Organizational

Change
What is Organizational Change?

 The process by which organizations

move from their present state to
some desired future state to
increase their effectiveness
 Workforce
World
Technology
Politics
Forces For
Change
Social Economic
Trends Shocks
Competition
 General Model of Planned Change

Entering Planning Evaluating

and Diagno- and and
Contrac- sing Implemen- Institutiona-
ting ting lizing
 Different Types of Planned Change
 Type of Change
 Evolutionary
 Revolutionary

 Magnitude of Change
 Incremental
 Quantum

 What impact would these different types of

changes have on any change initiative?
 Managing Planned Change

Evolutionary Revolutionary
Change Change

Gradual Rapid

Incremental Dramatic

Narrowly-focused Broadly-focused
 Instruments of Change

Evolutionary Revolutionary
Change Change

Socio-tech systems Re-engineering

TQM Restructuring

Empowered work grps Innovation

Lewin’s Change Model

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

 Lewin’s Change Model

Unfreezing - involves encouraging

individuals to discard old behaviors by
shaking up the equilibrium state that
maintains the status quo
Moving - new attitudes, values, and
behaviors are substituted for old ones
Refreezing - involves the establishment
of new attitudes, values, and behaviors
as the new status quo
Lewin’s Force-Field Theory of Change

 Theory of change which argues

that two sets of opposing forces
within an organization determine
how change will take place
 Forces for change and forces making
organizations resistant to change
 To change an organization, managers
must increase forces for change and
decrease forces resisting change
 Unfreezing the Status Quo

Desired
State
Restraining
Forces

Status
Quo
Driving
Forces

Time
Force Field Analysis
Driving forces Resisting forces

High perf. goals Group norms for

output
New equipment Familiar equipment
Competition Complacency
Employees with Need to learn
new skills new skills

Desire for Fear of reduced

higher rewards rewards

Current level Desired level

of group of group
performance performance
 Change & Resistance Forces
Resistance Forces

No Discontinuous
Strong
Change Change

Weak
Sporadic Continuous
Change Change

Weak Strong
Change Forces
Resistance to Change - Individual

Selective Force of
Information Habit
Processing

Individual

Fear of
the Unknown Need for
Security
Economic Factors
Resistance to Change-Organisation

Group Inertia
Threat to Structural
Existing Inertia
Relationships

Organizational

Threat to Limited
Existing Focus
Allocations Threat of Change
to Expertise
Employee Readiness for Change

Perceived Personal Risk from Change

Low High
Level of Dissatisfaction

Moderate to
High
with the Current

High readiness indeterminate

Situation

readiness

Moderate to
indeterminate Low readiness
readiness
Low
 Overcoming
Resistance to Change
Education and
Participation
Communication

Facilitation
Negotiation
and Support

Manipulation
Coercion
and Cooptation
 Managing Change: It’s Culture
Bound!
• Does culture influence change?
• Does culture influence resistance?
• Does culture influence
implementation?
• Does culture influence idea
champions / change agents ?
Requirements for Successfully
Changing Organizational Culture
 Understand the old culture first.
 Support employees and teams who have ideas for
a better culture and are willing to act on those
ideas.
 Find the most effective subculture in the
organization and use it as a model.
 Use the vision of a new culture as a guide for
change.
 Recognize that significant cultural change takes
time.
 Live the new culture.
Issues to Address in Changing
Organizational Culture
 Capitalize on dramatic opportunities.
 Combine caution with optimism.
 Understand resistance to cultural change.
 Change many elements, but maintain some
continuity.
 Recognize the importance of
implementation.
 Modify socialization tactics.
 Find and cultivate innovative leadership.
Initiatives Contributing to
Effective Change Management

Motivating Change

Creating a Vision

Developing Political Effective Change

Support Management

Managing the Transition

Sustaining Momentum
 Change Paradigm

 Things that do not change

 Things that change naturally

 Things that change constantly

 Things that need change