INTRODUCTION TO

ORGANIZATIONAL CHANGE

Presented to: Prepared by:-

Dr. RupinderBir Kaur Abhinav Chaturvedi
Shobitash Jamwal
MBA-HR (Sem II)
 What is Organizational Change?

Organizational change is about reviewing and modifying management

structures and business processes. Small businesses must adapt to
survive against bigger competitors and grow.
Organizational change comprises four main issues:-
• Content
• Contextual
• Process
• Criterion
NEED FOR ORGANIZATIONAL
CHANGE
 Content issues focus on the substance of contemporary
organizational changes.

 Contextual issues center on the forces or conditions present in the external and
internal environments of organizations.

 Process issues concentrate on the actions undertaking during the establishment of

intended change.

 Criterion issues, on the other hand, tackle outcomes usually

evaluated in organizational change.
1. Set right the situation

. Organizations often need to correct situations, which they

believe require some adjustments or change.

. For example, in a recessionary market, an existing HR

policy on variable pay may seem to be incorrect when it
is based on the value of total sales. The organization may
amend this with the fixed performance incentive till the
market situation improves.
2. Seize opportunities to grow

. New market opportunities may motivate an organization to

build new capabilities by expanding their activities or through
strategic alliance, identifying business partners.

. For example, when political pressure in the U.S mounted

against outsourcing to India, Infosys set up units in Canada to
get U.S outsourced jobs and then routed these to their Indian
units.
3. Emerge as different entity

. Often, organizations change to become more flexible. While

adapting to new situations is essential, flexibility in operation
or functions may also be required in special circumstances.

. For example, developing strategic business units based on

product mix or type to make each product type an independent
profit centre.
KEY ELEMENTS FOR SUCCESS
IN ORGANIZATIONAL CHANGE
1. Plan for long-term
. Broadly, a sound strategic vision rather than a specific detailed
plan can help the organization to make reliable predictions.
2. Empower people
. Decision should be made at the operation level through
delegation of power and responsibility. This can make the
organizational change process much simpler, as with increased
ability for problem solving, employees will volunteer for
change.
3. Encourage, enable and develop people to be active in the change
process. This will enable the organization to form virtual teams
and adopt the matrix organizational structure, where seniors
play a more proactive role in initiating the change.

4. Make the strategic change process free from autocracy and

interference.

5. Establish forums to communicate methods to review and

implement change.
TYPES OF ORGANIZATIONAL
CHANGE
1. Planned and unplanned change

. Planned change is an organizational change that is deliberate

and based on conscious reasoning and actions. On the other
hand, at times, organizations opt for emergent change.

. Unplanned change is an organizational change that is

unpredictable and could take place suddenly.
2. Episodic and continuous change

. Episodic change is frequent, discontinuous, intentional and

radical in nature. Replacement of strategy or a new product
can be done under this type of change.

. Continuous change, on the other hand, is ongoing, evolving

and cumulative. Organizations often go for continuous change
as part of their incremental or short-term strategy.
3. Developmental change
. This kind of change can be planned or emergent
organizational change. It enhances or corrects existing aspects
of an organization by primarily focusing on skills or process
improvement.
4. Transitional change
. It is an episodic, planned and radical change process. Most
organizational change models are of the transitional type.
5. Transformational change

. This kind of change is radical and second order in nature. It requires

a shift in the assumptions made by the organization and its
members.

. It may result in the creation of an organization that operates in

developmental mode – one that continuously learns, adapts and
improves.
STRATEGIES OF CHANGE
MANAGEMENT
1. Normative re-educative strategy

. This strategy believes that changing the norms, attitudes and values
of individuals will lead to changes in their behaviour. It is based
upon the core beliefs, values and attitudes and assumes that change
will occur as individuals change their attitudes and this makes them
behave differently.

. Change strategy in this case emphasizes solutions that are more

consistent with the beliefs and value systems of the people.
2. Rational-empirical strategy
. This strategy of change management deals with the rationality of
people to embrace change for their self-interest. Change intents
need to be clear and organizations must understand the benefits of
such change.
3. Power-coercive strategy
. Organizational change often requires application of power.
Employees become change compliant when it is enforced by the top
echelons of management. Hence, this strategy often helps in
achieving the change intents.
3. Action-centered strategy

. These strategies focuses on problem solving. Such strategies not only help
to resolve the problem, but also effectively manage the change
implications, particularly in the post change phase.

. This strategy is used when people oppose loss and disruption and
demonstrate their eagerness to adapt readily to new circumstances.

. An organization may use change initiatives to build a new organization and

transfer existing people to it.
DRAWBACKS IN IMPLEMENTING
ORGANIZATIONAL CHANGE
 Inappropriate approach of management or not being suitable for
organizational change requirements.
 Inappropriate and often unrealistic expectations from organizational
change.
 Absence of sustained efforts over a period of time to introduce
organizational change.
 Poor understanding of the organizational change.
 Lack of support and systems.
 Lack of commitment to the organizational change plans.
 Change - Definition

● Change is something that presses us out of our comfort

zone. Change is for the better or for the worst, depending
on where you view it. Change has an adjustment period,
which varies on the individual to individual and from
organization to organization.
● Change is needed when all the props and practices of the
past no longer work.
 Change In Organization

● Change comes to business in many forms

like merger, acquisition, divestiture, joint
venture, technology implementation,
organizational restructuring, or regulatory
compliance.
● It can also come from new leadership,
strategic decisions to change direction to
position for growth or react to changing
market conditions.
 Forces Of Change

Two Opposing forces influence change in an

organization:
● One that drives for change and one that resist.
 Forces Of Change

Driving forces initiate change Resisting Forces act against

and keep it going.This may the driving forces of
be extrenal or internal. change.They are usually
internal.
Organizational Change Management

● Organizational change management includes processes

and tools for managing the people side of the change at
an organizational level. These tools include a structured
approach that can be used to effectively transition groups
or organizations through change.
● When combined with an understanding of individual
change management, these tools provide a framework for
managing the people side of change.
Organizational Change Management

●
People who are confronted by change will experience a form of
culture-shock as established patterns of corporate life are
altered, or viewed by people as being threatened. Employees
will typically experience a form of "grief" or loss (Stuart, 1995)
 Dynamic Conservatism

● This model by Donal Schon explores the inherent nature

of organizations to be conservative and protect
themselves from constant change.Schon recognised the
increasing need , due to the increasing pace of change for
this process to become far more flexible.
● These ideas are further expanded on within his framework
of 'refection-in-action' the mapping of a process by which
this constant change could be coped with.
According to Maira and Scott-Morgan (1997), there are
three groupings within organizations that best support an
understanding of unwritten expectations:
(1) motivators,
(2) enablers and
(3) triggers, delineated below.
Triggers, or triggering events, can be defined as
circumstances which act as catalysts to organizational
learning. As with human beings, organizations do not learn
proactively (Watkins and Marsick, 1993).
● Motivators are items that are important to individuals
within an organization. "Motivators correspond to what is
actually important to people, what they value".
● Maira and Scott-Morgan (1997) state that Enablers are
those who are important to individuals within an
organization. This may or may not be in line with an
organizational chart
● Triggers are how people get what is important to them: the
conditions that lead an enabler to grant a reward or
impose a penalty" (Maira & Scott-Morgan, 1997).
 Triggers Of Change -Definition

“Any disorganizing pressure, arising outside or inside the

organization, indicating that current arrangements, systems,
procedures, rules and other aspects of organization structure and
process are no longer appropriate or effective is known as a trigger
causing change.”
Triggers can be identified both on the basis of external and internal
trigger in an organization.
 Triggers Of Change

● According to Brookfield (1987, 1994),

“triggers” are life events “that prompts a
sense of inner discomfort and perplexity."
● Motivator tends to elicit the learning
desire from individuals; however, trigger
tends to force organizations to respond the
changes of the environment such as
socioeconomic changes.
According to Mohanan (2006), the characteristics of the teacher
who is likely to trigger learning include:
a) has a deep knowledge and understanding of the subject matter.
b) is committed to teaching and is hard working.
c) continually seeks ways to improve, innovate, and be up to date.
d) has a strong passion for subject.
e) has a high enthusiasm for teaching.
f) is an inspirational role model to students.
g) has a high emotional intelligence to empathize with students.
Grundy (1993) states that major changes can be triggered
by “ a multitude of factors”, the main ones being:

External
● Changes in competitive forces
● Regulation/deregulation
● Changes in customer expectation
● Changes in standards
● Technology changes
Internal
● Performance dips
● Changes in the management team (particularly the chief
executive)
 Frequent causes of change

Wille and Hodgson’s (1991) survey on the

reasons for change found the following:
● Financial loss, profit reductions 12%
● Increased competition in almost 50%
● Technological development 19%
● New chief executive 8%
● Industry in recession 11%
 Internal Triggers

● Human Resources Issues.

● Implementation Issues.
● Inter-organizational relations.
 External Triggers

● Business Environment Issues.

● Technology Environment Issues.
● Economic Environment Issues.
● Ecological & Political Environment Issues.
● Change In Socioeconomic Issues
● Creativity as a Trigger.
Leavitt's Model Of Change-1965

Task

Knowledge
Technology People
Management
Culture

Structure

Leavitt's Model of Change: Task,

Technology, Structure, and People
 Four Basic Change Management Strategies

Empirical-Rational
People are rational and will follow their self-interest — once it is
revealed to them. Change is based on the communication of
information and the proffering of incentives.
Normative-Reeducative
People are social beings and will adhere to cultural norms and
values. Change is based on redefining and reinterpreting existing
norms and values, and developing commitments to new ones.
Bennis, Benne and Chin
Power-Coercive
People are basically compliant and will generally do what
they are told or can be made to do. Change is based on the
exercise of authority and the imposition of sanctions.

Environmental-Adaptive
People oppose loss and disruption but they adapt readily to
new circumstances. Change is based on building a new
organization and gradually transferring people from the old
one to the new one.
 Role of Internal Consultants in
Managing change

Internal Consultants play a unique role in

driving successful change in organizations
across the globe.
● Not only do they support the specific
solution development and expertise, and
sometimes the project management
support, but they are often times a key
player in the change management activities
that support project implementation.
 Dr. William Trotter Stated

Change Consultant (CC) is any individual/group which serves internal

clients in an advisory capacity, including:
● Working within the corporate structure to resolve business issues and
implement solutions in areas that include organizational
effectiveness/development, strategic planning, or process
improvement
● Serving as a change agent, coach, educator or facilitator within your
company
● Supporting internal clients in a shared service type organization, such
as: Human Resources; Training & Development; Information
Technology; Finance; Quality Management; Health, Safety &
Environmental Services; Competitive/Business Intelligence and
Planning; etc.
 Formal Content of Personal
Construct Theory

Fundamental Postulate: a person's processes are psychologically

channelized by the ways in which he anticipates events
● Construction Corollary: a person anticipates events by constructing
their replications
● Individuality Corollary: Persons differ from each other in their
constructions of events
● Organization Corollary: Each person characteristically evolves for
his convenience in anticipating events, a construction system
embracing ordinal relationships between constructs
● Dichotomy Corollary: A person's construct system is composed of a
finite number of dichotomous constructs
● Choice Corollary: A person chooses for himself that alternative in a
dichotomized construct through which he anticipates the great
possibility for the elaboration of his system.
● Range Corollary: A construct is convenient for the anticipation of a
finite range of events only
● Experience Corollary: A person's construction system varies and he
successively construes the replications of events.
● Modulation Corollary: The variation in a person's construction
system is limited by the permeability of the constructs within whose
ranges of convenience that variants lie.
● Fragmentation Corollary: A person may successively employ a
variety of construction subsystems which are inferentially
incompatible with each other.
● Commonality Corollary: To the extent that one person employs a
construction of experience which is similar to that employed by
another, his processes are psychologically similar to those of the
other person.
● Sociality Corollary: to the extent that one person construes the
construction processes of another he may play a role in the social
process involving the other person.
● (Kelly, 1955)
 Challenges In Implementing
Change

● A critical challenge for managers today is to synchronize the needs

of individuals, the functions and the company and its value chain in a
way to achieve the full benefits of the lean enterprise while
increasing the individual opportunities, functional strength and the
well-being of partner companies.
● Other challenge for the managers in the beginning of the
implementation process was actually to follow the new practices and
principles avoiding going back to the previous stage.
● A challenging job for the managers in all of the studied companies in
the research of (Czabke, Hansen & Doolen 2008) turns out to be
the effective communication of the vision and plan for lean
implementation to the workforce
 Case Study-US Auto Industry

● Schein states that “survival anxiety” is the realization that

survival of the individual or the organization depends on
change (Coutu, 2002). This is demonstrated very clearly
when one studies the U.S. auto industry and changes
made for the sole purpose of "survival".
● All domestic competitors have undergone significant
changes as a means of surviving the attack of foreign
competition within their our own market. U.S.-based
manufacturers have had to work collaboratively with the
unions that represent their workforces to make changes in
wages, benefits, operating practices, and work rules.
● They have also had to make significant changes in product
development, styling, value, and quality, in efforts to maintain a
presence in the market. When there were only few competitors in the
market, just 20 years ago, the "need" for change was not as great.
● Now, with well over 300 nameplates competing in the U.S. market,
dramatic changes have had to been made just as the "price of
admission" -- for example without excellence in product quality and
safety, a manufacturer cannot even hope to get in the market.
● The threat to survival of individuals and organizations has become a
reality, and has driven changes that are ultimately good for the
customer. One wonders if, without this threat to survival, would the
changes have occurred at all.
 Thank You

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