Lecture no 14 Date 14/10/23 Madam Ganj Khatoon

New chapter organizational behavior

Organizational change:
 It is defined as the change that has an impact on the way work is performed and has significant
effects on staff.
 It is a process by which organization move from their present state to some desired future state to
increase effectiveness.

organizational management:
 change management is a structured approach to shifting individuals, teams and organizations
from a current state to a desired future state.
 It is an organizational process aimed at helping employees to accept and embrace changes in their
current business environment.

Goal of organizational management:

 To minimize the change impacts on workers and avoid distractions

Change agents:
They are responsible for managing change activities. Change agents can be”
 Managers or non-managers
 Current or new employees
 Outside consultants

Change is beneficial to some organization:

Example: the evolution of Starbuck
In the beginning they had only just a shop that sold some selected coffee beans

Types of change:
Planned change:
 It is a change resulting from a deliberate decision to alter the organization.
 It is an international.
 It is a goal-oriented activity.

Unplanned change:
 It is imposed on the organization and is often unforeseen for example;
 Changes in government regulations and changes in the economy.
 Lecture no 15 Date 9/10/23
Forces for change:
External forces:

 Technology is continually changing jobs and organization. For example, faster, cheaper and more
mobile computers and handheld devices.
 Economic shocks: rise and fall of global housing market, financial sector collapse, global
recession.
 Competition is changing, competitors are as likely to come from across the ocean as from across
town.
 Social trends don’t remain static. Companies must continually adjust product and marketing
strategies to be sensitive to changing social trends.
Internal forces:

 Strategic changes:
 Cultural changes:

The change process:

Lewin’s three steps model:
Kurt Lewin’s change model emphasizes that effective change occurs by:

 Unfreezing the current situation

 Changing towards the desired situation
 Refreezing the changed situation so that it remains in the desired state.
Stage 1: Unfreeze
Definition: In the unfreeze stage, the organization prepares for change by creating awareness about the
need for change and breaking down the existing mindset or status quo. This stage aims to make
employees understand that change is necessary and that the current way of doing things may not be
sustainable.
Example: Implementing a New Performance Management System
Suppose a company has been using the same performance management system for many years, and it has
become outdated and ineffective. The unfreeze stage involves communicating to employees that the
current system is not yielding desired results, and it's time for a change. Management might share data
indicating that performance evaluations are not leading to improved employee performance or
organizational outcomes. They conduct meetings, training sessions, and workshops to help employees
understand why change is needed.
Stage 2: Change
Definition: The change stage involves implementing the actual changes. This can include introducing new
processes, systems, structures, or ways of working. It's a period of transition where the organization
moves from the old way of doing things to the new way.
Example: Transitioning to a New Performance Management System
During the change stage, the organization introduces the new performance management system. This may
involve implementing new software, revising evaluation criteria, and providing training to managers and
employees on how to use the new system. Employees are encouraged to actively participate in the change
process, provide feedback, and make necessary adjustments to ensure a smooth transition.
Stage 3: Refreeze
Definition: The refreeze stage is about stabilizing the changes and reinforcing the new way of operating.
It aims to establish the changes as the new norm within the organization, ensuring that employees are
comfortable with the new processes and that they continue to follow them.
Example: Embedding the New Performance Management System
In the refreeze stage, the company ensures that the new performance management system is fully
integrated into its culture and operations. This includes ongoing training, monitoring, and continuous
improvement. The organization celebrates successes and recognizes employees who have adapted well to
the changes. Performance reviews and feedback processes are aligned with the new system, and it
becomes an integral part of the organization's routine.
Lewin's Three-Step Model emphasizes the importance of unfreezing existing mindsets and behaviors,
making the necessary changes, and then reinforcing those changes to create a new and sustainable
organizational state. It acknowledges that change can be challenging, but with the right approach and
support, organizations can successfully navigate the process and adapt to evolving circumstances.

Lecture no 16 Date 11/10/23

Inter link with kotter’s change model:
John Kotter's Eight-Step Change Model is a widely used framework for guiding organizations
through major change initiatives. This model provides a structured approach to managing and
implementing change. Here are the eight steps of Kotter's Change Model with an example:
Step 1: Create Urgency
Definition: Begin by creating a sense of urgency. Convince people that change is necessary, and
that the status quo is no longer acceptable.
Example:
Imagine a manufacturing company that has been experiencing declining market share due to
outdated production methods and increasing competition. The leadership team observes these
trends and shares market data and competitor analyses with employees, making it clear that if the
company doesn't change, it may not survive in the long run. This creates a sense of urgency
among employees and a recognition of the need for change.
Step 2: Build a Guiding Coalition
Definition: Assemble a team of influential and committed individuals who can lead the change
effort. This coalition should have the credibility and skills needed to drive change.
Example:
In our manufacturing company, the CEO assembles a guiding coalition consisting of key
executives, department heads, and influential employees who have demonstrated a commitment
to the company's success. This coalition will play a crucial role in leading the change effort.
Step 3: Form a Strategic Vision and Initiatives
Definition: Develop a clear vision for what the organization will look like after the change.
Additionally, create a set of initiatives and strategies to achieve this vision.
Example:
The guiding coalition works together to create a compelling vision for the manufacturing
company: "To become the industry leader in sustainable and efficient production." They outline
specific initiatives such as upgrading production equipment, implementing lean manufacturing
principles, and investing in employee training and development.
Step 4: Enlist a Volunteer Army
Definition: Communicate the vision to as many people as possible and encourage them to buy
into the vision. Make it clear that volunteers are needed to help drive the change.
Example:
The guiding coalition communicates the vision and change initiatives to all employees,
encouraging them to get involved. They also invite employees to join cross-functional teams
focused on specific aspects of the change, such as process improvement, sustainability, and
training.
Step 5: Enable Action by Removing Barriers
Definition: Identify and address obstacles that might hinder the change effort. This includes
removing resistance and roadblocks to progress.
Example:
The guiding coalition works to identify and address barriers to change. They may involve HR to
provide training on new processes, invest in new equipment, and actively address any employee
concerns or resistance.
Step 6: Generate Short-Term Wins
Definition: Create and celebrate short-term victories that demonstrate progress. These wins help
build momentum and maintain support for the change effort.
Example:
The manufacturing company celebrates small victories, such as achieving production efficiency
targets, reducing waste, and receiving positive feedback from early customer orders. These wins
demonstrate that the change is working and boost morale.
Step 7: Sustain Acceleration
Definition: Keep the momentum going by continuously building on the change effort. Avoid
complacency and ensure that the change is fully integrated into the organization.
Example:
The company continues to invest in ongoing training, process improvements, and sustainability
initiatives. They regularly report progress to employees and ensure that the change effort remains
a top priority.
Step 8: Institute Change
Definition: Make the change a part of the organization's culture. Ensure that the new practices
are fully adopted and institutionalized.
Example:
The manufacturing company successfully integrates lean manufacturing and sustainability into
its culture. These practices become standard operating procedures, and employees at all levels of
the organization embrace the new way of working.
Kotter's model provides a systematic approach to managing change, emphasizing the importance
of creating a sense of urgency, engaging key stakeholders, and sustaining the change over the
long term. This example illustrates how a manufacturing company might apply Kotter's Eight-
Step Change Model to address declining market share and improve its operations.
Mid term katm