.
2) Analysis: after diagnosis, action research is
forwarded to analysis of change. The change agent
creates information considering its nature, concern of
the employees, problem areas and possible actions.

Action research requires the people who will participate

in any change program to help identify the problem
and determine the solution.
3) Feedback: This is the step of idea sharing about above
mentioned first and second steps with employees. In
previous process what has been found it stated clearly and
provided feedback to the concerned groups.

4) Action: In this stage, employees develop action plans for

bringing about any needed change. Change agent and
employees take corrective actions in needed areas. The
employees and the change agent carry out the specific
actions they have indentified to correct the problem.
5) Evaluation: This is the final step of action
plan. In this step all the activities of action
research are evaluated the effectiveness of
programs.
It helps to get employee's satisfaction and
feedback for future actions. Successful
implementation of action plans help to
encourage employees and management to carry
out the changes in organization.
10.5. Concept of Organizational Development (OD):
Generally, Organizational development is the process of plan
based change and revision in to the organization. It is adjusting
the organization accordance to changing environment.

Organizational development is the act of furthering, advancing or

promoting the growth of an organizing. This technique is
designing changing plan and implementing them for additional
improvement in to the organization.

It is the process of developing and accessing interventions or

change techniques with the holistic development of individual,
group and overall organization.
It is the strategic or long term plan for development of all
over conditions of the organization. It is the long term
and broad effort in the area of organizational
modification.

According to Blake and Mouton "Organizational

development is a systematic method of introducing
change.

According to Fisher "OD is a planned and systematic

process of organizational change based on behaviour
science research and theory.
According to Griffin and Moorhead " Organizational
development is the process of planned change and
improvement of the organization through application
of knowledge of the behavioural science.

In conclusion, It is the well managed procedure for

plan based change and improvement with the help of
change principles and techniques.
10.6. Characteristics of Organizational Development
(OD)
1) Long term effort
2) Broad change
3) Vision based
4) Systematic approach
5) Dynamic process
6) Research based
7) Socio-psychological based
8) Problem based
9) Use of change agent
10) Team based
11) Learning based
10.7. Organizational Development Values
The main aims of OD is to make overall change in
organizational structure. It is possible with
collaborative effort of top management and employees
from each department and units. It is based on certain
morals or principles which are called OD values. The
organizational development process is always guided
by following values:
1) Respect to People: OD creates harmonious relation
between all people. It helps to feel dignity and self-
respect. Individual perceives as responsible,
conscientious and caring. This improves team work
2) Trust and Support: OD makes mutual trust,
openness and supportive environment in the
organization. Therefore, each individuals gets and
provides suggestions. They support to each other to
attain goals of change.

3) Power Equalization: Effective OD process

emphasizes in power sharing for employees
empowerment. In order to effective implementation of
organization development, organization should be
highlights on lowering down hierarchical authority
and control.
4) Employee Participation: OD becomes possible with
collaborative approach. The participation of
employees effects the implementation of the OD
process. The more participative employees they more
will be engaged in the development activities.

5) Confrontation: A confrontation is the direct

expression of one's thoughts and feelings of the
conflict situation. Creative confrontation provides
opportunities. Thus, OD provides environment of
creative confrontation.
6) Employee well-being: OD is based on good human
relation. It always thinks for overall well being of
employees. Spiritual, cogitative and physical upgrading is
planned along with planning for change.

7) Sprit of Inquiry: OD is a continuous dynamic process.

it is based on a spirit of inquiry. It requires reliable,
complete and up to date information.

8) Growth: OD emphasizes on creative opportunities for

growth. It gives pressure to assigning personal
responsibility and self control to workers. . It aims at
making an individual more independent and more
creative.
10.8. Organizational Development Interventions
OD interventions are actions to implement enable
planned change and to support the organizational
system in problem solving competencies.

They are the techniques or approaches of OD. Main aims

of OD interventions is to improve performance level of
organization, group and individual levels. The major
OD interventions are given below:
A) Individual Level Interventions:
OD interventions at individual level is focuses to improve
ability and motivation of the individuals. They can be
classified into different forms:

1) Counseling: Some of the employees may be unaware

regarding change. They may have low confidence on
their ability and skills. Some of them may not identify
or realize the low level of performance and cannot
identify alternative method of doing work. In Such
situation they require counseling and couching for
change.
2) Sensitivity Training: This method was developed by
Kurt Lewin in 1945. It emphasizes to trains team
members with an objective of OD.
It puts the employees in such a situation, where they
exchange of ideas, opinions beliefs and personal values
among themselves and develop structure relations and
learn from each other.
This training promotes the growth and development of
individuals and behaviour changes.
3) Survey Feedback: This technique is used to review
discrepancies among the organizational members in
their perceptions, feelings and attitudes through
questionnaire survey.

If any deficiency is noticed after the survey correction

will be made to stabilize the change process in the
organization.
4) Career Planning: It is the process of putting an
individual employee under their seniors, managers or
experts from the HR department on career issues.

It creates the development process for the individuals

after having a sense of career goals.

This process leads to mapping of the career goals,

identification of the development needs and planning
for career progressions.
B) Group Level Intervention:
OD interventions at the group level are designed to
improve group effectiveness such as interpersonal
relationship among team members, clarify each
member's role and responsibilities. Some group level
interventions are explained as below:

1) Team Building: This process involves high

interaction among team members to increase trust
and openness. It identifies and motivates individuals
to form a team to stay together, work together and
achieves together.
2) Process Consultation: In this technique an
organization appointed outside consultant for assist
other groups.

This process observed communication patterns, decision

making, leadership style, methods of cooperation and
conflict resolution method among members and
groups.

The consultant plays the role of guide or a coach and

advisors on how these processes can be improved.
3) Inter group development: This technique is deals
with the intergroup issues. It seeks to change in groups
attitudes and perception

It deals with the improvement of communication and

interaction between work team or groups, counter
productive competition between the groups and
making the group work together .

It helps two or more group to come together for a bigger

cause.
3) Organizational Level Interventions: This
interventions are directed at improving
communication and coordination within the
organization.

It focuses on diagnosing and strengthening relations

between the organization and its external
environment. It has includes following types of
interventions.
1) Organizational Restructuring: It is the process by
which an organization changes its internal structure
by revamping departments, ownership, operations
and processes.

Change can be done on communication system,

authority relations, coordination mechanism,
procedures, work design, workgroup, reward system,
recruitment and selection and so on.
2) Technological Change: It creates new products and
process, increase efficiency and lower cost and helps in
economics. The firms are enjoying manual to
robotized technology.

3) Quality of Work Life (QWL): It is a process of work

organizations which enable its members at all levels to
actively participate in shaping the organizations
environment, methods and outcomes.
It consist of safety and healthy work environment,
adequate workplace, suitable layout, equitable reward
system, social integration and so on.