organizational change (group no.8)

7/30/2019 Organizational Change (Group No.8)

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HEENA MIRCHANDANI

(127611)

HIMANSHU GARG (12761

JYOTI SATSANGI (127615)

VINEET HARIT (127647)

ORGANISATIONAL CHANGE:FACTORS AND APPROACHES


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Introduction

Change is one of the most important characteristic features of modern

organizations. Every organization must develop adaptability to change lest it

may be swept away by forces of change. There are many forces which act onthe organization and make change not only desirable but also inevitable.

These forces include technology, market forces and general socio-economic

environment. These are the external forces which necessitate change in

internal organizational variables like machinery, equipment and processes,

policies and procedures, structural relationships etc. Any factor in the

internal environment that affects the way the organization carries out its

activities is also a force of change. Management policies and practices and

employees attitudes and behaviour are the most important forces which

pressurize the organization for change.

Meaning of change

The term organizational change implies the creation of imbalances in the

existing pattern of situation. When an organization operates and functions

for a long time, an adjustment between its technical, human and structural

set-up is established. It tends to approximate equilibrium in relation to its

environment. In other words, organization members evolve a tentative set of

relations with the environment. They have an adjustment with their job,

working conditions, friends and colleagues etc. Change requires individualsto make new adjustments and the fear of adjustment gives rise to the

problem of resistance to change.

Keith Davis has explained the effect of work change with the help of an

experiment using an air filled balloon. When a finger (which represents

change) is pressed against the exterior of the balloon (which represents the

organization), the contour visibly changes at the point of impact. Thus a

pressure representing change produces an obvious deviation at the point of

pressure. But simultaneously the entire balloon (organization) is affected and

stretched slightly. So it may be generalized that the whole organizationtends to be affected by change in any part of it.

Change is a continuous phenomenon of organizational life. The survival and

growth of an organization depends to a great extent on its ability to cope

with change required by forces operating within its boundaries and in its

external environment. An organization is an open system, which means that


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it has a constant interactional and independent relationship with its

environment.

Nature of change

Organizational change denotes any alteration which occurs in the overall

work environment of an organization. It has following characteristics:

Change results from the pressure of forces both outside and inside the

organization

The whole organization tends to be affected by change in any part of

it.

Change takes place in all parts of the organization, but at varying rates

of speed and degrees of significance.

Forces for change

All organizations depend on and must interact with their external

environment in order to survive and grow. They get inputs from their

environment, transform then through various processes and export outputs

to the environment. They take what environment gives and give what

environment wants. Thus, organizations are constantly responding to their

external environment by making necessary changes in the internal forces.

External forces

Technology:-rapid technological changes are responsible for changing

the nature of jobs performed at all levels of organization. The computer

technology and automation have made a remarkable impact on the

functioning of organizations in the recent times. Technological

advancement continues to demand the managers attention as a pressure

for change.

Marketing conditions:-marketing conditions are in the process of rapid

change as the needs, desires and expectations of consumers change

frequently. Moreover, there is tough competition between sellers in the

market. The market is flooded with new products and innovations every


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day. New media of advertisement and publicity are being evolved for

influencing the customers. All these factors put great pressure on the

modern organizations to change their technologies and marketing

strategies.

Social changes:- because of spread of education, knowledgeexplosion and governments efforts, social changes are taking place at a

fast pace. The drive for social equality has posed new challenges for the

management. The management has to follow social norms in shaping its

employment, marketing and other policies.

Political and legal forces:- political forces within and outside

thecountry have an important influence on large business houses ,

particularly the transnational corporations. The relation between

government and business houses has become very complex in modern

times. Many laws have been passed to regulate the activities of thecorporate sector. The organizations have no control over the political and

legal forces, but they have to adapt to meet the pressures of these

forces.

Internal forces

Change in operative personnel: the profile of the workforce is changing

fast. The new workers have better educational qualifications, place greater

emphasis on human values and question authority of managers. Their

behaviour is very complex and leading them for the attainment oforganizational goals is really a challenge. The changing expectations of

personnel certainly act as a pressure that has to be handled properly by

the organizations.

Change in managerial personnel: new managers replace the existing

ones due to retirement, transfer and promotion. As a result new values and

ideas enter the organization. Changes take place in the informal

relationships also. This may lead to important changes in the organization

in terms of organization design, allocation of work to individual. Delegation

of authority etc.

Deficiencies in existing structure: there may be deficiencies in the

present organizational setup in the form of unmanageable span of

management, larger number of managerial levels, and lack in

coordination between various departments and so on. However the need


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for change in such cases goes unrecognized until some major crisis

occurs.

Chain effect of change: quiteoften, a change sets off a sequence of

related and supporting changes. This is known as domino effect.

Therefore, repercussions of any change must be studied and analysedadequately before it is introduced.

Fear of inflexibility: dynamic managers introduce change to avoid

developing inflexibility in the organization. The rationale behind this is

that organizational members develop liking for change and they do not

resist changes unnecessarily whenever need arises in the future.

Levels of Organizational Change

The various types of organizational changes are;

1. Individual Level Change

Individual level changes may take place due to changes in job assignment,

transfer of an employee to a different location or the changes in the maturity

level of a person which occurs over a passage of time. The general opinion is

that change at the individual will not have the significant implications for the

organization. But this is not correct because individual level changes will

have impact on the group which in turn will influence the whole organization.

Therefore, a manager should never treat the employees in isolation but he


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must understand that the individual level change will have repercussions

beyond the individual.

2. Group Level Change

Management must consider group factors while implementing any change,because most of the organizational changes have their major effects at the

group level. The groups in the organization can be formal groups or informal

groups. Formal groups can always resist change for example; the trade

unions can very strongly resist the changes proposed by the management.

Informal groups can pose a major barrier to change because of the inherent

strength they contain. Changes at the group level can affect the work flows,

job design, social organization, influence and status systems and

communication patterns.

The groups, particularly the informal groups have a lot of influence on theindividual members of the group. As such by effective implementing change

at the group level, resistance at the individual level can be frequently

overcome.

3. Organizational Level Change

The organizational change involves major programmes which affect both the

individuals and the groups. Decisions regarding such changes are made by

the senior management. These changes occur over long periods of time and

require considerable planning for implementation. A few different types oforganization level changes are:

Strategic change: Strategic change is the change in the very basic

objectives or mission of the organization. A simple objective may have to be

changed to multiple objectives. For example, a lot of Indian companies are

being modified to accommodate various aspects of global culture brought in

by the multinational or transnational corporations.

Structural change: Organizational structure is the pattern of relationships

among various positions and among various position holders. Structuralchange involves changing the internal structure of the organization. This

change may be in the whole set of relationships, work assignments and

authority structure. Change in organization structure is required because old

relationships and interactions no longer remain valid and useful in the

changed circumstances.


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Process oriented change: These changes relate to the recent

technological developments, information processing and automation. This

will involve replacing or retraining personnel, heavy capital equipment

investment and operational changes. All this will affect the organizational

culture and as a result the behaviour pattern of the individuals.

People oriented change: People oriented changes are directed towards

performance improvement, group cohesion, dedication, and loyalty to the

organizations as well as developing a sense of self-actualisation among

members. This can be made possible by closer interaction with employees

and by special behavioural training and modification sessions.

To conclude, we can say that changes at any level affect the other levels.

The strength of the effect will depend on the level or source of change.

Types of organizational changes

Organizational changes may be of four types:


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Anticipatory or proactive change: anticipatory changes are made

with an intention to take advantage of favourable situation which is

likely to arise. Such changes are systematically planned because the

managers monitor the situation regularly and whenever he expects

change he attempts to make a change in the organization as to get its

benefits.

Reactive change: such changes are forced in the organization by

unexpected environmental pressures. In order to cope with changing

environment reactive changes are made in the organization. Such

changes are generally made for survival of the organization.

Sometimes these changes are made to exploit new opportunities as

provided by changing environment.

Incremental change: incremental changes are those changes which

are made with an intention to maintain functioning of the organizationon its chosen path. For example, marketing strategy may be changed

because of growing competition. It is also called piecemeal change as

change is made in one of the sub system of the organization and other

systems remain unaffected. Adjustments in other sub-systems may be

carried out from time to time so as to secure smooth functioning of the

whole organization.

Strategic change: strategic changes are more basic in nature. These

changes have great influence on the overall functioning of the

organisation. They alter the direction of the organization. For example,

adoption of new technology, change in location of plant, diversification

of organizational operations, and sale of a loss-making unit are

changes of strategic nature.


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Causes of human resistance to change

People resist change to protect themselves from the real or perceived

effects of change. Man by nature resists what is unfamiliar to him. This is

partly because he fears the new and unknown and partly because of

adopting of new ideas is a pain taking process. The resistance to change or

opposition to change may be logical and justified in some cases. Sometimes

people do not resist change. The may oppose the change agent or mode of

implementing the change.

Resistance to change may be caused by:

Economic factors

Workers apprehend technological unemployment

Workers fear that they will be idle for a major portion of their time due

to higher efficiency of new technology

Workers are afraid of demotion as they do not have the new skills

required for the performance of new jobs.

Psychological factors

It is human psychology to maintain status quo. Human beings resist

change by nature

Workers may apprehend boredom in new jobs because of increased

automation.

Workers may be lazy and reluctant to learn new things

Workers do not have complete knowledge about the change. They may

make their own assumptions about change. The assumptions may be

totally illogical

Social reasons

It may be felt by workers that their status may go down as a result of

introduction of new technology


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Changes may require new social adjustments which are not liked by

the workers.

Workers as a group oppose change as they are unfamiliar with the

change

Workers resist changes which are brought about without consulting

them.

Strategies to overcome resistance to

change

Since it is natural for human beings to resist change, the main problem in

introducing and implementing change is to overcome resistance to change.

Efforts for overcoming resistance to change can be made both at the

individual level and the group level. The techniques that can be used to

overcome resistance to change are:

Education and communication: One of the simplest techniques to

overcome resistance to change is to inform people about the change.

People can be educated to become familiar with the nature and

process of change. Communication of change is very useful because

many people resist change due to lack of information or

misunderstanding. While communicating change a manager should

explain

What the change is?

Why the change is needed?When it is to be introduced?

How it will be implemented?

How the change will be beneficial to all?

This would help people to visualize the need for and logic to change.

They would appreciate the change much better and will accept it

easily.


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Participation and involvement: The management should discuss

the change with the subordinates because people who have an

opportunity to participate in planning for change will have some

feelings of commanding their own destiny and not of being pushed

around like so many pawns on the chessboard. Participation will give

the people involved a feeling of importance. They are likely to be more

committed to the change if they are convinced about therationale of

change. On the other hand a change imposed from above is likely to

make people feel that their knowledge and skill are being ignored.

Education and training: In order to successfully implement the

change subordinates must be indoctrinated in new relationships,

taught new skills helped to change attitudes, given the information

they need to understand where the fit into the picture and how they

will be expected to operate under the new set up. The educationalclass can be aided by training classes, meetings and conferences.

Facilitation and support: Easing the change process and providing

support for those caught up in it is another way managers can deal

with resistance to change. These include listening, providing guidance,

allowing time off after a difficult period, and offering facilitative and

emotional support. Facilitative support means removing physical

barriers in implementing change by providing appropriate training,

tools, materials etc. emotional support is provided by showing personal

concerns to the subordinates during periods of stress and attains.

Negotiation and agreement: Negotiation with resistors and offering

them incentives may be a useful technique foe overcoming resistance.

Examples are union agreements etc. it may become relatively easier

to avoid major resistance through negotiation.

Manipulation and co-optation: Sometimes, managers covertly steer

individuals or groups away from resistance to change. They may

manipulate worker by releasing information selectively or by

consciously structuring the sequence of events. Or they may co-opt anindividual, perhaps a key person within a group, by giving him or her

desirable role in designing or carrying out the change process.

Explicit and implicit coercion: Managers may force people to go

along with a change by implicit or explicit threats involving loss of jobs,

lack of promotion and the like. Managers may dismiss or transfer


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employees who stand in the way of change. As with manipulation and

co-option, such methods, though not uncommon, are risky and make it

more difficult to gain support for future change efforts.

Management of changeManagement of change is a very complex process. It involves the following

steps:

Identifying the need for change: At the first change the

management should attempt to identify the need for change. The need

for change is identified in terms of those internal as well as external

factors which necessitate the change. The manager may get the

required information regarding the need for change either from the

feedback process in control system or he may monitor the system on

regular basis to get such information.

Developing the objective for change: An analysis of the gap

between the desired situation and the existing situation would help in

laying down the goals of change. It should be noted that because of

changing environment, existing goals of organization may become out-

dated and the organization can survive only with a new set of goals.

Determining the type of change: Once the need and objective of

the change have been determined, it is necessary to determine about

the type of change to be introduced and implemented in the

organization. Generally change is required in three major elements of

the organization-structure, technology and people.

Planning the change: This is perhaps the most crucial phase in the

management of change. It involves finding answers to questions like

when to bring change, how to bring change and who will bring change.

While dealing with the time dimension of change, it is necessary to

consider likely reactions to change. Time required persuading people

to accept the change, counselling and training people to make them

competent for the new situation etc. for deciding the method and

procedure for change a logical sequence of steps may be created. Who

will bring the change means selecting a change agent.

Implementation of change: Once the change plan is prepared it is

necessary to communicate it to all within the organization. It is to be

done with the purpose to convince the members about change. Proper


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communication may help in reducing resistance and seeking necessary

support or implementing the change. Along with communication the

resources may be allocated and all other administrative arrangements

may be made for the execution of plan of change.

Follow-up and feedback: Proper follow-up action is necessary toensure that change is progressing in the right direction. Constant

monitoring is desirable to identify and tackle the problems created by

change. Feedback received from the initial attempt of change may be

used to modify the sub sequential change programme.

APPROACHES TO CHANGE MANAGEMENT

The various approaches to change management are:

Lewins change management model

Force field analysis

Kotters 8 step change model

Bridges transition model

ADKAR Model

McKinsey 7S Framework


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Lewin's Change Management

Model

One of the cornerstone models for understanding organizational change wasdeveloped by Kurt Lewin back in the 1940s, and still holds true today. Hismodel is known as Unfreeze Change Refreeze, refers to the three-stageprocess of change he describes. Lewin, a physicist as well as social scientist,explained organizational change using the analogy of changing the shape ofa block of ice.

Understanding Lewin's Model

If you have a large cube of ice, but realize that what you want is a cone ofice, what do you do? First you must melt the ice to make it amenable tochange (unfreeze). Then you must mould the iced water into the shape youwant (change). Finally, you must solidify the new shape (refreeze).

By looking at change as process with distinct stages, you can prepareyourself for what is coming and make a plan to manage the transition looking before you leap, so to speak. All too often, people go into changeblindly, causing much unnecessary turmoil and chaos.

To begin any successful change process, you must first start byunderstanding why the change must take place. As Lewin put it, "Motivationfor change must be generated before change can occur. One must be helpedto re-examine many cherished assumptions about oneself and one'srelations to others." This is the unfreezing stage from which change begins.


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Unfreeze

This first stage of change involves preparing the organization to accept that

change is necessary, which involves break down the existing status

quo before you can build up a new way of operating.

Key to this is developing a compelling message showing why the existingway of doing things cannot continue. This is easiest to frame when you canpoint to declining sales figures, poor financial results, worrying customersatisfaction surveys, or suchlike: These show that things have to change in away that everyone can understand.

To prepare the organization successfully, you need to start at its core youneed to challenge the beliefs, values, attitudes, and behaviours thatcurrently define it. Using the analogy of a building, you must examine and beprepared to change the existing foundations as they might not support add-on storeys; unless this is done, the whole building may risk collapse.This firstpart of the change process is usually the most difficult and stressful. Whenyou start cutting down the "way things are done", you put everyone andeverything off balance. You may evoke strong reactions in people, and that'sexactly what needs to done.

By forcing the organization to re-examine its core, you effectively create a(controlled) crisis, which in turn can build a strong motivation to seek out anew equilibrium. Without this motivation, you won't get the buy-in andparticipation necessary to effect any meaningful change.

Change

After the uncertainty created in the unfreeze stage, the change stage iswhere people begin to resolve their uncertainty and look for new ways to dothings. People start to believe and act in ways that support the newdirection.

The transition from unfreeze to change does not happen overnight: Peopletake time to embrace the new direction and participate proactively in thechange. A related change model, the Change Curve, focuses on the specific

issue of personal transitions in a changing environment and is useful forunderstanding this specific aspect in more detail.In order to accept thechange and contribute to making the change successful, people need tounderstand how the changes will benefit them. Not everyone will fall in linejust because the change is necessary and will benefit the company. This is acommon assumption and pitfall that should be avoided.
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Refreeze

When the changes are taking shape and people have embraced the newways of working, the organization is ready to refreeze. The outward signs ofthe refreeze are a stable organization chart, consistent job descriptions, and

so on. The refreeze stage also needs to help people and the organizationinternalize or institutionalize the changes. This means making sure that thechanges are used all the time; and that they are incorporated into everydaybusiness. With a new sense of stability, employees feel confident andcomfortable with the new ways of working.

The rationale for creating a new sense of stability in our every changingworld is often questioned. Even though change is a constant in manyorganizations, this refreezing stage is still important. Without it, employeesget caught in a transition trap where they aren't sure how things should bedone, so nothing ever gets done to full capacity. In the absence of a new

frozen state, it is very difficult to tackle the next change initiative effectively.How do you go about convincing people that something needs changing ifyou haven't allowed the most recent changes to sink in? Change will beperceived as change for change's sake, and the motivation required toimplement new changes simply won't be there.As part of the Refreezingprocess, make sure that you celebrate the success of the change this helpspeople to find closure, thanks them for enduring a painful time, and helpsthem believe that future change will be successful.


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Kotter's 8-Step Change ModelImplementing change powerfully and

successfully

There are many theories about how to "do" change. Many originate withleadership and change management guru, John Kotter. A professor atHarvard Business School and world-renowned change expert, Kotter

introduced his eight-step change process in his 1995 book, "LeadingChange." We look at his eight steps for leading change below.

Step 1: Create Urgency

For change to happen, it helps if the whole company really wants it. Developa sense of urgency around the need for change. This may help you spark theinitial motivation to get things moving.

This isn't simply a matter of showing people poor sales statistics or talkingabout increased competition. Open an honest and convincing dialogue about

what's happening in the marketplace and with your competition. If manypeople start talking about the change you propose, the urgency can buildand feed on itself.

What you can do:


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Identify potential threats, and develop scenarios showing what couldhappen in the future.

Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to

get people talking and thinking.

Request support from customers, outside stakeholders and industrypeople to strengthen your argument.

Step 2: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadershipand visible support from key people within your organization. Managingchange isn't enough you have to lead it.

You can find effective change leaders throughout your organization theydon't necessarily follow the traditional company hierarchy. To lead change,

you need to bring together a coalition, or team, of influential people whosepower comes from a variety of sources, including job title, status, expertise,and political importance.

Once formed, your "change coalition" needs to work as a team, continuing tobuild urgency and momentum around the need for change.

What you can do:

Identify the true leaders in your organization. Ask for an emotional commitment from these key people. Work on team building within your change coalition. Check your team for weak areas, and ensure that you have a good mix

of people from different departments and different levels within yourcompany.

Step 3: Create a Vision for Change

When you first start thinking about change, there will probably be manygreat ideas and solutions floating around. Link these concepts to an overallvision that people can grasp easily and remember.

A clear vision can help everyone understand why you're asking them to dosomething. When people see for themselves what you're trying to achieve,then the directives they're given tend to make more sense.

What you can do:

Determine the values that are central to the change.


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Develop a short summary (one or two sentences) that captures whatyou "see" as the future of your organization.

Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five

minutes or less.

Practice your "vision speech" often.

Step 4: Communicate the Vision

What you do with your vision after you create it will determine your success.Your message will probably have strong competition from other day-to-daycommunications within the company, so you need to communicate itfrequently and powerfully, and embed it within everything that you do.

Don't just call special meetings to communicate your vision. Instead, talkabout it every chance you get. Use the vision daily to make decisions and

solve problems. When you keep it fresh on everyone's minds, they'llremember it and respond to it.

It's also important to "walk the talk." What you do is far more important and believable than what you say. Demonstrate the kind of behaviour thatyou want from others.

What you can do:

Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations from training to

performance reviews. Tie everything back to the vision. Lead by example.

Step 5: Remove Obstacles

If you follow these steps and reach this point in the change process, you'vebeen talking about your vision and building buy-in from all levels of theorganization. Hopefully, your staff wants to get busy and achieve thebenefits that you've been promoting.

But is anyone resisting the change? And are there processes or structuresthat are getting in its way?

Put in place the structure for change, and continually check for barriers to it.Removing obstacles can empower the people you need to execute yourvision, and it can help the change move forward.


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What you can do:

Identify, or hire, change leaders whose main roles are to deliver thechange.

Look at your organizational structure, job descriptions, and

performance and compensation systems to ensure they're in line withyour vision. Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see

what's needed. Take action to quickly remove barriers (human or otherwise).

Step 6: Create Short-term Wins

Nothing motivates more than success. Give your company a taste of victoryearly in the change process. Within a short time frame (this could be a

month or a year, depending on the type of change), you'll want to haveresults that your staff can see. Without this, critics and negative thinkersmight hurt your progress.

Create short-term targets not just one long-term goal. You want eachsmaller target to be achievable, with little room for failure. Your changeteam may have to work very hard to come up with these targets, but each"win" that you produce can further motivate the entire staff.

What you can do:

Look for sure-fire projects that you can implement without help fromany strong critics of the change.

Don't choose early targets that are expensive. You want to be able tojustify the investment in each project.

Thoroughly analyse the potential pros and cons of your targets. If youdon't succeed with an early goal, it can hurt your entire changeinitiative.

Reward the people who help you meet the targets.

Step 7: Build on the Change

Kotter argues that many change projects fail because victory is declared tooearly. Real change runs deep. Quick wins are only the beginning of whatneeds to be done to achieve long-term change.


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Launching one new product using a new system is great. But if you canlaunch 10 products, that means the new system is working. To reach that10th success, you need to keep looking for improvements.

Each success provides an opportunity to build on what went right and

identify what you can improve.

What you can do:

After every win, analyse what went right and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen, the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for

your change coalition.

Step 8: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of yourorganization. Your corporate culture often determines what gets done, so thevalues behind your vision must show in day-to-day work.

Make continuous efforts to ensure that the change is seen in every aspect ofyour organization. This will help give that change a solid place in yourorganization's culture.

It's also important that your company's leaders continue to support thechange. This includes existing staff and new leaders who are brought in. If

you lose the support of these people, you might end up back where youstarted.

What you can do:

Talk about progress every chance you get. Tell success stories aboutthe change process, and repeat other stories that you hear.

Include the change ideals and values when hiring and training newstaff.

Publicly recognize key members of your original change coalition, andmake sure the rest of the staff new and old remembers theircontributions.

Create plans to replace key leaders of change as they move on. Thiswill help ensure that their legacy is not lost or forgotten.
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Bridges' Transition Model

About the Model

The Transition Model was created by change consultant, William Bridges,and was published in his 1991 book "Managing Transitions."

The main strength of the model is that it focuses on transition, not change.The difference between these is subtle but important. Change is somethingthat happens to people, even if they don't agree with it. Transition, on the


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other hand, is internal: it's what happens in people's minds as they gothrough change. Change can happen very quickly, while transition usuallyoccurs more slowly.

The model highlights three stages of transition that people go through when

they experience change. These are:

1. Ending, Losing, and Letting Go.2. The Neutral Zone.3. The New Beginning.

Bridges says that people will go through each stage at their own pace. Forexample, those who are comfortable with the change will likely move aheadto stage three quickly, while others will linger at stages one or two.

Stage 1: Ending, Losing, and Letting Go

People enter this initial stage of transition when you first present them withchange. This stage is often marked with resistance and emotional upheaval,because people are being forced to let go of something that they arecomfortable with.

At this stage, people may experience these emotions:

Fear. Denial. Anger. Sadness. Disorientation. Frustration. Uncertainty. A sense of loss.

People have to accept that something is ending before they can begin toaccept the new idea. If you don't acknowledge the emotions that people aregoing through, you'll likely encounter resistance throughout the entirechange process.

Guiding People Through Stage One

It's important to accept people's resistance, and understand their emotions.Allow them time to accept the change and let go, and try to get everyone totalk about what they're feeling. In these conversations, make sure that youlisten empathically and communicate openly about what's going to happen.
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Emphasize how people will be able to apply their skills, experience, andknowledge once you've implemented the change. Explain how you'll givethem what they need (for instance, training and resources) to workeffectively in the new environment.

People often fear what they don't understand, so the more you can educatethem about a positive future, and communicate how their knowledge andskills are an essential part of getting there, the likelier they are to move onto the next stage.

Stage 2: The Neutral Zone

In this stage, people affected by the change are often confused, uncertain,and impatient. Depending on how well you're managing the change, theymay also experience a higher workload as they get used to new systems andnew ways of working.

Think of this phase as the bridge between the old and the new; in someways, people will still be attached to the old, while they are also trying toadapt to the new.

Here, people might experience:

Resentment towards the change initiative. Low morale and low productivity. Anxiety about their role, status or identity. Scepticism about the change initiative.

Despite these, this stage can also be one of great creativity, innovation, andrenewal. This is a great time to encourage people to try new ways of thinkingor working.

Guiding People through Stage Two

Your guidance is incredibly important as people go through this neutralperiod. This can be an uncomfortable time, because it can seemunproductive, and it can seem that little progress is being made.

Because people might feel a bit lost, provide them with a solid sense ofdirection. Remind them of team goals, and encourage them to talk aboutwhat they're feeling.

Meet with your people frequently to give feedback on how they'reperforming, especially with regard to change. It's also important to set short-term goals during this stage, so that people can experience some quick
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wins; this will help to improve motivation as well as giving everyone apositive perception of the change effort.

Also, do what you can to boost morale and continue to remind people of howthey can contribute to the success of the change. If required, you may also

want to help people manage their workloads, either by deprioritizing sometypes of work, or by bringing in extra resources.

Stage 3: The New Beginning

The last transition stage is a time of acceptance and energy. People havebegun to embrace the change initiative. They're building the skills they needto work successfully in the new way, and they're starting to see early winsfrom their efforts.

At this stage, people are likely to experience:

High energy. Openness to learning. Renewed commitment to the group or their role.

Guiding People through Stage Three

As people begin to adopt the change, it's essential that you help themsustain it. Use techniques like Management by Objectives to link people'spersonal goals to the long-term objectives of the organization, and regularly

highlight stories of success brought about by the change.

Take time to celebrate the change you've all gone through, and reward yourteam for all their hard work. However, don't become too complacent remember that not everyone will reach this stage at the same time, and alsoremember that people can slip back to previous stages if they think that thechange isn't working.
http://www.mindtools.com/pages/article/quick-wins.htmhttp://www.mindtools.com/pages/article/morale.htmhttp://www.mindtools.com/pages/article/newTMM_94.htmhttp://www.mindtools.com/pages/article/newTMM_54.htmhttp://www.mindtools.com/pages/article/newTMM_54.htmhttp://www.mindtools.com/pages/article/quick-wins.htmhttp://www.mindtools.com/pages/article/morale.htmhttp://www.mindtools.com/pages/article/newTMM_94.htmhttp://www.mindtools.com/pages/article/newTMM_54.htmhttp://www.mindtools.com/pages/article/newTMM_54.htm


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FORCE FIELD ANALYSIS

Kurt Lewin introduced force field analysis for implementing change. Force

field analysis identifies

What forces are likely to push the change (driving forces)

What forces are likely to restrain the change (restraining forces)

The number and strength of the driving and restraining forces must be

identified. According to force field theory, the present situation in which

change has to be attempted is a quasi-static equilibrium of driving and

restraining forces. Organizational stability or quasistatic equilibrium occurs

when the driving and restraining forces balance each other in such a way so

as to maintain a constant level of functioning for a while.

The present equilibrium can be changed by strengthening the driving forces

or by wreaking the restraining forces. All these resources reside in a group.

Lewin propounded that it is usually easier to change individuals formed into

a group rather than to change any of them separately. As long as group

standards are unchanged, the individual will resist changes more strongly

the farther he is to depart from group standards. If the group standards are

changed, the resistance which is due to the relation between individual and

group standards will be eliminated.

The implication of force field analysis for the manager is that before

embarking on a change strategy, he must properly identify and evaluate the

forces favouring change (driving forces) and those opposing changes

(restraining forces). This will enable him to remove the hindrances that block

change efforts. He will not waste his time and energy on those forces over

which has no control. Under the framework of force-field analysis, a manager

should take the following steps:

Recognize the driving and restraining forces- the first step toward

organizational change involves scanning of major changes in the

environment and problem within the organization. In order to recognize the

pressures to change, managers need to develop a keen sensitivity towards

the external and internal environment. Similarly, the managers should

identify the forces which are likely to resist change.


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Increasing the driving forces-once the need for change is identified, it needs

to be communicated to the people concerned. If members know why the

change is needed, they are more likely to adopt it.

Manage the restraining forces- people resist change because they perceive it

to be harmful to them. It is, therefore, essential that they are made aware ofits benefits. Rewards may be linked to willingness to change and resistance

to change may be punished.

Unfreezing may be affected by encouraging the driving forces which take the

behaviour away from the status quo. Alternatively steps may be taken to

overcome the restraining forceswhich tend to perpetuate the status quo.

Several techniques are unavailable for unfreezing, e.g. education,

communication, participation in decision-making etc.

Driving forces (forces for change)

Organizations managing to survive in the long-run adapt to new external and

internal environment conditions (sometimes whether the participants and

power holders want or not). This suggests that change can come in two

ways: involuntarily or voluntarily.

Involuntary changes arise for many reasons, but quite commonly as a result

of personnel turnover. Another need for change is experienced by

organizational participants in the form of pressures or anxieties, which are

created by the discrepancies between the desired or potential level oforganization functioning and the actual or predicted level.

The examples of driving forces are:

Dissatisfaction with the present equilibrium, i.e. need for change is felt

Conflicts in the organization

Changes in organizational goals

Difference in personal and organizational goals

Desire for innovation

Low productivity and rising costs

Restraining forces (forces for stability)


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In an organization resistances to change may arise from personal and

organizational sources. Resistance from either sector can be fully intentional,

in which case the change agent may find a rational model of the change

process useful, or the resistance can be somewhat unintentional and require

additional measures to bring it to the surface.

Personal sources of resistance:

Individuals may resist change in general for various reasons of which they

may or may not be aware. Conscious resistance presumably arises when an

individual perceives a change as a threat to the security of personal

advantages associated with the statu quo. Conversely, resistance may arise

as a result of anticipated disadvantages that accompany change.

Organizational sources of resistance:

There are several obstacles to change inherent in the organization. Such

barriers to change include resource limitations, sunk costs, accumulation of

official constraints, unofficial and unplanned constraints on behaviour and

inter-organisational agreements.

ADKAR: Simple, Powerful, Action Oriented Model

for Change

The ADKAR model of change is a practical answer to effective changemanagement for individuals and organisations.

While many change management projects focus on the steps necessary for

organisational change, ADKAR emphasises that successful organisational

change occurs only when each person is able to transition successfully.

It makes sense then that this model, developed by Jeff Hiatt, CEO of Prosci

Change Management, and first published in 2003, focuses on 5 actions and

outcomes necessary for successful individual change, and thereforesuccessful organisational change.


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The ADKAR model of change management

Hiatt refers to each of these five actions as building blocks for successful

individual change, and therefore successful organisational change. As the

graphic indicates theprocess is sequential. In other words each step must be

completed before moving on to the next. Hiatt emphasises that it is not

possible to achieve success in one area unless the previous action has been

addressed.

The ADKAR model consists of five sequential steps or actions:

Awareness of the need for changeUnderstanding why change is necessary is the first key aspect of successful

change. This step explains the reasoning and thought that underlies a

required change. Planned communication is essential. When this step is

successfully completed the individual (employee) will fully understand why

change is necessary.

Desire to participate in and support the changeIn this step the individual is able to reach a point where they make a

personal decision to support the change and participate in the change.

Naturally a desire to support and be part of the change can only happen

after full awareness of the need for change is established. Building desire is

partly achieved by addressing incentives for the individual and creating a

desire to be a part of the change.

Knowledge on how to changeThe third building block of the model, providing knowledge about the


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change, can be achieved through normal training and education methods.

Other methods of transferring knowledge, such as coaching, forums and

mentoring, are equally useful, so don't limit this process to formal training.

Two types of knowledge need to be addressed: knowledge on how to change

(what to do during the transition) and knowledge on how to perform once

the change is implemented.

Ability to implement required skills and behavioursIn the ADKAR model Ability is the difference between theory and practice.

Once knowledge on how to change is in place (theory) the practice, or actual

performance of the individual, needs to be supported. This can take some

time and can be achieved through practice, coaching and feedback.

Reinforcement to sustain the change

This final stage of the model is an essential component in which efforts tosustain the change are emphasised. Ensuring that changes stay in place and

that individuals do not revert to old ways can be achieved through positive

feedback, rewards, recognition, measuring performance and taking

corrective actions.

This is often the part of change management that is most difficult as

organisations are already moving towards the next change. In fact, the Kurt

Lewin change management model receives the most criticism in this area.

However, for successful change, reinforcement is essential to ensure that

changes are maintained and new outcomes can be measured.

McKinsey 7S Framework
http://www.change-management-coach.com/kurt_lewin.htmlhttp://www.change-management-coach.com/kurt_lewin.htmlhttp://www.change-management-coach.com/kurt_lewin.htmlhttp://www.change-management-coach.com/kurt_lewin.html


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The McKinsey 7S Frameworkis a management model developed by well-known business consultants Robert H. Waterman, Jr. andTom Peters in the1980s. The 7S are structure, strategy, systems, skills, style, staff and sharedvalues.

The model is based on the theory that, for an organization to perform well,these seven elements need to be aligned and mutually reinforcing and themodel is most often used as a tool to assess and monitor changes in the

internal situation of an organization.

The 7-S diagram illustrates the multiplicity interconnectedness of elementsthat define an organization's ability to change. The theory helped to changemanager's thinking about how companies could be improved. It says that itis not just a matter of devising a new strategy and following it through. Noris it a matter of setting up new systems and letting them generateimprovements.

Hard Elements

Strategy Structure Systems

Soft Elements

Shared Values Skills
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Style Staff

Shared Values

Shared values are commonly held beliefs, mindsets, and assumptions thatshape how an organization behaves its corporate culture. Shared values arewhat engender trust. They are an interconnecting center of the 7Ss model.Values are the identity by which a company is known throughout its businessareas, what the organization stands for and what it believes in, it centralbeliefs and attitudes. These values must be explicitly stated as bothcorporate objectives and individual values.

Structure

Structure is the organizational chart and associated information that shows

who reports to whom and how tasks are both divided up and integrated. Inother words, structures describe the hierarchy of authority andaccountability in an organization, the way the organization's units relate toeach other: centralized, functional divisions (top-down); decentralized (thetrend in larger organizations); matrix, network, holding, etc. Theserelationships are frequently diagrammed in organizational charts. Mostorganizations use some mix of structures - pyramidal, matrix or networkedones - to accomplish their goals.

Strategy

Strategies are plans an organization formulates to reach identified goals, anda set of decisions and actions aimed at gaining a sustainable advantage overthe competition.

Systems

Systems define the flow of activities involved in the daily operation ofbusiness, including its core processes and its support systems. They refer tothe procedures, processes and routines that are used to manage theorganization and characterize how important work is to be done. Systems

include:

Business System Business Process Management System (BPMS) Management information system Innovation system Performance management system Financial system/capital allocation system


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Compensation system/reward system Customer satisfaction monitoring system

Style

"Style" refers to the cultural style of the organization, how key managersbehave in achieving the organization's goals, how managers collectivelyspend their time and attention, and how they use symbolic behaviour. Howmanagement acts is more important that what management says.

Staff

"Staff" refers to the number and types of personnel within the organizationand how companies develop employees and shape basic values.

Skills

"Skills" refer to the dominant distinctive capabilities and competencies of thepersonnel or of the organization as a whole.


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How Cisco IT Implemented Organizational Change andAdvanced Services for Operational SuccessNew organizational framework greatly improves operations.

An enterprise with 300 locations in 90 countries, Cisco has 46 data centersand server rooms supporting the 65,000-plus employees. Fourteen of thedata centers/server rooms are production or customer-facing and 32 areused for product development.

Like most IT organizations of large enterprises, Cisco IT used atraditional siloed organizational structure, with staffers doing both

implementational as well as operational work, often having to drop

operational projects to complete deployments. With the traditional

organizational arrangement, there was much duplication of effort and lack of

focus across the organization. In many cases, employees were unaware of

the duplication that existed across the organization. The original

organizational model included regional network teams and regional voice

teams that were responsible for all aspects of implementing and operating

their environments and services.

NDCS (Network and data centre services) Pre-existing

Traditional Model: With two separate service organizations,

there was much duplication and lack of focus.


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CHALLENGE

Cisco ITs Network and Data Center Services (NDCS) organization neededfocus. NDCS engaged Cisco Advanced Services Network AvailabilityImprovement Services organization (NAIS) to identify the areas that neededto be changed and recommend how to proceed.

The charter of Cisco Advanced Services NAIS is to leverage Cisco andindustry network leading practices to achieve a highly available, reliableoperations infrastructure. NAIS assesses and remediates the people,process, and tools needed to mitigate operational risk and networkcomplexity by running an Operational Risk Management Analysis (ORMA).The ORMA is a Cisco support deliverable that outlines a roadmap foroperational excellence and availability via a best-practice approach tonetwork design, tools, process, and expertise. Cisco Advanced Services NAISbases the identification and ongoing improvement of best practices upon itsongoing support experience, industry guidance, and the accepted Cisconetwork design principles for all networks demanding high availability. Overthe past eight years, NAIS has worked with more than 300 customers,evaluating the critical areas of:

1. Managing Service Support

2. Managing Change

3. Managing Service Performance

4. Managing Service Resiliency


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5. Staffing and Expertise

NAIS begins the process by interviewing business and IT leaders and seniorengineers, and then gathers technical, process, tools, and organizationaldocuments and templates. After an assessment of the current state, NAIS

outlines a detailed remediation plan to achieve business and availabilitygoals, and prepares an achievable vision and roadmap. After the ORMAreport was performed in 2006, it was apparent to Cisco Vice President of ITNDCS John Manville that organizational changes were needed to drive theteam to provide the additional scalability and agility that Ciscos businessrequired. The Network and Data Center organization could notaccommodate the kind of growth and technology evolution that Cisco andCisco IT were expecting, says Manville. The existing resources were notstructured to support this, and there was significant duplication of work andprocesses. These would likely be strained, possibly to the breaking point,with even a minimal amount of growth.

It was time to think outside of the traditional IT box, and restructure theorganization to accommodate the rapidly changing IT needs. The processeshad to be consolidated and simplified, and communication/collaborationvehicles were needed. However, a change of this nature was notinconsequential; it would have a ripple effect throughout Cisco ITs datacenters and global wide.

SOLUTION

An organizational restructure to Ciscos IT NDCS group solved the businessproblem. In Ciscos second quarter of fiscal year 2008 (CY08 fourth quarter),Manville restructured NDCS to map to its own lifecycle business model,typically used by Cisco Services for customer network implementation. Withmore than 400 employees in NDCS, this was a substantial restructuring.

Cisco Lifecycle Methodology: Cisco IT NDCS now uses thisframework for its organizational structure.


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The Cisco lifecycle methodology is comprised of six phases, all closelyrelated: Prepare, Plan, Design, Implement, Operate, and Optimize. Thelifecycle phases are implemented as follows:

Prepare phase: Business agility starts with preparation: anticipating thebroad vision, requirements, and technologies needed to build and sustain acompetitive advantage. In the Prepare phase, the organization determines abusiness case and financial rationale to support the adoption of newtechnology. By carefully anticipating future needs and developing both atechnology strategy and a high-level architecture to meet those needs, abusiness is better equipped to contain costs during deployment andoperations.

Plan phase: Successful technology deployment depends upon anaccurate assessment of the organizations current network, security state,

and overall readiness to support the proposed solution. In the Plan phase,the organization ascertains whether it has adequate resources to manage atechnology deployment project to completion. To evaluate and improvenetwork security, the IT department tests its network for vulnerability tointruders and outside networks. IT then develops a detailed project plan toidentify resources, potential difficulties, individual responsibilities, and thecritical tasks necessary to deliver the final project on time and on budget.


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Design phase: Developing a detailed design is essential to reducing risk,delays, and the total cost of network deployments. A design aligned withbusiness goals and technical requirements can improve networkperformance while supporting high availability, reliability, security, andscalability. Day-to-day operations and network management processes need

to be anticipated, and, when necessary, custom applications need to becreated to integrate new systems into existing infrastructure. The designphase can also guide and accelerate successful implementation with a planto stage, configure, test, and validate network operations.

Implement phase: A network is essential to any successful organization,and it must deliver vital services without disruption. In the implement phase,the organization works to integrate devices and new capabilities inaccordance with the design, without compromising network availability orperformance. After identifying and resolving potential problems, theorganization attempts to speed return on investment with an efficient

migration and successful implementation, including installing, configuring,integrating, testing, and commissioning all systems. After the networkoperation is validated, the organization can begin expanding and improvingIT staff skills to further increase productivity and reduce system downtime.

Operate phase: Network operations represent a significant portion of ITbudgets, so it is important to be able to reduce operating expenses whilecontinually enhancing performance. Throughout the operate phase, the ITdepartment proactively monitors the health and vital signs of the network toimprove service quality, reduce disruptions, mitigate outages, and maintainhigh availability, reliability, and security. By providing an efficient frameworkand operational tools to respond to problems, a company can avoid costlydowntime and business interruption. Expert operations also enable anorganization to accommodate upgrades, moves, additions, and changes,while effectively reducing operating costs.

Optimize phase: A good business never stops looking for a competitiveadvantage. That is why continuous improvement is a mainstay of the

lifecycle. Optimization is the continuous process of planning, designing, and

implementing incremental improvements to existing processes. Have

business goals or technical requirements changed? Is a new capability orenhanced performance recommended? As the organization looks to optimize

its network and prepares to adapt to changing needs, the lifecycle begins

anew, continually evolving the network and improving results.

Testing the Lifecycle Methodology within Cisco IT NDCS


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Ciscos new NDCS organization includes administration on both the front end

(via the Program Office) and the back end (via the Business Office), and

incorporates Ciscos Lifecycle Model

NDCS New Lifecycle Model: Cisco IT NDCSs current organizational

structure provides focus. While the original organization model includedregional network and voice teams responsible for implementing and

operating their environments and services, the new organizational model

splits out the Implement phase from the Operate phase for both the

network and voice areas

RESULTSThe restructuring, together with the NAIS ORMA report affected change in

NDCS. Over the past two years, NDCS has deepened its relationship with

Cisco IT advanced services for significant results. Overall, the operational

maturity comparison of 2006 to 2008 shows dramatic improvement in eachof the five areas.

Before using the lifecycle methodology, NDCS had:

An average of approximately 150 client-impacting incidents perquarter

Total impacting outage duration of 1000-plus hours per quarter

A defective root cause percentage consistently above 40 percent

The Cisco lifecycle methodology now provides a focus on operationalexcellence with these results:

Incidents have decreased to approximately 70 per quarter

The total impacting outage duration has been reduced to 300 impacthours per quarter


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The defective root cause percentage is now consistently below 10percent.

Meanwhile, demonstrating quantitative positive linear results, CiscoNDCS has achieved customer satisfaction scores of 4.856, with 5 being

the best possible score

Service-Level Agreements. Ciscos percentage of cases that weresatisfied within the alotted SLA timeframe has risen from 60 percent to90 percent since the NDCS restructuring


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searchcio.techtarget.com/.../organizational-change-manage.

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anizational+change+management&usg=AFQjCNGvHRPZqv-

8CAVY2i1_ZDKYtgwTpw&cad=rja

managementhelp.org/organizationalchange/index.htm

www.organizedchange.com/village.htm

http://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwor

k/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdf

Organizational Behaviour

-Stephen P. Robbins

-Timothy A. Judge
http://en.wikipedia.org/wiki/Change_managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwork/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdfhttp://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwork/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdfhttp://en.wikipedia.org/wiki/Change_managementhttp://www.mckinseyquarterly.com/Organization/Change_Managementhttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.google.co.in/url?url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa=X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=organizational+change+management&usg=AFQjCNGvHRPZqv-8CAVY2i1_ZDKYtgwTpw&cad=rjahttp://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwork/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdfhttp://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwork/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdf

organizational change (group no.8)

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