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Objectives After studying this Unit you should be able to understand: what is change ? types of change alternative strategies of change process of change, a few models of change resistance to change commonly used interventions of Managing Change. Structure 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 Introduction Drivers of Change in Business Alternative Strategies of Change – at a Glance Process of Change Change Models Phases of Planned Change Resistance to Change Overcoming Resistance to Change Some Principles of Change Reducing Resistance to Change: Few Suggestions Commonly used Interventions for Managing Change Summary Self Assessment Questions Further Readings
The dictionary meaning of change as a noun is — ‘making or becoming different, difference from previous state, substitution of one for another, variation’ etc. Change is also a verb meaning — ‘to undergo, show or subject to change, to make or become different’. We are experiencing changes in all spheres of our lives — food, drinks, clothing, relationships, ambitions, living standard, work, tools, techniques. The changes are occurring so fast that people say ‘in this rapidly changing world change is the only constant’. There are numerous visible and invisible forces , which are constantly affecting changes in organizations, a few of them may be enumerated as follows: Technology Work force Economy — — — Tools, techniques, instruments, methods, procedures. Knowledge, skills, ambitions, expectations, needs. Liberalisation, globalisation, privatisation, breaking the barriers resource imbalance. Mergers, acquisitions, entry of new organizations, new products, lowering prices, better services. 1
Organisational Development and Change
Nuclear families, working couples, late marriages, one child norm. Warning ideologies, new equations, transitory relationships, coalition Govts etc., single superpower. New types of Finances and Financial Institutions
All changes are not similar in nature. Some changes keep on happening on their own and some are planned. There are three types of changes. Evolution Revolution Planned change When people are not willing or / and not prepared for facing the change, change comes gradually as a natural process, in small adjustments or shifts in response to emerging problems — this type of change has been called Evolution. When people reach a state of readiness to resolve conflicts by applying force on others to comply through coercion or suppression, revolution takes place. When efforts are made to make others experience the need of change and determine the ideal or desired situation and striving to achieve the ideal or desired state through planned actions — planned change takes place. Social and Behavioural scientists have made diverse approaches to understand explain change process. Marilyn Ferguson has described four types of change in his “Aquarian conspiracy” Exceptional Change A particular change is accepted as an exception; there is no change in ongoing aspects. The existing beliefs are not changed but specific change is introduced separately, as an exception. In THE R&D division of a large organization flexi time was introduced as an exception — all other divisions were continuing the ongoing system. Incremental Change A gradual change, those who are affected do not experience it initially. Computerisation in offices has been introduced as an incremental change in most of the organizations. Pendulum Change Change from one extreme point of view to the opposite — pendulum change. In a Company elaborate procedures of open tender was in practice for engaging Consultants; suddenly they decided to go for single tender on negotiation basis. Paradigm change The new information about an event, object, behaviour, image is integrated and the ‘picture shifts’ or enlarges, emergence of a new belief — such a change is called paradigm change. A ‘paradigm’, in simple words may be understood as a cognitive model of how things are or a standard for how things should be. For example, the consideration for the success of a PSU today in comparison to those in the seventies. 2
Change also has been explained as a continuum — the two extremes being No Change No Change Position The ‘no change’ position indicates the ‘0’ condition of ‘inertia’ — sticking to traditional view, valuing the past conservative thinking that ‘new’ is definitely bad. Any change or deviation from the past is perceived as a threat — a threat to beliefs, habits, preferences, norms and prevailing order. An example is — evolving a performance management system, constantly sticking to the previous method — where boss does it alone. The major benefit from this position is ‘stability’, less efforts, comfort, less risk but it also brings no growth, boredom, dissatisfaction, conformity and stagnation. Constant Change The extreme ‘right’ indicates the state of ‘constant change’ and presents a dynamic approach having a constant focus on future. It considers the ‘new’ as always good. Any change is seen as positive and resistance is seen as bad — not moving with times and an opposition to the norms and values and progress. A restlessness for knowing what is new and adapting the same without our objective assessment of the strong and positive aspects of what is the past or the present, not even the existing capabilities. In order to convince or implement the changes not much regard to the affected people is given, and effort to convince has much jargon and force and excitement. Some times, the focus on what is important and crucial is lost. This state provides energy, excitement and a Zeal to go ahead of the traditions. Productive (pragmatic) Change Between the two extremes is another approach ‘the Pragmatic approach’ of change — which is focused on the existing state (what is happening) and change seen as inevitable. The emphasis is on explaining the need for change and making a conscious choice without having a fascination or inertia for the past nor a compulsion for a rapid change. Desired (Productive Change) Constant Change
Process of Change
14.2 DRIVERS OF CHANGE IN BUSINESS
There are many visible and invisible factors, which may compel a business organization, how to effect changes of various types. A few general change drivers are — increased competition, Price cuts, Technology, Laws, Customer / user demand. Change Targets There could be a Variety of possible targets of change in an organization. A few are : Vision, mission task, and goal Structure Strategy Systems, procedures, technology Organizational Values Management styles Culture Human resource : knowledge, skills, attitudes, values 3
Organisational Development and Change
Table 1 : Factors Effecting Change DRIVERS Manufacturing : Company Reduced cost as a result of competition. CHANGES Cost control efforts; Man-power cuts, contract, employee, automation. Buy (Import) rather manufacturing, outsourcing, manpower reduction Setting up manufacturing/ unit in other countries. Change products, materials, technology, main equipments Technology import / product substitution. Putting units in areas having lenient laws. Customer (market) research lined retailing. Advertisement Departmental stores in place of small scattered stores. Healthy products, substitutes
High manpower cost
Cheaper imported products
Obsolete product due to technology change
Pollution Control Laws
Change in choice of consumers (semi-cooked food, electrical/electron kits in place of fuel based equipments) Time constraint, ease in shopping.
Health awareness -- Low cholestrol oils vs. traditional oils. Time constraint
Home delivery, internet / tele shopping, automation.
14.3 ALTERNATIVE STRATEGIES OF CHANGE : AT A GLANCE
Change has been a matter of great interest to the Sociologists and Behavioural Scientists. A number of theories and models have been postulated. Olmosk has presented a comprehensive view of a number of Change strategies and called them ‘Seven pure strategies of change’. Each of these strategies have been briefly summarised and explained. The Fellowship Strategy The assumption underlying this strategy seems to be, “If we have good, warm inter-personal relations, all other problems will be minor.” Emphasis is placed on getting to know one another and on developing friendships. Groups that use this model often sponsor discussions, dinners, card parties, and other social events that bring people together. 4
The fellowship strategy places strong emphasis on treating everyone equally; this often is interpreted as treating everyone the same way. All people must be accepted; no one is turned away. When the group is making decisions, all members are allowed to speak, and all opinions are weighed equally. No fact, feeling, opinion, or theory is considered inherently superior to any other. Arguments are few, because conflict generally is suppressed and avoided. The Political Strategy Political Strategists tend to believe that “If all the really influential people agree that something should be done, it will be done.” They emphasise a power structure that usually includes not only formally recognised leaders but informal, unofficial leaders as well. Much of the work done under the political strategy is the result of the leaders’ informal relationships. The political strategy emphasises the identification and influence of people who seem most able to make and implement decisions. It usually focuses on those who are respected and have the largest constituency in a given area. One’s level of influence is based on one‘s perceived power and ability to work with other influential people to reach goals that are valued by one‘s constituency. The Economic Strategy Economic strategists believe that “Money can buy anything or any change we want.” They emphasise the acquisition of or — at the very least, influence over — all forms of material goods, such as money, land, stocks, bonds, and any other tradable commodity. This strategy is widely used in the United States and the Western world and is used most often by large corporations and by the very rich. Inclusion in a group that espouses this approach usually is based on possession or control of marketable resources. Influence within the group is based on perceived wealth. Most decisions are heavily, if not completely, influenced by questions of profitability as measured by an increase in tangible assets. This approach is highly rational, based on the assumption that all people act more or less rationally from economic motives. As a result, such groups often have high needs for control and for rationality. The Academic Strategy The academic strategy assumes that “People are rational. If one presents enough facts to people, they will change.” To this end, academic strategists undertake an unending series of studies and produce thousands of pages of reports each year. Inclusion in a group that plans to use the academic strategy to solve problems or to make changes is based primarily on one’s expertise in a given area or on one’s desire to acquire such knowledge. Leadership and influence within the group generally depends on the degree to which the person is perceived as an expert. Newcomers to the field are considered to have little to contribute, while those with advanced degrees or many years of specialized study receive a great deal of attention. The Engineering Strategy Users of this strategy try to bring about behavioural change without dealing directly with the people involved. The underlying assumption is, “If the environment or the surroundings change enough, people will be forced to change.” Therefore, engineering strategists may spend a great deal of time studying physical layouts, patterns of interaction, and role descriptions in work places and classrooms without ever speaking to the employees or students. Groups that approach change in this way often recruit members based on their
Process of Change
Organisational Development and Change
technical skills. Group needs often are defined in terms of technical skills, which are considered more important than interpersonal styles. The Military Strategy The military-style approach to change is based on the use of physical force. The name military has been given to this approach because it conveys the appropriate connotation to most people, not because the military is the sole user of this approach. Police Departments, “revolutionary” student groups, and some teachers, for example, employ the military strategy. The basic assumption behind this approach is, “People react to genuine threats. With enough physical force, people can be made to do anything.” Therefore, considerable time is spent in learning to use weapons and to fight. Physical conditioning, strength, and agility are valued. Membership in military-strategy groups often is determined by one‘s physical power and by one‘s willingness to submit to discipline. Both within the group and in its dealings with the external environment, influence is exerted primarily through the fear of authority and through the threat of punishment. Members of military-style groups need control, status, and security. They often tend to view most problems and relationships in terms of power, authority, threat and exploitation. The Confrontational Strategy The confrontational approach to change is based on the assumption that if one can mobilise enough anger in enough people and force them to look at a problem, the required changes will follow. Although conflict is stressed, this strategy emphasises nonviolent conflict rather than physical force. Membership in such a group is based on one’s ability to deal with and to use conflict in ways that benefit the group. The Applied Behavioural Science Model Most problems are extremely complex; a cut-and-dried approach to problem solving is not always the most effective or thorough. This is the basic assumption of the applied behavioural science (ABS) model. Groups that use the ABS model tend to believe that as many people who will be affected by the decision as possible should be included in the decisionmaking process. Within the group, one’s level of influence is based on one’s own knowledge and the degree to which one will be affected by the decision. Ideally, the person with the most knowledge about the problem and/or the person most affected by the decision should have the most influence. The ABS model considers any information or theory that will shed light on the situation and help the group to reach a decision to be valuable. Group members’ emotional needs are regarded as existing primarily for emotional and intellectual integration.
14.4 PROCESS OF CHANGE
Change is process of moving from the current state to the desired state (vision) of future. Making a change involves, moving the organizations people and culture in line with the strategies, structure, processes and systems to achieve desired state (vision). 6
Process of Change
Vision Desired Situation
The existing situation is the status, which is prevailing at the moment, what the organizations looks like now. The desired situation is the status which one desires to prevail; it is also called vision. A vision helps in clarifying— What do we want to become? How much needs to change? What the Organization should look like when the change is completed? The transition state may be defined by ascertaining the activities and processes necessary to transform the organizations from its current state to the desired state — a road map — for specifying the activities, crucial interventions and events during the transition period. For making an organization move from the existing state to desired state some ‘force’ is to be applied. Some forces applied by the individual(s) undergoing the change oppose the force applied for moving to the desired state — this is called resistance. This also supports Newton’s third law of motion- “Every action / force creates an opposition (resistance)”. Successful change—the three stage model According to Lewin’s three step model, successful change in organizations should follow three steps : Unfreezing Intervening (moving) Refreezing
i) Unfreezing Newton’s first law of motion states “Every object remains in state of rest or uniform motion in a straight line unless and until an external force is applied to it.” In the organizations also similar situations exist. When a product, service or profit is at a deteriorating stage but with the rapid changes there maintaining a ‘steady state’ is not possible as the situations are bringing many types of forces, usually inhibiting forces which block the pace. For example, for a stagnant product, every product will remain stagnant and non-competitive leading to decay vertically down unless and until an external, innovative and relevant technology is proposed to cause its growth vertically upwards. Thus for making any change some thing has to be done in a planned way to disturb the status quo: this is called de freezing (unfreezing). This stage aims at disturbing the existing equilibrium and creates motivation to change using mechanisms like — (a) lack of confirmation or disconfirmation (b) sharing one’s concerns and perceptions openly, looking in to feelings, removal of barriers of communications, induction of guilt and anxiety and creations of threats by reduction of psychological safety, presentation of alternative scenarios etc. In case of any change, the effort is going to face individual resistance and group conformity. These change efforts for overcoming the pressures of both individual resistance and group conformity. 7
Organisational Development and Change
Two types of forces emerge and at the status quo, both are in balance a) Forces prompting the change — forces that direct the behaviour away from the status quo — “Driving forces” b) Forces hindering the movement away from the status quo — Restraining forces.
Figure 1 : Forus and Change
For affecting the change : The Driving forces should be identified, assessed and intensified / added. The Restraining forces should be identified, assessed and weakened / removed. Both strategies are followed simultaneously. The technique described is called ‘Force field analysis’. The method includes the following steps: 1) 2) 3) 4) 5) Identify the problem, which you want to work and describe it. Define the problem clearly indicating the present situation. Define the situation desired after the problem is solved. Identify the forces working for the change i.e. driving force by way of individual listing, brainstorming or any other means. Identify and list forces likely to work against the desired change (restraining forces). These forces can be related to human resource, time, money, technology, customer requirements or any other internal, external factors. From the list of driving forces and restraining forces, prioritise the forces and identify 3-4 most significant forces under each of the both categories. Make a force field diagram showing both types of forces after prioritization. The arrows should be proportional to their priority / strength. Discuss and list possible action steps for reducing or eliminating the effect of the restraining forces and add or increase the effect of the driving forces. Determine the most effective steps under both the categories of forces and outside which once to implement. Examine the resources available for carrying out each action steps. Develop a comprehensive action plan, sequence of activities and assign responsibilities for implementation.
6) 7) 8)
9) 10) 11) 8
Implement the plan. Evaluate.
Process of Change
ii) Moving / Intervening The steps to be taken for making the desired change should be planned considering all aspects — Tasks, Technology, Structure and Human Resource. Since any organization is composed of these four inter-related and interdependent components, the impact of the changes should be anticipated and examined. Since the organizational environment is a resultant of three or four components — and any organization exist in environment analysis of internal and external environment is essential. This step aims at developing new responses by providing new information. Cognitive redefinition is a mechanism, which is achieved by identification (information) through a single source and scanning (information through multiple sources). Refreezing The change interventions start making the desired status in due course. These are to be stabilised. Refreezing stabilises a change intervention by balancing the forces which have created the desired (driving forces) and those, which are inhibiting the changes to occur (restraining forces). Here also, Newton’s Second Law is quite helpful in understanding — “The rate of change of momentum is proportional to force applied and change takes place in the direction in which the force acts”. Hence, for rapid and deep change, forces applied should be strong, direction should be clear and force applied in the right direction. This stage helps stabilising and integrating the changes. This is gained by integrating new responses into persons and into significant ongoing relationships through reconfirmation.
14.5 CHANGE MODELS
1) C.D.S. Model This is a very simple 3 stage model developed using the work of Bechhard and Horns (1987). The three stages are: i) Assessment of current state (scenario) ii) Developing the desired State (scenario) iii) Formulating the strategy / plan to move the organization (or system) from current state to the desired state. Assessment of Current State At this stage, efforts are made to explore, analyse and identify the problems and unused opportunities, understanding the causes visualizing the effects. For this, a climate is to be created where people share their views, opinions experiences openly and the management is willing to admit the gaps, slippages, wastages and other problems. Normally, a long list is generated and it is essential to prioritize and identify ‘points of leverages’ — problems, which have high priority.
Organisational Development and Change
Developing the Desired State (Preferred Scenario) At this stage, efforts are made to determine how the organization or organizational unit, project or the programme would look like after making the changes. For preparing the scenario, alternative possibilities or preferred scenario are developed by using techniques like brainstorming, fantasy or a variety of structured exercises. Efforts are made to stimulate both right brain type thinking and left-brain type of thinking so that both conventional and nonconventional ideas are captured. A few indicators or criteria are also developed to indicate the achievement of desired state. These criteria would help in future to determine to what extent the desired scenario has been arrived at. Evaluate each of the scenarios by using different evaluation methods and select the most visible one. At this stage, left-brain type of thinking will be quite useful. Anticipate the difficulties likely to be experienced while making action steps to reach the desired scenario. Examine if appropriate steps can be taken and resources will be adequately available. Otherwise, examine the feasibility of implementation of the next preference. Re-work on the selected preferred scenario to make it more explicit and inspiring. Getting the commitment for the change initiatives and resources, the commitment of the key persons in the organization and outside should be assured. Formulating the strategy action plan to move the organization from the current state to the desired state These states deal with how the movement from the existing to the desired state would be accomplished. Thus, this stage would indicate how the results would be accomplished. For this, a wide range of strategies to reach the new stage or preferred scenario would be identified. Using the right brain type thinking, the alternative strategies are identified, then evaluation of each of the alternative strategies would be made and that appropriate strategy would be selected which would help in achieving the desired outcome. These strategies would next be translated in the form of workable plans. 2. ADPI Model This Model is based on the work of NR Jones. It consists of the following stages.
Designing Change Intervention
Planning the Change
Figure 2 : ADPI Model
Organizational Analysis This phase aims at developing an understanding about the organization, its culture and readiness for change. Efforts are made to understand the tasks, structure, strategies, systems, procedures and management practices, morale, motivation and internal and external environment. Different research techniques, interviews, brainstorming and workshops are used. Designing Change Intervention At this stage, vision or the desired state of the organization is prepared. Active involvement of Top management and a wide agreement on the interventions are essential. The key resource persons and other team members must be identified and some team building initiatives are taken to ensure shared vision and commitment to change. Role of each member should be clarified. A number of workshops, training sessions, meeting and presentations are usually held at this stage. Planning for the Change The objective of this stage is to plan for effecting the desired changes for achieving the vision. An action plan is prepared indicating the activities, responsibilities, time frame, counting huge measures and required resources. Implementation This is the most crucial stage. The action plan has to be implemented. The involved persons are to be educated and convinced about the gains. Extensive communication is required and high orders of leadership skills especially persuading skills are required. A number of presentations, meetings, workshops are to be held. The success depends on the internal resource persons or facilitates who would work in tandem with the change agent / consultant. It is difficult to get successful implementation without Project Management skills. 3) Action Research A change process based on systematic collection and analysis of data is called action research. In this approach, data is collected to diagnose the problem and action steps are identified on the basis of the analysis of the data. It is a fivestep process. These steps have been enumerated as follows. Diagnosis Under the guidance of a change agent / consultant, data is gathered about the problems, perceptions, concerns and the expected changes from the employees of the organization. Questions, interviews, secondary records and a variety of techniques are used for collection of data. Analysis At this stage, analysis of the data collected in the previous step is carried out to identify the problems, patterns of behaviours etc. The change agent or consultant draws inferences and identify the primary concerns, problem areas and expectations. Feedback Action research is a collaborative process and therefore emphasises deep involvement of the employees likely to be involved. Therefore, the highlights of the analysis in terms of concerns and problem areas are shared with the employees specially those cross sections from where data had been collected.
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Organisational Development and Change
With the help of representatives of employees, action plan for bringing about needed change in the specific areas is carried out. Action Actions planned in the action plan mentioned above are set to motion in line with an explicitly prepared implementation plan. Evaluation At the planned intervals, an evaluation is carried out to know to what extent implementation has taken place and desired changes have been arrived at. Necessary steps may be taken for collection, modification or further work. 4) OD models As discussed in Unit 13, OD efforts are comprehensive change efforts comprising a variety of focus. The model mentioned in Unit 13 with examples of different OD interventions may be referred.
14.6 PHASES OF PLANNED CHANGE
For getting the enduring results, change cannot be left to choice; rather planned efforts will have to be made. Consolidating various models, a general approach of making planned change may be evolved — – – – – – – – – Creating awareness and disturbance. Feeling the need of change Exploring the readiness Diagnosis Designing and planning interventions Intervening — managing the transition Evaluation and Follow-up
Creating and Communicating Awareness It is a well-known fact to many that frogs are amphibious creatures having tremendous adaptability. They have survived all ages because of this — they can survive in all climates, in all situations, all temperatures. Some experiments carried on frogs in laboratories are highly shocking. In a few shallow pans, frogs were kept in water at normal temperature. The pans were kept on Bunsen burners which were heating the water in pans very slowly. Even if the water became very hot the frogs did not jump out of the pans — quite surprising. The water started boiling — the frogs got boiled! Pans with room temperature water once again put on the bunsen burners. When the water became quite hot (but not boiling) around 60 - 70 Degree C temperatures frogs were dropped in the pans. Within flash of moment frogs jumped out and save themselves. Many of us are like the frogs — we develop tolerance and adaptability and ignore the “temperature” and end up boiling. ‘Awareness’ therefore is the first stage. A process of enhancing the awareness of self by considering the aims, goals, vision, mission and the state of their achievement, future environmental scenarios, extrapolations and forecast is useful for enhancing awareness. Bench marking and competitor intelligence are two other triggers of enhancing awareness.
The awareness creates anxiety to create future scenarios, — likely gains and problems — and therefore generates energy in those who become aware. For example, in BHEL in 1983, the HR Manager was trying to project the role of Personnel function in achieving the Corporate objectives (1985-90) and could realise that if the manpower strength and turnover/sales keeps on increasing at the previous rate, then in 1990 the company will be in red only because of Manpower strength. He got alarmed and made a series of presentations in different fora. After initial reaction, the top Management also became aware and alarmed of the impeding situation. This created planned efforts of Manpower Planning in the leadership of the HR Manager. After 2 years, the Manpower strength started decreasing — today the strength is 43,000 against the strength of 78,000 in 1983-84. The turnover during the period has increased from Rs. 800 crores to 8000 crores. A variety of strategies, such as presentation, publications in Newsletters, workshops, Quiz, sessions and presentations in Management Development programmes may be used for enhancing awareness. This awareness creates an imbalance and disturbs the status quo. People become uncomfortable and respond in different ways. Usually energy level increases for denial and opposition of the issues. Feeling the Need Once the awareness spreads and increases, the involved people start feeling the need of the change of elimination of the unhealthy situations. They start thinking about ways and means to avoid this undesired situation. People start thinking about the consequences if no change is made. When the actual / projected results are not in line with expectations, needs are intensely felt. Any person at any level can feel the need, but sharing will help enhance the clarity. Exploring Readiness for Change In spite of the strongly felt need, it is essential to explore the readiness of the organization to change. A process facilitator may call a meeting / workshop of senior people and on the basis of observations on the interaction, he can get an idea of the readiness to change. When too much fascination for the status quo is sensed, fear and apprehensions are strongly expressed, case of failure are cited more than success stories, resource scarcity is repeatedly presented — resistance to change efforts is likely to be high. OD should not be initiated in a hurry. Some consultants conduct a few workshops for assessing the readiness. Instruments / questionnaires are also used by some consultant. An approach developed by J William Pfeiffer and John E Jones may be suggested. This approach is based on 15 indicators, which they have developed in the form of a check list (instrument). The indicators are being enumerated below under three broad classes. General Considerations Size of the organization Growth rate Crisis (situation) Macro economics
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Organisational Development and Change
OD history Culture Resources Time commitment Money Access to people Labour Contract limitations Structural flexibility People Variables Interpersonal skills Management development Flexibility at the top Internal change agents This instrument / check list can be served to a number of people in the organization, including the top management and the findings should be discussed. This will not only give an idea about the readiness, but also raise the awareness towards some of the crucial pre-requisites. For details ‘OD readiness’ by J.W. Pfeifer and John E Jones’ in ‘The 1978 Annual Handbook for Group Facilitators may be referred. A few questions may be considered for examining various aspects — Commitment / support of the Top Management for desired changes. Sense of urgency advisable in the top management. The perceived Power of Top management. Clarity of vision in Top management. Shared vision — to what extent the vision is shared by stakeholders. Congruence of targeted change efforts with ongoing change efforts in the organization. Decision making style and quickness. Hierarchy in organization — flat and flexible more conducive to change. Super ordination — Willingness of Line Managers to sacrifice their personal interest for the good of organization. Customer focus of the organization. Monitoring of competitors by the management. Risk taking — the extent to which managers / employees are rewarded for taking risk. Innovativeness — the extent to which innovativeness is encouraged. Communication channel — both directions. History / experience of past change efforts. Trust level between employees and management Availability of Resource persons (change facilitators — internal / external) Cooperation / Collaborative attitude. Sharing the benefits of change enhances readiness of change.
Diagnosis This has been discussed in Unit 13. Planning Interventions This is also discussed in Unit 13. One should be able to agree on defining What are the specific goals of change? Who are the involved people (stake holders)? What are the restraining and driving forces? What contingency measures to be considered for emergency situations? What interventions will be made? How the success will be measured? etc. Intervening — Managing the Transition Preparing the Team For carrying out the interventions, a team of internal resource persons is prepared. Ideally, this is a multi-disciplinary team which would make the interventions and help in its successful implementation. The internal resource persons should be skilled in Human Process facilitation and should have undergone intensive training programmes. Conducting the Activities Whatever interventions have been planned, are to be implemented. In many areas, employees would pose resistance which is to be overcome. If the approach appears to be inadequate or inappropriate amendments are to be made. The experiences are to be documented highlighting both process and content aspects. Regular interaction with the committee / task force members and Consultants is very essential. Mid Course Evaluation After interventions have been made, periodic evaluation is required for ascertaining whether the interventions are bringing desired results. If yes, then further follow up is required. If not, it must first be examined whether interventions have been made as per the plan. If interventions have been made as per the plan but are not giving the desired results, the causes must be examined and if needed, alternative interventions should be designed and introduced. Before making the interventions, the management / facilitators should be clear about. a) What is the change going to be made? b) What are the reasons for benefits of the organization? c) How will change affect the individuals – who experience it? d) What supports and tools are needed to manage transition? While making interventions the involved persons force different types of problems. The processes at the transition stage are quite important. Whenever managers suspect that the change is likely to come — their initial reaction is that of “shock”. Their performance starts receding and they give different negative comments. This shock starts spreading. In a multi unit public sector undertaking,
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Organisational Development and Change
when the Top Management decided to introduce a KRA based Performance Management System, there was an initial reaction of shock. It affected their sense of well-being and perform adversely. Soon after, a strong tendency to deny that there is anything wrong in the prevailing system emerged and managers tried to show an enhanced competence (ability) to protect the existing status. They started showing that the present system was quite good. Very soon, there was a realisation that the average is imminent and they have to bear the pangs of change. This realisation was spread and managed positively for enhancing the readiness of change by introducing planned efforts by introducing mechanisms for awareness generation, training, involvement of users, interest and support of senior and top level managers. All these created strong emotions — at one side fear of unknown — on the other side benefits of the new system, pressure on roles, future possibilities, benefits, losses, implications etc. The pressure for unlearning the existing ways and learning the new ways created different types of fears and anxieties. The ensuring uncertainty created frustration in many leading to sliding down sense of well-being and performance level. The intensified training sessions, realization of possible losses and benefits, envisioning of future gradually led executives toward acceptance of the system. The sense of confidence, well being and performances started climbing upward. The desire and effort of experimentation started getting reinforced. They accepted the challenges and started efforts for adopting the new system. There were slippages and mistakes — which got rectified. Communication enhanced and people started sharing their experiences — feelings, hopes, successes, failures. The leadership helped people to get a better understanding. The evaluation of the emerging situation, feedback amendments and enhanced communication, helped integration of the efforts and the system got implemented. Evaluation / Follow up The results of the change initiatives should be measured periodically — the gap between the planned and desired. For this, a befitting feedback mechanism is to be set up — to gather information by survey, focus groups, interviews etc. Usually, it has been found that even if encouraging results are obtained in the beginning, with the passage of time, it starts deteriorating. Managers intervene by way of providing support, appreciation and training etc. Special meetings, celebrations, support groups and certain types of reinforcements are needed for sustaining and enhancing the results.
14.7 RESISTANCE TO CHANGE
According to Newton‘s third Law of Motion “to every action there is an equal and opposite reaction.” Resistance to change, is therefore, bound to be there. Real change will be effective only when Driving forces > Restraining forces
Resistance is ability to avoid what one does not want from the environment. Resistance to change is a behaviour designed to discredit, delay or prevent the implementation of a change. Resistance is of two types — Individual resistance and Organizational resistance. Resistance is not always harmful.
An individual poses resistance to all those efforts, which are against his/her ‘Self Concept’— a response to protect one habits, beliefs, values. Resistance prevents from getting hurt, guards one’s effectiveness, heightens one’s awareness to oneself and keeps one from becoming distracted. It provides stability and predictability of one‘s behaviour. If there is no resistance, there will be a ‘chaotic randomness’ in organizations. Resistance stimulates discussions and re-examination. In organizations resistance helps in differentiating talents, providing new information, producing energy and making the work environment safe (HB Karp). Resistance, thus, gives both benefits as well as problems. Individual Resistance Resistance in different situations has varying intensity. The idea itself generates the first level of intensity — it is the initial or the first response when a person comes to know about the proposed change. This is primarily because of the natural liking for the ‘status-quo’. This is also due to lack of awareness about the desired change — its importance, impact, costs and benefits, their own concept and view of the changes. Some times even if the change is derived, there is a dislike for the timing, the change agent, the cost factor or the extra efforts required. There are some issues, which are not observed or experienced initially. These are the deeper issues. The issues may not be found to cause resistance initially, but it is experienced and becomes visible while discussing or working on the issues. These appear in different ways: Mistrust Punishments Rewards Need for respect, reward, recognition Fear of loss (monetary or status) Lack of resilience. The level 3 issues are deeply imbedded — entrenched. This is caused by conflicting values, visions, life goals, historical animosity etc. This may be as a result of the combination of some factors described at previous two levels. Resistance to change does not always becomes explicit or observable. Mostly these are hidden and come out indirectly, therefore, it is not easy to observe and anticipate. Some causes of individual resistance: Increased work load — loss of comfort Loss of security (the unknown) Loss of belongingness (with new people) Failure (loss of esteem) Loss of interest (boredom) Change in habits (loosing ease and spontaneity) Loss of income (economic facts) Loss of change in perceptions — inner disturbance and lack of communication.
Process of Change
The resistance of change is of different types: Logical, Attitudinal and Sociological.
Organisational Development and Change
Logical resistance is based on rational gaps or disagreements with facts, reasoning and conceptual differences. Attitudinal resistance is due to emotional or psychological reasons like fears, lack of trust etc. Sociological resistance is due to group / social aspects like politics, vested interests, sharing of benefits of a particular group, presentation of group‘s identity, value report etc. To summarise, individuals resistance to change is due to one or more of the following reasons as enumerated by R. Likert and others: Selective Perception Employees perceive same events / things differently — as such the change objective and outcomes are not perceived exactly in the same way. Also persons are more interested in seeing how they would be affected personally, rather than seeing the big picture. Fear of Unknown People prefer familiar actions and events; change brings in new patterns, which disturb the habits. Lack of Information Lack of knowledge or information about what is expected or why the change is important or how change will effect and whom results in resistance. Hostility towards Change Initiator The image / relationships with the change initiatives causes some resistance. Organizational Resistance Organizations, by nature, are conservative and resist change. A few sources of organizational resistance have been enumerated below :
Inertia Threats to Power
Group norms Organizational Resistance to change Resource allocation Threat to expertise Limited focus
Figure 3 : Organisational Resistance
Inertia Due to the Task, Structure, Strategy, Technology, Systems, Procedures and familiar people, organizations get frozen or are in a steady state. The idea of bringing in charge creates the feeling of disturbance in the equilibriam. Hence resistance. Limited Focus All organizational systems are inter-related, therefore change in one causes stress and strain on others. Therefore, if a change is carried out in one system/ sub-system, there is a natural tendency in the other components to resist the ensuing changes — as these do not want to get disturbed. 18
Group Norms By way of the past interactions working, a group norm settles in. Change questions these norms and seeks establishment of other norms — hence resistance. Threat to Expertise People have acquired a degree of expertise and specialisations which make them comfortable and self esteem is high — due to change in organizations — there is a danger of getting some of the expertise obsolete and acquisitions of new expertise /specializations. This needs a lot of personal / group effort — as such resistance. Threat to Power Change may bring in new structure, new technology, new systems, procedures, new delegation of powers, new relationships that may cause a threat to some of the sources of power, hence resistance Resource Pressure All the above-mentioned changes may create pressure on various types of resources including manpower resources. This perception causes resistance. Many Scholars and Professionals have conducted research for understanding causes of resisitance in organizations. Some of the important causes of resistance to changes have been enumerated as following : The proposed change has not been described through documents, written down description not available. Lack of clarity on the purpose of the change. Lack of involvement of the people affected by the change. Change efforts initiated on the basis of a personal appeal. Group norms and organizational culture have not been considered. Lack of information to employees about the change Sharp increase in workload during implementation. Non-additional and resolution of the worries and concerns and fears of the affected persons. Non-clarification / resolution of the issues and anxieties relating to job security, transfers redeployment etc.
Process of Change
14.8 OVERCOMING RESISTANCE TO CHANGE
As mentioned earlier, resistance is a positive force and provides opportunities for having a thorough understanding of contextual factors as well as issue directing and emerging out of the interventions. Some managers use strategies to break the resistance using coercion or emotional appeals — which prove to be dysfunctional. Some managers try to avoid or bypass the resistance by ignoring the opposition views, opinions and feeble signals. They don‘t confront the issues or do some thing to deflect the resistance by some gimmicks and tactics — ultimately fail to deliver results and create a number of dysfunctional processes in the organization. Other dysfunctional strategies used by managers for overcoming resistance are — the efforts of minimising the resistance by calling on traditions, attributing the cause of change to group or Top Management and hiding the emerging issues highlighting some thing of the past or future.
Organisational Development and Change
Overcoming resistance to change calls for a positive approach towards resistance. One may try to agree to the assumption — Resistance is a positive force and needs to be honored rather than suppressed, avoided or minimised.’ Another assumption is ‘encourage the free expression of resistance and capture the key ideas’. The positive approach suggests that the Resistance should be encouraged to be brought to surface, it should be honored rather than showing reaction or defensiveness. The issues (resistance) should be explored and emotional and tangible issues should be separated. Then the issues and understandings should be reviewed and real issues identified and clarified. The cause and effect diagram will be useful.
14.9 SOME PRINCIPLES OF CHANGE
Change has been one of the most interesting and intensive issues before social and behavioural scientists. On the basis of their research and experience a number of principles / rules have been formulated. Some of these collected through various sources are: Organization is a system comprising many inter-related / inter - dependent components. Change in one component affects others. Accepting ownership in the change process best facilitates change. Any change upsets the equilibrium of the organizational system — hence it will be resisted. Change interventions should be made in a planned way, otherwise the system would return back to its past patterns People really don’t resist change; they resist the pain or threat, which they anticipate for themselves or others out of it. An enlightened self-interest of stakeholders helps in changing. There is a high significance of ‘timing’ in change — time should be ripe while making changes. An accurate and comprehensive design diagnosis is essential for designing appropriate interventions. Through Power, one gets what one wants to get, by posing resistance one tries to avoid what he does not want to get or do. Change agents are required for affecting changes. They must know how to analyze and manage the restraining and driving forces. High adaptability helps change agents and change plans. High self-awareness is required in change agents, which helps the planning for change. Honoring it, rather than suppressing, avoiding or minimising it best manages resistance. The people affected by change should actively participate in making the change. A person can work best with other‘s resistance by first understanding and accepting his own resistance. The acceptance of organizational change will increase if the people affected are invited to contribute to the change process, communicated honestly about all facets of change, given concrete feedback about the change and recognized appropriately for their specific contributions.
14.10 REDUCING RESISTANCE TO CHANGE : FEW SUGGESTIONS
To reduce resistance to change in the key steps, few suggestions are discussed below: i) Initiation of Change Resistance will be low if the persons involved perceive the change project as their own, rather than imposed on them by others. Resistance will be low if the whole hearted support from Top Management is available. ii) Type of Change Resistance will be low if the involved persons are convinced that the difficulties experienced in their job would come down after implementation. Resistance will reduce if the change is likely to bring interesting and satisfying experience, to the concerned individuals. Resistance will be less if the change is congruent and supports the values and ideals of the concerned individual. The perception that the power autonomy, and security will not be adversely affected. iii) Process of Change If the persons likely to be affected have taken part in diagnosis, and have agreement on the basic change problems and felt its importance — resistance will be less. Resistance will become low if the change makers (or sponsors) (i) see the opponent‘s view points empathize with them and (ii) take steps to remove their perceived fears. Resistance will be reduced if feedback is taken from the affected persons and they are apprised of the steps to be taken. If there is enough change flexibility and project is kept open to revision and amendment on the basis of evaluation and feedback.
Process of Change
14.11 COMMONLY USED INTERVENTIONS FOR MANAGING CHANGE
It is very difficult to enumerate and explain all interventions for managing change effectively. However, a few important techniques commonly used are enumerated below : Communication Authentic and complete communication on the objective, coverage, timing, costs, individual and organizational implications and change methods and the consequences of not going for change and post change benefits is most essential for managing change. At the Corporate office of a large organization, as prelude to making change, it was diagnosed that the executives numbering 15 were not communicating with each other. The communication climate was hostile and top management was perceived as autocratic. Enhancing Communication climate emerged as one of the major concerns. As one intervention, the executives were asked to sit
Organisational Development and Change
together for 15 minutes in the conference hall around the round table. Initially executives resented it but gradually they started sharing some of the operational problems they were facing and others started responding by giving their comments and solutions. They started opening up and sharing their feelings, concerns, agreements and disagreements etc. Within a few weeks, this meeting became the most liked forum of communication and sharing. Often they had to extend the timing. This forum became the initiating and facilitating platform for the major changes the function made for next few years. There is no standard plan for communication, but pre intervention diagnosis should attempt to understand the communication climate, styles and barriers. Creation of a supportive communication climate is highly useful in making change interventions. Education and Training All involved persons may not have the desired environmental, organizational, functional, technical, financial, strategic, behavioural knowledge and skills. Education and training is very essential at all stages. In the pursuit of designing and commissioning a comprehensive Performance Management system in a large PSU, almost two years were spent in educating and training the senior management personnel and users to make them understand the concept, realize the need, express their satisfaction and dissatisfaction from the existing system, define their expectations from the proposed system. Even the design of the proposed system was prepared in training and developments programmes using Behavioural Science based interventions. After the programme was approved for implementation, a series of training programmes were conducted for the users. Background support was provided through internet and publication of literature. Over 200 Performance Management Systems trained separately or ensuring smooth implementation could multiply the efforts. Even an interactive website was installed for resolving the doubts on line. All this helped in covering a large section of widely prevalent executives in a short time and fear of change could be almost eliminated. Participation and Involvement The persons likely to be affected need to be involved right since the initial stage. Their active involvement in all stages of the processes not only will provide valuable ideas at every stage; rather it will inculcate a sense of ownership. In installing an incentive scheme in a medium size Engineering company, the line managers and worker representatives were involved right since beginning i.e. from the stage of feeling the need, identifying the benefits and problems, collecting and analysis of data and designing the system and developing the earning table. Facilitation and Support The change initiatives are to be facilitated by skilled Facilitators (change agents). This helps in surfacing the issues, proposal — resolution of conflict, team building and development of a conducive change climate. Facilitation is a process in which a person, acceptable to all members of the group, substantially neutral and having no decision making authority intervenes to help a group improve the way it defines and solves problems and makes decisions in order to enhance the effectiveness of the group.
To intervene, according to Chris Argrysis, means to enter in to an ongoing system for the purpose of helping those in the system. The main task of a Facilitator is to help the group increase its effectiveness by improving its processes. A process refers to how a group works together and includes how members talk to each other, how they identify and solve problems, how they make decisions and how they handle conflicts etc. Normally in a group, without a Facilitator, members focus on contents and ignore the processes. Content refers to what a group is working on, what is the subject matter, task, methods, procedures, cost, time, controls etc. Facilitation is of two broad types- basic facilitation and developmental facilitation. In basic facilitation, it is expected that the Facilitator would guide the group using the principles of effective group processes -observing both contents and processes. In developmental facilitation, group members expect the Facilitator to monitor and guide the group‘s processes and teach them how to accomplish this goal. Negotiation In dealing the resistance, negotiation is quite useful as the change agent has to exchange something of value for reducing the resistance. This also is useful when resistance comes from a powerful person. Three basic types of Negotiating Styles have been described — Tough battler, the Supportive Facilitator and Cognitive Reasoner. A negotiator should understand these 3 styles and should be well versed in using all the three styles as each style is effective in a particular situation. There are a few other models also describing different styles of negotiation. Although Collaboration is the most desirable strategy, other strategies - avoidance, accommodation, Competition forcing and compromise also have their limitations and benefits. Co-opting Assigning a key individual member a desirable role is quite effective in managing change. The co-opted person becomes a Key Resource Person in charge of project and by way of his power base, is able to influence others. His involvement and contribution helps the change process. Two other interventions mentioned below are not positive interventions, however, in critical situation, these interventions are also useful. Manipulation It is a covert influencing tactics which uses twisting and distortion of facts to make them appear more attractive and potent. This also includes hiding or withholding undesirable information, and creating rumours. Cooptation also sometimes is used as manipulative tactics. Coercion —Implicit and Explicit This involves application of direct threats or force on those who are resisting or are likely to resist. In situation of crisis it is often successful, otherwise not so effective.
Process of Change
Organisational Development and Change
In this rapidly changing world change is the only constant. In this unit we have tried to define change, understand the concept of change and types of change. Drivers for change and alternative strategies of change has also been discussed. Different models of change are described followed by the concept of resistance to change and how to overcome resistance to change.
14.13 SELF ASSESSMENT QUESTIONS
1) Consider your present job and indicate which benefits emerging out of an effective change management is most important to you ? a) Career advancement b) Improved prospects c) Job Security d) Increased job satisfaction e) Respect and recognition 2) a) Which of the changes at your work place you experienced in the recent past — — new boss — new work group — new position (responsibility) — new equipment — new system / procedures — new products / services — new customer — new location — new suppliers b) Which change was most difficult for you ? c) What were your thoughts and feelings before the change? Did you have any fears ? What were those ? d) How did you cope with the change ? e) What would have helped you to cope with the changes better? 3) Complete the following sentence by writing as many adjectives / phrases as you can think of Change is --------------------------------------e.g. painful, agonising -------------------------4) Complete the following sentence by writing as many adjectives / phrases as you can think of Change is ------------------------------e.g. refreshing, energetic, profitable --------------5) Think of a change which would be beneficial to your company / organization and respond to the following four questions -------a) What is the change you have thought of ? b) What are the reasons / benefits of the change ? c) How would the change affect the involved persons ? d) What support and tools should be provided to the involved persons for managing the transition ? 6) A large scale company is to introduce a new Performance Management System. Presently, the company practices an annual confidential report type of appraisal system, which is done by the superiors annually. 24
14.14 FURTHER READINGS
Fergusan, M. The Acquarian conspiracy: Personal and Social Transformation in the 1980s. (Ed. J.P. Tarcher) LosAngels (1980). Olmosk, K.E, Seven. Pure Strategies of Change in The 1972 Annual Handbook of Group Facilitators (Ed. Pfeiffer & Jones), Pfeiffer & Company San Diego(1972). Kurt Lewin, Field theory in Social Science, Harper and Row, New York (1951). Beckhard, R. Harris, R.T Organizational transitions: Managing Complex Changes, Addison Wesley (1987). Jones, Neil Russel, The Managing Change, Research Press, New Delhi (1997). Eager G., Change Agent Skills: Assessing and Designing Excellence, University Associates California (1988). Fohman, Mark.A. et al. Action-research as applied to Development, in Organization Development and Research (Ed. Wendell L French et al) Business Publications Inc., Dallas (1978). The 1978 Annual Handbook of Group Facilitators, Pfeiffer and Company San Diego (1978). Lilkert, R. New Patterns of Management, McGraw Hill, New York (1961). Likent, R, The Human Organization, McGraw Hill, New York (1967). Retaining Professional Nurses: A planned process Vogt. et al. The C.V Mosby, St. Louis (1983). Ross, Kubler, Elizabeth., Transition Curve in Creating Culture Change : Successful Total Quality Management. Atkinson, E., Philip, Productivity Press (India) Pvt. Ltd., Aladran (1990). Chris Argyris, Management and Organization Development: The Path form XA to YB, McGraw Hill, New York (1971). Chris, Argyris, Intervention theory and method: A Behavioural Science View. Reading, Mass: Addison Wesley (1970). K. Thomas, Conflict and Negotiation process in Organizations in Handbook of Industrial and Organizational Psychology (Ed. M.D Dunnette and L. M Hough), Consulting Psychologists Press Alto CA (1992). Karp, H.B., The Change Leader, Pfeiffer & Company, San Diego (1996). Lewin, Kurt. Field theory in Social Science, Harper & Row, New York (1951). Beckhard, R. Harris, R.T Organization transitions: Managing Complex Changes, Addison Wesley (1987).
Process of Change