ORGANIZATIONAL CHANGE

Naveen Raj D.S

CHANGECHANGE

Means the alteration of status quoIs the necessary aspect of human lifeOne of the few things of real

permanence is ‘change’.Whole society is changing in some form

or other

ORGANIZATIONAL CHANGE

• Refers to alteration of work environment in an organization. Eg:- Technology, Structural arrangement, Job design, people etc• Change in any part of the organisation affects

the entire organisation and some subsequent changes are required in other parts• OC is required to maintain equilibrium between

various external and internal forces to achieve organizational goals

External factorsTechnological changesChanges in marketing conditionsEconomic shocksSocial changesPolitical and legal changes

Internal FactorsNature of workforceChange in managerial personnelDeficiency in existing organisationChange in share holders / BOD

Forces for Organizational change

CHANGE PROCESS CHANGE PROCESS (Actions for Change)(Actions for Change)

1. Unfreezing the situation

2. Changing3. Refreezing

UNFREEZING

Process makes individual or organization aware and prepares them for change (Change should not be surprise)

CHANGING

• Moving to the new condition• Individuals are changed to learn new

behaviour• For effective changing• Recognise that primary purpose of

change is to improve performance• Make individuals responsible for their

own change• Encourage team performance• Encourage learning by doing

STEPS IN MANAGING CHANGE

1. Identify the need for change and area of change

2. Develop new goals and objectives

3. Select an agent for change

4. Diagnose the problem

5. Select methodology6. Develop a plan7. Strategy for implementation of the plan8. Implementation of the plan9. Receive and evaluate feedback

PLANNED CHANGE

• Planned change aims to prepare total organisation or a major portion of it to adapt to significant changes in the organization's goals and directions.• It attempts all aspects of

organization which are closely interrelated - technology, task, structure and people.

STRUCTURE

TECHNOLOGY

TASK

PEOPLE

• Introduction of automated data processing devices like computers• Change in methods of production• Changing problem solving and decision making procedures

Change in Technology

• Technology changes affect nature of task. It determines type of task that may be required to complete an operation.• Task related changes must focus on.

1. High internal work motivation2. High quality work performance

TASK RELATED CHANGES

STRUCTURE RELATED CHANGES1. Changing no of hierarchical levels2. Changing one form of

organization to another form3. Changing span of management4. Changing authority

PEOPLE RELATED CHANGES

1. Skills2. Behaviour

OBJECTIVES OF PLANNED CHANGE

1.Environmental adaptation2.Individual adaptation3.Structural adaptation4.Technological adaptation5.Task adaptation

RESISTANCE TO CHANGE

• Change, no matter how beneficial, is generally resented and is always difficult to implement. There are many factors that increase resistance to change.

FACTORS

1. Insecurity2. Lack of communication3. Rapidity and extend of change4. Group resistance5. Emotional turmoil6. Loss of power and control7. Reduced opportunity for incentives8. Status quo9. Lack of trust in change agent10.Sunk cost

MANAGING RESISTANCE TO CHANGE

1. Participation and Involvement2. Communication and Education3. Building support and commitment4. Leadership5. Implementing Changes fairly by negotiation

and agreement

6. Willingness for the sake of group7. Develop positive relationships8. Selecting people who accept change9. Manipulation and Cooptation10. Timing of change11. Coercion

Approaches to Manage Organisational Change1. Lewin’s Three Step Model

REFREEZING

MOVEMENT

UNFREEZING

2. Kotter’s Eight Step Plan• 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 organisation.•Empower other s to act on the vision•Plan for, create and reward short term wins that move the organisation toward new vision.•Consolidate improvements, reassess changes and make necessary adjustments in the new program•Reinforce the changes by demonstrating the relationship between new behaviours and organisational success.

3. Action Research - Change based on systematic collection of data and selection of change action based on what the analysed data indicate.4. Organizational Development – collection of change methods that try to improve organizational effectiveness and employee wel being