Organizational Change

ORGANIZATIONAL CHANGE
PROGRAM OBJECTIVE
 Basic dynamics of the change process
 Understand the importance of environmental
impact on business and appreciate the need for
change
 Analyze the forces that resist change; and
 Measures to be taken to overcome the resistance
to change
 Different models for change management
DEFINITION OF CHANGE
This is a process by which organization move

from their present state to some desired future
state to increase their effectiveness.
DYNAMICS OF CHANGE PROCESS
Fullan (1993) lists eight "basic lessons" that can be learned about the process of change and
improvement:
 Lesson One: You Can't Mandate What Matters (The more complex the change, the less you can force
it.)
 Lesson Two: Change is a Journey, not a Blueprint (Change is non-linear, loaded with uncertainty and
excitement and sometimes perverse.)

 Lesson Three: Problems are Our Friends (Problems are inevitable and you can't learn without them.)
 Lesson Four: Vision and Strategic Planning Come Later (Premature visions and planning blind)
 Lesson Five: Individualism and Collectivism Must Have Equal Power (There are no one-sided
solutions to isolation and group think.)

 Lesson Six: Neither Centralization Nor Decentralization Works (Both top-down and bottom-up
strategies are necessary.)

 Lesson Seven: Connection with the Wider Environment is Critical for Success (The best
organizations learn externally as well as internally.)

 Lesson Eight: Every Person is a Change Agent (Change is too important to leave to the experts,
personal mind set and mastery is the ultimate protection.)

WHY ORGANIZATIONAL CHANGE?
Internal Factors External Factors

 Profitability  Change in Business
 Need for Re-organization environment
 Market Forces
 Organizational Conflict
 Legislation
 Management Change
 Technological change
 Socio Cultural
 Political change
RESISTANCE TO CHANGE
 Fear of the unknown.
 Fear of failure.
 Disagreement with the need for change.
 Losing something of value.
 Leaving a comfort zone.
 False beliefs.
 Misunderstanding and lack of trust.
 Inertia.
POSSIBLE BENEFITS OF RESISTANCE
• Forces management to re-examine its proposals
• Employees act as check-and balance
• Management does not implement change in a haste
• Management can take corrective steps in time
• Information on the intensity of employee emotions
• Provides emotional release to employees
• Understanding of employees develops

OVERCOMING RESISTANCE
 Education & Communication
 Participation & Involvement
 Facilitation & support
 Negotiation & Agreement
 Manipulation & Co-optation
 Explicit & Implicit coercion
MCKINSEY’ 7S MODEL
 Strategy: The company plan or route-map to maintain
competitive advantage
 Structure: The company hierarchy
 Systems: The day-to-day processes and procedures
throughout the company
 Shared Values: The core values of the company
 Style: The company leadership style
 Staff: The company's employees and their broad abilities
 Skills: The skills and competencies of employees
LEWIN’ THREE STEP MODEL
 Unfreezing
Recognizing the need for change
 Changing
Modifying old ways and introducing new
behaviors
 Refreezing
Making new behaviors permanent
LEWIN’ CHANGE THEORY
Unfreezing Changing Refreezing
Readiness to change Implementation Making it stick
Educate Praise
(Everyone Set performance
understands) Encouragement indicators
Inform Recognition & Monitor &

(what, why, when & empathy
how) evaluate
Coach
performance
Consult
(Seek views & ideas)
Train Establish system
Plan to make it
(Objectives, resources, Lead happen
time – scales, measures
& budgets) Manage
Establish control
Organize Help & Guidance to check it is
(work Plans) happening
Regular Feedback
Appoint
Rewards for new
(manager, Leaders, Provide adequate
teams) Resources behavior
KOTTER’S EIGHT STAGE MODEL
Defrost a hardened status quo:
 Establish a sense of urgency
 Create the guiding coalition
 Develop a vision and strategy
 Communicate the change vision
Introduce new practices:

 Empower a broad base of people to take action
 Generate short term wins
 Consolidate gains and producing even more change
Ground the changes in the culture, and making them stick:

 Institutionalize new approaches in the corporate culture
THANK YOU

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ORGANIZATIONAL CHANGE

This is a process by which organization move

excitement and sometimes perverse.)

solutions to isolation and group think.)

strategies are necessary.)

organizations learn externally as well as internally.)

personal mind set and mastery is the ultimate protection.)

Internal Factors External Factors

• Employees act as check-and balance

• Management does not implement change in a haste

• Management can take corrective steps in time

• Information on the intensity of employee emotions

• Provides emotional release to employees

• Understanding of employees develops

Inform Recognition & Monitor &

 Create the guiding coalition

 Develop a vision and strategy

 Communicate the change vision

Introduce new practices:

 Generate short term wins

 Consolidate gains and producing even more change

Ground the changes in the culture, and making them stick:

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