Organization

Organization Change
Change

Organizational change is the process

through which an organisation moves from
the present state to an improved state.
Change management comprises three
elements: evolution of the firm, its
management and organization, and the
people who work for it.
Three levels of change are observed:
individual
level,
group
level,
and
organisations.

Nature
Nature of
of Change
Change

vital if a company were to avoid stagnation;

a process and not an event;
normal and constant;
fast and is likely to increase further in the present competitive
business;
directive, that is, implemented by top down management or
participative, that is, involving those parties impacted by change;
is natural, that is, evolutionary or adaptive, that is, a reaction to
external circumstances and pressures;
is incremental, that is continuous small changes or step, that is,
radical shift from current to new processes; and
is interdependent on organizational environment or culture. 3

Types
Types of
of change
change

Evolutionary change and revolutionary

change
Reactive change & proactive change

Forces
Forces for
for Change
Change
Force

Examples

Nature of the workforce

More cultural diversity

Aging population
Many new entrants with inadequate skills

Technology

Faster, cheaper, and more mobile computers

On-line music sharing
Deciphering of the human genetic code

Economic shocks

Rise and fall of stocks

Global economy slowdown

Competition

Global competitors
Mergers and consolidations
Growth of e-commerce

Forces
Forces for
for Change
Change
Force

Examples

Social trends

Internet chat rooms

Retirement of Baby Boomers
Rise in discount and big box retailers

World politics

IraqU.S. war
Opening of markets in China
War on terrorism following 9/11/01
Outsourcing noise

Managing
Managing Planned
Planned Change
Change
Change
Making things
different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume
the responsibility for
managing change
activities.

Goals
Goalsof
ofPlanned
Planned
Change:
Change:
Improving
Improvingthe
theability
abilityof
of
the
theorganization
organizationto
to
adapt
adaptto
tochanges
changesininits
its
environment.
environment.
Changing
Changingthe
thebehavior
behavior
of
ofindividuals
individualsand
and
groups
groupsininthe
the
organization.
organization.

Resistance
Resistance to
to Change
Change
Forms of Resistance to Change
Overt and immediate
Voicing complaints, engaging in job actions

Implicit and deferred

Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism
Deferred resistance clouds the link between source and
reaction

Sources
Sources of
of Resistance
Resistance to
to Change
Change

Sources
Sources of
of Individual
Individual Resistance
Resistance to
to Change
Change

Sources
Sources of
of Organizational
Organizational Resistance
Resistance to
to
Change
Change

Overcoming
Overcoming Resistance
Resistance to
to Change
Change
Tactics
Tacticsfor
fordealing
dealingwith
withresistance
resistance
to
tochange:
change:
Education
Educationand
andcommunication
communication
Participation
Participation
Facilitation
Facilitationand
andsupport
support
Negotiation
Negotiation
Manipulation
Manipulationand
andcooptation
cooptation
Coercion
Coercion

Tactics
Tactics for
for Overcoming
Overcoming Resistance
Resistance to
to Change
Change
Education and Communication
Show those effected the logic behind the change

Participation
Participation in the decision process lessens
resistance

Building Support and Commitment

Counseling, therapy, or new-skills training

Implementing Change Fairly

Be consistent and procedurally fair

Manipulation and Cooptation

Spinning the message to gain cooperation

Selecting people who accept change

Hire people who enjoy change in the first place

Coercion
Direct threats and force

Six Methods for Dealing With Resistance to Change

The
The Politics
Politics of
of Change
Change
Impetus for change is likely to come from outside
change agents.
Internal change agents are most threatened by
their loss of status in the organization.
Long-time power holders tend to implement only
incremental change.
The outcomes of power struggles in the
organization will determine the speed and quality
of change.

Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model

Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model
Unfreezing
Change efforts to overcome the pressures of
both individual resistance and group conformity

Refreezing
Stabilizing a change intervention by balancing
driving and restraining forces

Force
Force field
field analysis
analysis
Driving Forces
Forces that direct behavior away from the status
quo.

Restraining Forces

Forces that hinder movement from the existing

equilibrium.

Unfreezing
Unfreezing the
the Status
Status Quo
Quo

The
The Six-Stage
Six-Stage Change
Change Process
Process

Kotters
KottersEight-Step
Eight-StepPlan
Planfor
forImplementing
ImplementingChange
Change
1.
2.
3.
4.
5.

6.
7.
8.

Establish a sense of urgency by creating a compelling reason

for why change is needed.
Form a coalition with enough power to lead the change.
Create a new vision to direct the change and strategies for
achieving the vision.
Communicate the vision throughout the organization.
Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem
solving.
Plan for, create, and reward short-term wins that move the
organization toward the new vision.
Consolidate improvements, reassess changes, and make
necessary adjustments in the new programs.
Reinforce the changes by demonstrating the relationship
between new behaviors and organizational success.

Kotters
Kotters Eight-Step
Eight-Step Plan
Plan
Builds from Lewins Model
To implement change:
1.
2.
3.
4.
5.
6.
7.
8.

Establish a sense of urgency

Form a coalition
Unfreezing
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term winsMovement
Consolidate, reassess, and adjust
Refreezing
Reinforce the changes