ORGANIZATIONAL CHANGE

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

What Is mean by change?

 In simple terms change is nothing but

making things different.

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 Examples
 a change in mission
 restructuring operations (e.g.,
restructuring to self-managed teams,
layoffs, etc.)
 new technologies
 mergers, major collaborations
 "rightsizing", new programs such as
Total Quality Management, re-
engineering, etc.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 What Provokes
"Organizational Change"?
INTERNAL FACTORS
 Change in managerial personnel

 Deficiencies of the organization

 Changing nature of work force

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 EXTERNAL FACTORS

 Technological changes
 Competition
 Economic shocks
 Changes in marketing conditions
 Political changes
 Social trends

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Why is Organization-Wide
Change Difficult to Accomplish ?
Typically there are strong resistances
to change. People are afraid of the
unknown. Many people think things
are already just fine and don't
understand the need for change.

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Sources of individual resistance
to change

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

People Respond to Change….
 At different rates

 At multiple levels:
personally, professionally,
socially and
organizationally

 By seeing it as
opportunity or danger

 Successfully, by being
resilient
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 SOURCES OF ORGANISATIONAL
RESISTANCE

 Threat to established power relationships

 Threat to expertise
 Group inertia
 Limited focus of change
 Structural inertia
 Threat to established resource
allocations

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Overcoming resistance to
change
 Education and Communication
 Participation
 Building support and commitment
 Implementing changes fairly
 Selecting the people who accepts change

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 Overcoming the resistance to
change
 EDUCATION AND COMMUNICATION
The leader should meet with all managers
and staff to explain reasons for the change,
how it generally will be carried out and
where others can go for additional
information. A plan should be developed
and communicated.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
Overcoming resistance contd..

 PARTICIPATION

Forums should be held for organization

members to express their ideas for the plan.
They should be able to express their concerns
and frustrations as well.

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 FACILITATION AND SUPPORT
Employee counseling therapies, new skill
training ,short paid leave of absence
 NEGOTIATION

If resistance is centered in a few powerful

individuals, a specific reward package can be
negotiated which can meet their individual needs
 COERCION

The application of direct threats or force on

resisters eg.threats of transfer, loss of
promotions
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 Change agents.
CAARLOS GHOSN
is a French Brazilian-born businessman
of Lebanese origin. He is the current
CEO and President of Renault of
France and Nissan of Japan. He was
voted Man of the Year 2003 by Fortune
magazine's Asian edition and is also on
the board of Alcoa, Sony, and IBM.
Ghosn became CEO of Renault, in
2005, succeeding Louis Schweitzer,
while remaining CEO of Nissan as well.
In 2004 he was added to the Japan
Automotive Hall of Fame.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 TYPES OF ORGANIZATIONAL
CHANGE
 TRANSFORMATIONAL CHANGE
 INCREMENTAL CHANGE
 REMEDIAL CHANGE
 DEVELOPMENTAL CHANGE
 PLANNED CHANGE
 UNPLANNED CHANGE

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 TRANSFORMATIONAL CHANGE

An example of transformational (or radical,

fundamental) change might be changing an
organization’s structure and culture from the
traditional top-down, hierarchical structure to a
large amount of self-directing teams. Another
example might be Business Process Re-
engineering, which tries to take apart (at least on
paper, at first) the major parts and processes of
the organization and then put them back together
in a more optimal fashion. Transformational
change is sometimes referred to as quantum
change.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 INCREMENTAL CHANGE

Examples of incremental change might

include continuous improvement as a quality
management process or implementation of
new computer system to increase
efficiencies. Many times, organizations
experience incremental change and its
leaders do not recognize the change as
such.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 REMEDIAL CHANGE
Change can be intended to remedy current
situations, for example, to improve the poor
performance of a product or the entire
organization, reduce burnout in the workplace,
help the organization to become much more
proactive and less reactive, or address large
budget deficits. Remedial projects often seem
more focused and urgent because they are
addressing a current, major problem.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 DEVELOPMENTAL CHANGE
Change can also be developmental – to
make a successful situation even more
successful, for example, expand the amount
of customers served, or duplicate successful
products or services. Developmental projects
can seem more general and vague than
remedial, depending on how specific goals
are and how important it is for members of
the organization to achieve those goals.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 APPROACHES TO ORGANISATIONAL
CHANGE
 LEWINS THREE STAGE MODEL
 ACTION RESEARCH
 ORGANISATIONAL DEVELOPMENT
 SENSITIVITY TRAINING
 SURVEY FEEDBACK
 PROCESS CONSULTATION
 TEAM BUILDING
 INTERGROUP DEVELOPMENT
 APPRECIATIVE ENQUIRY
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 STAGE 1 UNFREEZING
This stage involves creating the right
conditions for change to occur. By resisting
change, people often attach a sense of
identity to their environment. In this state,
alternatives, even beneficial ones, will
initially cause discomfort. The challenge is
to move people from this 'frozen' state to a
'change ready' or 'unfrozen' state.

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 Stage 2: Transition
The transitional 'journey' is central to Lewin's model
and at the psychological level it is typically a period of
confusion. People are aware that the old ways are
being challenged, but there is no clear understanding
of the new ways which will replace them. As roles
change, a reduced state of efficiency is created,
where goals are significantly lowered. Good
leadership is important, and coaching, counseling or
psychological support may be needed. The end goal
of this stage is to get people to the 'unfrozen' state
and keep them there.
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
 Stage 3: Refreeze
The end goal of the model is to achieve a
'refreeze', re-establishing a new place of
stability and elevate comfort levels by
reconnecting people back into their safe,
familiar environment. Refreezing takes
people from a period of low productivity in
the transitional state to a stable and
productive state.

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
ACTION RESEARCH
 Based on systematic collection of data and then
selection of change agent based on its analysis
 Scientific method

Steps
 Diagnose need for change
 analysis
 Feedback
 Action
 Evaluate and stabilize changes

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Phases of Organizational
Change
 Ending

 Transition

 Beginning

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Ending
The goal of this phase is to
understand the change
process and the steps
needed to move through
it
 Dealing with grief and
loss issues
 “Normalizing” change
 Communication in the
ending phase

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Transition
The goal of this phase is to
regain the expected
decreases in productivity
 Identifying priorities
 Identifying & minimizing
resistance to change
 Identifying personal
strengths, needs and
resources
 Communication in the
transition phase

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Beginning
The goal of this phase is
implementing the new
 Flexibility, focus &
attitude
 Stress management for
change
 Communication in the
beginning phase
 Developing an action plan

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Flexibility
 The ability to adapt or
deal with ambiguity
 The ability to successfully
handle several things at
one time
 The ability to prioritize,
delegate and provide
clear communication

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Focus
 The ability to grasp &
share vision and long
& short term goals
 The ability to
celebrate gains made
 The ability to focus
on solutions-not
reasons for failure

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Attitude
 The ability to be a
stabilizing force
 The ability to take
care of oneself
 The degree of belief
that change breeds
creativity

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

Managing Complex Change
 All elements are needed to
Vision effectively manage
complex change
Skill
 Without vision-confusion
 Without skill-anxiety
 Without incentive-gradual
Incenti change
ve  Without resources-
Resour frustration
ces  Without action plan-false
starts
Action
Plan
Jane Francis Antony Raj, Lecturer KSM. 16/09/2010
The Self-Management Process
 What am I telling myself?
 What other meaning(s)
have I attached to this
situation?
 How do I feel?
 What do I fear?
 What do I think it will look
like?
 What can I do to help
myself?

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

 Habits for the Age of Change
 Simplify
 Seize the initiative
 Learn or perish
 Take personal responsibility
 Accept the mess
 Focus on solutions
 Have a stress management plan

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010

The Answer

Jane Francis Antony Raj, Lecturer KSM. 16/09/2010