Management Theory and

Practice

Chapter seven
Organizational change and
development

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 Objectives
• After studying this chapter, you should be able to:
 Define the meaning of change
 Explain the need for change
 Identify forces that act as stimulants to change, and
 Contrast planned and unplanned change.
 List the forces for resistance to change.
 Know the models of change
 Understand the meaning of organizational Development
and its significances in the change process
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“We cannot become what we
want to be by remaining what we
are.” – Max DePree

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 7.1. Defining Change

 Change is an inescapable part of both social and

organizational life
 Change in its broadest sense, is a planned and unplanned
response to pressures and forces.
 The process of moving an organization from a problem state (
How things are done today), through a transition state to a
solved state (the new process, systems, organizational
structures or job roles….)
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 Cont’d…
 Organizational change is defined as “the process of
altering, modifying or transforming one state,
condition, or phase of an organization to another”
 Organizational change refers to “the way an
organization adapts to its external and internal
environment”
 Organizational change involves attempts to modify
organizational structure, procedures or processes
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 Cont’d…
The process of alteration or transformation of:

• INDIVIDUALS
• GROUPS, and
• ORGANAZATIONS
in response to internal and external forces

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 7.2. The Nature of Change

 Change has always been part our life

 Change is a process not a destination

 It never ends

 The only constant is change

 Change can involve any aspect of the organization

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Need for change

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 7.3. Why Change?

Purpose of Change
 To meet changing customer needs
 To take advantage of new opportunities
 To meet changing market conditions
 To respond to internal pressures
 To respond to competitive pressures

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7.4. Effectiveness of Change
Not all changes are actually effective. Some
changes may fail.
Effectiveness of change is going to be seen when
the following points are achieved.
Change is achieved when the organization is
moved from a less desired state to a more
desired one; and the indicators for this are:
Organization meets planned expectation
No undue costs to the organization
No undue costs to the individuals

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7.5. Why Change programs fail?
 Change programs are common but research
indicates that two-thirds of all
organizational changes fail
 Several of the most common reasons for
failed change programs include:
 lack of commitment from the top
 change overload
 lack of incentives tied to the change
initiative
 lack of training
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Cont’d…
 Communication breakdown
 lack of space and support

 unclear objectives

 lack of performance measures, and

 underestimating emotions

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 Reflection Question
What are the forces for change ?
Please list them
_________________________________________
_________________________________________
_____________________

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7.6. Forces for change

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 7.7. Forces for Change
 External Forces  Internal Forces
 Globalization  Declining organizational
 Workforce diversity effectiveness
 Governmental laws and  Strike or walkouts
regulations  Change in organizational
 Technology strategy
 Labor Market  Change in employees
 expectations
Economic and social
changes  Change in skills and
 education of employees
Market place competition
 New Equipment
 Labor surplus or shortage
 Change in work climate
 Workforce composition 15
 7.8. Types of Changes
1) Planned Change and
2) Unplanned Change
 Planned Change: resulted from deliberate decision to
change/alter the organization.
 Unplanned Change: Unexpected results of some large
scale forces beyond local control.
 It is often unexpected
 Reactionary
 Unanticipated
 Response to outside influence
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 Cont’d…
 One of the major differentiating traits of planned
and unplanned change is the source of the change.
 Planned change comes from within the
organization, usually from the management,
however, unplanned change is influenced by
factors outside of the organization 's control.

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Key Questions in a Planned
Change

In planned change, key questions to be

answered are:
 What do we want to achieve?

 Why are we inducing change?

 How do we plan to make that happen?

 What consequences do we anticipate from

the change?

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 7.9. Scope of Change

 Small Scale (Incremental Change):

 Minor modification in a work procedures
 Large Scale Change (Strategic
Change):
 Restructuring of the organization
 Organizations move from the older state
to a known new state during a controlled
period

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 Cont’d…
 Transformational Change :
 Organizations move to radically to
different and some times unknown
state.
 Organizational mission, culture, goals,
move to a radically different state
 Structure and leadership may change
dramatically

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7.10. Lewins’s Models of Change
Management
 Lewin’s Change Model
 One of the earliest models of planned change was
provided by Kurt Lewin. Lewin’s model provides a
general framework for understanding
organizational change.
 Kurt Lewin suggests that efforts to bring about
planned change in an organization should
approach change as a multistage process. This
model of planned change is made up of three
steps:
• Unfreezing
• Change/Moving
• Refreezing
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 Cont’d…

 Kurt Lewin has developed a way looking at

change:

( Force Field Analysis)

Lewin identified two forces that affect change:

 Driving Forces: Forces favoring Change

 Restraining Forces: Forces opposing Change

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 Cont’d…
 Driving Forces
– Forces that direct behavior away from
the status quo
 Restraining Forces
– Forces that hinder movement from the
existing equilibrium

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Cont’d…

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Cont’d

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 Cont’d…
When these opposing forces are equal,

no change in the status quo

When driving forces increase and / or the

restraining forces reduced,

change will occur

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Changing People: Some Basic
Steps
Step 3: Refreezing
Incorporating the changes,
creating and maintaining a
new organizational system
Step 2: Changing
Attempting to at e
create a new state St
ew
of affairs N

Step 1: Unfreezing
Recognizing the
at e
need for change St
n t
r r e
Cu 1-27
 UNFREEZING
 This step usually involves reducing those forces
maintaining the organization’s behavior at its
present level.
 By introducing information that shows
discrepancies between behaviors desired by
organization members and those behaviors
currently exhibited, members can be motivated
to engage in change activities.
 Finding a method of making it possible for
people to let go of an old pattern that was
counterproductive.
 The stage where the desire to change occurs.
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Cont’d…
 The more transparent and inclusive the process
is, the more readily people move through this
stage.
 Preparing the organization for the change that
is about to take place
 Communication about reasons for change can
be
 Declining sales,
 poor customer service scores,
 high employee turnover

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 CHANGE
 Change in thoughts, feelings, behavior, or all
three that is more productive in some way.
 New structures and processes are put in place
to achieve the desired improvements
 This is the most time-consuming, costly, yet
productive stage.

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 REFREEZING

 Establishing the change as a new habit or

process.
 Rewards, support, and champion leadership
is important through this stage.
 The changes are “frozen” in place to ensure
that they become part of normal working
procedures.
 Establish supportive mechanisms such as
policies, rewards, ongoing support, and a
solid orientation for new employees.
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Kotter’s Eight-Step Plan
• Builds from Lewin’s Model
• To implement change:
1. Establish a sense of urgency
2. Form a coalition Unfreezing
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
Movement
6. Create and reward short-term “wins”
7. Consolidate, reassess, and adjust
Refreezing
8. Reinforce the changes

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 a n c e t o
Resi st
ch a n g e

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 7.11.Resistance to Change
 Why do people resist Change?

__________________________________________________
_______________________________________________
__.
 Resistance is an attitude or behavior that
indicates unwillingness to make or support a

desired change?

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Cont’d…
 Resistance to change may come from the
individuals and the organizations
 Individual Resistances: Reasons for individual
resistance to change:
 Obsolescence of skills

 Fear of economic loss

 Status quo

 Fear of the unknown

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Cont’d…

Individual Resistances………..
Social displacement

Peer pressure

Habit

Inconvenience or loss of freedom

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Cont’d…

Organizational Resistance
Some of the main reasons for organizational
resistance against change are:
Organizational Culture

Maintaining Stability

Investment in Resources

Threats to power and Influence

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Overcoming Resistance to
Change
Valuable ways of overcoming resistance to change:
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and Cooption
Coercion (forcing someone to do some thing)

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Cont’d…
 Manipulation and Cooption …….
 withholding undesirable information, and
creating false rumors to get employees to
accept a change are
all examples of manipulation.
 co-optation refers to the process of adding
members to a group, project or committee,
often with the intention of overcoming that
person's resistance to the group's policies.
 Coercion (forcing someone to do some thing)
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7.12. Overview of Organizational
Development
Organization- two or more
people working together toward
one or more shared goals.

 Development in this context is the

notion that an organization may
become more effective over time at
achieving its goals.
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Cont’d…
 OD is an effort:
1. planned,
2. organization wide, and
3. managed from the top, to
4. increase organization effectiveness and
health through planned intervention in
the organizations “processes,” using
behavioral-science knowledge.

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Cont’d …
 OD is a response to change, a
complex educational strategy
intended to
 change the beliefs, attitudes, values,
and structure of organizations
 so that they can better adapt to
new technologies, markets, and
challenges…

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OD Objectives and values
 The OD paradigm values human and
organizational growth, collaborative and
participative processes, and a spirit of
inquiry.
 The change agent may be directive in
OD; however, there is a strong emphasis
on collaboration.
 Concepts such as power, authority,
control, conflict, and coercion are held in
relatively low esteem among OD change
agents.
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Cont’d …
The following briefly identifies the
underlying values in most OD efforts.
 Respect for people. Individuals are
perceived as being responsible,
conscientious, and caring. They should
be treated with dignity and respect.
 Trust and support. The effective and
healthy organization is characterized by
trust, authenticity, openness, and a
supportive climate.

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Cont’d …
 Power equalization. Effective
organizations deemphasize hierarchical
authority and control.
 Confrontation. Problems shouldn't be
swept under the rug. They should be openly
confronted.
 Participation. The more that people who
will be affected by a change are involved in
the decisions surrounding that change, the
more they will be committed to
implementing those decisions.
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Primary Distinguishing
Characteristics of OD
 OD focuses on culture and processes
 Specifically, OD encourages
collaboration between organization
leaders and members in managing
culture and processes
 Teams of all kinds are particularly
important for accomplishing tasks and
are targets for OD activates.
 OD focuses on the human and social
side of the organization and in so doing
also intervenes in the technological and
structural sides.

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Cont’d …
 Participation and involvement in problem
solving and decision making by all levels
of the organization are hallmark of OD
 OD focuses on total system change and
views organizations as complex social
systems.
 OD practitioners are facilitators,
collaborators, and co-learners with the
client system.

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Cont’d …
 An overarching goal is to make the client
system able to solve its problems on
its own by teaching the skills and
knowledge of continuous learning
through self-analytical methods.

 OD views organization improvement

as an ongoing process in the context
of a constantly changing
environment.
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Cont’d …
 OD rely on an action research
model with extensive
participation by client system
members.
 OD takes a development view that seeks
the betterment of both individual and
the organization. Attempting to create
“win-win” solutions are standard
practice in OD programs.

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Any Questions

?
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