Change Management

58 Organisational Change and Development
legitimate and their expression important to effective problem solving and at the
same time suppressing his or her own feelings about what is happening in the client
Notes system.
 Consultant Team as a Microcosm: The consultant-key client viewed as a
team or consultants working as a team can be profitably if viewed as a
microcosm of the organisation they are trying to create. In the first place, the
consultant team must set an example of an effective unit if the team is to
enhance its credibility. Second, practitioners need the effectiveness that comes
from continuous growth and renewal processes and third, the quality of the
interrelationships with the consulting team carries over directly into the quality of
their diagnosis their intervention designs, and their interventions designs, and
their interventions.
8. Action Research and the OD Process: A related issue is whether the OD process
itself will be subject to the ongoing action search being experienced by the client
system process, the change agents and the organisation will not learn how to make
the future OD interventions more effective.
 Dependency Issue and Terminating the Relationship: If the consultant is in
the business of enhancing the client system's abilities in problem living and
renewal, then the consultant is in the business of assisting the client to
internalize skills and insights rather than to create a prolonged dependency
relationship. This issue tends to be minor, however, if the consultant and the
client work out the expert versus facilitator issued scribed earlier and if the
consultant subscribes to the notion that OD should be a shared technology. The
facilitator role, we believe, creates less dependency and more client growth
than the traditional consulting modes the notion of a shared technology leads to
rapid learning on the part of the client.
Tannenbaum believes that many OD programs taper off because not enough
attention has been given to helping people and units let go of matters that need
to be laid to rest, to die. He believes that in a real sense, facilitators should be
able to assist in a mourning process, but to be of help, facilitators must able to
confront their own tendencies to want to hang on and their own vulnerability.
We also suspect that OD efforts frequently flounder because of internal power
struggles. The threat may be the practitioner or the OD effort or the threat may
be wholly unrelated to the OD Process.
Sometimes the organisation may simply be temporarily overloaded by
externally imposed crises occupying the attention of key people. Under such
conditions the best strategy may be one of reducing or suspending the more
formalized OD interventions and letting people carry on with their enhanced
skills and then returning to the more formalized aspects at a later date.
9. Implications of OD for the Client: An OD effort has some fundamental
implications for the chief executive officer and top managers of an-organisation, and
we believe that these implications need to be shared and understood at the outset.
Basically, OD interventions as we have described them, are a conscious effort on
the part of top management:
 To enlarge the database for making management decisions. In particular,
the expertise, perceptions, and sentiments of team members throughout the
organisation are more extensively considered than heretofore.
 To expand the influence processes. The OD process tends to further a
process of mutual influence; managers and subordinates alike tend to be
influential in ways they have not experienced previously.
 To capitalize on the strength of the informal system and to make the
formal and the informal system more congruent. A great deal of information
that has previously been suppressed within individuals or within the informal
system (e.g., appreciations, frustrations, hurts, opinions about how to do things
Amity Directorate of Distance & Online Education

Organisational Development Interventions 59
more effectively, fears begins to surfaced and dealt with. Energies spent
suppressing matters cap now be re channeled into cooperative effort.
 To become more responsive. Management must now respond to data that
Notes
have been submerged and must begin to move in the direction of personal,
team, and organisational effectiveness suggested by the data
 To legitimatize conflict as an area of collaborative management. Rather
than using win-lose, smoothing, or withdrawal modes of conflicted solution, the
mode gradually becomes one of confronting the underlying basis for the conflict
and working the problem through to a successful resolution.
 To examine its own leadership style and ways of manage. We do not think
an effort can be viable long if the top management team (the CEO plus
subordinate team or the top team of an essentially autonomous unit) does not
actively participate in the effort. The top team inevitably is a powerful
determinant of organisational culture. OD is not a televised game being played
for viewing by top management; members of top management are the key
players.
 To legitimatize and encourage the collaborative management of team inter
team, and organisation cultures. This broad intervention goal is largely the
essence of OD.
We think that these items largely describe the underlying implications for top
management and that the OD consultant needs to be clear about them from the
beginning an to help the top management group be clear about them as the process
unfolds.
4.7 Summary
The unit contains the description of the OD interventions, its classification. In addition to
this, light has been thrown on the understanding of teams, team-building interventions
because team building produces powerful positive results and it is an intervention in
harmony with the nature of organisation as a social system. In teams members are
interrelated to each other and must coordinate and integrate individual efforts in order to
achieve successful task accomplishments. It is discussed and analysed that team
building interventions are at the centre of OD activities some emphasis has been laid on
the intergroup and third party peace making interventions and to learn how these
interventions actually reduce intergroup and interpersonal conflict and improve
relationships.
Comprehensive OD interventions are very much visible in the contemporary OD
practice. Some like Beckhard’s confrontation meeting and strategic management
activities involve all of top management or in case of smaller organisations, the entire
management group. Future search conferences tend to involve a wide spectrum of
organisational members. Appreciative inquiry focuses on the strengths of the
organisation and what is most valued by its members. Transorganisational development
is aimed at assisting organisations in forming and developing alliances. Like all OD
interventions these comprehensive interventions must involve a collaborative effort
between client organisations and the consultants in both diagnosis and interventions.
The unit covers the various selected structural intervention and shows the
differences and similarities as well as the overlap between Socio Technical Systems
(STS), self managed teams and others as discussed in the lesson. Applications are
properly called OD to the extent that the latter is true: it is used by the OD practitioners
but it is expected that OD label would not be applied whenever structural interventions
are carried out without the attention to the social system or to humanistic values.
Numerous issues have to do with establishing the initial contract, identifying who is
the client, establishing trust, clarifying the role of the consultant determining the
appropriate depth of intervention, examining the consequent, is of being absorbed by,
the organisation's culture, viewing the consultant and consulting teams as models,

applying action research to OD, terminating the relationship, and ethical standards.
These issue important implications for practitioners, top management, and the
Notes organisation.
4.8 Check Your Progress

Fill in the blanks:
1. ………………… have strong personal commitment to each other and are committed
to others growth and success.
2. ………………… can be a major component in the professional life of the OD
practitioner.
3. ………………… is designed to clarify role expectation obligation of team’s members
to improve team effectiveness.
4. In ……………………….. analysis technique, the focus is directed towards solving
the core problem.
5. Grid Organisation Development was developed by ……………………………………..
6. ………………………… have a mandate to deal with complex, non-routine, future-
oriented problems and/or to co-ordinate large-scale systems change.
7. ……………………………….. as currently conceptualized focuses almost exclusively
on streamlining business processes.
8. Socio-technical Systems (STS) theory is based on ……………………………………..
systems of organisations.
4.9 Questions and Exercises

1. Discuss briefly the techniques used in team building interventions.
2. Write short notes on:
(a) Cross-functional teams.
(b) Third party peace-making interventions.
(c) Process consultations interventions.
3. What is grid organisation development? What are the processes involved in grid
organisation development? How does it help in improving individual performance in
an organisation?
4. Discuss briefly the concept of comprehensive OD interventions.
5. Explain TQM appears to be highly congruent with OD approaches and values.
6. What are self-managed teams and how they are relevant to socio-technical system
design?
7. Discuss the role of consultant as a model.
8. ‘We believe that the more extensive the OD consultant’s knowledge of management
and organisation, the more effective the OD consultant can be.’ Discuss.
4.10 Key Terms

 High Performance Teams: Strong extension of the basic characteristics of the
teams.
 Team Interventions: Working with the cross-functional, self-managed and high
performance teams.
 Confrontation Meeting: A structured intervention that help two groups resolve
interdepartmental misunderstandings or conflict.

Organisational Development Interventions 61
 Transorganisational Developmental: An intervention concerned with helping
organisations join into partnership with other organisations to perform tasks or solve
complex problems. Notes
 Quality of Work Life: A way of thinking about people, work, and organisation.
 Reengineering: An intervention that focuses on dramatically redesigning core
business processes.
 Socio-technical System: Considering both the social system (human) and the
technical system simultaneously, in order to match the technology and the people
optimally.
 Model: A simplification of some phenomena for purposes of study and
understanding.
 Microcosm Group: A small, representative group selected from the organisation at
a large to address important organisational issues.
 Entry: The process that describes how an OD practitioner first encounters and
establishes relationship with a client system.
Check Your Progress: Answers

1. High performance teams
2. Conflict management
3. Role Analysis Technique
4. Stream
5. Blake and Mouton
6. Parallel learning structures
7. Reengineering
8. Social and technological
4.11 Further Readings

 French, Wendell L., and Cecil H. (1996), Development: Behavioral Science
Interventions for Organisation Improvement (5th Edition), New Delhi, India: Prentice
Hall of India.
 Cummings, Thomas G., & Worley, Christopher G. (2000), Organisation
Development and Change, 7th ed., South-Western Educational Publishing.
 Senge, Peter M. (1990), The Fifth Discipline: The Art and Practice of Learning
Organisation, New York: Doubleday.
 Sinha, Dharni P. (1986), T-Group, Team Building and Organisation Development
New Delhi, India: ISABS.
 Hatch, Mary J. (1997), Organisation Theory, New York: OUP.
 S. Ramanarayan, T.V. Rao, Kuldeep Singh, Organisational Development
Interventions and Strategies.

Notes Unit 5: Change Management

Structure
5.1 Introduction
5.2 Meaning of Change
5.3 Need for Change
5.3.1 Why Organisations Change?
5.3.2 What Organizations can Change?
5.4 Factors Causing Change
5.4.1 External Forces
5.4.2 Internal Forces
5.5 Models & Techniques Involved in Change Management
5.5.1 Lewin’s Change Management Model
5.5.2 McKinsey 7 S Model
5.5.3 Kotter’s Change Management Theory
5.5.4 Nudge Theory
5.5.5 ADKAR Model
5.5.6 Bridges’ Transition Model
5.5.7 Kübler-Ross Five Stage Model
5.6 TQM and BPR
5.6.1 Total Quality Management
5.6.2 Business Process Reengineering
5.7 Guidelines for Facilitating Change
5.8 Summary
5.11 Key Terms
Objectives
After studying this unit, you should be able to:
 Explain meaning of change
 Discuss the need for change
 Enlist the various factors causing change
 Describe the numerous models & techniques involved in change
management
 Gain an in-depth knowledge of TQM and BPR
 Highlight the guidelines for facilitating change
5.1 Introduction
Change is inevitable in the life of an individual or organisation. In today's business
world, most of the organisations are facing a dynamic and changing business

Change Management 63
environment. They should either change or die, there is no third alternative.
Organisations that learn and cope with change will thrive and flourish and others who
fail to do so will be wiped out. The major forces which make the changes not only Notes
desirable but inevitable are technological, economic, political, social, legal, international
and labour market environments. Recent surveys of some major organisations around
the world have shown that all successful organisations are continuously interacting with
the environment and making changes in their structural design or philosophy or policies
or strategies as the need be.
According to Barney and Griffin, "The primary reason cited for organisational
problems is the failure by managers to properly anticipate or respond to forces for
change."
Thus, in a dynamic society surrounding today's organisations, the question whether
change will occur is no longer relevant. Instead, the issue is how managers cope with
the inevitable barrage of changes that confront them daily in attempting to keep their
organisations viable and current. Otherwise the organisations will find it difficult or
impossible to survive.
5.2 Meaning of Change

Unlike other concepts in organisational behavior, not many definitions are available to
define the term "change". In very simple words we can say that change means the
alternation of status quo or making things different.
"The term change refers to any alternation which occurs in the overall work
environment of an organisation."
To quote another definition “when an organisational system is disturbed by some
internal or external force, change occurs frequently. Change, as a process, is simply
modification of the structure or process of a system. It may be good or bad, the concept
is descriptive only.”
From the above definitions we can conclude that change has the following
characteristics:
 Change results from the pressure of both internal and external forces in the
organisation. It disturbs the existing equilibrium or status quo in the organisation.
 The change in any part of the organisation affects the whole of the organisation.
 Change will affect the various parts of the organisation in varying rates of speed
and degrees of significance. Changes may affect people, structure, technology and
other elements of the organisation.
 Change may be reactive or proactive. When change is brought about due to the
pressure of external forces, it is called reactive change. Proactive change is
initiated by the management on its own to increase organisational effectiveness.
5.3 Need for Change

As societies continue to evolve and changing demand creates the need for new
products and services, businesses often are forced to make changes to stay
competitive. The businesses that continue to survive and even thrive are usually the
ones that most readily adapt to change. A variety of factors can cause a business to
reevaluate its methods of operation.
1. Competition: The entrance of a new competitor into a market can cause a business
to change its marketing strategy. For example, a small electronics store that was the
only game in town might have to change its image in the marketplace when a large
chain store opens nearby. While the smaller store might not be able to compete in
price, it can use advertising to position itself as the friendly, service-oriented local
alternative.

2. Technology: Innovations in technology can force a business to change just to keep
up. Employees who have never used computers need to be trained to operate the
Notes new computer system. A business also can benefit by implementing a technological
change. According to the Hotel Online website, the airlines' introduction of email
ticketing has resulted in increased efficiency and better customer service while
meeting little customer resistance.
3. Desire for Growth: Businesses that want to attain growth might need to change
their method of operations. For example, the Subway sandwich chain started as a
small business under a different name in 1965 and struggled through its first several
years. The company began to flourish after it changed its name to Subway in 1974
and began to sell franchises. According to the Entrepreneur website, there were
22,525 Subway franchise units in the United States as of 2009.
4. Need to Improve Processes: A business might need to implement new production

processes to become more efficient and eliminate waste. In 2003, Cigna Healthcare
implemented a leaner production process known as Six Sigma to improve service
and reduce operating costs. In 2006, the company was recognized by the J.D.
Power independent rating organization for its high level of service and quality.
5. Government Regulations: Changes in government regulations can have an impact

on how a company does business. Newly mandated safety procedures can force a
factory to change its production process to create a safer work environment.
Businesses that make or distribute consumer goods such as food products might
have to add more quality control measures to ensure consumer safety. The 2009
Food and Drug Administration Food Code included provisions such as banning the
option to serve rare hamburger that is ordered by request off a children's menu and
increased requirements for food allergen awareness by food workers.
5.3.1 Why Organisations Change?

Overcoming resistance to changes is often one of the biggest challenges for continuous
improvement practitioners. In the first of a 4-part series on managing change in the
enterprise, Dr. Robert Swaim looks at the reasons organizations change and breaks
change down in 6 key areas of impact.
Organizations change for a number of different reasons, so they can either react to
these reasons or be ahead of them. These reasons include:
1. Crisis: Obviously September 11 is the most dramatic example of a crisis which
caused countless organizations, and even industries such as airlines and travel, to
change. The recent financial crisis obviously created many changes in the financial
services industry as organizations attempted to survive.
2. Performance Gaps: The organization's goals and objectives are not being met or
other organizational needs are not being satisfied. Changes are required to close
these gaps.
3. New Technology: Identification of new technology and more efficient and
economical methods to perform work.
4. Identification of Opportunities: Opportunities are identified in the market place
that the organization needs to pursue in order to increase its competitiveness.
5. Reaction to Internal & External Pressure: Management and employees,
particularly those in organized unions often exert pressure for change. External
pressures come from many areas, including customers, competition, changing
government regulations, shareholders, financial markets, and other factors in the
organization's external environment.

6. Mergers & Acquisitions: Mergers and acquisitions create change in a number of
areas often negatively impacting employees when two organizations are merged
and employees in duel functions are made redundant. Notes
7. Change for the Sake of Change: Often times an organization will appoint a new
CEO. In order to prove to the board he is doing something, he will make changes
just for their own sake.
8. Sounds Good: Another reason organizations may institute certain changes is that
other organizations are doing so (such as the old quality circles and re-engineering
fads). It sounds good, so the organization tries it.
9. Planned Abandonment: Changes as a result of abandoning declining products,
markets, or subsidiaries and allocating resources to innovation and new
opportunities.
5.3.2 What Organizations can Change?

What organizations can change fall into the following broad areas:
1. Mission, Vision, & Strategy: Organizations should continually ask themselves,
"What is our business and what should it be?" Answers to these questions can lead
to changes in the organization's mission (the purpose of its business), its vision for
the future (what the organization should look like), and its competitive strategy.
2. Technology: Organizations can change their technology (for example the way they
produce whatever they sell) in order to increase efficiency and lower costs.
3. Human-Behavioral Changes: Training can be provided to managers and
employees to provide new knowledge and skills, or people can be replaced or
downsized. As result of the recent financial crisis, many organizations downsized
creating massive unemployment that continues to this day.
4. Task-Job Design: The way work is performed in the organization can be changed
with new procedures and methods for performing work.
5. Organizational Structure: Organizations can change the way they are structured
in order to be more responsive to their external environment. Again to be more
responsive to the marketplace, this also includes where decisions should be made
in the organization (centralized or decentralized).
6. Organizational Culture: Entities can attempt to change their culture, including
management and leadership styles, values and beliefs. Of all the things
organizations can change, this is by far the most difficult to undertake.
These are the major elements that organizations can change. It is important to note that
changes in one of these elements will usually have an impact on another element. As
an example, changing technology may require changes in the human-behavioural area
(new knowledge and skills on how to use the technology).
5.4 Factors Causing Change

There are a number of factors both internal and external which affect organisational
functioning. Any change in these factors necessitates changes in an organisation. The
more important factors are as follows:
5.4.1 External Forces

External environment affects the organisations both directly and indirectly. The
organisations do not have any control over the variables in such an environment.
Accordingly, the organisation cannot change the environment but must change
themselves to align with the environment. A few of these factors are:

1. Technology: Technology is the major external force which calls for change. The
adoption of new technology such as computers, telecommunication systems and
Notes flexible manufacturing operations has profound impact on the organisations that
adopt them.
The substitution of computer control for direct supervision is resulting in wider
spans of control for managers and flatter organisations. Sophisticated information
technology is also making organisations more responsive: Both the organisations
and their employees will have to become more adaptable. Many jobs will be
reshaped. Individuals, who do routine, specialized and narrow jobs will be replaced
by workers who can perform multiple in decision-making. Managements will have
to increase their investment in training and education of the employees because
employees skills are becoming obsolete more quickly Japanese firms have
progressed rapidly because they are very fast in adopting new technological
innovations.
2. Marketing Conditions: Marketing conditions are no more static. They are in the
process of rapid change as the needs, desires and expectations of the customers
change rapidly and frequently. Moreover, there is tough competition in the market
as the market is flooded with new products and innovations everyday new methods
of advertising are used to influence the customers. Today the concept of
consumerism has gained considerable importance and thus, the consumers be
treated as the kings.
Moreover, the competition today has some significant new twists; most markets will
soon be international because of decreasing transportation and communication
costs and the increasing export orientation of business. The global economy will
make sure that competitors are likely to come across the ocean as well as from
across town. Successful organisations will be those who can change in response
to the competition. Organisations that are not ready for these new sources of
competition in the next decade may not exist for long.
3. Social Changes: Social and cultural environment also suggest some changes that
the organisations have to adjust for. There are a lot of social changes due to
spread of education, knowledge and a lot of government efforts. Social quality, e.g.
equal opportunities to women, equal pay for equal work, has posed new
challenges for the management. The management has to follow certain social
norms in shaping its employment, marketing and other policies.
4. Political Forces: Political environment within and outside the country have an
important impact on business especially the transnational corporations. The
interference of the government in business has increased tremendously in most of
the countries. The corporate sector is regulated by a lot of laws and regulations.
The organisations do not have any control over the political and legal forces, but
they have to adapt to meet the pressure of these forces.
In our country, the new economic policy has liberalized the economy to a large
extent. Many of the regulatory laws have been amended to reduce the interference
of the Government in business. An organisation is also affected by the world
politics. Some of the changes in the world politics which have affected business all
over the world are e.g. the reunification of Germany, Iraq's invasion of Kuwait and
the break of Soviet Union.
5.4.2 Internal Forces

Internal forces are too many and it is very difficult to list them comprehensively.
However, major internal causes are explained as follows:
1. Nature of the Work Force: The nature of work force has changed over a passage
of time. Different work values have been expressed by different generations.
Workers who are in the age group of 50 plus value loyalty to their employers.
Workers in their mid thirties to mid forties are loyal to themselves only. The
youngest generation of workers is loyal to their careers.
The profile of the work force is also changing fast. The new generation of workers
has better educational qualifications; they place greater emphasis on human
values and question authority of managers. Then behavior has also become very Notes
complex and leading them towards organisational goals is a challenge for the
managers. The employee turnover is also very high which again puts strain on the
management. The work force is changing, with a rapid increase, in the percentage
of women employees, which in turn means, more dual career couples.
Organisations have to modify transfer and promotion policies as well as make child
care and elder care available, in order to respond to the needs of two career
couple.
2. Change in Managerial Personnel: Change in managerial personnel is another
force which brings about change in organisation. Old managers are replaced by
new managers which are necessitated because of promotion, retirement, transfer
or dismissal. Each manager brings his own ideas and way of working in the
organisation. The informal relationships change because of changes in managerial
personnel. Sometimes, even though there is no change in personnel, but their
attitudes change. As a result, the organisation has to change in accordingly.
Changes in the organisation are more fast when top executives change. Change in
top executives will lead to important changes in the organisation in terms of
organisation design, allocation of work to individuals, delegation of authority,
installation of controls etc. All these changes will be necessitated because every
top executive will have his own style and he will like to use his own ideas and
philosophies.
3. Deficiencies in Existing Management Structure: Sometimes changes are
necessary because of some deficiencies in the existing organisational structure,
arrangement and processes. These deficiencies may be in the form of
unmanageable span of management, larger number of managerial levels, lack of
coordination among various departments, obstacles in communication, multiplicity
of committees, lack of uniformity in policy decisions, lack of cooperation between
line and staff and so on. However, the need for change in cases goes
unrecognized until some major crisis occurs.
4. To Avoid Developing Inertia: In many cases, organisational changes take place
just to avoid developing inertia or inflexibility. Conscious managers take into
account this view that organisation should be dynamic because any single method
is not the best tool of management every time. Thus, changes are incorporated so
that the personnel develop liking for change and there is no necessary resistance
when major changes in the organisation are brought about.
5.5 Models & Techniques Involved in Change Management

Change is the only constant reality of life and is observed not just in our personal life but
also on the professional front. But do all of us know how to deal with change? No.
Managing change and learning to adapt to it takes time, energy, efforts and training and
this is the reason why several learned individuals around the globe have come up with
properly structured and defined models to manage change. In this article, we shall go
through what change management is and about the various popular change
management models that have been effectively and successfully been applied to
businesses and industries with the aim of dealing with transition and change.
In order to manage change and implement change strategies, it is important to
avoid implementing irrelevant or random methods and try to focus on a suitable plan of
action. Change management is an ongoing process that takes time, expertise,
dedication and efforts to implement and run. It requires the involvement of people or
staff of the company and may also result in these people being affected by the changes
too. Before adopting one of the many effective and popular change management
approaches and models, an organization must first figure out why it needs the changes
and how will the changes benefit it.

The following are some of the best strategies and approaches to implement change
management.
Notes
5.5.1 Lewin’s Change Management Model
Lewin’s Change Management Model is one of the most popular and effective models
that make it possible for us to understand organizational and structured change. This
model was designed and created by Kurt Lewin in the 1950s, and it still holds valid
today. Lewin was a physicist and social scientist who explained the structured or
organizational change through the changing states of a block of ice. His model consists
of three main stages which are: unfreeze, change and refreeze. Let’s look at these
stages in detail:
 Unfreeze: The first stage of the process of change according to Lewin’s method
involves the preparation for the change. This means that at this step, the
organization must get prepared for the change and also for the fact that change is
crucial and needed. This phase is important because most people around the world
try to resist change, and it is important to break this status quo. The key here is to
explain to people why the existing way needs to be changed and how change can
bring about profit. This step also involves an organization looking into its core and
re-examining it.
 Change: This is the stage where the real transition or change takes place. The
process may take time to happen as people usually spend time to embrace new
happenings, developments, and changes. At this stage, good leadership and
reassurance is important because these aspects not only lead to steer forward in
the right direction but also make the process easier for staff or individuals who are
involved in the process. Communication and time thus are the keys for this stage to
take place successfully.
 Refreeze: Now that the change has been accepted, embraced and implemented by
people, the company or organization begins to become stable again. This is why
the stage is referred to as refreeze. This is the time when the staff and processes
begin to refreeze, and things start going back to their normal pace and routine. This
step requires the help of the people to make sure changes are used all the time and
implemented even after the objective has been achieved. Now with a sense of
stability, employees get comfortable and confident of the acquired changes.
5.5.2 McKinsey 7 S Model

McKinsey 7-S framework or model is one of those few models that have managed to
persist even when others came in and went out of trend. It was developed by
consultants working for McKinsey & Company in the 1980s and features seven steps or
stages for managing change.
Stages
 Strategy – Strategy is the plan created to get past the competition and reach the
goals. This is the first stage of change according to McKinsey’s 7-S framework and
involves the development of a step-by-step procedure or future plan.

 Structure – Structure is the stage or attribute of this model that relates to the way in
which the organization is divided or the structure it follows.
 Systems – In order to get a task done, the way in which the day-to-day activities
Notes
are performed is what this stage is related to.
 Shared values – Shared values refer to the core or main values of an organization
according to which it runs or works.
 Style – The manner in which the changes and leadership are adopted or
implemented is known as ‘style’.
 Staff – The staff refers to the workforce or employees and their working capabilities.
 Skills – The competencies as well as other skills possessed by the employees
working in the organization.
Benefits of this model

 This model offers ways and methods to understand an organization and get a deep
insight into the way it works.
 This model integrates both the emotional as well as the practical components of
change that is something that is important to create ways to enable employees deal
with transition easily.
 This model considers all parts to be important and equally worth addressing and
thus does not leave out some aspects that may be of importance.
 This model also offers directional factor to organizational change.
Disadvantages of this model

 Since all the factors are interrelated and interdependent on one another, the failing
of one part means failing of all and this is the greatest disadvantage of this model.
 This model is complex as compared to the others and differences are not focused
upon in it.
 Organizations that have used this model have experienced more cases of failure,
and this too can be considered as one negative associated with it.
5.5.3 Kotter’s Change Management Theory

Kotter’s change management theory is one of the most popular and adopted ones in the
world. This theory has been devised by John P. Kotter, who is a Harvard Business
School Professor and author of several books based on change management. This
change management theory of his is divided into eight stages where each one of them
focuses on a key principle that is associated with the response of people to change.
Stages
 Increase urgency – This step involves creating a sense of urgency among the
people so as to motivate them to move forward towards objectives.
 Build the team – This step of Kotter’s change management theory is associated
with getting the right people on the team by selecting a mix of skills, knowledge and
commitment.
 Get the vision correct – This stage is related to creating the correct vision by
taking into account, not the just strategy but also creativity, emotional connect and
objectives.
 Communicate – Communication with people regarding change and its need is also
an important part of the change management theory by Kotter.
 Get things moving – In order to get things moving or empower action, one needs
to get support, remove the roadblocks and implement feedback in a constructive
way.

 Focus on short term goals – Focusing on short term goals and dividing the
ultimate goal into small and achievable parts is a good way to achieve success
Notes without too much pressure.
 Don’t give up – Persistence is the key to success, and it is important not to give up
while the process of change management is going on, no matter how tough things
may seem.
 Incorporate change – Besides managing change effectively, it is also important to
reinforce it and make it a part of the workplace culture.
Benefits of this model

 This is a step-by-step model that is easy to follow and incorporate.
 The main idea behind it is to accept the change and prepare for it rather than
changing itself.
Disadvantages of this model

 Since it is a step-by-step model, no step can be skipped to reach the one after that.
 The entire process given in this model can be very time-consuming.
5.5.4 Nudge Theory

Nudge Theory or Nudge is a concept that finds use in behavioral science, economics,
and political theory but can be applied to change management in organizations and
businesses as well. This theory is mainly credited to Cass R. Sunstein and Richard H.
Thaler. Nudging someone or encouraging and inspiring them to change is the basic
essence of this theory. Nudge theory is not only helpful in exploring and understanding
existing influences but also explaining them to either eliminate them or change them to
an extent where positives may begin to be derived.
It is important to note that there are many unhelpful ‘nudges’ around which can
either be deliberate or may just be accidental. What this theory mainly seeks is to work
upon the management as well as the understanding of the many influences on human
behavior that lead to the changing people. It focuses on the design of choices which is
responsible for directing our preferences and influencing the choices that we make.
What this theory says is that choices must be designed in such a way that it can be
aligned with the way people think and decide.
As compared to other theories, Nudge Theory is more sophisticated in its approach
and is radically different from other ways of transitioning. This theory eliminates
traditional change methods like punishment enforcement and direct instructions. One of
the main benefits of this theory is that it takes into account the difference in feelings,
opinions, and knowledge of people and also considers the reality of the situation as well
as the characteristics of human nature and behavior. It thus minimizes resistance from
employees of a company and is very well applied in several industries.
5.5.5 ADKAR Model

ADKAR model or theory of change is a goal-oriented tool or model which makes it
possible for the various change management teams to focus on those steps or activities
that are directly related to the goals it wants to reach to. The goals, as well as the
results derived and defined using this model, are cumulative and in a sequence. This
means that while using this model, an individual must get each of the outcomes or
results in a certain orderly fashion so that the change can be sustained and
implemented. The model can be used by managers of change to find out the various
holes or gaps in the process of change management so that effective training can be
offered to the employees. The following are some of the things for which this model can
be used:
 To provide help and support to employees to go through the process of change or
transitioning while the change management is taking place.

 To diagnose and treat the resistance shown by employees towards change.
 To come up with a successful and efficient plan for the professional as well as
personal improvements of employees during the change.
Notes
ADKAR Model basically stands for
 Awareness – of the need and requirement for change
 Desire – to bring about change and be a participant in it
 Knowledge – of how to bring about this change
 Ability – to incorporate the change on a regular basis
 Reinforcement – to keep it implemented and reinforced later on as well.
Benefits of ADKAR Model

 The model offers the capability of Identification and evaluation of the reasons why
changes made are not working and why desired results are not being obtained.
 The model makes it possible for one to break the changes into different parts and
then figure out the point where change may not be as effective as planned.
 It offers both business dimension of change as well as people dimension of change.
5.5.6 Bridges’ Transition Model

Bridges’ transition model was developed by William Bridges who is a change
consultant, and this theory came into the eye of the public after it was published in the
book “Managing transitions”. The specialty of this model or theory is that it concentrates
and focusses upon transition and not change as such. The difference between
transition and change may be subtle, but it is important to understand it. Where
transition on one hand is internal, change on the other is something that happens to
people, even when they don’t realize it. Transition is something that happens to people
when they are going through the change. Change can be instant, transition may take
time.
The model focuses on three main stages that are given as follows:
 Ending, Losing, and Letting Go – When people are first introduced to change,
they may enter this first stage that is marked with resistance and emotional
discomfort. Some of the emotions experienced at this stage include fear,
resentment, anger, denial, sadness, frustration and most of all-disorientation. One
has to realize that he/she is coming near to a certain end so as to accept new
beginnings.
 The Neutral Zone – This is the stage of uncertainty, impatience, and confusion.
This stage can be considered as the bridge between the old and the new when
people are still attached to the old but trying to adapt to the new. This stage is
associated with low morale and reduced productivity, and one may experience
anxiety and skepticism as well when going through this stage. But despite this, the
neutral zone may also include innovation, renewal and a burst of creativity.
 The New Beginning – When the neutral phase is passed through support and
guidance, the stage of acceptance and energy enters the picture. At this level,
people begin to embrace the change and understand its importance. They are
beginning to build the skills needed to reach the new goals and may start to
experience benefits of the change already. It is associated with high levels of
energy, new commitment and a zest to learn.
5.5.7 Kübler-Ross Five Stage Model

The Kübler-Ross five stage model was developed by Elisabeth Kübler-Ross after she
pursued her research on the dying and death. This model is also thus known as the
Grief Model as it talks about the various emotional states and stages a person goes
through when he/she discovers that he/she may be nearing their end. The model can

also be applied to other life situations such as loss of job, changes in work and other
less serious health conditions. The model helps to understand and deal with personal
Notes trauma and has been widely accepted worldwide. The following are the various stages
that are associated with the Kübler-Ross model:
 Denial – Denial is the first stage of the model and is a stage when one is unable to
accept the news. It is like a buffer or defense that a person tends to create due to
the inability to absorb the news. One may experience shock as well as a sense of
numbness during this stage and this happens because every person shows
resistance towards change and may not want to believe what is happening.
 Anger – When the news actually gets absorbed, then the first reaction is usually
that of anger. The denial converts into anger when one realizes that the change will
actually affect them and is for real. One starts looking for someone to blame during
this stage. For different people, there can be different ways of directing anger.
 Bargaining – The next step or stage involves bargaining so as to avail the best
possible solution out of the situation or circumstance. Bargaining is a way for people
to avoid ending up with the worst case scenario and is a natural reaction to avoid
the extreme change.
 Depression – When one realizes that bargaining isn’t working, he/she may end up
getting depressed and may lose all faith. This is the phase when one is not
bothered by anything and moves into a sad and hopeless state of mind. There are
many ways to observe or identify depression and some of them include low energy,
non-commitment, low motivation and lack of any kind of excitement or happiness.
 Acceptance – When one realizes that there is no point in being depressed or
fighting change, he/she may finally accept what is happening and may begin to
resign to it. There are different ways in people handle this stage. While some may
begin to explore the options left with them to make the most of the situation, others
may just feel that no option is left for them and may just resign to destiny.
5.6 TQM and BPR

5.6.1 TQM or Total Quality Management
Total Quality Management (TQM) describes a management approach to long-term
success through customer satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture in which they
work.
Total Quality Management Principles: The 8 Primary Elements of TQM
Total quality management can be summarized as a management system for a
customer-focused organization that involves all employees in continual improvement. It
uses strategy, data, and effective communications to integrate the quality discipline into
the culture and activities of the organization. Many of these concepts are present in
modernQuality Management Systems, the successor to TQM. Here are the 8 principles
of total quality management:
1. Customer-focused: The customer ultimately determines the level of quality. No
matter what an organization does to foster quality improvement—training
employees, integrating quality into the design process, upgrading computers or
software, or buying new measuring tools—the customer determines whether the
efforts were worthwhile.
2. Total employee involvement: All employees participate in working toward
common goals. Total employee commitment can only be obtained after fear has
been driven from the workplace, when empowerment has occurred, and
management has provided the proper environment. High-performance work
systems integrate continuous improvement efforts with normal business operations.
Self-managed work teams are one form of empowerment.

3. Process-centered: A fundamental part of TQM is a focus on process thinking. A
process is a series of steps that take inputs from suppliers (internal or external) and
transforms them into outputs that are delivered to customers (again, either internal Notes
or external). The steps required to carry out the process are defined, and
performance measures are continuously monitored in order to detect unexpected
variation.
4. Integrated system: Although an organization may consist of many different
functional specialties often organized into vertically structured departments, it is the
horizontal processes interconnecting these functions that are the focus of TQM.
 Micro-processes add up to larger processes, and all processes aggregate into
the business processes required for defining and implementing strategy.
Everyone must understand the vision, mission, and guiding principles as well as
the quality policies, objectives, and critical processes of the organization.
Business performance must be monitored and communicated continuously.
 An integrated business system may be modeled after the Baldrige National
Quality Program criteria and/or incorporate the ISO 9000 standards. Every
organization has a unique work culture, and it is virtually impossible to achieve
excellence in its products and services unless a good quality culture has been
fostered. Thus, an integrated system connects business improvement elements
in an attempt to continually improve and exceed the expectations of customers,
employees, and other stakeholders.
5. Strategic and systematic approach: A critical part of the management of quality is
the strategic and systematic approach to achieving an organization’s vision,
mission, and goals. This process, called strategic planning or strategic
management, includes the formulation of a strategic plan that integrates quality as a
core component.
6. Continual improvement: A major thrust of TQM is continual process improvement.
Continual improvement drives an organization to be both analytical and creative in
finding ways to become more competitive and more effective at meeting
stakeholder expectations.
7. Fact-based decision making: In order to know how well an organization is
performing, data on performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to improve decision
making accuracy, achieve consensus, and allow prediction based on past history.
8. Communications: During times of organizational change, as well as part of day-to-
day operation, effective communications plays a large part in maintaining morale
and in motivating employees at all levels. Communications involve strategies,
method, and timeliness.
These elements are considered so essential to TQM that many organizations define
them, in some format, as a set of core values and principles on which the
organization is to operate.
5.6.2 BPR or Business Process Reengineering

Business Process Reengineering (BPR) aims at cutting down enterprise costs and
process redundancies, but unlike other process management techniques, it does so on
a much broader scale. Business Process Reengineering (BPR) - also known as process
innovation and core process redesign - attempts to restructure or obliterate
unproductive management layers, wipe out redundancies, and remodel processes
differently.
Business Process Reengineering involves the radical redesign of core business
processes to achieve dramatic improvements in productivity, cycle times and quality. In
Business Process Reengineering, companies start with a blank sheet of paper and
rethink existing processes to deliver more value to the customer. They typically adopt a
new value system that places increased emphasis on customer needs. Companies
reduce organizational layers and eliminate unproductive activities in two key areas.
First, they redesign functional organizations into cross-functional teams. Second, they
use technology to improve data dissemination and decision making.
Notes
How Business Process Reengineering works
Business Process Reengineering is a dramatic change initiative that contains five major
steps that managers should take:
 Refocus company values on customer needs
 Redesign core processes, often using information technology to enable
improvements
 Reorganize a business into cross-functional teams with end-to-end responsibility for
a process
 Rethink basic organizational and people issues
 Improve business processes across the organization
Companies use Business Process Reengineering to:

 Reduce costs and cycle times. Business Process Reengineering reduces costs
and cycle times by eliminating unproductive activities and the employees who
perform them. Reorganization by teams decreases the need for management
layers, accelerates information flows and eliminates the errors and rework caused
by multiple handoffs.
 Improve quality. Business Process Reengineering improves quality by reducing
the fragmentation of work and establishing clear ownership of processes. Workers
gain responsibility for their output and can measure their performance based on
prompt feedback.
5.7 Guidelines for Facilitating Change

Participants are introduced to the concepts of change by an activity that simulates a
constant state of change. Rules change, goals change, keep-sakes change, and
actions change. Participants are assigned a challenge they may face in applying the
Change Stages. Teams discuss the challenge and develop as many strategies for
overcoming it as possible. Quiz sessions are used to force participants to come up with
questions and answers. The benefits of this approach include:
 Accelerating change adoption and execution of strategy and corporate initiatives.
 Maintaining high levels of engagement and productivity during change initiatives.
 Reducing stress on individuals and the organization during periods of change.
There are 7 ways to facilitate change in the organistaion. These are as follows:
1. Create a Change Baseline: Your own assumptions about what motivates people
will determine the success or failure of your change program. If your assumptions
are incorrect, you may miss a valuable opportunity, that of gaining stakeholder
ownership of the change process.
“Why is this?”, you ask. People do what they do for a reason. A person’s behaviour
(what we observe) is an expression of their underlying beliefs and assumptions. To
make our change initiative appealing to others, we must understand why they do
what they do. The baseline is created by identifying the dissatisfaction, vision, first
steps, and change resistance for each stakeholder involved with your change
program. Using a spreadsheet application, make a table listing the stakeholders
and each area of investigation:
 Who are the stakeholders?
 What are they dissatisfied with?
 How do they feel about the planned changes (Vision)?
 What steps will provide a good Return on Investment (ROI)?

 And finally: What resistance must be overcome to succeed?
2. Define Change Strategies: We now have a baseline of the key issues for each
stakeholder. The next step is to select the ones that you can realistically alter and
Notes
develop targeted strategies to alter them. People won’t change unless they feel
safe, secure and in control over the results. You can’t just force people to change
by management decree. You must change their underlying assumptions with a
credible plan.
List what assumptions need to change. Include a strategy for overcoming the
resistance to change identified for each stakeholder group. The strategy should fill
the gaps. Increasing dissatisfaction with the status quo should improve motivation.
Increasing the vision element will ensure the program is completed. Increasing first
steps will make sure the program gets started. Lastly, decreasing resistance will
simplify the whole effort.
3. Change the Measurements: Measurements define the culture of an organization.
What you measure is what you manage, and the person that does the measuring is
the manager. In order to change the outcome, we must change what is measured
and (possibly) who or what is doing the measuring. Think about this a little. The
person or thing measuring is receiving feedback, the result of prior changes. This is
known as a control loop, or a “feedback loop”. If the one measuring can’t make
changes or the one making changes can’t measure the results, the resulting delays
are significant wastes that cause serious troubles.
Leaders define the performance standards, or measures. You can’t introduce new
measurements into the organization and then continue to ask for the old ones. If a
leader keeps asking for old information, people give it to him or her. If a leader
seems to counter the aims of your change program, the people being led will
respond the same way.
4. Communicate Change Details: Define what needs to change in as much detail as
possible. For example, you can’t just say, “Sales people need to be friendlier to
customers.” You have to define “friendly”. You have to communicate the
characteristics of friendly behaviour, such as “greet customers warmly”, “ask about
their concerns”, or “address them by name”. Once you know what the behaviour
looks like, translate it in detail to employees and reward them immediately for doing
it.
5. Communicate Successful Changes: Reward those who change and
acknowledge their contributions. Focus your attention on people who change and
ignore those who do not. This will send the message to others that you value the
changes made and, in turn, encourage others to participate in the change program.
To derive the greatest benefit, the reward — material or not — must be immediate
and public.
6. Measure Change Progress: Make sure you have a regular method to capture
where the organization stands with respect to the change program. Is the current
dissatisfaction, vision, and first steps level greater than the resistance to change?
People are not mechanical systems: their behaviours are the result of internal
beliefs and assumptions. We must measure and monitor the progress being made
to ensure that the change program is having an effect on those beliefs and
assumptions. If given the option, most people will opt for the devil they know rather
than the one they don’t.
7. Ensure Change Lasts: Increasing the values in the change formula will help bring
about behaviour changes. However, it alone will not make them stick.
Organizational culture is far more persistent than many people allow for. Change
must be an iterative, interactive, and on-going process. It is definitely NOT an event.
Go back to the first step and update the change baseline. Discover new changes
that are needed. Develop new change strategies and keep up the change.

5.8 Summary
Notes Change is inevitable in the life of an individual or organisation. In today's business
world, most of the organisations are facing a dynamic and changing business
environment. They should either change or die, there is no third alternative.
Organisations that learn and cope with change will thrive and flourish and others who
fail to do so will be wiped out.
As societies continue to evolve and changing demand creates the need for new
products and services, businesses often are forced to make changes to stay
competitive. The businesses that continue to survive and even thrive are usually the
ones that most readily adapt to change.
Overcoming resistance to changes is often one of the biggest challenges for
continuous improvement practitioners.
Total Quality Management (TQM) describes a management approach to long-term
success through customer satisfaction. In a TQM effort, all members of an organization
participate in improving processes, products, services, and the culture in which they
work.
Business Process Reengineering (BPR) aims at cutting down enterprise costs and
process redundancies, but unlike other process management techniques, it does so on
a much broader scale. Business Process Reengineering (BPR) - also known as process
innovation and core process redesign - attempts to restructure or obliterate
unproductive management layers, wipe out redundancies, and remodel processes
differently.

Fill in the blanks:
1. Technology is the major ……………. force which calls for change.
2. ……………. of work force has changed over a passage of time.
3. Change in managerial personnel is another force which brings about change in
……………. .
4. ……………………………………………. describes a management approach to long-
term success through customer satisfaction.
5. ………………………………………….. aims at cutting down enterprise costs and
process redundancies,
6. ………………………………… define the culture of an organization.
7. A major thrust of TQM is …………………………………………………….

1. Describe Factors causing change.
2. Discuss briefly the meaning of change.
3. What is the need for change in an organization? What can an organization change?
4. Write short notes on:
(a) McKinsey 7 S model
(b) Kotter’s change management theory
(c) ADKAR model
5. Explain briefly TQM and BPR.
6. Highlight the guidelines for facilitating change in an organization.

5.11 Key Terms
 Change Agent: Person who attempts to alter some aspects of an organisation or Notes
an environment.
 Magnitude of Change: Minute alterations in the operation, to quantum change
 Unfreezing: The forces, used for maintaining the status quo in the organisational
behavior, are reduced by refuting the present attitude.
 Total Quality Management (TQM): It describes a management approach to long-
term success through customer satisfaction.
 Business Process Reengineering (BPR): It involves the radical redesign of core
business processes to achieve dramatic improvements in productivity, cycle times
and quality.

1. External
2. Nature
3. Organisation
4. Total Quality Management (TQM)
5. Business Process Reengineering (BPR)
6. Measurements
7. Continual process improvement

Hall of India.

Notes Unit 6: Future of Organisational Development

Structure
6.1 Introduction
6.2 Level of Change Programmes
6.2.1 Individual Level Change
6.2.2 Group Level Change
6.2.3 Organisational Level Change
6.3 Managing Planned Change
6.3.1 Planning for Change
6.3.2 Assessing Change Forces
6.3.3 Implementing Change
6.4 Cultural Models of Planned Change
6.4.1 Kurt Lewin Model
6.4.2 Greiner’s Model
6.4.3 Burke-Litwin Model of Organisational Change
6.4.4 Porras and Robertson Model of Organisational Change
6.5 Organising for the Future
6.6 Organizations as Learning Systems
6.6.1 Learning Systems
6.6.2 Facilitating Factors
6.6.3 Learning Orientations
6.7 Summary
6.10 Key Terms
Objectives
After studying this unit, you should be able to:
 Discuss the Level of Change Programmes
 Describe the importance of Managing Planned Change
 Highlight the in-depth knowledge of Cultural Models of Planned Change
 Explain about Organising for the Future
 Elucidate on Organizations as Learning Systems
6.1 Introduction
Change Management is the term that is used to refer to the change or transitioning
people, groups, companies and projects from one state to another. When this term is
applied to businesses and projects, it may refer to a process of transitioning the scope
of the project in such a way that it can meet changing requirements and objectives.
What happens is that after a certain point in time some changes may need to be
introduced as far as functioning, operations, marketing, finance or the other aspects of a

Future of Organisational Development 79
business are concerned so as to improve its chances of reaching its goals. Change
management involves the application of structured methods and a pre-planned
framework so as to steer business from its current state to a desired state. Notes
The main benefit or advantage of the application of change management is that it
helps to increase the chances of a business staying on its budget or schedule that in
turn leads to higher ROI and realization of benefits. Amidst the high competition and
fast paced world, it is important for every organization to move ahead by constantly
bringing about useful and structured changes and adapting to new technology and
methodologies to meet customer demand.
6.2 Level of Change Programmes

The various types of change programmes may be classified into individual level change,
group level change and organisational level change.
6.2.1 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 level will not have significant implications for the organisation. But this is not
correct because individual level changes will have impact on the group which in turn will
influence the whole organisation. Therefore, a manager should -never treat the
employees in isolation but he must understand that the individual level change will have
repercussions the individual.
6.2.2 Group Level Change

Management must consider group factors while implementing, any change, because
most of the organisational changes have their major effects at the group level. The
groups in the organisation 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 organisation, influence and status systems and
communication patterns.
The groups, particularly the informal groups have a lot of influence on the individual
members on the group. As such by effectively implementing change at the group level,
resistance at the individual level can be frequently overcome.
6.2.3 Organisational Level Change

The organisational level 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 or organisation level changes are:
1. Strategic Change: Strategic change is the change in the very basic objectives or
missions of the organisation. A single objective may have to be changed to
multiple objectives. For example, a lot of Indian companies are being modified to
accommodate various aspect of global culture brought in by the multinational or
transnational corporations.
2. Structural Change: Organisational structure is the pattern of relationships among
various positions and among various position holders. Structural change involves
changing the internal structure of the organisation. This change may be in the
whole set of relationships, work assignment and authority structure. Change in
organisation structure is required because old relationships and interactions no
longer remain valid and useful in the changed circumstances.

3. Process Oriented Change: These changes relate to the recent technological
developments, information processing and automation. This will involve replacing
Notes or retraining personnel, heavy capital equipment investment and operational
changes. All this will affect the organisational culture and as a result the behavior
pattern of the individuals.
4. People Oriented Change: People oriented changes are directed towards
performance improvement, group cohesion, dedication and loyalty to the
organisation as well as developing a sense of self-actualization among members.
This can be made possible by closer interaction with employees and by special
behavioral 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.
6.3 Managing Planned Change

A planned change is a change planned by the organisation; it does not happen by itself.
It is affected by the organisation with the purpose of achieving something that might
difficulty. Through planned change, an organisation can achieve its goals rapidly. The
basic reasons for planned change are:
 To improve the means for satisfying economic needs of members
 To increase profitability
 To promote human work for human beings
 To contribute to individual satisfaction and social well-being.
In introducing planned change, the basic problem before management is to handle in
such a way that there would be necessary adjustment in various forces. For this
purpose, the manager who has to act as the change agent has to go through a
particular process. The planned change process may comprise basically the following
three steps:
1. Planning for change
2. Assessing change forces
3. Implementing the change
6.3.1 Planning for Change

The first step in the process of change is to identify the next for change and the area of
changes as to whether it is a strategic change, process oriented change or employee
oriented change. This need for change can be identified either through internal factors
or through external factors. Once this need is identified, the following general steps can
be taken:
 Develop New Goals and Objectives: The manager must identify as to what new
outcomes they wish to achieve. This may be a modification of previous goals due to
changed internal and external environment or it may be a new set of goals and
objectives.
 Select an Agent of Change: The next step is that the management must decide as
to who will initiate and oversee this change. One of the existing managers may be
assigned this duty or even sometimes specialists and consultants can be brought in
from outside to suggest the various methods to bring in the change and monitor the
change process.
 Diagnose the Problem: The person who is appointed as the agent of change will
then gather all relevant data regarding the area or the problem where the change is
needed. This data should be critically analyzed to pinpoint the key issues. Then the
solutions can be focused on those key issues.

 Select Methodology: The next important step is selecting a methodology for
change which would be commonly acceptable and correct. As the human tendency
is to resist the change, employee's emotions must be taken into consideration when Notes
devising such methodology.
 Develop a Plan: After devising the methodology, the next step will be to put
together a plan as to what is to be done. For example, if the management wants to
change the promotion policy, it must decide as to what type of employees will be
affected by it, whether to change the policy for all the departments at once or to try
it on a few selected departments first.
 Strategy for Implementation of the Plan: In this stage, the management must
decide on the 'when', 'where' and 'how' of the plan. This include the right time of
putting the plan to work, how the plan will be communicated to the employees' in
order to have the least resistance and how the implementation will be monitored.
6.3.2 Assessing Change Forces

The planned change does not come automatically; rather there are many forces in
individuals, groups and organisation which resist such change. The change process will
never be successful unless the cooperation of employees is ensured. Therefore the
management will have to create an environment in which change will be amicably
accepted by people. If the management can overcome the resistance the change
process will succeed.
In a group process, there are always some forces who favor the change and some
forces that are against the change. Thus, equilibrium is maintained. Kurt Lewin calls in
the "field of forces". Lewin assumes that in every situation there are both driving and
restraining forces which influence any change that may occur.
Driving Forces are those, forces, which affect a situation by pushing in a particular
direction. These forces tend to initiate the change and keep it going. Restraining Forces
act to restrain or decrease – the driving forces. Equilibrium is reached when the sum of
the driving forces equals the 'sum of the restraining forces.
There may be three types of situations, as both driving and restraining forces are
operating:
1. If the driving forces far out weight the restraining forces, management can push,
driving forces and overpower restraining forces.
2. If restraining forces are stronger than driving forces, management either gives up
the change programme or it can pursue it by concentrating on driving forces and
changing restraining forces into driving ones or immobilizing them.
3. If driving and restraining forces are fairly equal, management can push up driving
forces and at the same time can convert or immobilize restraining forces.
Thus, to make the people accept the changes, the management must push driving
forces and convert or immobilize the restraining forces.
6.3.3 Implementing Change

Once the management is able to establish favorable conditions, the right timing and
right channels of communication have been established the plan will be put into action.
It may be in the form of simple announcement or it may require briefing sessions in
house seminars so as to gain acceptance of all the members and specially those who
are going to be directly affected by the change. After the plan has been implemented
there should be evaluation of the plan which comprises of comparing actual results to
the standards.
6.4 Cultural Models of Planned Change

There are several models of planned change, the popular models are explained below:

1. Kurt Lewin-Unfreezing, changing and refreezing model
2. Greiner’s Equential model
Notes
3. The Burke-Litwin Model of Organisational change
4. Porras and Robertson Model of Organisational change
5. Leavitt's System model.
6.4.1 Kurt Lewin Model

Lewin's model is based on the premises that before actually introducing a change,
organisation needs to be prepared for change, motivated to change and stabilized and
integrated the change into behaviors of organisation. Accordingly, Lewin's change
model includes three-steps in its process: unfreezing changing and refreezing. It is a
three stage model of the change process. The various stages are:
Stage 1-Unfreezing: Creating motivation and readiness to change through:
(a) Disconfirmation or lack of confirmation
(b) Creation of anxiety
(c) Provision of psychological safety.
Stage 2-Changing: Helping the client to see things, judge things, and react to things
differently based on a new point of view obtained through:
(a) Identifying with a new role model, mentor etc.
(b) Scanning the environment for the new relevant information.
Stage 3-Refreezing: Helping the client to integrate the new point of view into:
(a) The total personality and self concept.
(b) Significant relationships.
6.4.2 Greiner’s Model

According to this model, change occurs in terms, of certain sequential stages. The
external stimulus pressurizes the management of organisation to initiate change
process. The management in response to stimulus is motivated to take actions to
introduce change in organisation. Following the actions, the various change stages
occur in a sub sequential manner such as diagnosis of the problem, invention of a new
solution. Experimentation with new solution and reinforcement from positive results.
6.4.3 Burke-Litwin Model of Organisational Change

This model was developed by Warner Burke and George Litwin. This model shows how
to create first order and second order change. In first order change some features of the
organisation change but the fundamental nature of the organisation remains the same.
The change could be transactional, adaptive or evolutionary. The Figure 6.1 shows the
factors involved in the first order change changing structure, management practices,
and system causes change in work unit climate, which changes motivation and in turn,
individual and organisational performance. Transactional leadership is required to make
this change in organisational climate.

Notes
Source: W. Warner Burke, Organisation Development, 2nd ed., Addison-Wesley Publishing Company.
Figure 6.1: The Transactional Factors involved in First-order Change

In the second order change the nature of the organisation is fundamentally and
substantially altered-the organisation is transformed. OD programs are directed towards
both the first and second order change, with the special emphasis on second order
transformational change. If we want to cause second order change we must change
mission, strategies, leadership styles, and organisational culture. Interventions directed
towards these factors transform the organisation and cause a permanent change in the
organisational culture, which produces change in individual and organisational
performance. It is depicted in the figure given below:
Source: W. Warner Burke, Organisation Development, 2nd ed., Addison-Wesley Publishing company.
Figure 6.2: The Transformational Factors involved in Second-order Change

The premise of the Burke-Litwin model is that OD interventions directed towards
structure, management practices and system result in the first order change and
Notes interventions directed towards mission and strategy, leadership, and organisation
culture result in the second order change. Putting the two above mentioned figures of
first order and second order changes we get another figure as given below in which the
top half of the figure displays the factors involved in the transformational change and
the bottom half of the figure displays the factors involved in the transactional change.
These factors are able to change the organisation climate. The figure 6.3 given below
explains the premise of the model.
Source: W. Warner Burke, Organisation Development, 2d ed., p.128, 1994 by Addison-Wesley

Publishing Company, Inc. Reprinted by permission of the publisher.
Figure 6.3: The Burke-Litwin Model of Organisation Permission and Chances
6.4.4 Porras and Robertson Model of Organisational Change

The basic premise of this model is that OD interventions alter features of the work
setting causing changes in individual’s behaviors, which in turn lead to individual and
organisational improvements. This model shows how OD interventions can be linked to
factors in the work setting as these factors influence organisational members
cognitions.

Notes
Source: Jerry I. Porras and Peter J. Robertson, Organisational Development: Theory, Practice, and
Research.
Figure 6.4: Organisation Work Setting Factors

The work settings play a central role in this model and consist of four factors:
organizing arrangements, social factors, physical settings and technology. For example,
OD interventions that focus on goals, strategies and rewards will affect organizing
arrangements. Interventions that focus on the culture, management styles and
interaction process will affect social factors. Interventions that focus on job design and
work flow design will affect technology.
This model is extremely useful for OD practitioners and organisational leaders.
6.4.5 Leavitt’s Model

Leavitt's OD model is founded on the interactive nature of the various sub-systems in a
change process. In an organisational system, there are four interacting subsystems-
task, structure, people and technology. Due to their interacting nature, change in
anyone of the sub-systems tends to have consequences for the other sub systems also.
Change in anyone of the subsystems can be worked out depending upon the situation.
How the various sub systems interact with each other in a change process is shown in
the Figure 6.5.

Notes
Figure 6.5: Interacting Subsystems
6.5 Organising for the Future

The world of work is changing. Organisations are questioning how they can redesign
jobs to maximise the expertise and specialist knowledge of individual employees, to
operate more efficiently and effectively, to take advantage of automation and increasing
digitisation, and to meet the changing demands and needs of (particularly younger)
workers. However, education, especially schools, has been relatively slow to explore
new possibilities in talent management and structuring employment.
There was a story about the Roaming Teachers scheme, developed by the Young
Enterprise Trust, which sees experienced business studies teachers working with
teachers across 30 schools to improve their business studies programmes. Lucy
Wymer, who was the first roaming teacher described the opportunity the initiative
provides for keeping good teachers in education and enabling them to share their
knowledge and expertise to support teachers and students across multiple schools.
This initiative provides one example of how we can create new roles and opportunities,
which add substantial value, both to the teaching profession and our school system
more broadly.
Currently, the vast majority of teachers are expected to be generalists. That is, all
teachers regardless of whether it is their first year in the classroom or their twentieth, or
where their individual strengths lie, largely have the same responsibilities, and perform
the same tasks and roles. Furthermore, in New Zealand, career advancement for
teachers primarily involves taking on an administrative role – as a syndicate or
department leader, as a dean, or as a deputy principal or principal. There currently are
limited opportunities for our most talented educators, who wish to remain in the
classroom, to be recognised for their deep knowledge and expertise, and the
contribution that they make to their students or to the development of other teachers.
There is potential to move away from a purely generalist model in teaching and
instead to identify and recognise the strengths of individual educators and shape their
jobs so that they can spend more time focusing on tasks that rely on their particular
expertise. For example, some teachers are especially talented at designing powerful
curriculum materials, or working with students who are achieving at levels substantially
below their peers. Within such a model there is further opportunity for schools to identify
expert educators and to relieve them of particular jobs and responsibilities so that they
can spend more time on the tasks that require their specialised skills, including
supporting the up-skilling and professional learning of other teachers.
Alongside a rethinking of the structure of teachers’ roles and work there is an
opportunity to explore whether there are particular services, tasks or roles that currently
are undertaken by each school individually but instead could be distributed across
multiple schools. In a devolved school system like New Zealand, where each school
must develop universal capabilities, this has particular merit. Automation also offers
new possibilities for rethinking professional and operational structures in schools. The

McKinsey Global Institute estimates that up to 45 percent of the activities employees
perform can be automated by adapting currently available technologies. Digital
technologies could be better used to undertake some of the organisational and Notes
administrative tasks in schools, enabling teachers to focus on the parts of their job that
rely on their tacit experiential knowledge and the development of interpersonal
relationships, aspects that cannot, or at least should not, be replaced by automation.
Changing expectations about employment from young people entering teaching will
challenge the current rigid model. There is growing demand for greater flexibility in the
structure of jobs as well as in career progression opportunities. People entering the job
market today expect to change jobs multiple times over the course of their careers.
Thought must be given to how schools and the teaching profession more generally can
mentor new teachers into their roles while also providing opportunities for teachers to
embrace greater diversity in their work and to seek new responsibilities and positions
both inside and outside of schools.
We know that there are people, schools and organisations that are innovating in
education, and challenging traditional practices, structures and paradigms. Our task
now is to identify where these innovations are occurring and to learn from and with them
as they challenge conventional ways of thinking and behaving.
6.6 Organizations as Learning Systems

The recent decline of well-established firms and the perceived need for corporate
renewal has fuelled a growing interest in the topic of organizational learning. But what
exactly is a learning organization and what are the characteristics that define it? The
answer to that question will have a tremendous impact on how organizations go about
creating learning environments within their companies — and the eventual success or
failure of those efforts.
Using field observations and studies of other companies, we have developed a
model that describes what we believe are the critical factors that are essential for
understanding and enhancing the learning capability of any organization.
This is only a first step toward creating a set of criteria that organizations can use to
evaluate their strengths and weaknesses as learning systems. The hope is that as
organizations discover how to manage the learning process more explicitly, they can
design their own blueprints for learning.
6.6.1 Learning Systems

So how would you recognize a learning organization if you stumbled over it? Suppose
we have two companies, A and B, who are both attempting to enhance organizational
learning. Company A, a service provider, spends a lot of time scanning the industry for
ways to improve, invests heavily in team learning, and has a workplace that is generally
described as “open” and “aligned.” The employees work in tightly-knit groups; learning
is very informal. Company B, a manufacturing giant, spends its money on formal
employee training programs such as Total Quality. It encourages continuous
improvement through controlled experiments that value incremental gains over
transformational learning. The company is very inwardly focused — almost obsessive
— and learning is centred on individual improvement. So, which one is a learning
organization?
Actually, both are; they are just developing their learning in different ways. The
organizations we studied shared a set of 10 common factors — including environmental
scanning (Company A) and an experimental mindset (Company B) — that either
promoted or inhibited learning. We termed them “facilitating factors” because we believe
they ate crucial to the success or failure of a company’s attempt to improve its capacity
to learn.
We also noticed differences in the ways the companies approached their learning.
For example, some companies focused on incremental improvements in manufacturing
(like Company B), while others focused on breakthrough learning in marketing or
service quality (such as Company A). We refer to these stylistic differences as “learning
Notes orientations.” Learning orientations do not necessarily determine the quality of learning,
but they describe how or where the learning takes place. Together, the facilitating
factors’ and learning orientations describe an organization’s overall learning system.
6.6.2 Facilitating Factors

Maximizing learning within the organizational setting is not a haphazard process. Some
policies, structures, and processes do seem to make a difference in how well an
organization learns. In the companies we studied, we identified a set of 10 facilitating
factors that we feel are essential to organizational learning. A company can assess the
extent to which it is promoting learning by determining its level of investment (low,
medium, high) in the following areas:
 Performance Gap: Without feedback indicating gaps between targeted outcomes
and actual results, performance can stagnate or decline. To counteract that
tendency, organizations need to make concerted efforts to identify and correct
performance gaps — in both good times and bad.
 Scanning Imperative: Scanning the marketplace can help an organization learn
about successes within the industry. Benchmarking, scenario planning, and
anticipating new trends in the market can stimulate and give direction to
organizational learning efforts.
 Involved Leadership: Leaders must not only help develop an organization’s vision,
but also engage in hands-on implementation of that vision. Through direct
involvement that reflects coordination, vision, and integration, leaders can provide a
powerful role model of active learning that will help sustain a company’s efforts.
 Initiators of Learning: While involved leadership sets the stage for learning,
successful organizational learning efforts require more than one “champion.” The
greater the number of “gatekeepers” who bring knowledge into the system and
advocates who promote a new idea, the more rapidly and extensively the learning
will spread.
 Experimental Mindset: If learning comes through experience, it follows that the
more one participates in guided experiences, the more one learns. Therefore,
venturing into uncharted waters — and experiencing the failures that may occur —
is an important part of organizational learning.
 Requisite Variety: Investments in experimentation go hand-in-hand with a pursuit
of varied organizational skills and competencies. An organization that supports
variation in strategy, policy, process, structure, and personnel is more flexible when
unforeseen problems arise. Requisite variety opens the door to more options and
provides new avenues for learning and experimentation.
 Climate of Openness: A willingness to take risks and explore new areas will more
likely occur in an organization that fosters a climate of openness. This includes the
freedom to express divergent views — which encourages multiple perspectives on
an issue — and also to acknowledge mistakes. The organization can then benefit
from the rich learning that comes from analyzing and understanding the causes of
failures.
 Systems Perspective: Failures often result from unintended consequences of well-
meaning policies or decisions. In order to design and implement effective strategies,
managers need to look at their organization and its environment as a unified
system. A systems perspective deepens the learning process by revealing how our
actions create our reality, while illuminating high-leverage options for creating long-
term change.
 Concern for Measurement: Rigorous analysis is an essential part of the learning
process, as evidenced by the importance of metrics in Total Quality efforts.
Effective experimentation requires a set of well-developed methods for measuring

gaps between expected and actual performance, and for designing effective action
based on those results.
 Continuous Education: Ultimately, learning is built upon a commitment to lifelong
Notes
education at all levels of the organization. The presence of traditional training and
development activities is not enough; it must be accompanied by a palpable sense
that one is never finished learning and practicing.
The goal is not to be “the best” in all of the facilitating factors. Rather, focused
investments in particular areas that fit the company’s overall learning strategy will be
more effective than a scatter-shot approach. Determining the most important areas for
investment, however, requires an understanding of the organization’s unique learning
style, which is determined by its various learning orientations.
6.6.3 Learning Orientations

How an organization functions as a learning system is based on a variety of factors —
including culture, experience, values and attitudes — which determine where learning
takes place and the nature of what is learned. Each of the learning orientations listed
below consists of two opposing poles. Most organizations fall somewhere along the
continuum between the two. For example, in the area of skill development, some
organizations focus primarily on individuals, while others promote team skills. The
collection of the preferences in each area forms an overall pattern that determines a
given organization’s learning style (see “What is Your Company’s Learning Style?”).
 Knowledge Source (internal vs. external): Does an organization develop new
knowledge internally, or does it seek inspiration through ideas developed
externally? The distinction is often thought of as the difference between innovation
or imitation. In the U.S. there has been a tendency to value the innovative approach
more highly and to look down on those who seem to be “copiers.” The Japanese,
however, have proven that organizations can successfully pursue a strategy of
adopting other people’s ideas, incrementally improving them, and making them
better than the original.
 Dissemination Mode (informal vs. formal): Does an organization attempt to
create a space in which learning can evolve, or does it pursue a more structured
approach to learning? In the more informal approach, learning is spread through
encounters with role models or as teams share their experiences in ongoing
dialogue. A structured approach, on the other hand, relies more on formal education
methods and certification of learning.
 Knowledge Focus (product vs. process). In accumulating knowledge, does an
organization prefer to focus its learning on issues related to product and service
outcomes or on basic processes that underlie and support the products? The
distinction here is one of being the low-cost producer or focusing on providing
exceptional customer service.
 Learning Focus (incremental vs. transformative). Does an organization
concentrate its learning on methods and tools to improve what is already being
done, or on testing the assumptions underlying the processes? Tool- or method-
based learning (also called single-loop learning by Chris Argyris), is useful for
enhancing the performance of a system. Conceptual (double-loop) learning can
potentially lead to discontinuous steps of improvement in which the entire system or
process is reframed.
 Value-Chain Focus (design/make vs. market/deliver). In what areas of the
company or on which core competencies does the organization focus its learning
efforts? If personnel and money allocations are continually directed toward one
particular area — engineering or production instead of marketing and sales —
robust learning will more likely occur in this area.
 Skill Development (individual vs. team). In employee development, does the
organization place more emphasis on individual skill enhancement or on team
learning? While team skills are essential for taking advantage of the diverse

knowledge groups can bring to an issue, this can only occur if continual investments
are being made to enhance the knowledge of individual players.
Notes  Documentation Mode (personal vs. collective). What efforts does an
organization make to retain the knowledge that individuals and groups acquire? At
one pole, knowledge is seen in very personal terms, as something an individual
possesses by virtue of education and experience. At the other pole, the emphasis is
on creating a collective memory through information sharing. As in skill
development, organizational learning is enhanced by a continual flow of knowledge
from the individual to the collective level.
Once an organization understands its overall learning orientation, it can pursue two
avenues for enhancing learning. One is CO embrace the style that exists and try to
improve its effectiveness. For example, a firm that is more of an imitator than an
innovator could accept its orientation with heightened awareness of its value and focus
on honing its skills as a fast-follower. The second possibility is for a company to actually
change its learning style by moving toward the opposite pole on the continuum.
Trying to describe an organization’s overall learning system is valuable because we
can often see better what we want to be by beginning with an understanding of what we
are. Organizational change often comes more readily if the targets of change first
become more aware and accepting of their strengths and weaknesses. In other words,
it is important to gain knowledge and appreciation of your organization’s assumptions
regarding learning, whether you want to build upon them or change them significantly.
6.7 Summary
The OD literature has directed considerable attention to leading and managing change.
The unit has covered almost every aspect related to the management of the planned
change as change can vary in complexity from the introduction of relatively simple
processes into a small work group to transforming the strategies and design features of
the whole organisation.
Change Management is the term that is used to refer to the change or transitioning
people, groups, companies and projects from one state to another. When this term is
applied to businesses and projects, it may refer to a process of transitioning the scope
of the project in such a way that it can meet changing requirements and objectives.
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 organisational level 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
The planned change does not come automatically; rather there are many forces in
individuals, groups and organisation which resist such change. The change process will
never be successful unless the cooperation of employees is ensured. Therefore the
management will have to create an environment in which change will be amicably
accepted by people. If the management can overcome the resistance the change
process will succeed.

Fill in the blanks:
1. …………….. OD model is founded on the interactive nature of the various sub-
systems in a change process.
2. …………….. Helps the client to integrate the new point of view into the total
personality and self-concept and significant relationships.

3. ……………………………. 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. Notes
4. ………………………………….. can always resist change for example; the trade
unions can very strongly resist the changes proposed by the management.
5. ………………………………. can pose a major barrier to change because of the
inherent strength they contain.
6. ………………………………… is the change in the very basic objectives or missions
of the organisation.
7. ……………………………………….. involves changing the internal structure of the
organisation.
8. ………………………………………….. changes relate to the recent technological
developments, information processing and automation.
9. ………………………………….. changes are directed towards performance
improvement, group cohesion, dedication and loyalty to the organisation as well as
developing a sense of self-actualization among members.
10. Without ………………………….. indicating gaps between targeted outcomes and
actual results, performance can stagnate or decline.

1. Kurt Lewin suggests that planned change is a three stage process. Describe these
stages.
2. Describe the various sources in the business environment from which impetus for
planned change has come in the recent years.
3. Write short note on organisational level of change Programmes.
4. Discuss about Managing Planned Change
5. List the various Cultural Models of Planned Change. Describe briefly.
6. What do you mean by Organising for the Future? State its importance n today’s
scenario.
7. Write brief notes on:
a. Facilitating Factors
b. Learning Orientations
6.10 Key Terms

 Strategic change: It is the change in the very basic objectives or missions of the
organisation.
 Structural change: It involves changing the internal structure of the organisation.
 Process Oriented Change: These changes relate to the recent technological
developments, information processing and automation.
 People Oriented Change: People oriented changes are directed towards
performance improvement, group cohesion, dedication and loyalty to the
organisation as well as developing a sense of self-actualization among members.

1. Leavitt’s model
2. Refreezing
3. Individual level
4. Formal groups
5. Informal groups
6. Strategic change
7. Structural change
Notes
8. Process Oriented
9. People Oriented
10. Feedback

Hall of India.

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58 Organisational Change and Development

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Amity Directorate of Distance & Online Education

4.8 Check Your Progress

4.9 Questions and Exercises

4.10 Key Terms

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Check Your Progress: Answers

4.11 Further Readings

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Notes Unit 5: Change Management

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5.2 Meaning of Change

5.3 Need for Change

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4. Need to Improve Processes: A business might need to implement new production

5. Government Regulations: Changes in government regulations can have an impact

5.3.1 Why Organisations Change?

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5.3.2 What Organizations can Change?

5.4 Factors Causing Change

5.4.1 External Forces

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5.4.2 Internal Forces

5.5 Models & Techniques Involved in Change Management

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5.5.2 McKinsey 7 S Model

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Benefits of this model

Disadvantages of this model

5.5.3 Kotter’s Change Management Theory

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Benefits of this model

Disadvantages of this model

5.5.4 Nudge Theory

5.5.5 ADKAR Model

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Benefits of ADKAR Model

5.5.6 Bridges’ Transition Model

5.5.7 Kübler-Ross Five Stage Model

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5.6 TQM and BPR

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5.6.2 BPR or Business Process Reengineering

Companies use Business Process Reengineering to:

5.7 Guidelines for Facilitating Change

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5.9 Check Your Progress

5.10 Questions and Exercises

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Check Your Progress: Answers

5.12 Further Readings

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Notes Unit 6: Future of Organisational Development

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6.2 Level of Change Programmes

6.2.1 Individual Level Change

6.2.2 Group Level Change

6.2.3 Organisational Level Change

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6.3 Managing Planned Change

6.3.1 Planning for Change