Managing Change

Nature of Organizational Change

Organization

Any substantive modification to some part of the

organization (e.g., work schedules, machinery,
employees).

Forces

Change

for Change

External forces
Internal forces.

Nature of Organizational Change

(contd)
Planned

Change that is designed and

implemented in an orderly and
timely fashion in anticipation of
future events.

Reactive

Change

Change

Change that is a piecemeal

response to events and
circumstances as they develop.

Change Process in Organization

Steps

in the Change Process (Lewin Model)

Unfreezing
Individuals

Implementing change
The

must be shown why the change is necessary.

change itself is implemented

Refreezing
Involves

reinforcing and supporting

the change so that it becomes a
permanent part of the system.
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Areas of Organization Change

Organization Structure
and Design
Job design
Departmentalization
Reporting relationships
Authority distribution
Coordination
mechanisms
Line-staff structure
Overall design
Culture
Human resource
management

People
Abilities and skills
Performance
Perceptions
Expectations
Attitudes & Values
Technology and
Operations
Information technologies
Equipment
Work processes
Work sequences
Control systems
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Resistance to Change

People Resist Change Because of:

Uncertainty about the extent and effects of change.
Threats to self-interests and power and influence.
Different perceptions of change effects and outcomes.
Feelings of loss in power, security, existing procedures.
Overcoming Resistance to Change
Encourage active participation in the change process.
Provide education and communication.
Facilitate the change process
Allowing time to adapt to change.
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Understanding Resistance to Change (contd)

Force-Field Analysis for a Plant Closing
Reasons for Closing

Reasons Against Closing

Need to cut costs

Resistance from unions

Plant
Excess capacity

closing

Outmoded production facilities

Concern about worker welfare

Possible future needs

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Organizational Development(OD)

Organizational Development(OD)

A planned, organization-wide effort, managed

from the top, that is intended to enhance the
organizational effectiveness.

OD Assumptions

Employees desire to grow and develop.

Employees have a strong need.
Individuals will influence the organization and the
organization will influence the attitudes, perceptions
behaviors, and expectations of individuals.

Organization Development Techniques

Team Building
Survey Feedback
Education
Intergroup Activities

Career Planning
Coaching and
Counseling
Planning and Goal
Setting