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Chapter 10

Types and Forms
of Organizational
Change
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Learning Objectives
1. Understand the relationship among
organizational change, redesign, an
organizational effectiveness
2. Distinguish among the major forms
or types of evolutionary and
revolutionary change organizations
must manage
3. Recognize the problems inherent in
managing change and the obstacles
that must be overcome
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What is Organizational
Change?
Organizational change: process by
which organizations move from their
present state (structure, system,
culture, etc.) to some desired future
state to increase their effectiveness
Goal is to find improved ways of using
resources and capabilities in order to
increase an organizations ability to
create value
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Organizational Change Areas
Targets of change include improving
effectiveness at four different levels
Human resources e.g. new skill development
Functional resources e.g. process redesign
Technological capabilities e.g. computerisation
IBM- IT consulting
Organizational capabilities e.g. Total Quality
Management
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Organizational Change Areas
What is required to be done ?
Human resources include:
1. Investment in training and development
2. Socializing employees into the organizational
culture
3. Changing organizational norms and values to
motivate a multicultural and diverse work
force
4. Promotion and reward systems
5. Changing the composition of the top
management team
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Organizational Change Areas
Functional resources - transferring
resources to the functions where the
most value can be created in
response to environmental change
Organizational capabilities - alter
organizational culture and structure,
thereby permitting the organization
to harness its human and functional
resources to exploit technological
opportunities.
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Forces for and Resistances to
Change
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Levin'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
When forces for and against change are
equal, the organization is in a state or
inertia
To change an organization, managers
must increase forces for change and
decrease forces resisting change

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Levin's Force-Field Theory of
Change
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Levin's Three-Step Change
Process
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Evolutionary and Revolutionary
Change in Organizations
Evolutionary change: change that
is gradual, incremental, and narrowly
focused
Revolutionary change: change
that is sudden, drastic, and broadly
focused
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Developments in Evolutionary
Change
Sociotechnical systems theory: a
theory that proposes the importance of
changing role and task or technical
relationships to increase organizational
effectiveness
Managers must fit or jointly optimize the
workings of an organizations technical
and social systems
Managers need to be sensitive to the fact
that the way they structure the work
process affects the way people and
groups behave
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Types of Evolutionary Change
Total quality management (TQM):
Quality circles: groups of workers who meet
regularly to discuss the way work is performed in
order to find new ways to increase performance
Changing cross-functional relationships is very
important to TQM
Flexible workers: employees who have
acquired and developed the skills to perform
any of the tasks necessary for assembling a
range of finished goods


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Types of Evolutionary Change
Flexible work teams: a group of
workers who assume responsibility for
performing all the operations
necessary for completing a specified
stage in the manufacturing process
Team members jointly assign tasks and
transfer workers from one task to another
Managers role is to facilitate the teams
activities

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Developments in
Revolutionary Change
Reengineering: involves rethinking
and redesigning business processes to
increase organizational effectiveness
Instead of focusing on an organizations
functions, the managers of a
reengineered organization focus on
business processes
Deliberately ignores the existing
arrangement of tasks, roles, and work
activities
Organize around outcomes, not tasks

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Types of Revolutionary
Change
E-engineering: refers to companies
attempts to use information systems to
improve their performance
Restructuring: changing task and
authority relationships and redesigning
organizational structure and culture to
improve organizational effectiveness
Downsizing: the process of streamlining
the organizational hierarchy and laying
off managers and workers to reduce
bureaucratic costs
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Types of Revolutionary
Change
Innovation: the process by which
organizations use their skills and
resources to:
Create new technologies
Develop new goods and services
Better respond to the needs of their
customers
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Managing Change: Action
Research
Action research: a strategy for
generating and acquiring knowledge
that managers can use to define an
organizations desired future state
Used to plan a change program that
allows the organization to reach that
state
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Action Research
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Organizational Development
(OD)
Organizational development (OD):
a series of techniques and methods
that managers can use in their action
research program to increase the
adaptability of their organization
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Organizational Development
(cont.)
OD techniques to deal with resistance
to change
Education and communication: inform
workers about change and how they will
be affected. WALMART- VIDEO
CONFERENCE
Participation and empowerment:
involve workers in change
Facilitation: help employees with change
Bargaining and negotiation
Manipulation: change the situation to
facilitate change
Coercion: force workers to accept change
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Organizational Development
(cont.)
OD techniques to promote change
Counseling: help people understand
how their perception of the situation may
not be right
May learn how to manage their interactions
with other people more effectively
Sensitivity training: intense counseling
in which group members, aided by a
facilitator, learn how others perceive them
and may learn how to deal more
sensitively with others
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Organizational Development
(cont.)
Techniques to promote change (cont.)
Process consultation: a trained
consultant works closely with a manager
on the job to help the manager improve his
or her interactions with other group
members
Consultant acts as a sounding board
Team building: an OD technique in which
a facilitator first observes the interactions
of group members and then helps them
become aware of ways to improve their
work interactions

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Organizational Development
(cont.)
Techniques to promote change (cont.)
Organizational mirroring: a facilitator
helps two interdependent groups explore
their perceptions of each other and their
relations in order to improve their work
interactions
Each group takes turns describing the other
group
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Organizational Development
(cont.)
Total organizational interventions
Organizational confrontation
meeting: brings together all of the
managers of an organization to meet to
confront the issue of whether the
organization is effectively meeting its
goals