Organizational Change

By:Eshant JainSarang BharadwajYash MehtaDushyant Chourey

Definition:

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

• When an organization system is disturbed by some internal or external forces change frequently occur or any alteration which occur in the overall work environment of an organization.

Characteristics Of Organizational Change

• Changes happen for the pressure of both internal & external forces in the organization.

• Change in any part of the organization affect the whole organization.

• Change may affect people, structure, technology & other element of the organization.

• Change may be reactive or proactive.

Forces for Change

• INTERNAL FORCES:• Organizational Objective: With a change in organizational objectives,

it’s structure too needs to be changed. Ex: ITC Ltd

• Work Force: With new procedures & methods, the standards of work performance have charged with a new sense of expectations both on part of the individual and the organization.

• Machinery & Equipment Management: There may be machinery and technological upliftment which requires the workforce to change and adapt.

• Managerial Behavior: Inappropriate leader behavior may result in employee problems requiring change.

Forces for Change

• EXTERNAL FORCES:• Technology: Organizations are increasingly using technology as a means to improve

productivity and market competitiveness

• Marketing conditions: Organizations are forging new partnerships & alliances aimed at creating new products & services.

• Social changes: Society & its legislative bodies can put pressure on organizations to change the way they do business- Ex- Tobacco industry

• Competition: Change in policy of the global competitors may force a company to change it own working. The policies may include mergers & growth of e-commerce

The Evolution Of Starbucks

• In the beginning they had only just a shop that sold some selected coffee beans.

• Now Starbucks was the biggest coffee chain network in the world with more than 15000 shops in over 44 countries.

Change Agents

• A person in organization responsible for managing change activities.

• Can be managers or non managers, current employees, newly hired employees or outside consultants.

Lewin’s Three-Step Model

Unfreezing

Moving Refreezing

Kurt Lewin

Coca-Cola Is Finding a New Fizz

ExperiencingStrategic OB

Coca-Cola is changing its culture, andalso enhance its product line to bettersatisfy the demand of customers.

Speed of Change

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Degree o

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Financial and other

resourcesCompetitive environment

Urgency

Criteria toConsider

Resistance to Change

Effort to block new ways of doing things

1) Individual Resistance

2) Group Resistance

3) Organizational Resistance

Individual Resistance

Below are stated some reasons why people resists changes. Some of these appear to be rational or emotional. These reasons are:-

• Economic factors

• Habits

• Insecurity

• Lack of communication

• Psychological factors

• Social factors

Group Resistance

Most organizational changes have impact on formal groups in the organization the main reason why the

groups resists change is that they fear that their cohesiveness or existence is threatened by it.

Organizational Resistance

Organizational resistance means the change is resisted at the level of the organization itself. Some organization are so

designed that they resist new ideas, this is specifically true in case of organization which are conservative in nature. Majority of the business firm are also resistance to changes. The major

reason for organizational resistance are:-

• Threat to power

• Group inertia

• Organizational structure

• Threat to specialization

• Resource constants

Minimizing Resistance to Change

• Communication• Training• Employee involvement• Stress management• Negotiation• Coercion

Communication

• Resistance can be reduced through communicating with employees to help them see the logic of change

• Highest priority and first strategy for change, i.e. the source of resistance lies in misinformation or poor communication

• Improves urgency to change• Reduces uncertainty (fear of unknown)• Problems -- time consuming and costly

Training

• Provides new knowledge and skills• Includes coaching and action learning• Helps break old routines and adopt new roles• Problems -- potentially time consuming and costly

Employee Involvement

• When employees are involved in the change effort, they are more likely to buy into change rather than resist it.

• Increases ownership of change• Helps saving face and reducing fear of unknown• Includes task forces, search conferences• Problems -- time-consuming, potential conflict

Stress Management

• When communication, training, and involvement do not resolve stress, stress management techniques are used

• Potential benefits• More motivation to change• Less fear of unknown

• Problems -- time-consuming, expensive, doesn’t help everyone

Negotiation

• Managers can combat resistance by offering incentives to employees not to resist change.

• When people clearly lose something and won’t otherwise support change

• Influence by exchange-- reduces direct costs• Problems

• Expensive• Possibility of being blackmailed

Coercion

• Last on the list is Coercion; that is, the application of direct threats or force upon the resistors

• Assertive influence• Firing people, threats of transfer, loss of promotions,

negative performance evaluation -- radical form of “unlearning”

• Problems• Reduces trust• May create more strong resistance

Organizational Development

• Organizational development is a collection of change, methods that try to improve organizational effectiveness & employee well being.

• Following are the values in most OD efforts• Respect for people• Trust and support• Power equalization• Confrontation • Participation

Sensitivity Training

• An early method of changing behavior through unstructured group interaction.

• Members were brought together in free or open environment in which participants discussed themselves and their interactive process.

• Directed by a professional behavioral scientist who create the opportunity to express idea, belief and attitude without taking any leadership role.

Survey Feedback

• Survey feedback is completely a questionnaire about employee perception and attitude on a range of topics, including decision making practices, coordination among units, satisfaction with the organization

Process Consultation

• A meeting in which a consultant assist a client in understanding process events with which he or she must deal and identify process that needed improved

Team Building

• Typically includes goal settings, development of interpersonal relations among team members, role analysis to clarify each members role and responsibility

Intergroup Development

• Intergroup Development seeks to change group’s attitude, stereotypes and perception about each other.

• Here training sessions closely resemble diversity training.

• They focus on difference among occupations, departments or divisions within an organization.

Appreciative Inquiry

• An approach that seeks to identify the unique qualities and special strength of an organization which can then be built on to improve performance.

• AI focuses on an organization’s successes rather than its problem

THANK YOU!!!